Edinburgh-based investment group Abrdn is selling its Focus Solutions software business as the investment manager’s new CEO Jason Windsor looks to improve its performance, Reuters has reported.

Abrdn has agreed to sell the 100-person company, which it bought for £42 million in 2011, to its management team led by managing director Dave Upton, a source familiar with the matter told Reuters.

On October 24, Abrdn said its assets under management and administration (AUMA) rose 2% YTD to £507 billion, reflecting positive markets and net inflows at its Interactive Investor business.

However, Abrdn shares fell about 8% as it revealed continued outflows in its Investments business that were “driven by equities and Insurance Partners” with a “performance transformation ongoing.”

Since October 17, Abrdn’s share price has fallen more than 20% from around £1.72 to about £1.36, reducing the firm’s stock market value to about £2.5 billion.

An Abrdn spokesperson confirmed the sale plans for Focus Solutions, whose software supports the work of financial advisers, but declined to disclose the price.

Reuters said Windsor has begun “running the rule” over the company’s various businesses with a view to cutting non-performing parts and refocusing on core areas.

Abrdn has been steadily writing down the value of Focus Solutions, with a final writedown of around single-digit millions expected in full-year results, although this is yet to be finalised, the Reuters source said.

The Abrdn spokesperson said Abrdn was focused on its three core businesses – investments, adviser and interactive investor.

“There will be parts of the group that do not feature in our future plans, and where we have an opportunity to simplify and become more efficient,” the spokesperson said.

“We concluded that Focus Solutions had reached an inflection point where Abrdn was no longer the right owner.”