REG - abrdn PLC - Final Results - Part 7 of 7
04/03/2025 07:15
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250304:nRSD1946Za&default-theme=true
RNS Number : 1946Z abrdn PLC 04 March 2025
abrdn plc
Full Year Results 2024
Part 7 of 7
Company financial statements
Company statement of financial position
As at 31 December 2024
2024 2023
Notes £m £m
Assets
Investments in subsidiaries A 4,273 4,402
Investments in associates and joint ventures B 196 196
Deferred tax assets N 138 150
Loans to subsidiaries C 58 -
Derivative financial assets C 50 41
Equity securities and interests in pooled investment funds C 544 574
Debt securities C 1 126
Receivables and other financial assets C 60 46
Current tax recoverable N 12 -
Other assets F 6 47
Cash and cash equivalents C 9 21
Total assets 5,347 5,603
Liabilities
Subordinated liabilities L 597 599
Current tax liabilities N - 1
Other financial liabilities L 189 166
Other liabilities P 1 -
Total liabilities 787 766
Equity
Share capital G 257 257
Shares held by trusts H (119) (137)
Share premium reserve G 640 640
Retained earnings I
Brought forward retained earnings 3,547 3,665
(Loss)/profit for the year attributable to equity shareholders of abrdn plc¹ (16) 300
Other movements in retained earnings (181) (418)
Total retained earnings 3,350 3,547
Other reserves J 225 323
Equity attributable to equity shareholders of abrdn plc 4,353 4,630
Other equity K 207 207
Total equity 4,560 4,837
Total equity and liabilities 5,347 5,603
1. The Company's total loss for the year was £5m (2023: profit
of £311m) of which a profit of £11m was attributable to other equity holders
(2023: profit of £11m).
The financial statements on pages 270 to 285 were approved by the Board and
signed on its behalf by the following Directors:
Sir Douglas Flint Jason Windsor
Chair Chief Executive Officer
3 March 2025 3 March 2025
Company registered number: SC286832
The Notes on pages 273 to 285 are an integral part of these financial
statements.
Company statement of changes in equity
For the year ended 31 December 2024
Share capital Shares held by trusts Share premium reserve Retained earnings Other reserves Total equity attributable to equity shareholders of abrdn plc Other equity Total equity
Notes £m £m £m £m £m £m £m £m
1 January 2024 257 (137) 640 3,547 323 4,630 207 4,837
Loss for the year - - - (16) - (16) 11 (5)
Other comprehensive income for the year - - - - 2 2 - 2
Total comprehensive income for the year - - - (16) 2 (14) 11 (3)
Interest paid on other equity K - - - - - - (11) (11)
Dividends paid on ordinary shares I - - - (260) - (260) - (260)
Share buyback G - - - - - - - -
Reserves credit for employee share-based payment J - - - - 26 26 - 26
Transfer to retained earnings for vested employee share-based payment J - - - 32 (32) - - -
Transfer between reserves on impairment of subsidiaries J - - - 94 (94) - - -
Shares acquired by employee trusts H - (26) - - - (26) - (26)
Shares distributed by employee and other trusts and related dividend H - 44 - (47) - (3) - (3)
equivalents
31 December 2024 257 (119) 640 3,350 225 4,353 207 4,560
The Notes on pages 273 to 285 are an integral part of these financial
statements.
Share capital Shares held by trusts Share premium reserve Retained earnings Other reserves Total equity attributable to equity shareholders of abrdn plc Other equity Total equity
Notes £m £m £m £m £m £m £m £m
1 January 2023 280 (145) 640 3,665 485 4,925 207 5,132
Profit for the year - - - 300 - 300 11 311
Other comprehensive income for the year - - - - (9) (9) - (9)
Total comprehensive income for the year - - - 300 (9) 291 11 302
Interest paid on other equity K - - - - - - (11) (11)
Dividends paid on ordinary shares I - - - (279) - (279) - (279)
Share buyback G (23) - - (302) 23 (302) - (302)
Reserves credit for employee share-based payment J - - - - 24 24 - 24
Transfer to retained earnings for vested employee share-based payment J - - - 31 (31) - - -
Transfer between reserves on impairment of subsidiaries J - - - 169 (169) - - -
Shares acquired by employee trusts H - (27) - - - (27) - (27)
Shares distributed by employee and other trusts and related dividend H - 35 - (37) - (2) - (2)
equivalents
31 December 2023 257 (137) 640 3,547 323 4,630 207 4,837
The Notes on pages 273 to 285 are an integral part of these financial
statements.
Company accounting policies
(a) Basis of preparation
These separate financial statements are presented as required by the Companies
Act 2006. The Company meets the definition of a qualifying entity under
Application of Financial Reporting Requirements 100 as issued by the Financial
Reporting Council. Accordingly, the financial statements for year ended
31 December 2024 have been prepared in accordance with Financial Reporting
Standard 101 Reduced Disclosure Framework (FRS 101) as issued by the Financial
Reporting Council.
The financial statements have been prepared on a going concern basis (see the
Basis of preparation section of the Group financial statements for further
details) and under the historical cost convention, as modified by the
revaluation of financial assets and financial liabilities (including
derivative instruments) at fair value through profit or loss (FVTPL). Climate
risks have been taken into consideration in the preparation of the financial
statements, primarily in relation to fair value calculations and impairment
assessments.
As permitted by FRS 101, the Company has taken advantage of the following
disclosure exemptions available under that standard:
- A cash flow statement and related notes.
- Capital management.
- Effect of IFRSs issued but not effective.
- Related party transactions with wholly owned subsidiaries.
As equivalent disclosures are given in the consolidated financial statements,
we have also applied the disclosure exemptions for share based payments and
financial instruments.
The principal accounting policies adopted are the same as those given in the
consolidated financial statements, together with the Company specific policies
set out below. These accounting policies have been consistently applied to all
financial reporting periods presented in these financial statements.
The Company has taken advantage of the exemption in section 408 of the
Companies Act 2006 not to present its own statement of comprehensive income in
these financial statements. The auditors' remuneration for audit and other
services is disclosed in Note 7 to the consolidated financial statements. The
Company has no employees.
(a) (i) Investment in subsidiaries, associates and joint ventures
The Company has certain subsidiaries which are investment vehicles such as
open-ended investment companies, unit trusts and limited partnerships whose
primary function is to generate capital or income growth through holding
investments. This category of subsidiary is held at FVTPL since they are
managed on a fair value basis.
Investments in subsidiaries (other than those measured at FVTPL), associates
(other than those measured at FVTPL) and joint ventures are initially
recognised at cost and subsequently held at cost less any impairment charge.
An impairment charge is recognised when the carrying amount of the investment
exceeds its recoverable amount. Any gain or loss on disposal of a subsidiary,
associate or joint venture is recognised in profit for the year.
Distributions received of non-cash assets, including investments in
subsidiaries, are recognised at fair value in the balance sheet and as
dividends in specie in income or other comprehensive income as appropriate in
the statement of comprehensive income.
(a) (ii) Critical accounting estimates and judgements in applying accounting
policies
The preparation of financial statements requires management to make estimates
and assumptions and exercise judgements in applying the accounting policies
that affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses arising
during the year. Estimates and judgements are continually evaluated and based
on historical experience and other factors, including expectations of future
events that are believed to be reasonable under the circumstances.
The areas where judgements have the most significant effect on the amounts
recognised in the Company financial statements are as follows:
Financial statement area Critical judgements in applying accounting policies Related notes
Investments in subsidiaries held at cost Given that the net assets attributable to shareholders of abrdn plc at Note A
31 December 2024 were higher than the market capitalisation of the Company
judgement was required to determine for which subsidiaries this was considered
an indicator of impairment
The areas where assumptions and other sources of estimation uncertainty at the
end of the reporting period have a significant risk of resulting in a material
adjustment to the carrying amount of assets and liabilities within the next
financial year are as follows:
Financial statement area Critical accounting estimates and assumptions Related notes
Investments in subsidiaries held at cost Determination of the recoverable amount Note A
Notes to the Company financial statements
A. Investments in subsidiaries
Investments in subsidiaries measured at cost Investments in subsidiaries measured at FVTPL Total
£m £m £m
Cost
At 1 January 2023 8,592 170 8,762
Acquisition of subsidiaries(1) 40 180 220
Disposal of subsidiaries - (9) (9)
At 31 December 2023 8,632 341 8,973
Acquisition of subsidiaries(1) 6 64 70
Disposal of subsidiaries (25) - (25)
At 31 December 2024 8,613 405 9,018
Impairment
At 1 January 2023 (4,280) - (4,280)
Impairment of subsidiaries measured at cost (304) - (304)
Reversal of impairment of subsidiaries measured at cost 13 - 13
Disposal of subsidiaries measured at cost - - -
At 31 December 2023 (4,571) - (4,571)
Impairment of subsidiaries measured at cost (179) - (179)
Reversal of impairment of subsidiaries measured at cost - - -
Disposal of subsidiaries measured at cost 5 - 5
At 31 December 2024 (4,745) - (4,745)
Carrying amount
At 1 January 2023 4,312 170 4,482
At 31 December 2023 4,061 341 4,402
At 31 December 2024 3,868 405 4,273
1. Includes investment into existing subsidiaries measured at
cost of £6m (2023: £40m).
Details of the Company's subsidiaries are given in Note 44 of the Group
financial statements.
(a) Acquisitions
During 2024, the Company made the following acquisitions of subsidiaries
measured at cost:
- The Company increased its investment in Aberdeen Corporate
Services Limited (ACSL) through the purchase of 3,318 ordinary shares for a
cash consideration of £3.3m.
- The Company increased its investment in Focus Business Solutions
Limited (FBS) through the purchase of 290,289,070 ordinary shares for a cash
consideration of £2.9m. See Section (b) below for details of FBS's subsequent
partial disposal.
During 2023, the Company made the following acquisitions of subsidiaries
measured at cost:
- The Company increased its investment in ACSL through the purchase
of 26,278 ordinary shares for a cash consideration of £26.3m.
- The Company increased its investment in abrdn Financial Planning
Limited (aFPL) through the purchase of 12,150,000 ordinary shares for a cash
consideration of £12.2m.
- The Company increased its investment in abrdn Client Management
Limited (aCM) through the purchase of 1,500,000 ordinary shares for a cash
consideration of £1.5m.
See Section (d) below for details on investments in subsidiaries at FVTPL.
(b) Disposals
During 2024, the Company made the following disposals of subsidiaries measured
at cost:
- In March 2024, Antler Holdco Limited (Antler) was liquidated.
Prior to liquidation, the carrying value of the Company's interest in Antler
was £7m and the Company received final liquidation proceeds of £7m in the
form of a distribution in specie of its intercompany balance due to Antler.
- In July 2024, the Company sold its interest in threesixty services
LLP (threesixty) to Fintel group. At the time of the sale, the carrying value
of threesixty was £4m and the company received a consideration of £4m. The
carrying value of threesixty at 31 December 2023 was £19m. This has been
reduced by £15m in 2024 in relation to the following:
- In June 2024, threesixty paid a dividend of £3m to the Company.
This was considered an indicator of impairment and following the performance
of a valuation, an impairment of the Company's interest in threesixty of £5m
was recognised. The recoverable amount of £14m was based on Company's share
of net consideration for the subsequent sale of the threesixty business -
refer Note 1 of the Group financial statements for further details. The
impairment was due to the payment of the dividend and a slight lowering of
valuation of the threesixty business. This is a level 3 measurement as they
are measured using inputs which are not based on observable market data.
- At this time, threesixty also transferred its business to a
subsidiary of abrdn Holdings Limited (aHL), abrdn Newco Limited (now renamed
threesixty Services Limited) which was also sold to Fintel group in July 2024.
Consequently £10m of the consideration for the threesixty business was then
receivable by aHL not the Company. In recognition of this, £10m of the cost
of threesixty was transferred to the cost of Company's interest in aHL which
increased from £1,218m to £1,228m.
- In December 2024, the Company sold 80% of its interest in FBS to
Focus Advice Technology Holdings Limited. At the time of the sale, the
carrying value of FBS was £8m and the Company received a consideration of
£1. Following the sale, the Company's remaining 20% interest in FBS has been
recognised as an investment in an associate based on a fair value of £nil.
(c) Impairment
The Company's net assets attributable to shareholders of abrdn plc at
31 December 2024 of £4.4bn are higher than the Company's market
capitalisation of £2.6bn. Taking this into account along with the payment by
abrdn Investment Holdings Limited (aIHL) and abrdn Holdings Limited (aHL) of
dividends of £102m and £40m respectively to the Company in 2024 and the
continued headwinds facing active asset managers, it was assessed that there
were indicators of impairments in relation to aIHL and aHL, the Company's
asset management holding companies. Following the performance of valuation
exercises, impairments of aIHL and aHL of £115m and £15m respectively have
been recognised.
Indicators of impairment were also identified in relation to abrdn Financial
Planning Limited (aFPL) following the payment of distributions in specie
totalling £47m. An impairment of £45m has been recognised.
Refer Section (b) above for details of the impairment of threesixty prior to
its disposal during 2024.
No other indicators of impairment were identified on any material investment
in subsidiaries including Interactive Investor Limited (IIL) for which
illustrative sensitivities have been provided below.
