(Bloomberg) -- Abrdn Plc suffered more outflows in the second half of 2022 as torrid market conditions took a toll on the asset manager, shrinking its assets to a record low.

Against a backdrop described by CEO Stephen Bird as “one of the toughest investing years in living memory,” Abrdn saw more clients withdraw their money, but pointed to progress in the wealth and savings market following its £1.5 billion acquisition last year of the Interactive Investor platform. 

Assets under management and administration dropped to £500 billion ($604 billion) in 2022 from £542 billion a year earlier, the lowest since the firm’s creation via a 2017 merger, according to a statement Tuesday. That included an £8 billion drop in the second half of the year, including from £2 billion of client withdrawals. 

For the whole year, clients’ net redemptions were £39.7 billion, above the £37 billion that analysts polled by Bloomberg were expecting. Of that, £24.4 billion came from a mandate with Lloyds that Abrdn lost in the wake of its merger in 2017.

Shares in Abrdn swung between gains and losses in early trading. They closed the day up 5.25%. Investors largely liked the growth in the Interactive Investor and platform businesses, Bird said in an interview. “This is a re-rating story. Who knows what shares do on the day of the results. I’m very pragmatic,” Bird added.

Since Abrdn was created from the 2017 merger of Standard Life and Aberdeen Asset Management, it has been plagued with heavy outflows. Bird, who took the top job in 2020, has been trying to stop the bleeding and has taken several steps to revamp the asset manager, including changing its name, buying Interactive Investor and splitting the firm into three different business units.

Adjusted pre-tax profits fell to £253 million, down from £323 million, but above analysts’ expectations for £227 million. Profits at Interactive Investor more than doubled to £94 million. The results reflected “resilience,” according to Bird. 

Read More: The £500 Billion Money Manager Battling an Identity Crisis

In 2022 Abrdn dropped out of and then rejoined the FTSE 100 — Britain’s blue-chip index — in the space of four months. Its shares reached a five-year low in October. 

It has also seen a wave of departures since Bird took over. Stephanie Bruce, its chief financial officer and one of the UK’s most high-profile women in finance, is due to step down in the next few months. 

Read More: Abrdn CFO Bruce to Exit Asset Manager After Turbulent Period

(Updates with closing share price in the fifth paragraph. An earlier version corrected billions to millions in seventh paragraph)

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