Abrdn PLC
LSE:ABDN

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Abrdn PLC
LSE:ABDN
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Price: 194.7 GBX -0.82% Market Closed
Market Cap: 3.6B GBX

Abrdn PLC
Investor Relations

Abrdn PLC, a major player in the global investment landscape, has traversed a storied path since its inception, reflecting its evolution into a multifaceted financial powerhouse. Originally rooted in Scotland as Standard Life Aberdeen, the company underwent a strategic rebranding to Abrdn in 2021, marking a significant shift in its identity aimed at modernizing and simplifying its brand presence. Abrdn functions as an integrated asset management giant, bringing together investment, advisory, and administrative services under one roof. It serves a diverse clientele, ranging from individual retail investors to large institutional clients, with its offerings spanning across equities, fixed income, real estate, alternatives, and cash management products. This extensive spectrum not only diversifies its revenue streams but also fortifies its resilience against market fluctuations and varying economic cycles.

Abrdn's core business model thrives on a fee-based structure, generating income predominantly through investment management and advice fees. By leveraging its expansive expertise and resources, Abrdn crafts tailored investment solutions that align with clients' unique financial goals and risk appetites. The firm also places a strategic emphasis on sustainable investing, integrating ESG (Environmental, Social, and Governance) criteria across its portfolios to meet the growing demands for socially responsible investing. Furthermore, Abrdn continuously seeks technological advancements and data-driven insights to enhance its service delivery, streamline operations, and augment asset performance. This approach, coupled with its global footprint and deep market expertise, enables Abrdn to capture new growth opportunities and maintain its competitive edge in a dynamically evolving financial market landscape.

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ABDN
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Last Earnings Call
Fiscal Period
Q2 2023
Call Date
Aug 8, 2023
AI Summary
Q2 2023

Profit Growth: abrdn delivered a 10% increase in adjusted operating profit and a 4% increase in revenue, mainly from the full six-month integration of interactive investor (ii).

Cost Savings: The company is on track to deliver £75 million in net cost reductions in 2023, with £30 million already achieved in H1 and further actions planned.

Buyback Extension: abrdn is extending its share buyback program to £300 million, reflecting strong capital discipline and excess capital generation from asset sales.

Investment Flows: Net outflows in Investments improved in Q2, returning to a small net inflow of £200 million, driven by strong partnerships (notably Phoenix) and recovering risk appetite.

Adviser & Personal Strength: Adviser and Personal businesses accounted for over 85% of group adjusted profits, benefitting from efficiency and diversified revenue streams.

Operational Simplification: The group closed or merged 43 funds and completed major technology upgrades to streamline operations and improve client experience.

Positive Outlook: Management remains confident in continued progress and efficiency improvements, despite acknowledging ongoing market and macroeconomic challenges.

Key Financials
Net Operating Revenue
£721 million
Adjusted Operating Profit
£127 million
Cost/Income Ratio
82%
Adjusted Capital Generation
£142 million
Interim Dividend
£0.073
Assets Under Management (AUM)
£496 billion
Investments AUM
£368 billion
Investments Net Outflows (ex-Liquidity)
£5.7 billion
Gross Inflows (Investments)
£22.1 billion
Phoenix Gross Inflows
£11.2 billion
Adviser Revenue
£103 million
Adviser Adjusted Operating Profit
£49 million
Adviser Cost/Income Ratio
52%
Personal Net Operating Revenue
£152 million
Personal Adjusted Operating Profit
£61 million
Personal AUA
£67 billion
Personal Cost/Income Ratio
60%
ii Adjusted Operating Profit
£67 million
ii Revenue
£115 million
ii Cost/Income Ratio
42%
ii Net Treasury Income
£66 million
ii Interest Margin
229 basis points
Net New Flows (Personal)
£1.9 billion
Share Buyback Program
£300 million
Earnings Call Recording
Other Earnings Calls
2023
2022
2021

Management

Mr. Jason Michael Windsor
Group CEO & Director
No Bio Available

Contacts

Address
Edinburgh
Investment House, 1 George Street
Contacts
+1312452552.0
www.abrdn.com