Indicators of reversal of impairment have also been considered. There were no
reversal of impairment in 2024. A reversal of impairment of £13m has been
recognised in relation to Aberdeen Corporate Services Limited in 2023.
aIHL
The Company's investment in its subsidiary aIHL was impaired during 2024 by
£115m (2023: £169m). The impairment primarily resulted from the payment of
dividends from aIHL to the Company. The dividends included dividend income
received by aIHL from its subsidiary, abrdn Investment Management Limited
(aIML) following the sale of the European-headquartered Private Equity
business (refer Note 1(c)(i) of the Group financial statements).
The recoverable amount of aIHL which is its FVLCD at 31 December 2024 was
£704m. The FVLCD considered a number of valuation approaches, with the
primary approach based on the net assets of aIHL and its subsidiaries. This is
a level 3 measurement as it is measured using inputs which are not based on
observable market data.
As the year end carrying values are the recoverable amount, any downside
sensitivity will lead to a further future impairment loss. As the primary
approach was net assets as set out above, the valuation is not considered
sensitive to significant change. However, a 20% reduction in the net assets of
aIHL and its subsidiaries would result in a further impairment of £141m.
The Company's investment in aIHL was also impaired during 2023 by £169m. The
impairment primarily resulted from the payment of dividends from aIHL to the
Company in 2023 following the sale of its interest in HDFC Asset Management
held by aIML and abrdn Capital Limited.
The recoverable amount of aIHL which was its FVLCD at 31 December 2023 was
£819m. The FVLCD considered a number of valuation approaches, with the
primary approach based on the net assets of aIHL and its subsidiaries
excluding those held for sale at 31 December 2023 as part of the sale of the
European-headquartered Private Equity business which completed in 2024. The
recoverable amount also included the valuation of European-headquartered
Private Equity business which was based on an estimated price from the sale
process.
aHL
The Company's investment in its subsidiary aHL was impaired during 2024 by
£15m (2023: £40m). The impairment primarily resulted from the payment of a
£40m dividend to the Company during 2024.
The recoverable amount of aHL which is its FVLCD at 31 December 2024 was
£1,213m. The recoverable amount was based on FVLCD. The FVLCD considered a
number of valuation approaches, applied to the elements of aHL's business as
appropriate. The primary approach was discounted cash flow with cash flows
which were based on the three year financial budgets approved by management
split by region. Revenue in the management forecasts reflects past experience
and modelling based on assets under management and fee revenue yields by asset
class. Assets under management is modelled from future net flow assumptions
and market movements. Expenses in the management forecasts were based on past
experience adjusted for planned expense savings and inflation impacts.
Cash flow projections were extrapolated using a 3.5% revenue growth and 2%
increase in expenses in years 4 and 5, and then a 1.9% terminal rate profit
growth based on long-term inflation forecasts. Post tax discount rates of
between 12.93% and 14.47% were used based on the peer companies cost of equity
adjusted for forecasting risk and relative size. However, where the net assets
of a significant element of aHL's business were higher, the valuation included
the net asset value rather than the discounted cash flow value. The
recoverable amount for aHL also included the value of its subsidiaries,
associates and joint ventures not included in the discounted cash flow
valuation. These primarily include Finimize Limited and Archax Group Limited.
This is a level 3 measurement as it is measured using inputs which are not
based on observable market data.
As the year end carrying values are the recoverable amount, any downside
sensitivity will lead to a further future impairment loss. As noted above, net
assets are not considered sensitive to significant change. However, earnings
and the discount rate are more subject to change and the table below gives
sensitivities for the carrying amount of aHL at 31 December 2024 in relation
to these assumptions.
Impact on carrying amount at 31 December 2024 £m
25% reduction in forecast post tax adjusted earnings (187)
2% increase in the post-tax discount rate (109)
The Company's investment in its subsidiary aHL was also impaired during 2023
by £40m. The impairment in 2023 resulted from lower future cash flow
projections reflecting the headwinds facing active asset managers.
The recoverable amount of aHL which was its FVLCD at 31 December 2023 was
£1,218m. As above, the FVLCD considered a number of valuation approaches,
with the primary approach being a discounted cash flow approach with net
assets used for a significant element of aHL's business where these were
higher than the discounted cash flow valuation. This recoverable amount for
aHL also included the value of its subsidiaries, associates and joint ventures
not included in the discounted cash flow valuation.
aFPL
The Company's investment in its subsidiary aFPL was impaired during 2024 by
£45m. The impairment resulted from the payment of distributions in specie
totalling £47m by aFPL to the Company in 2024. These distributions primarily
related to an intercompany loan and accrued interest due to aFPL from IIL
following the sale of aFPL's primary subsidiary, abrdn Financial Planning and
Advice Limited to IIL in January 2024. aFPL is now in liquidation and
following the distributions, the recoverable amount of aFPL was £1 which is
also its carrying value. This was a level 3 measurement as they are measured
using inputs which are not based on observable market data.
The Company's investment in its subsidiary aFPL was impaired during 2023 by
£52m. The recoverable amount of aFPL at 31 December 2023 of £45m was based
on FVLCD which considered a number of valuation approaches, with the primary
approach also being a multiples approach based on price to revenue and price
to assets under advice. Multiples were based on trading multiples for peer
companies, adjusted to take into account profitability where appropriate, and
were benchmarked against recent transactions.
abrdn (Mauritius Holdings) 2006 Limited (aMH06)
The carrying amount of the Company's investment in aMH06 is less than £1m
(2023: less than £1m). During 2023, the Company's investment in its
subsidiary aMH06 was impaired by £43m. The impairment resulted from the
payment of dividends from aMH06 to the Company in 2023. These dividends
primarily related to the sale of aMH06's final investment in HDFC Life.
IIL
The carrying amount of the Company's investment in IIL is £1,512m (2023:
£1,512m). There are no indicators that recoverable amount of the Company's
investment in IIL is less than its carrying amount.
The recoverable amount of IIL was determined at 31 December 2024 based on
FVLCD for illustrative sensitivities purposes using the same approach and key
assumptions as used in the impairment review for interactive investor goodwill
set out in Note 13 of the Group financial statements. The basis for
sensitivities of key assumptions is also set out in Note 13 of the Group
financial statements. The impact of these illustrative sensitivities on the
carrying amount of IIL at 31 December 2024 is as follows:
Impact on carrying amount at 31 December 2024 £m
20% reduction in forecast post tax adjusted earnings -
40% reduction in market multiple (187)
ACSL
The carrying amount of the Company's investment in ACSL is £105m (2023:
£102m). Refer Section (a) for details of the capital injection during the
year. There was no impairment or reversal of impairment in relation to the
Company's investment in ACSL during the year ended 31 December 2024 and no
indicators that recoverable amount of the Company's investment in ACSL is less
than its carrying amount.
In 2023 the Company recognised a reversal of impairment in its investments in
subsidiaries of £13m. The Company's investment in ACSL had previously been
impaired by £13m in the year ended 31 December 2017.
On 1 August 2023, the Court of Session confirmed that any residual surplus
assets that remain after all plan-related obligations of the Group's main
defined benefit plan, the abrdn UK Group (SLSPS) plan, are settled or
otherwise provided for would be available to ACSL as sponsoring employer (see
Note 31 of the Group financial statements for further details). Following this
confirmation, the Directors of the Company assessed that it was appropriate to
consider ACSL's pension scheme asset in determining the recoverable amount of
ACSL. The recoverable amount for ACSL was assessed based on the net assets of
ACSL at 31 December 2023 which were £733m including a defined benefit asset
of £734m. This value of £734m was determined on an IAS 19 basis net of an
authorised surplus payments charge of 35%. The residual surplus assets that
ACSL would realise would be significantly lower than this surplus as would be
expected following a buy-out transaction. However, even allowing for a prudent
haircut to the net assets for this, the net assets of ACSL would still be
significantly in excess of ACSL's carrying value before any reversal of
impairment of £13m and the reversal of impairment was recognised. This was a
level 3 assessment as it was measured using inputs which are not based on
observable market data.
(d) Investments in subsidiaries at FVTPL
Investments in subsidiaries at FVTPL, valued at £405m (2023: £341m), relate
to holdings in funds over which the Company has control.
B. Investments in associates and joint ventures
2024 2023
£m £m
Investment in associates measured at cost - -
Investment in joint venture measured at cost 196 196
Investments in associates and joint ventures 196 196
(a) Investment in associates
The Company has an interest of 25.3% (2023: 25.3%) in Tenet Group Limited
(Tenet), a company incorporated in England and Wales which is measured at cost
less impairment. The carrying amount of the Company's investment in Tenet is
£nil (2023: £nil). There were no capital contributions or impairments in
relation to Tenet during the year ended 31 December 2024 (2023: none). Tenet
is currently in administration.
As noted in Note A(b) above, the Company's remaining 20% interest in FBS is
now also recognised as an investment in an associate with a carrying value at
31 December 2024 of £nil.
(b) Investment in joint ventures
The Company has a 50% (2023: 50%) interest in Heng An Standard Life Insurance
Company Limited (HASL), a company incorporated in China. Further details on
this joint venture are provided in Note 14 of the Group financial statements.
C. Financial investments
Fair value through profit or loss Derivative financial instruments used for hedging Amortised cost Total
2024 2023 2024 2023 2024 2023 2024 2023
Notes £m £m £m £m £m £m £m £m
Investments in subsidiaries measured at FVTPL A 405 341 - - - - 405 341
Loan to subsidiaries - - - - 58 - 58 -
Derivative financial assets D - - 50 41 - - 50 41
Equity securities and interests in pooled investment funds 544 574 - - - - 544 574
Debt securities 1 1 - - - 125 1 126
Receivables and other financial assets E - - - - 60 46 60 46
Cash and cash equivalents - - - - 9 21 9 21
Total 950 916 50 41 127 192 1,127 1,149
The amount of debt securities expected to be recovered or settled after more
than 12 months is £1m (2023: £1m). The amount of loans to subsidiaries
expected to be recovered or settled after more than 12 months is £10m (2023:
£nil). The amount of equity securities and interests in pooled investment
funds expected to be recovered or settled after more than 12 months is £544m
(2023: £574m).
Under IFRS 9 the Company calculates expected credit losses (ECL) on financial
assets which are measured at amortised cost (refer to Note 34(c) of the Group
financial statements), including loans to subsidiaries (which are unrated). At
31 December 2024 the Company does not hold financial assets at amortised cost
that it regards as credit-impaired or for which it considers the probability
of default would result in material expected credit losses. The expected
credit losses recognised were less than £1m (2023: less than £1m). In making
this assessment the Company has considered if any evidence is available to
indicate the occurrence of an event which would result in a detrimental impact
on the estimated future cash flows of these assets.
D. Derivative financial instruments
The Company uses derivative financial instruments in order to reduce the risk
from potential movements in foreign exchange rates.
2024 2023
Contract amount Fair value assets Fair value liabilities Contract amount Fair value assets Fair value liabilities
£m £m £m £m £m £m
Cash flow hedges 599 50 - 588 41 -
Foreign exchange forwards 33 - - 40 - -
Derivative financial instruments 632 50 - 628 41 -
The derivative asset of £50m (2023: derivative asset of £41m) is expected to
be settled after more than 12 months.
On 18 October 2017, the Company issued subordinated notes with a principal
amount of US $750m. In order to manage the foreign exchange risk relating to
the principal and coupons payable on these notes the Company entered into a
cross-currency swap which is designated as a hedge of future cash flows. The
maturity profile of the contractual undiscounted cash flows in relation to
derivative financial instruments is as follows:
Within 1 year 2-5 years 6-10 years Total
2024 2023 2024 2023 2024 2023 2024 2023
£m £m £m £m £m £m £m £m
Cash inflows
Cash flow hedges 25 25 663 676 - - 688 701
Foreign exchange forwards 33 40 - - - - 33 40
Total 58 65 663 676 - - 721 741
Cash outflows
Cash flow hedges (18) (18) (614) (632) - - (632) (650)
Foreign exchange forwards (33) (40) - - - - (33) (40)
Total (51) (58) (614) (632) - - (665) (690)
Net derivative financial instruments cash flows 7 7 49 44 - - 56 51
E. Receivables and other financial assets
2024 2023
£m £m
Amounts due from related parties 58 43
Other financial assets 2 3
Total receivables and other financial assets 60 46
The carrying amounts disclosed above reasonably approximate the fair values at
the year end.
Receivables and other financial assets of £nil (2023: £nil) are expected to
be recovered after more than 12 months.
F. Other assets
2024 2023
£m £m
Prepayments 6 23
Other - 24
Other assets 6 47
The amount of Other assets which are expected to be recovered after more than
12 months is £1m (2023: £21m).
Prepayments relate to the Group's purchase of certain products in Phoenix's
savings business offered through abrdn's Wrap platform together with Phoenix's
trustee investment plan (TIP) business for UK pension scheme clients. Refer
Note 39(b) of the Group financial statements for further details.
During 2024, the Group has released £15m of the £19m prepayment recognised
in relation to the TIP business to other administrative expenses in the
consolidated income statement following a review of the recoverability of
these costs from future profits from the TIP business. The transfer of this
business to the Group is now expected to occur in 2025.
Other includes £nil (2023: £24m) in respect of amounts due from related
parties.
G. Share capital and share premium
Details of the Company's share capital and share premium are given in Note 24
of the Group financial statements. In 2024 the Company has not undertaken any
share buybacks. Details of the share buyback undertaken by the Company in
2023, including the impact on retained earnings and the capital redemption
reserve (see Note J below), are also included in Note 24 of the Group
financial statements.
H. Shares held by trusts
Shares held by trusts relates to shares in abrdn plc that are held by the
abrdn Employee Benefit Trust and the abrdn Employee Trust. Further details of
these trusts are provided in Note 25 of the Group financial statements.
I. Retained earnings
Details of the dividends paid on the ordinary shares by the Company are
provided in Note 12 of the Group financial statements. Note 12 also includes
information regarding the final dividend proposed by the Directors for the
year ended 31 December 2024.
Refer Note J for details of the transfers from the merger reserve to retained
earnings during the years ended 31 December 2024 and 31 December 2023.
J. Movements in other reserves
The following tables show the movements in other reserves during the year:
Merger reserve Equity compensation reserve Special reserve Capital redemption reserve Cash flow hedges Total
£m £m £m £m £m £m
At 1 January 2024 106 40 115 48 14 323
Fair value losses on cash flow hedges - - - - 20 20
Realised losses on cash flow hedges transferred to income statement - - - - (18) (18)
Reserves credit for employee share-based payments - 26 - - - 26
Transfer to retained earnings for vested employee share-based payments - (32) - - - (32)
Transfer between reserves on impairment of subsidiaries (94) - - - - (94)
At 31 December 2024 12 34 115 48 16 225
Merger reserve Equity compensation reserve Special reserve Capital redemption reserve Cash flow hedges Total
£m £m £m £m £m £m
At 1 January 2023 275 47 115 25 23 485
Fair value losses on cash flow hedges - - - - (40) (40)
Realised losses on cash flow hedges transferred to income statement - - - - 28 28
Shares bought back on-market and cancelled - - - 23 - 23
Reserves credit for employee share-based payments - 24 - - - 24
Transfer to retained earnings for vested employee share-based payments - (31) - - - (31)
Transfer between reserves on impairment of subsidiaries (169) - - - - (169)
Tax effect of items that may be reclassified subsequently to profit or loss - - - - 3 3
At 31 December 2023 106 40 115 48 14 323
Following the impairment losses recognised in 2024 and 2023 on the Company's
investment in aIHL, £94m and £169m was transferred from the merger reserve
to retained earnings during the years ended 31 December 2024 and 31 December
2023 respectively. Refer Note A for details of these impairments.
K. Other equity
5.25 % Fixed Rate Reset Perpetual Subordinated Contingent Convertible Notes
In 2021, the Company issued £210m of 5.25% Fixed Rate Reset Perpetual
Subordinated Contingent Convertible Notes (the Notes). The Notes are
classified as other equity and were initially recognised at £207m (the
proceeds received less issuance costs of £3m). Refer Note 28 (a) of the Group
financial statements for further details.
The profit for the year attributable to other equity was £11m (2023: £11m).
L. Financial liabilities
Designated as Fair Value through Profit or loss Amortised Cost Total
2024 2023 2024 2023 2024 2023
Notes £m £m £m £m £m £m
Subordinated liabilities M - - 597 599 597 599
Other financial liabilities O 5 8 184 158 189 166
Total 5 8 781 757 786 765
M. Subordinated liabilities
2024 2023
Principal Carrying amount value Principal Carrying amount value
Subordinated notes:
4.25% US Dollar fixed rate due 30 June 2028 $750m £597m $750m £599m
Total subordinated liabilities £597m £599m
The principal amount of the subordinated liabilities is expected to be settled
after more than 12 months. There was no accrued interest on the subordinated
liabilities at 31 December 2024 (2023: £13m). Any accrued interest is
expected to be settled within 12 months.
Further information on the subordinated liabilities including the terms and
conditions is given in Note 30 of the Group financial statements.
N. Taxation
(a) Current tax
Current tax recoverable amounts at 31 December 2024 were £12m (2023:
liability of £1m). Current tax assets at 31 December 2024 are expected to be
recoverable in less than 12 months.
(b) Deferred tax
2024 2023
£m £m
Deferred tax assets 138 150
The amount of deferred tax assets expected to be recovered or settled after
more than 12 months are £121m (2023: £150m).
Recognised deferred tax
2024 2023
£m £m
Deferred tax assets comprise:
Losses carried forward 143 155
Gross deferred tax assets 143 155
Less: Offset against deferred tax liabilities (5) (5)
Deferred tax assets 138 150
Deferred tax liabilities comprise:
Unrealised gains on cash flow hedges 5 5
Gross deferred tax liabilities 5 5
Less: Offset against deferred tax assets (5) (5)
Net deferred tax asset at 31 December 138 150
Movements in net deferred tax assets comprise:
At 1 January 150 143
Amounts credited to profit or loss (12) 4
Amounts charged to other comprehensive income - 3
At 31 December 138 150
The deferred tax assets and liabilities recognised are in respect of unused
tax losses and unrealised gains on cash flow hedges respectively. The deferred
tax assets are recognised to the extent that it is probable that the losses
will be capable of being offset against future taxable profits (refer Note
9(d)(i) of the Group financial statements).
There is no unrecognised deferred tax relating to temporary timing differences
associated with investments in subsidiaries, branches and associates and
interests in joint arrangements (2023: none).
Due to uncertainty regarding recoverability, deferred tax assets have not been
recognised in respect of capital losses carried forward of £32m (2023: £8m).
UK capital losses can be carried forward indefinitely.
Movements in deferred tax assets and liabilities
Losses carried forward Unrealised Unrealised Net deferred
gains on investments gains or losses tax asset
on cash flow hedges
£m £m £m £m
At 1 January 2024 155 - (5) 150
Amounts credited to the income statement (12) - - (12)
Tax on cash flow hedge - - - -
At 31 December 2024 143 - (5) 138
Losses carried forward Unrealised Unrealised Net deferred
gains on investments gains or losses tax asset
on cash flow hedges
£m £m £m £m
At 1 January 2023 151 (8) 143
Amounts credited to the income statement 4 - 4
Tax on cash flow hedge - - 3 3
At 31 December 2023 155 - (5) 150
O. Other financial liabilities
2024 2023
£m £m
Outstanding purchase of investment securities 1 1
Amounts due to related parties 121 109
Collateral held in respect of derivative contracts 52 39
Contingent consideration liabilities 5 8
Other 10 9
Other financial liabilities 189 166
Other financial liabilities of £5m (2023: £5m) are expected to be settled
after more than 12 months.
P. Provisions and other liabilities
The Company has no provisions at 31 December 2024 (2023: £nil). During the
year ended 31 December 2023, the Company released a £32m provision relating
to separation costs. Refer Note 33 of the Group financial statements for
further information.
Of Other liabilities at 31 December 2024 of £1m (2023: £nil), £1m was
expected to be settled within 12 months (2023: £nil) and was in respect of
amounts due to related parties.
Q. Contingent liabilities, contingent assets, indemnities and
guarantees
(a) Legal proceedings and regulations
The Company, like other financial organisations, is subject to legal
proceedings and complaints in the normal course of its business. All such
material matters are periodically reassessed, with the assistance of external
professional advisers where appropriate, to determine the likelihood of the
Company incurring a liability. Where it is concluded that it is more likely
than not that a material outflow will be made a provision is established based
on management's best estimate of the amount that will be payable. At
31 December 2024, there are no identified contingent liabilities expected to
lead to a material exposure.
(b) Indemnities and guarantees
Under the trust deed in respect of the abrdn UK Group (SLSPS) plan, ACSL, the
principal employer, must pay contributions to the pension plan as the
trustee's actuary may certify necessary. The Company has guaranteed the
obligations of ACSL in relation to this plan. In addition, the Company has
guaranteed similar obligations in respect of certain other subsidiaries' UK
and Ireland defined benefit pension plans.
None of the guarantees issued by the Company give rise to any significant
liabilities at 31 December 2024 (2023: none).
R. Related party transactions
(a) Key management personnel
The Directors and key management personnel of the Company are considered to be
the same as for the Group. See Note 41 of the Group financial statements for
further information.
Supplementary information
1. Alternative performance measures(1)
We assess our performance using a variety of measures that are not defined
under IFRS and are therefore termed alternative performance measures (APMs).
The APMs that we use may not be directly comparable with similarly named
measures used by other companies. We have presented below reconciliations from
these APMs to the most appropriate measure prepared in accordance with IFRS.
All APMs should be read together with the consolidated income statement,
consolidated statement of financial position and consolidated statement of
cash flows, which are presented in the Group financial statements section of
this report, and related metrics. Adjusted operating profit excludes certain
items which are likely to be recurring such as restructuring costs,
amortisation of certain intangibles, dividends from significant listed
investments and the share of profit or loss from associates and joint
ventures.
R Metric used for executive remuneration in 2024. See page
127 for more information.
Definition Purpose
Adjusted operating profit (APM R)
Adjusted operating profit is the Group's key APM, and is reported on a pre-tax Adjusted operating profit reporting provides further analysis of the results
basis. Adjusted operating profit includes the results of the Group's three reported under IFRS and the Directors believe it helps to give shareholders a
businesses: ii, Adviser and Investments, along with Other business operations fuller understanding of the performance of the business by identifying and
and corporate costs. analysing adjusting items.
It excludes the Group's adjusted net financing costs and investment return. Segment reporting used in management information is reported to the level of
adjusted operating profit.
Adjusted operating profit also excludes the impact of the following items:
- Restructuring and corporate transaction expenses. Restructuring includes
the impact of major regulatory change.
- Amortisation and impairment of intangible assets acquired in business
combinations and through the purchase of customer contracts.
- Profit or loss arising on the disposal of a subsidiary, joint venture or
equity accounted associate.
- Change in fair value of/dividends from significant listed investments.
- Share of profit or loss from associates and joint ventures.
- Impairment loss/reversal of impairment loss recognised on investments in
associates and joint ventures accounted for using the equity method.
- Fair value movements in contingent consideration.
- Items which are one-off and, due to their size or nature, are not
indicative of the long-term operating performance of the Group.
- Further details are included in Note 11 of the Group financial statements.
Adjusted net operating revenue (APM)
Adjusted net operating revenue is a component of adjusted operating profit and Adjusted net operating revenue is a component of adjusted operating profit and
includes revenue we generate from asset management charges (AMCs), platform provides the basis for reporting of the revenue yield financial ratio.
charges, treasury income and other transactional charges. AMCs are earned on Adjusted net operating revenue is also used to calculate the cost/income
products such as mutual funds, and are calculated as a percentage fee based on ratio.
the assets held. Investment risk on these products rests principally with the
client, with our major indirect exposure to rising or falling markets coming
from higher or lower AMCs. Treasury income is the interest earned on cash
balances less the interest paid to customers. It excludes items which are
one-off and, due to their size, or nature are not indicative of the long-term
operating performance of the Group. Adjusted net operating revenue is shown
net of fees, cost of sales, commissions and similar charges. Cost of sales
include revenue from fund platforms which is passed to the product provider
Adjusted operating expenses (APM)
Adjusted operating expenses is a component of adjusted operating profit and Adjusted operating expenses is a component of adjusted operating profit and is
relates to the day-to-day expenses of managing our business. Adjusted used to calculate the cost/income ratio.
operating expenses excludes restructuring and corporate transaction expenses.
Adjusted operating expenses also excludes amortisation and impairment of
intangible assets acquired in business combinations and through the purchase
of customer contracts.
Adjusted profit before tax (APM)
In addition to the results included in adjusted operating profit above, Adjusted profit before tax is a key input to the adjusted earnings per share
adjusted profit before tax includes adjusted net financing costs and measure.
investment return.
Adjusted net financing costs and investment return (APM)
Adjusted net financing costs and investment return is a component of adjusted Adjusted net financing costs and investment return is a component of adjusted
profit and relates to the return from the net assets of the shareholder profit before tax.
business, net of costs of financing. This includes the net assets in defined
benefit staff pension plans and net assets relating to the financing of
subordinated liabilities.
1. Supplementary information is unaudited in line with previous
years.
Definition Purpose
Cost/income ratio (APM)
This is an efficiency measure that is calculated as adjusted operating This ratio is used by management to assess efficiency and reported to the
expenses divided by adjusted net operating revenue. Board and the 'Chief Operating Decision Maker'.
Adjusted net operating revenue yield (bps) (APM)
The adjusted net operating revenue yield is a measure that illustrates the The adjusted net operating revenue yield is a measure that illustrates the
average margin being earned on the assets that we manage or administer and average margin being earned on the assets that we manage or administer and
excludes the ii business. It is calculated as annualised adjusted net excludes the ii business.
operating revenue (excluding performance fees, ii and revenue for which there
are no attributable assets) divided by monthly average fee based assets. The
ii business is excluded from the calculation of adjusted net operating revenue
yield as fees charged for this business are primarily from subscriptions and
trading transactions.
Adjusted diluted earnings per share (APM)
Adjusted diluted earnings per share is calculated on adjusted profit after Earnings per share is a commonly used financial metric which can be used to
tax. The weighted average number of ordinary shares in issue is adjusted measure the profitability and capital efficiency of a company over time. We
during the period to assume the conversion of all dilutive potential ordinary also calculate adjusted diluted earnings per share to illustrate the impact of
shares, such as share options granted to employees. adjusting items on the metric.
Details on the calculation of adjusted diluted earnings per share are set out This ratio is used by management to assess performance and reported to the
in Note 10 of the Group financial statements. Board and 'Chief Operating Decision Maker'.
Adjusted capital generation (APM)
Adjusted capital generation is part of the analysis of movements in IFPR These measures aim to show how adjusted profit contributes to regulatory
regulatory capital. Adjusted capital generation is calculated as adjusted capital, and therefore provides insight into our ability to generate capital
profit after tax less returns relating to pension schemes in surplus and that is deployed to support value for shareholders.
interest paid on other equity (Additional Tier 1 instruments). It also
includes dividends from associates, joint ventures and significant listed
investments.
Net capital generation (APM)
Net capital generation is calculated as adjusted capital generation less
restructuring and corporate transaction expenses (net of tax).
Adjusted diluted capital generation per share (APM)
Adjusted diluted capital generation per share is calculated as adjusted These ratios are measures used to assess performance for dividend paying
capital generation divided by the weighted average number of diluted ordinary capability.
shares outstanding.
Net diluted capital generation per share (APM R)
Net diluted capital generation per share is calculated as net capital
generation divided by the weighted average number of diluted ordinary shares
outstanding.
Cash and liquid resources (APM)
Cash and liquid resources are IFRS cash and cash equivalents (netted down for The purpose of this measure is to demonstrate how much cash and invested
overdrafts), money market instruments and holdings in money market funds. It assets we hold and can be readily accessed.
also includes surplus cash that has been invested in liquid assets such as
high-quality corporate bonds, gilts and pooled investment funds. Seed capital
and co-investments are excluded. Cash collateral, cash held for charitable
funds and cash held in employee benefit trusts are excluded from cash and
liquid resources.
1.1. Adjusted operating profit and adjusted profit
Reconciliation of adjusted operating profit and adjusted profit to IFRS profit
by component
The components of adjusted operating profit are adjusted net operating revenue
and adjusted operating expenses. These components provide a meaningful
analysis of our adjusted results. The table below provides a reconciliation of
movements between adjusted operating profit component measures and relevant
IFRS terms.
A reconciliation of Adjusted operating expenses to the IFRS item Total
administrative and other expenses, and a reconciliation of Adjusted net
financing costs and investment return to the IFRS item Net gains on financial
instruments and other income are provided in Note 2b(ii) of the Group
financial statements. A reconciliation of adjusted net operating revenue to
the IFRS item Revenue from contracts with customers is provided in Note 3 of
the Group financial statements.
IFRS term IFRS Presentation differences Adjusting Adjusted Adjusted profit term
items profit
2024 £m £m £m £m
Net operating revenue 1,305 - 16 1,321 Adjusted net operating revenue(1)
Total administrative and other expenses (1,313) (16) 263 (1,066) Adjusted operating expenses(2)
(8) (16) 279 255 Adjusted operating profit
Total net gains or losses on financial instruments and other income 160 (7) (54) 99 Adjusted net financing costs and investment return
Finance costs (25) 23 2 - N/A
Profit on disposal of subsidiaries and other operations 89 - (89) - N/A
Profit on disposal of interests in joint ventures 11 - (11) - N/A
Share of profit or loss from associates and joint ventures 24 - (24) - N/A
Profit before tax 251 - 103 354 Adjusted profit before tax
Total tax expense (3) - (67) (70) Tax on adjusted profit
Profit for the year 248 - 36 284 Adjusted profit after tax
1. The measure of segmental revenue has been renamed from net
operating revenue to adjusted net operating revenue.
2. Adjusted operating expenses includes staff and other related
costs of £548m compared with IFRS staff costs and other employee-related
costs of £510m. The difference primarily relates to the inclusion of
contractor, temporary agency staff and recruitment and training costs of £18m
(IFRS basis: Reported within other administrative expenses) and gains on funds
to hedge deferred bonus awards of £2m (IFRS basis: Reported within other net
gains on financial instruments and other income) within staff and other
related costs. IFRS staff costs and other employee-related costs includes the
benefit from the net interest credit relating to the staff pension schemes of
£22m (Adjusted profit basis: Reported within adjusted net financing costs and
investment return and other adjusting items respectively).
IFRS term IFRS Presentation differences Adjusting Adjusted
items profit
2023 £m £m £m £m Adjusted profit term
Net operating revenue 1,398 - - 1,398 Adjusted net operating revenue
Total administrative and other expenses (1,463) (29) 343 (1,149) Adjusted operating expenses
(65) (29) 343 249 Adjusted operating profit
Net gains or losses on financial instruments and other income 2 6 73 81 Adjusted net financing costs and investment return
Finance costs (25) 23 2 - N/A
Profit on disposal of subsidiaries and other operations 79 - (79) - N/A
Share of profit or loss from associates and joint ventures 1 - (1) - N/A
Reversal of impairment of interests in joint ventures 2 - (2) - N/A
Loss before tax (6) - 336 330 Adjusted profit before tax
Total tax credit 18 - (68) (50) Tax on adjusted profit
Profit for the year 12 - 268 280 Adjusted profit after tax
Presentation differences primarily relate to amounts presented in a different
line item of the consolidated income statement.
Analysis of adjusting items
The table below provides detail of the adjusting items made in the calculation
of adjusted profit before tax:
2024 2023
£m £m
Restructuring and corporate transaction expenses (100) (152)
Amortisation and impairment of intangible assets acquired in business (129) (189)
combinations
and through the purchase of customer contracts
Profit on disposal of subsidiaries and other operations 89 79
Profit on disposal of interests in joint ventures 11 -
Change in fair value of significant listed investments (27) (178)
Dividends from significant listed investments 56 64
Share of profit or loss from associates and joint ventures 24 1
Reversal of impairment of interests in joint ventures - 2
Other (27) 37
Total adjusting items including results of associates and joint ventures (103) (336)
An explanation for why individual items are excluded from adjusted profit is
set out below:
- Restructuring and corporate transaction expenses are excluded from
adjusted profit. Restructuring includes the impact of major regulatory change.
By highlighting and excluding these costs we aim to give shareholders a fuller
understanding of the performance of the business. Restructuring and corporate
transaction expenses include costs relating to acquisitions and our
transformation programmes. Other restructuring costs excluded from adjusted
profit relate to projects which have a significant impact on the way the Group
operates. Costs are only excluded from adjusted profit where they are out-with
business as usual activities and the costs would not have been incurred had
the restructuring project not taken place. The 2024 expenses mainly comprised
£61m of costs to implement our cost transformation programme (total 2024
implementation costs of £73m includes £12m loss on disposal of subsidiary in
respect of the partial disposal of Focus Business Solutions), £12m in respect
of platform transformation (2023: £26m), £7m in relation to specific costs
to effect savings in investments (2023: £17m) and £8m in respect of other
restructuring activities. In 2023, restructuring costs were, partially offset
by a credit of £30m in respect of Phoenix separation costs following the
£(32)m release of a related provision. Corporate transaction costs of £12m
(2023: £31m) mainly related to prior period acquisitions. Restructuring
expenses in 2025 are expected to include costs of c.£80m relating to the
multi-year cost transformation programme which is expected to complete in
2025.
- Amortisation and impairment of intangible assets acquired in
business combinations and through the purchase of customer contracts is
included as an adjusting item. This is consistent with peers and therefore
excluding these items aids comparability. Highlighting this as an adjusting
item aims to give a fuller understanding of these accounting impacts which
arise where businesses have been acquired but do not arise where businesses
have grown organically. Further details are provided in Note 13 of the Group
financial statements.
- Profit on disposal of subsidiaries and other operations of £89m
in 2024 relates to £92m from the sale of our European-headquartered Private
Equity business, £9m from the sale of threesixty services, and £(12)m from
the sale of 80% of Focus Business Solutions. In 2023 the profit on disposal of
subsidiaries and other operations mainly related to the sales of our
discretionary fund management business and our US private equity and venture
capital business. These items are excluded from adjusted profit as they are
non-recurring in nature.
- Profit on disposal of interests in joint ventures of £11m (2023:
£nil) relates to the sale of our shareholding in Virgin Money UTM. Refer to
Note 14 for further details.
- The change in fair value of significant listed investments was
negative £27m (2023: negative £178m) and in 2024 represents the impact of
market movements on our shareholding in Phoenix. Excluding fair value
movements on significant listed investments for the purposes of adjusted
profit is aligned with our treatment of gains on disposal for these holdings
when they were classified as an associate, and reflects that the fair value
movements are not indicative of the long-term operating performance of the
Group.
- Dividends from significant listed investments relates to our
shareholding in Phoenix. The £56m in 2024 relates to dividends received from
Phoenix. The £64m in 2023 relates to dividends from Phoenix (£54m) and HDFC
Asset Management (£10m). Dividends from significant listed investments are
included in adjusting items, as such dividends result in fair value movements.
- Share of profit or loss from associates and joint ventures was a
profit of £24m (2023: profit £1m). In 2024, this mainly comprises the share
of profit or loss from our holdings in HASL and Archax. Associate and joint
venture results are excluded from adjusted profit to help in understanding the
performance of our core business separately from these holdings.
- The reversal of impairment of interests in associates and joint
ventures in 2023 of £2m related to our joint venture in Virgin Money UTM.
Refer to Note 14 for further details.
- Details on items classified as 'Other' in the table above are
provided in Note 11 of the Group financial statements. Other adjusting items
in 2024 primarily relates to £(16)m negative adjustment to revenue recognised
in prior periods which were not restated as the impact was not considered
material, £(15)m negative release of the prepayment recognised in relation to
the Group's purchase of Phoenix's trustee investment plan business for UK
pension scheme clients and £(10)m net expense (2023: £(9)m) related to
properties which are not being used operationally. Other adjusting items in
2024 also includes a £11m gain (£23m gain) for net fair value movements in
contingent consideration. Other adjusting items in 2023 also included a £36m
insurance liability recovery in relation to the single process execution event
in 2022.
1.2. Cost/income ratio
2024 2023
Adjusted operating expenses (£m) (1,066) (1,149)
Adjusted net operating revenue (£m) 1,321 1,398
Cost/income ratio (%) 81 82
1.3. Adjusted net operating revenue yield (bps)
Average AUMA (£bn) Adjusted net operating revenue (£m) Adjusted net operating revenue yield (bps)
2024 2023 2024 2023 2024 2023
Adviser(1) 74.7 70.8 237 224 31.2 30.6
Institutional and Retail Wealth 210.5 220.0 648 716 30.8 32.6
Insurance Partners 158.0 147.7 137 148 8.7 10.0
Investments 368.5 367.7 785 864 21.3 23.5
Eliminations(2) (7.4) (7.8) N/A N/A N/A N/A
Adjusted net operating revenue yield(2) 435.8 430.7 1,022 1,088 23.4 25.1
ii(2) 278 287
Performance fees(3) 12 14
Other 9 9
Adjusted net operating revenue 1,321 1,398
Analysis of Institutional & Retail Wealth by asset class
Average AUM (£bn) Adjusted net operating revenue (£m) Adjusted net operating revenue yield (bps)
2024 2023 2024 2023 2024 2023
Equities 45.5 49.1 288 298 63.3 60.7
Fixed income 34.8 35.2 91 89 26.2 25.1
Multi-asset 24.9 26.5 43 61 17.1 23.1
Private equity 2.2 10.7 10 48 44.4 44.7
Real assets 37.6 39.5 159 171 42.4 43.4
Alternative investment solutions 26.0 23.8 34 31 13.2 13.1
including private credit
Quantitative 19.3 15.9 7 5 3.7 3.1
Liquidity 20.2 19.3 16 13 7.9 6.9
Institutional and Retail Wealth 210.5 220.0 648 716 30.8 32.6
1. Adviser adjusted net operating revenue yield excludes revenue
of £4m (2023: £7m) for which there are no attributable assets.
2. ii is excluded from the calculation of adjusted net operating
revenue yield as fees charged for this business are primarily from
subscriptions and trading transactions. ii includes financial planning revenue
previously classified as Personal Wealth, comparatives also include revenue
relating to abrdn Capital. Comparatives, including Eliminations have been
restated.
3. Performance fees consist of Institutional & Retail Wealth
£6m (2023: £8m) and Insurance Partners £6m (2023: £6m).
1.4. Additional ii information
The tables below provide additional detail of ii operational metrics.
ii operational metrics(1) 2024 2023
Total customers at period end 439k 407k
Customers holding a SIPP account 80.6k 62.4k
Customer cash balances £6.2bn £5.5bn
AUA per customer £168k £152k
New customers 50.7k 30.2k
Daily average retail trading volumes 20.1k 15.7k
1. Excludes our financial planning business.
1.5. Net capital generation
The table below provides a reconciliation of movements between adjusted profit
after tax and net capital generation. A reconciliation of adjusted profit
after tax to IFRS profit for the year is included earlier in this section.
2024 2023
£m £m
Adjusted profit after tax 284 280
Less net interest credit relating to the staff pension schemes (22) (34)
Less interest paid on other equity (11) (11)
Add dividends received from associates, joint ventures and significant listed 56 64
investments
Adjusted capital generation 307 299
Less restructuring and corporate transaction expenses (net of tax) (69) (121)
Net capital generation 238 178
Net interest credit relating to the staff pension schemes
The net interest credit relating to the staff pension schemes is the
contribution to adjusted profit before tax from defined benefit pension
schemes which are in surplus.
Dividends received from associates, joint ventures and significant listed
investments
An analysis is provided below:
2024 2023
£m £m
Phoenix 56 54
HDFC Asset Management - 10
Dividends received from associates, joint ventures and significant listed 56 64
investments
The table below provides detail of dividend coverage on an adjusted capital
generation basis.
2024 2023
Adjusted capital generation (£m) 307 299
Full year dividend (£m) 260 267
Dividend cover on an adjusted capital generation basis (times) 1.18 1.12
1.6. Net diluted capital generation per share
A reconciliation of net capital generation to adjusted profit after tax is
included in 1.5 above.
2024 2023
Adjusted capital generation (£m) 307 299
Net capital generation (£m) 238 178
Weighted average number of diluted ordinary shares outstanding (millions) 1,818 1,930
Adjusted diluted capital generation per share (pence) 16.9 15.5
Net diluted capital generation per share (pence) 13.1 9.2
1.7. Cash and liquid resources
The table below provides a reconciliation between IFRS cash and cash
equivalents and cash and liquid resources. Seed capital and co-investments are
excluded.
2024 2023
£bn £bn
Cash and cash equivalents per the consolidated statement of financial position 1.3 1.2
Debt securities excluding third party interests(1) - Note 34 (c)(i) of the 0.5 0.7
Group financial statements
Other(2) (0.1) (0.1)
Cash and liquid resources 1.7 1.8
1. Excludes £69m (2023: £86m) relating to seeding.
2. Cash collateral, cash held for charitable funds and cash held in
employee benefit trusts are excluded from cash and liquid resources.
2. Investment performance
Definition Purpose
Investment performance
Investment performance is a measure of how investments are performing relative As an asset managing business this measure demonstrates our ability to
to a benchmark, target, or other comparator. The calculation covers funds that generate investment returns for our clients.
aim to outperform or track a benchmark/target, with certain assets excluded
where these measures of performance are not appropriate or expected, such as
certain private markets and execution only mandates. Benchmarks and targets
differ by fund and are defined in the relevant investment management agreement
or prospectus, as appropriate. The investment performance data is calculated
internally by abrdn to give users guidance on how we are delivering positive
investment outcomes for our clients. It is not intended for clients or
potential clients investing in our products as more specific information and
reporting is available for this purpose.
Investment performance has been aggregated using a money weighted average of
our assets under management. Calculations for investment performance are made
gross of fees except for those funds for which the stated comparator is net of
fees. The calculation uses a closing AUM weighting basis and is based on AUM
data available as at the relevant reporting date.
As at 31 December 2024, 80% of AUM is covered by this metric, performance is
calculated relative to the relevant comparator for each investment strategy on
the basis of:
- Assets ahead of the benchmark or target defined in the investment
management agreement or prospectus, as appropriate. This applies to 60% of the
AUM.
- Assets where the objective is to track an index are assessed based on
being within or above an applicable tolerance for the strategy. This applies
to 20% of the AUM.
1 year 3 year 5 year
% of AUM performing 2024 2023 2023 2024 2023 2023 2024 2023 2023
restated(1) restated(1) restated(1)
Equities 32 27 27 15 17 17 25 48 48
Fixed income 83 81 81 90 75 75 93 84 84
Multi-asset 85 12 12 36 15 15 71 22 22
Real assets 30 30 30 46 56 56 56 45 45
Alternatives 94 98 100 100 98 100 100 98 100
Quantitative 98 100 100 90 100 100 96 95 37
Liquidity 100 100 100 100 95 95 100 97 97
Total 77 55 44 60 51 42 71 58 52
% of AUM covered by metric 80% 75% 61%
The extension to the scope of the investment performance calculation primarily
relates to alternatives and quantitative asset classes; the table below
provides additional detail highlighting the change to these asset classes:
1 year 3 years 5 years
% of AUM performing 2024 2023 2023 2024 2023 2023 2024 2023 2023
restated(1) restated(1) restated(1)
Alternatives 94 98 100 100 98 100 100 98 100
Active 100 97 100 100 97 100 100 97 100
Index 78 100 N/A 100 100 N/A 100 N/A N/A
Quantitative 98 100 100 90 100 100 96 95 37
Active 100 100 100 27 100 100 94 37 37
Index 98 100 N/A 100 100 N/A 96 99 N/A
1. The scope of the investment performance calculation has been
extended to include index tracker funds which were previously excluded from
this metric. 2023 comparatives have been restated. We believe that this
approach provides a more representative view of our overall investment
performance.
3. Assets under management and administration and flows
Definition Purpose
AUMA
AUMA is a measure of the total assets we manage, administer or advise on The amount of funds that we manage, administer or advise directly impacts the
behalf of our clients. It includes assets under management (AUM), assets under level of revenue that we receive.
administration (AUA) and assets under advice (AUAdv). AUMA does not include
assets for associates and joint ventures.
AUM is a measure of the total assets that we manage on behalf of individual
and institutional clients. AUM also includes assets managed for corporate
purposes.
AUA is a measure of the total assets we administer for clients through our
Platforms.
AUAdv is a measure of the total assets we advise our clients on, for which
there is an ongoing charge.
Net flows
Net flows represent gross inflows less gross outflows or redemptions. Gross The level of net flows that we generate directly impacts the level of revenue
inflows are new funds from clients. Redemptions is the money withdrawn by that we receive.
clients during the period. Cash dividends which are retained on the ii
platform are included in net flows for the ii business only. Cash dividends
are included in market movements for other parts of the group including the
Investments and Adviser platform businesses. We consider that this different
approach is appropriate for the ii business as cash dividend payments which
are retained result in additional income for ii, but are largely revenue
neutral for the rest of the Group.
3.1. Analysis of AUMA
Opening AUMA at 1 Jan 2024 Gross inflows Redemptions Net flows Market and other movements Corporate actions(6) Closing AUMA at 31 Dec 2024
12 months ended 31 December 2024 £bn £bn £bn £bn £bn £bn £bn
ii(1) 66.0 13.7 (8.0) 5.7 5.8 - 77.5
Adviser(2) 73.5 6.5 (10.4) (3.9) 5.6 - 75.2
Institutional & Retail Wealth(3) 211.2 36.7 (36.4) 0.3 5.6 (6.6) 210.5
Insurance Partners(3,4) 155.5 23.8 (28.1) (4.3) 8.0 - 159.2
Investments 366.7 60.5 (64.5) (4.0) 13.6 (6.6) 369.7
Eliminations(5) (11.3) (2.4) 3.5 1.1 (0.8) - (11.0)
Total AUMA 494.9 78.3 (79.4) (1.1) 24.2 (6.6) 511.4
Opening AUMA at 1 Jan 2023 Gross inflows Redemptions Net flows Market and other movements Corporate actions(7) Closing AUMA at 31 Dec 2023
12 months ended 31 December 2023 £bn £bn £bn £bn £bn £bn £bn
ii(1) 67.1 10.2 (7.3) 2.9 4.1 (8.1) 66.0
Adviser(2) 68.5 5.8 (7.9) (2.1) 4.6 2.5 73.5
Institutional & Retail Wealth 231.2 28.1 (46.0) (17.9) (1.0) (1.1) 211.2
Insurance Partners(4) 144.9 22.2 (23.3) (1.1) 11.7 - 155.5
Investments 376.1 50.3 (69.3) (19.0) 10.7 (1.1) 366.7
Eliminations(5) (11.7) (2.2) 2.8 0.6 - (0.2) (11.3)
Total AUMA 500.0 64.1 (81.7) (17.6) 19.4 (6.9) 494.9
1. Includes financial planning business AUA at 31 December 2024
of £3.7bn (2023: £4.3bn).
2. Includes Platform AUA at 31 December 2024 of £72.4bn (2023:
£70.9bn).
3. Market and other movements includes transfer of £1.7bn
assets from Quantitative mandates in Institutional & Retail Wealth to
Insurance Partners.
4. Insurance Partners AUM at 31 December 2024 includes
£158.1bn (2023: £154.4bn) relating to Phoenix and £1.1bn (2023: £1.1bn) of
other AUM.
5. Eliminations remove the double count reflected in
Investments, Adviser and ii.
6. Corporate actions in 2024 relate to the disposal of our
European-headquartered Private Equity business in April 2024 (£(7.0)bn) and
the acquisition of First Trust Advisors closed-end funds in July and September
2024 (£0.3bn and £0.1bn).
7. Corporate actions in 2023 relate to the acquisition of
Macquarie closed-end funds in March and July 2023 (£0.5bn and £0.2bn) and
Tekla healthcare fund management capabilities in October 2023 (£2.3bn) and
the disposals of our discretionary fund management business in September 2023
(£6.1bn) and US private equity and venture capital business in October 2023
(£4.1bn). Corporate actions also include the transfer of the MPS business
from Personal Wealth to Adviser in May 2023 of £2.5bn, and investment share
plan and ISA customers who moved on to the ii platform in December 2023
(£0.5bn), and resulting impact on eliminations.
3.2. Quarterly net flows
3 months to 31 Dec 2024 3 months to 30 Sep 2024 3 months to 30 Jun 2024 3 months to 31 Mar 2024 3 months to 31 Dec 2023
15 months ended 31 December 2024 £bn £bn £bn £bn £bn
ii 1.4 1.2 1.9 1.2 0.5
Adviser (0.9) (1.0) (1.1) (0.9) (1.0)
Institutional & Retail Wealth 2.3 (2.4) (0.3) 0.7 (5.8)
Insurance Partners (1.8) (1.1) (0.9) (0.5) 0.3
Investments 0.5 (3.5) (1.2) 0.2 (5.5)
Eliminations 0.2 0.2 0.4 0.3 0.3
Total net flows 1.2 (3.1) - 0.8 (5.7)
4. Public markets and Alternatives investment capability
We have simplified and focused our investment capabilities on areas where we
have both the skill and the scale to capitalise on the key themes shaping the
market, through either public markets or alternative asset classes. This
analysis includes Institutional, Retail Wealth and Insurance Partners.
Analysis of AUM and adjusted net operating revenue
AUM (£bn) Adjusted net operating revenue (£m)
2024 2023 2024 2023
Equities 62.4 67.8 318 341
Fixed income (including Liquidity)(1) 124.2 122.4 165 156
Multi-asset 28.7 32.3 57 81
Quantitative 84.7 67.8 23 18
Public markets 300.0 290.3 563 596
Real assets 41.5 42.8 173 188
Private credit 7.7 8.8 17 15
Alternative investment solutions 20.5 17.1 32 28
Private equity - 7.7 12 51
Alternatives 69.7 76.4 234 282
Total Investments 369.7 366.7 797 878
1. Total liquidity AUM at 31 December 2024 was £38.6bn (2023:
£35.3bn). Total liquidity adjusted net operating revenue was £25m (2023:
£23m).
5. Institutional and Retail Wealth AUM
Detailed asset class split
Opening AUM at 1 Jan 2024 Gross inflows Redemptions Net flows Market and other movements(1) Corporate actions(2) Closing AUM at 31 Dec 2024
12 months ended 31 December 2024 £bn £bn £bn £bn £bn £bn £bn
Developed markets equities 11.8 1.0 (2.6) (1.6) 0.4 - 10.6
Emerging markets equities 11.1 1.4 (3.9) (2.5) 0.3 - 8.9
Asia Pacific equities 16.3 2.0 (5.1) (3.1) 1.8 - 15.0
Global equities 8.5 1.1 (1.8) (0.7) 0.7 - 8.5
Total equities 47.7 5.5 (13.4) (7.9) 3.2 - 43.0
Developed markets credit 21.4 4.0 (3.5) 0.5 (0.2) 0.4 22.1
Developed markets rates 3.3 0.5 (0.9) (0.4) (0.2) - 2.7
Emerging markets fixed income 9.8 1.9 (2.0) (0.1) 0.6 - 10.3
Total fixed income 34.5 6.4 (6.4) - 0.2 0.4 35.1
Absolute return(3) - - - - - - -
Diversified growth/income 0.2 - (0.1) (0.1) 0.8 - 0.9
MyFolio 16.2 1.4 (2.6) (1.2) 1.2 - 16.2
Other multi-asset(3) 8.7 0.9 (1.1) (0.2) (0.9) - 7.6
Total multi-asset 25.1 2.3 (3.8) (1.5) 1.1 - 24.7
Total private equity 7.2 - - - (0.2) (7.0) -
UK real estate 15.9 0.6 (1.4) (0.8) (0.3) - 14.8
European real estate 13.6 0.3 - 0.3 (1.2) - 12.7
Global real estate 1.2 0.9 (0.3) 0.6 (0.1) - 1.7
Real estate multi-manager 1.5 0.2 (0.1) 0.1 (0.2) - 1.4
Infrastructure equity 6.1 0.7 (0.1) 0.6 (0.1) - 6.6
Total real assets 38.3 2.7 (1.9) 0.8 (1.9) - 37.2
Total alternative investment solutions (including private credit) 24.0 2.1 (1.8) 0.3 3.3 - 27.6
Total quantitative 17.1 6.5 (2.9) 3.6 (0.4) - 20.3
Total excluding liquidity 193.9 25.5 (30.2) (4.7) 5.3 (6.6) 187.9
Total liquidity 17.3 11.2 (6.2) 5.0 0.3 - 22.6
Total 211.2 36.7 (36.4) 0.3 5.6 (6.6) 210.5
1. Market and other movements includes transfer of £1.7bn
assets from Quantitative mandates in Institutional & Retail Wealth to
Insurance Partners.
2. Corporate actions in 2024 relate to the disposal of our
European-headquartered Private Equity business in April 2024 (£(7.0)bn) and
the acquisition of First Trust Advisors closed-end funds in July and September
2024 (£0.3bn and £0.1bn).
3. Other multi-asset includes opening AUM of £3.4bn, flows of
£nil, market and other movements of £nil and closing AUM of £3.4bn relating
to assets previously classified as Absolute return.
Opening AUM at 1 Jan 2023 Gross inflows Redemptions Net flows Market and other movements Corporate actions(1) Closing AUM at 31 Dec 2023
12 months ended 31 December 2023 £bn £bn £bn £bn £bn £bn £bn
Developed markets equities 11.1 1.1 (3.5) (2.4) 0.8 2.3 11.8
Emerging markets equities 12.5 0.7 (2.2) (1.5) 0.1 - 11.1
Asia Pacific equities 20.5 2.1 (4.7) (2.6) (1.6) - 16.3
Global equities 8.2 1.3 (2.0) (0.7) 0.6 0.4 8.5
Total equities 52.3 5.2 (12.4) (7.2) (0.1) 2.7 47.7
Developed markets credit 22.5 3.1 (5.7) (2.6) 1.4 0.1 21.4
Developed markets rates 2.0 1.1 (0.8) 0.3 0.8 0.2 3.3
Emerging markets fixed income 11.3 1.4 (3.1) (1.7) 0.2 - 9.8
Total fixed income 35.8 5.6 (9.6) (4.0) 2.4 0.3 34.5
Absolute return(2) 1.4 0.1 (1.0) (0.9) (0.5) - -
Diversified growth/income 0.3 0.1 (0.3) (0.2) 0.1 - 0.2
MyFolio 15.6 1.8 (2.7) (0.9) 1.5 - 16.2
Other multi-asset(2) 11.0 0.8 (2.0) (1.2) (1.1) - 8.7
Total multi-asset 28.3 2.8 (6.0) (3.2) - - 25.1
Total private equity 12.3 0.1 (0.5) (0.4) (0.6) (4.1) 7.2
UK real estate 19.3 0.2 (1.0) (0.8) (2.6) - 15.9
European real estate 14.3 0.3 - 0.3 (1.0) - 13.6
Global real estate 1.6 0.3 (0.6) (0.3) (0.1) - 1.2
Real estate multi-manager 1.4 0.2 - 0.2 (0.1) - 1.5
Infrastructure equity 6.1 0.4 (0.1) 0.3 (0.3) - 6.1
Total real assets 42.7 1.4 (1.7) (0.3) (4.1) - 38.3
Total alternative investment solutions (including private credit) 24.0 1.3 (1.5) (0.2) 0.2 - 24.0
Total quantitative 15.0 3.1 (2.0) 1.1 1.0 - 17.1
Total excluding liquidity 210.4 19.5 (33.7) (14.2) (1.2) (1.1) 193.9
Total liquidity 20.8 8.6 (12.3) (3.7) 0.2 - 17.3
Total 231.2 28.1 (46.0) (17.9) (1.0) (1.1) 211.2
1. Corporate actions in 2023 relate to the acquisition of
Macquarie closed-end funds in March and July 2023 (£0.5bn and £0.2bn) and
Tekla healthcare fund management capabilities in October 2023 (£2.3bn) and
the disposal of US private equity and venture capital business in October 2023
(£(4.1)bn).
2. Other multi-asset includes opening AUM of £4.3bn, net
outflows of £0.6bn, market and other movements of £(0.3)bn and closing AUM
of £3.4bn relating to assets previously classified as Absolute return.
6. Investments AUM by geography
31 December 2024 31 December 2023
Institutional & Retail Wealth Insurance Partners Total Institutional & Insurance Partners Total
Retail Wealth
£bn £bn £bn £bn £bn £bn
UK 97.2 159.2 256.4 102.0 155.5 257.5
Europe, Middle East and Africa (EMEA) 52.9 - 52.9 51.9 - 51.9
Asia Pacific (APAC) 17.3 - 17.3 15.7 - 15.7
Americas 43.1 - 43.1 41.6 - 41.6
Total AUM 210.5 159.2 369.7 211.2 155.5 366.7
Other information
Contents
Sustainability - independent limited assurance report 300
Sustainability reporting criteria 302
Glossary 306
Shareholder information 310
Forward-looking statements 311
Contact us IBC
Independent Practitioner's Limited Assurance Report to abrdn plc
Report on selected sustainability information included within abrdn plc's
Annual Report and Accounts for the year ended 31 December 2024.
Conclusion
We have performed a limited assurance engagement on whether selected
information on pages 50 and 56 of abrdn plc's ("abrdn" or the "Company")
Sustainability section of abrdn's Annual Report and Accounts (the "Report")
for the year ended 31 December 2024 has been properly prepared in accordance
with abrdn's Sustainability reporting criteria as set out on pages 302 - 305
of the Annual Report and Accounts (the "Reporting Criteria"). The information
within the Report that was subject to assurance is indicated with the symbol
"∆ " and is in respect of the year ended 31 December 2024 (the "Selected
Information") and is also listed in Appendix 1.
Based on the procedures performed and evidence obtained, nothing has come to
our attention that causes us to believe that the Selected Information has not
been properly prepared, in all material respects, in accordance with the
Reporting Criteria.
Our conclusion is to be read in the context of the remainder of this report,
in particular the "Inherent limitations in preparing the Selected Information"
and "Intended use of our report" sections below.
Our conclusion on the Selected Information does not extend to other
information that accompanies or contains the Selected Information and our
assurance report (hereafter referred to as "Other Information"). We have not
performed any procedures as part of this engagement with respect to such Other
Information. We audited the financial statements included within the Other
Information, and the part of the Directors' Remuneration Report to be audited,
and our report thereon is included with the Other Information.
Basis of conclusion
We conducted our engagement in accordance with International Standard on
Assurance Engagements (UK) 3000 Assurance Engagements Other Than Audits or
Reviews of Historical Financial Information ("ISAE (UK) 3000") issued by the
Financial Reporting Council ("FRC") and, in respect of the greenhouse gas
emissions information included within the Selected Information, in accordance
with International Standard on Assurance Engagements 3410 Assurance
Engagements on Greenhouse Gas Statements ("ISAE 3410") issued by the
International Auditing and Assurance Standards Board ("IAASB"). Our
responsibilities under those standards are further described in the "Our
responsibilities" section of our report.
We have complied with the Institute of Chartered Accountants in England and
Wales ("ICAEW") Code of Ethics, which includes independence and other ethical
requirements founded on fundamental principles of integrity, objectivity,
professional competence and due care, confidentiality and professional
behaviour, that are at least as demanding as the applicable provisions of the
International Ethics Standards Board for Accountants ("IESBA") International
Code of Ethics for Professional Accountants (including International
Independence Standards).
Our firm applies International Standard on Quality Management (UK) 1 Quality
Management for Firms that Perform Audits or Reviews of Financial Statements,
or Other Assurance or Related Services Engagements ("ISQM (UK) 1"), issued by
the FRC, which requires the firm to design, implement and operate a system of
quality management including policies or procedures regarding compliance with
ethical requirements, professional standards and applicable legal and
regulatory requirements.
We believe that the evidence we have obtained is sufficient and appropriate to
provide a basis for our conclusion.
Inherent limitations in preparing the Selected Information
The nature of non-financial information; the absence of a significant body of
established practice on which to draw; and the methods and precision used to
determine non-financial information, allow for different, but acceptable,
evaluation and measurement techniques and can result in materially different
measurements, affecting comparability between entities and over time.
The greenhouse gas ("GHG") emissions quantification process is subject to:
scientific uncertainty, which arises because of incomplete scientific
knowledge about the measurement of GHGs; and estimation (or measurement)
uncertainty resulting from the measurement and calculation processes used to
quantify emissions within the bounds of existing scientific knowledge.
For Scope 3 GHG emissions, there are also significant limitations in the
availability and quality of GHG emissions data from third parties, resulting
in abrdn's reliance on proxy data in determining estimated Scope 3 GHG
emissions. Over time better information may become available from third
parties and the principles and methodologies used to measure and report Scope
3 GHG emissions may change based on market practice and regulation.
The Reporting Criteria has been developed to assist abrdn in reporting
sustainability information selected by abrdn as key metrics to measure the
success of its sustainability strategy. As a result, the Selected Information
may not be suitable for another purpose.
Directors' responsibilities
The Directors of abrdn are responsible for:
- designing, implementing and maintaining internal controls relevant
to the preparation and presentation of the Selected Information that is free
from material misstatement, whether due to fraud or error;
- selecting and/or developing suitable Reporting Criteria for
preparing the Selected Information;
- properly preparing the Selected Information in accordance with the
Reporting Criteria; and
- the contents and statements contained within the Report and the
Reporting Criteria
Our responsibilities
We are responsible for:
- planning and performing the engagement to obtain limited assurance
about whether the Selected Information is free from material misstatement,
whether due to fraud or error;
- forming an independent limited assurance conclusion, based on the
procedures we have performed and the evidence we have obtained; and
- reporting our conclusion to abrdn.
Summary of the work we performed as the basis for our conclusion
We exercised professional judgment and maintained professional scepticism
throughout the engagement. We planned and performed our procedures to obtain
evidence that is sufficient and appropriate to obtain a meaningful level of
assurance over the Selected Information to provide a basis for our limited
assurance conclusion. Planning the engagement involves assessing whether
abrdn's Reporting Criteria are suitable for the purposes of our limited
assurance engagement. Our procedures selected depended on our judgement, on
our understanding of the Selected Information and other engagement
circumstances, and our consideration of areas where material misstatements are
likely to arise.
In carrying out our engagement, we performed procedures which included:
- conducting interviews with management and key staff responsible
for the Selected Information to obtain an understanding of the key processes,
systems and controls in place for the preparation of the Selected Information;
- obtaining documentation for a selection of transactions, which
supports the processes, systems and controls in place for the Selected
Information, but did not include evaluating the design of controls, obtaining
evidence about their implementation nor testing their operating effectiveness;
- evaluating whether abrdn's methods for developing key estimates
were appropriate and had been consistently applied, but did not include
testing the data on which the estimates are based or separately developing our
own estimates against which to evaluate abrdn's estimates;
- performing limited substantive testing, including agreeing a
selection of the Selected Information to corresponding supporting information,
including invoices, survey data, human resources systems, and published
emission factors; and
- reading the Report with regard to the Reporting Criteria and for
consistency with our findings over the Selected Information.
The procedures performed in a limited assurance engagement vary in nature and
timing from, and are less in extent than for, a reasonable assurance
engagement. Consequently, the level of assurance obtained in a limited
assurance engagement is substantially lower than the assurance that would have
been obtained had a reasonable assurance engagement been performed.
Intended use of our report
Our report has been prepared for abrdn solely in accordance with the terms of
our engagement. We have consented to the publication of our report on abrdn's
website at abrdn.com for the purpose of abrdn showing that it has obtained an
independent assurance report in connection with the Selected Information.
Our report was designed to meet the agreed requirements of abrdn determined by
abrdn's needs at the time. Our report should not therefore be regarded as
suitable to be used or relied on by any party wishing to acquire rights
against us other than abrdn for any purpose or in any context. Any party other
than abrdn who obtains access to our report or a copy and chooses to rely on
our report (or any part of it) will do so at its own risk. To the fullest
extent permitted by law, KPMG LLP will accept no responsibility or liability
in respect of our report to any other party.
Joshua Olomolaiye
for and on behalf of KPMG LLP
Chartered Accountants
15 Canada Square
London
E14 5GL
3 March 2025
The maintenance and integrity of abrdn's website is the responsibility of the
Directors of abrdn; the work carried out by us does not involve consideration
of these matters and, accordingly, we accept no responsibility for any changes
that may have occurred to the reported Selected Information, Reporting
Criteria or Report presented on abrdn's website since the date of our report.
Appendix 1 - Selected Information
No. Metric
1 Percentage of women on abrdn plc Board level
2 Percentage of women in Senior leadership
3 Percentage of women in Global workforce
4 Number of Directors of abrdn plc Board identifying as minority ethnic
5 Percentage of Senior leadership identifying as minority ethnic
6 Scope 1 operational emissions
7 Scope 2 operational emissions (location based)
8 Scope 3 operational emissions
9 Total energy consumption (kWh)
Sustainability reporting criteria
Operational emissions disclosure
Reporting boundary
Our methodology aligns with Greenhouse Gas (GHG) Protocol. We use an
operational control boundary and exclude any joint ventures and associates.
Emissions associated with our direct operations are therefore representative
of abrdn plc and its wholly-owned and operated subsidiaries, reported as at
31 December 2024.
Data collection and collation
Our Corporate Sustainability team collects activity data for Scope 1, 2 and 3
emissions categories from across the business(1) and use third-party software
to support conversion, and aggregation of inputs to tonnes of carbon dioxide
equivalent (tCO(2)e)(2). Note that receipt of information is varied in terms
of KPI and sources. As such, the collection of data is varied, dependent upon
the availability of such data. We are reliant on third-parties for the
collection of some data.
Scope 1 emissions
We report emissions from natural gas, fluorinated gas, company-owned vehicles
used solely for business purposes, and stationary fuel(3). Recorded metrics,
such as kilowatt-hours (kWh), relate to energy use in our buildings and car
mileage, and are converted to tCO(2)e using regional guidance on conversion
factors. The recorded metrics are collected from various sources, e.g. meter
readings and supplier invoices, and differ for each emission source (kWh, m³,
kg, litres).
Scope 2 emissions
Consumption from electricity and district heating is metered and measured in
kWh for in-scope operations and converted to tCO(2)e using regional guidance
on conversion factors. The source for this information is typically energy
bills from utility providers.
Reported Scope 3 emissions categories
We report fuel and energy related activities (Category 3), waste from UK
operations (Category 5), business travel (Category 6), and an estimate for
employees working from home (Category 7). For each category we follow GHG
Protocol guidance and prioritise the conversion of real data, such as: meter
readings and supplier invoices (Category 3); third-party data provided by
waste contractors (Category 5); and passenger kilometres travelled obtained by
third-parties (Category 6), to tCO(2)e using applicable conversion factors.
Energy consumption
We report energy consumption associated with purchased electricity, natural
gas, company-owned vehicles used solely for business purposes, stationary
fuel, and district heating in kWh. This data is reported in both aggregated
and disaggregated forms.
Estimating working from home emissions
Our approach
To calculate our estimated emissions associated with colleagues working from
home (part of Category 7), we revised our approach in 2023 in collaboration
with our external partners, Pawprint. The basis of the approach is to use the
Pawprint methodology to calculate the estimated emissions profile of an abrdn
colleague working from home, which is aggregated to an annual tCO(2)e figure
based upon inputs such as headcount(4) and assumed office occupancy. We are
using the technical model developed by Pawprint(5), as we believe this has a
strong basis for this purpose.
Inputs from our colleague survey
We ask all colleagues to respond to a voluntary survey, with questions
designed to enable the generation of an average emissions profile for abrdn
colleagues. In 2024, we received an 18% response rate across global
colleagues, which we use as the basis for the output.
Average emissions profile
The applied method builds an average emissions profile based on survey inputs
capturing home size, working patterns, heating, cooling, and equipment use.
Consumption values are drawn and converted from regional averages sourced from
guidance published by those such as the Department for Business, Energy &
Industrial Strategy (BEIS).
Office occupancy
Our colleagues are generally expected to work from our offices three days a
week and we use this as our ratio to aggregate a 2024 average emissions
profile. This is after making allowances for annual leave and part-time work.
We also assume a seven-hour working day, based on standard contractual terms.
In practice, we acknowledge that this will vary.
Total colleagues
Our survey was conducted during September and October 2024, and we are using
an average FTE across the year as the basis for our total population.
1. See page 48 of the Sustainability and TCFD report 2024 for the number of
countries we operate in.
2. Conversion factors applied differ by region and source of emissions data.
Primary sources are DEFRA, IEA, NGA, UNFCCC, and www.carbonfootprint.com
3. Fluorinated gas and stationary fuel limited to 5 sites, with 50% FTE coverage
4. In 2024, we improved our FTE coverage to include contingent workers.
5. Pawprint emissions methodology available at www.pawprint.eco/methodology
Operational emissions disclosure
Key limitations to our approach
Our 2024 approach uses colleague survey inputs to create a more nuanced
average emissions profile, paired with the third-party model from Pawprint. We
believe this is a more robust approach for long-term utility but stress that
the calculation of working from home emissions is inherently reliant on some
key inputs and assumptions. The reported figure should be treated as an
estimated value only. Figures such as the office occupancy ratio and employee
headcount have significant bearing on the aggregate figures reported. This
means that changes to policy, or our business, may result in higher or lower
reported figures that are unrelated to real-world emissions changes.
Improvements in 2024
Following the completion of our 2023 exercise, we implemented several
refinements to the methodology, which allows for greater specificity in the
calculations. For example, we now account for specific laptop models and types
of lighting in use in the home.
Limitations and exclusions
Market-based emissions
We report both location- and market-based emissions, but note that our
operational targets are measured using location-based emissions. We believe
this to be best practice, with the outputs reflecting absolute emission
reductions over time. Market-based emissions are not included as part of our
external assurance engagement but are disclosed on page 56.
Use of estimates
We source primary data wherever possible but if data is not available, we will
estimate based on an equivalent time for the previous year, the average
consumption for the facility, or a similar site within the portfolio, scaled
according to energy consumption and relative FTE. The sites we estimate are
immaterial in terms of our overall emissions impact.
If data is completely unavailable for a site, we may choose not to disclose a
value rather than providing an estimate; for example, there are limitations
linked to the completeness of some reported data such as waste disposal across
all global office locations.
Due to the nature of our operations, we focus our efforts on the facilities
with the largest proportion of FTE, and we aim for continuous improvement year
on year.
Other Scope 3 emissions categories
We do not currently report against all 15 categories of Scope 3 defined by the
GHG Protocol. Our assessment is that some categories are not material due to
the nature of our operations, but we acknowledge gaps related to purchased
goods and services (Category 1) capital goods (Category 2), employee commuting
(Category 7) and investments (Category 15). Scope 3 reported emissions do not
include some emissions categories deemed to be material, but where data is
currently unavailable.
During 2023, our procurement function worked to develop a Category 1 and 2
baseline, which we expect to report in future. We also carried out an employee
survey which will enable us to establish a Category 7 baseline. In 2024, our
focus has been to improve and refine these data sets in preparation for future
disclosure. Our focus for Category 15 has been to enable our clients to
understand emissions related to their portfolios and we disclose portfolio
carbon intensity metrics on page 57, with scope limited by data coverage and
availability. This does not currently include financed emissions associated
with the assets on the abrdn plc balance sheet.
Our intention is to disclose all material emissions categories over time.
However, our priority is to ensure that abrdn's data capability meets our
reporting requirements and to enable reporting of our emissions to our
clients. We will continue to allocate resources with that view but expect to
add to our disclosure in future. This may result in adjustments to our
reported baseline and targets.
DEI - gender and ethnic representation
Outlining our reporting scope
Reporting boundary
Our reporting boundary for our global workforce and senior leadership
populations is representative of abrdn plc and its wholly-owned and operated
subsidiaries. Data is reported as of 31 December 2024, unless otherwise
stated.
abrdn plc Board
The abrdn plc Board is comprised of one Chair, eight Non-Executive Directors,
and one Executive Director. Diversity information for all Board members is
self-reported at point of joining, with option of updating at any stage during
tenure.
Global workforce
Our global workforce includes all full-time, part-time, fixed term, graduates,
apprentices, secondees and intern employees. We do not make any adjustments
for part-time working and count each person as one employee. As independent
members of the Board, Non-Executive Directors are not included in total
populations. All diversity characteristics are self-reported by all colleagues
through our people systems at point of joining and self-service update at any
stage during employment. This information is typically disclosed during
onboarding processes, but colleagues do have the ability to change and update
their own information, should this be required. Gender representation is
calculated based on a total headcount of 4,420 as at 31 December 2024. This
is reported as a percentage of the total workforce population.
Senior leadership
Our senior leadership is defined as those one and two reporting levels below
the CEO of abrdn plc, excluding all administrative and support staff. This is
a subset of our global workforce and follows the same self-reporting processes
noted. Gender representation is calculated based on a total senior leadership
population of 93 as of 31 December 2024. This is reported as a percentage of
the total workforce population.
Definitions and exclusions
Gender
Reported representation figures are based upon self- disclosed information
from colleagues and Directors. This is split by male and female gender
identities for the purposes of formal and regulatory reporting. We recognise
and are supportive of colleagues who may choose to identify as a different
gender to that assigned at birth, as non-cisgender, or as non-binary.
Ethnicity
Our ethnicity data for the abrdn plc Board is based upon our Board members'
self-reported ethnicity to our DEI team, compared with UK census data to
identify ethnic minority backgrounds (all non-white groups). For our senior
leadership population, data is self-reported via our people systems and is
disclosed as the proportion of individuals identifying as being from non-white
groups, in accordance with UK census data categories. The disclosure rate for
this population is 82%.
Administrative roles
Colleagues in administrative and support roles are excluded from our senior
leadership population for the purposes of our related target and reporting.
These roles are defined by job title, or equivalent, with supporting
information on our people systems used as the basis.
Leave
Colleagues on garden leave as at 31 December 2024 are excluded from the senior
leadership population. In simple terms, this reflects colleagues in the
process of leaving the business who remain on leave until the completion of a
notice period. Other forms of leave are included.
Excluded data
When reporting aggregated gender representation, any colleagues without gender
on our people systems as of 31 December 2024 are removed from the calculation.
This related to 24 colleagues in 2024 (2023: 63). When reporting aggregated
ethnicity representation, this is given as an overall percentage figure with
no exclusions. Where possible, we report disclosure rate alongside ethnicity
representation.
Portfolio emissions disclosure
Public markets: Weighted average carbon intensity (WACI)
WACI is our method of tracking public market decarbonisation, in line with the
original recommendations of the TCFD. We source emissions data from our
specialist third-party provider and use our proprietary tools to apply the
data to our portfolios and enable aggregate reporting. In-scope assets include
specific funds and mandates within equities, fixed income and active
quantitative strategies, with demonstrable decarbonisation achieved across
each of the asset classes.
Real estate: Carbon intensity by floor area
Calculation approach
Carbon emissions data for real estate is based on the energy consumed in the
operation of real estate assets. Data is collated by asset class specialists
and aggregated for reporting and disclosure purposes.
Existing scope
There is a significant lag to the collection of real estate metrics from
individual assets. This prevents reporting to 31 December 2024, with
disclosure on page 57 applicable to financial year 2023. The scope of carbon
data disclosure reflects around 74% of direct real estate AUM as at
31 December 2023. This translates to approximately 4% of Group AUMA. Of this,
27% of direct real estate AUM has associated Scope 1 and 2 emissions. The
remaining emissions are Scope 3 emissions, which fall outside the scope of
this target.
Scope 1 and 2 emissions
Data from Scope 1 and 2 emissions categories is in-scope for our portfolio
decarbonisation target (page 57). This is inclusive of activity data such as
electricity, gas, and district heating, which is then converted to kgCO(₂)e
using location-based emissions factors. These factors are average grid carbon
factors, which are subject to change each year. Scope 1 and 2 emissions relate
to energy which the landlord (the investment manager) procures and excludes
energy procured by tenants, which is categorised under Scope 3. This is
important, as procurement responsibility varies by individual asset. Assets,
such as multi-let office buildings, typically have landlord procurement
responsibility for the entire building, whereas for asset types, such as
retail parks, the landlord may only procure energy for common areas and
exterior lighting. The result is that some assets are more carbon intensive
than others based on the subdivision of this responsibility.
Scope 3 emissions
Our team collects and collates available Scope 3 emissions, but this data is
not readily available to a high level of completeness and accuracy. Scope 3
data is not included as part of our portfolio decarbonisation target, or
subject to disclosure in this report.
Intensity by floor area
Our portfolio decarbonisation target uses floor area (m²) as the denominator
for carbon intensity across the in-scope real estate portfolio. We note that
the availability of accurate floor area data across our entire portfolio is
limited. We consider our confidence level in both this, and Scope 1 and 2
data, before including an asset as in-scope for our target. This is something
we are working to improve over time.
Portfolio emissions metrics
As investors we do not have access to real-time emissions data from companies
and assets. There also remain significant reporting gaps across some regions
and sectors, with Scope 3 reporting still to fully develop. We use Scope 1 and
2 data to track progress against our target and report core portfolio level
metrics (page 57). The source for this data set in public markets is a
specialist third-party provider, whereas data for real estate is collected
directly from occupiers of those assets. Both routes include a lag associated
with data being reported, collated, and made available to investors. Asset
classes other than listed equity, corporate credit, and real estate remain
difficult to accurately monitor due to data availability and nascent
methodologies. Our portfolio metrics are based upon the original
recommendations of TCFD, and methods established by the Partnership for Carbon
Accounting Financials (PCAF), which we believe to be best practice. It is also
important to recognise that portfolio carbon metrics are subject to volatility
not related to changes in emissions, with revenues, asset values, and markets
as key drivers. We believe that tracking and reporting these metrics is
critical, but that tools such as climate scenario analysis (page 55) are also
essential to support decision-making.
Glossary
Adjusted capital generation
Adjusted capital generation is part of the analysis of movements in IFPR
regulatory capital. Adjusted capital generation is calculated as adjusted
profit after tax less returns relating to pension schemes in surplus and
interest paid on other equity (Additional Tier 1 instruments). It also
includes dividends from associates, joint ventures and significant listed
investments.
Adjusted net financing costs and investment return
Adjusted net financing costs and investment return is a component of adjusted
profit and relates to the return from the net assets of the shareholder
business, net of costs of financing. This includes the net assets in defined
benefit staff pension plans and net assets relating to the financing of
subordinated liabilities.
Adjusted net operating revenue
Adjusted net operating revenue is a component of adjusted operating profit and
includes revenue we generate from asset management charges (AMCs), platform
charges, treasury income and other transactional charges. AMCs are earned on
products such as mutual funds, and are calculated as a percentage fee based on
the assets held. Investment risk on these products rests principally with the
client, with our major indirect exposure to rising or falling markets coming
from higher or lower AMCs. Treasury income is the interest earned on cash
balances less the interest paid to customers. It excludes items which are
one-off and, due to their size, or nature are not indicative of the long-term
operating performance of the Group. Adjusted net operating revenue is shown
net of fees, cost of sales, commissions and similar charges. Cost of sales
include revenue from fund platforms which is passed to the product provider
Adjusted net operating revenue yield (bps)
The adjusted net operating revenue yield is a measure that illustrates the
average margin being earned on the assets that we manage or administer and
excludes the ii business. It is calculated as annualised adjusted net
operating revenue (excluding performance fees, ii and revenue for which there
are no attributable assets) divided by monthly average fee based assets. The
ii business is excluded from the calculation of adjusted net operating revenue
yield as fees charged for this business are primarily from subscriptions and
trading transactions.
Adjusted operating expenses
Adjusted operating expenses is a component of adjusted operating profit and
relates to the day-to-day expenses of managing our business. Adjusted
operating expenses excludes restructuring and corporate transaction expenses.
Adjusted operating expenses also excludes amortisation and impairment of
intangible assets acquired in business combinations and through the purchase
of customer contracts.
Adjusted operating profit
Adjusted operating profit is the Group's key APM, and is reported on a pre-tax
basis. Adjusted operating profit includes the results of the Group's three
businesses: ii, Adviser and Investments, along with Other business operations
and corporate costs.
It excludes the Group's adjusted net financing costs and investment return.
Adjusted operating profit also excludes the impact of the following items:
- Restructuring and corporate transaction expenses. Restructuring
includes the impact of major regulatory change.
- Amortisation and impairment of intangible assets acquired in
business combinations and through the purchase of customer contracts.
- Profit or loss arising on the disposal of a subsidiary, joint
venture or equity accounted associate.
- Change in fair value of/dividends from significant listed
investments.
- Share of profit or loss from associates and joint ventures.
- Impairment loss/reversal of impairment loss recognised on
investments in associates and joint ventures accounted for using the equity
method.
- Fair value movements in contingent consideration.
- Items which are one-off and, due to their size or nature, are not
indicative of the long-term operating performance of the Group.
Adjusted profit before tax
In addition to the results included in adjusted operating profit above,
adjusted profit before tax includes adjusted net financing costs and
investment return.
Assets under management and administration (AUMA)
AUMA is a measure of the total assets we manage, administer or advise on
behalf of our clients. It includes assets under management (AUM), assets under
administration (AUA) and assets under advice (AUAdv). AUMA does not include
assets for associates and joint ventures.
AUM is a measure of the total assets that we manage on behalf of individual
and institutional clients. AUM also includes assets managed for corporate
purposes.
AUA is a measure of the total assets we administer for clients through our
Platforms.
AUAdv is a measure of the total assets we advise our clients on, for which
there is an ongoing charge.
Board
The Board of Directors of the Company.
Carbon intensity
Is a measure of the amount of carbon dioxide (CO(2)) or other greenhouse gases
emitted per unit of activity, such as energy produced, economic output, or
product manufactured. It is often used to compare the environmental impact of
different fuels, processes, or activities.
Carbon offsetting
Carbon offsetting is an internationally recognised way to take responsibility
for carbon emissions. The aim of carbon offsetting is that for every one tonne
of offsets purchased there will be one less tonne of carbon dioxide in the
atmosphere than there would otherwise have been. To offset emissions we
purchase the equivalent volume of carbon credits (independently verified
emissions reductions) to compensate for our operational carbon emissions. We
have been reviewing our use of offsetting, and although we will continue to
use offsets as a means of addressing our residual emissions, our prime
objective is always to reduce our environmental impact before compensating for
it.
Common Equity Tier 1 (CET1) Capital Coverage
CET1 capital coverage is calculated as CET1 own funds as a percentage of total
own funds threshold requirement.
Company
abrdn plc.
Cost/income ratio
This is an efficiency measure that is calculated as adjusted operating
expenses divided by adjusted net operating revenue.
Director
A director of the Company.
Earnings per share (EPS)
EPS is a commonly used financial metric which can be used to measure the
profitability and strength of a company over time. EPS is calculated by
dividing profit by the number of ordinary shares. Basic EPS uses the weighted
average number of ordinary shares outstanding during the year. Diluted EPS
adjusts the weighted average number of ordinary shares outstanding to assume
conversion of all dilutive potential ordinary shares, such as share options
awarded to employees.
Effective tax rate
Tax expense/(credit) attributable to equity holders' profit divided by profit
before tax attributable to equity holders' profits expressed as a percentage.
Executive Leadership Team (ELT)
The ELT is responsible to the CEO for the execution of corporate objectives
and strategy, competitive analysis, sharing client insights, ensuring
communication and alignment across senior leadership, oversight of annual
budget and business plan proposals, review of performance against targets and
plan, idea generation, oversight and delivery of people-related matters,
oversight of sustainability and oversight of risk and controls.
Fair value through profit or loss (FVTPL)
FVTPL is an IFRS measurement basis permitted for assets and liabilities which
meet certain criteria. Gains or losses on assets or liabilities measured at
FVTPL are recognised directly in the income statement.
FCA
Financial Conduct Authority of the United Kingdom.
Greenhouse gases
Greenhouse gases are the atmospheric gases responsible for causing global
warming (i.e. the greenhouse effect) and climate change. These gases, both
natural and anthropogenic in origin include carbon dioxide, methane and
nitrous oxide. Other greenhouse gases which are less prevalent but with a
greater Global Warming Potential include hydrofluorocarbons (HFCs),
perfluorocarbons (PFCs) and sulphur hexafluoride (SF6).
Group or abrdn
Relates to the Company and its subsidiaries.
Group Operating Committee (GOC)
The GOC is responsible to the CEO for the development of corporate objectives
and strategy, oversight of commercial operations, finalisation of the annual
budget and business plan, proposals for inorganic strategic activity,
commercial aspects of people-related matters and to support the effective
operation and cohesion of the ELT.
Internal Capital Adequacy and Risk Assessment (ICARA)
The ICARA is the means by which the Group assesses the levels of capital and
liquidity that adequately support all of the relevant current and future risks
in its business.
International Financial Reporting Standards (IFRS)
International Financial Reporting Standards are accounting standards issued by
the International Accounting Standards Board (IASB).
Investment Firms Prudential Regime (IFPR)
The Investment Firms Prudential Regime is the FCA's prudential regime for
MiFID investment firms.
Investment performance
Investment performance is a measure of how investments are performing relative
to a benchmark, target, or other comparator. The calculation covers funds that
aim to outperform or track a benchmark/target, with certain assets excluded
where these measures of performance are not appropriate or expected, such as
certain private markets and execution only mandates. Benchmarks and targets
differ by fund and are defined in the relevant investment management agreement
or prospectus, as appropriate. The investment performance data is calculated
internally by abrdn to give users guidance on how we are delivering positive
investment outcomes for our clients. It is not intended for clients or
potential clients investing in our products as more specific information and
reporting is available for this purpose.
Investment performance has been aggregated using a money weighted average of
our assets under management. Calculations for investment performance are made
gross of fees except for those funds for which the stated comparator is net of
fees. The calculation uses a closing AUM weighting basis and is based on AUM
data available as at the relevant reporting date.
As at 31 December 2024, 80% of AUM is covered by this metric, performance is
calculated relative to the relevant comparator for each investment strategy on
the basis of:
- Assets ahead of the benchmark or target defined in the investment
management agreement or prospectus, as appropriate. This applies to 60% of the
AUM.
- Assets where the objective is to track an index are assessed based
on being within or above an applicable tolerance for the strategy. This
applies to 20% of the AUM.
LBG tranche withdrawals
On 24 July 2019, the Group announced that it had agreed a final settlement in
relation to the arbitration proceedings between the parties concerning LBG's
attempt to terminate investment management arrangements under which assets
were managed by members of the Group for LBG entities. In its decision of
March 2019, the arbitral tribunal found that LBG was not entitled to terminate
these investment management contracts. The Group had continued to manage
approximately £104bn (as at 30 June 2019) of assets under management (AUM)
for LBG entities during the period of the dispute. Approximately two thirds of
the total AUM (the transferring AUM) will be transferred to third party
managers appointed by LBG through a series of planned tranches from 24 July
2019. The Group continued to be remunerated for its services in relation to
the transferring AUM until the final tranche withdrawal was completed in H1
2022.
Market Disclosure
This IFPR disclosure complements the Own funds requirement and Own funds
threshold requirement with the aim of improving market discipline by requiring
companies to publish certain details of their risks, capital and risk
management. Relevant disclosures are made in the abrdn plc consolidated annual
report and accounts and alongside the accounts of the Group's individual
IFPR-regulated entities, all of which can be found on the abrdn plc Group's
website.
Net capital generation
Net capital generation is calculated as adjusted capital generation less
restructuring and corporate transaction expenses (net of tax).
Net flows
Net flows represent gross inflows less gross outflows or redemptions. Gross
inflows are new funds from clients. Redemptions is the money withdrawn by
clients during the period. Cash dividends which are retained on the ii
platform are included in net flows for the ii business only. Cash dividends
are included in market movements for other parts of the group including the
Investments and Adviser platform businesses. We consider that this different
approach is appropriate for the ii business as cash dividend payments which
are retained result in additional income for ii, but are largely revenue
neutral for the rest of the Group.
Net zero
It is generally accepted that net zero is the target of completely negating
the amount of greenhouse gases produced by human activity, to be achieved by
reducing emissions to the lowest possible amount and offsetting (see carbon
offsetting) only the remainder as a last resort.
Operational emissions
Operational emissions are the greenhouse gas emissions related to the
operations of our business. They are categorised into three groups or 'scopes'
in alignment with the Greenhouse Gas Protocol Corporate Accounting and
Reporting Standard. Scope 1 covers direct emissions from owned or controlled
sources. Scope 2 covers indirect emissions from the generation of purchased
electricity, steam, heating and cooling consumed by the reporting company.
Scope 3 includes all other indirect emissions that occur in a company's value
chain. At abrdn we report on Scope 1 and Scope 2 emissions, and a selection of
Scope 3 categories, where deemed material, which includes our working from
home emissions.
Own Funds Requirement
Under IFPR, the Own Funds Requirement is the higher of the permanent minimum
capital requirement, the fixed overheads requirements, and the K-factor
requirement. The K-factor requirement is the sum of: Risk-to-Client,
Risk-to-Market, and Risk-to-Firm K-factors.
Own Funds Threshold Requirement
Under IFPR, the Own Funds Threshold Requirement is the higher of Own funds
required on an ongoing basis and Own funds required on a wind-down basis. The
firm identifies and measures risks of harm and determines the degree to which
systems and controls alone mitigate those risks of harm (or risks of
disorderly wind-down). Any additional own funds needed, over and above the Own
funds requirement, to cover this identified residual risk is held under the
Own Funds Threshold Requirement.
Paris alignment
'Paris alignment' refers to the alignment of public and private financial
flows with the objectives of the Paris Agreement on climate change. Article
2.1c of the Paris Agreement defines this alignment as "making finance flows
consistent with a pathway towards low greenhouse gas emissions and
climate-resilient development". Alignment in this way will help to scale up
the financial flows needed to strengthen the global response to the threat of
climate change.
Phoenix or Phoenix Group
Phoenix Group Holdings plc or Phoenix Group Holdings plc and its subsidiaries.
Significant listed investments
At 31 December 2024, Phoenix is the only significant listed investment. Our
remaining stakes in HDFC Asset Management and HDFC Life were sold during H1
2023. Fair value movements and dividend income relating to these investments
are treated as adjusting items for the purpose of determining the Group's
adjusted profit.
Subordinated liabilities
Subordinated liabilities are debts of a company which, in the event of
liquidation, rank below its other debts but above share capital. The 5.25%
Fixed Rate Reset Perpetual Subordinated Contingent Convertible Notes issued by
the Company in December 2021 are classified as other equity as no contractual
obligation to deliver cash exists.
Weighted Average Carbon Intensity (WACI)
Is calculated by summing the product of each portfolio holdings carbon
intensity, typically carbon intensity by revenue (tCO(2)/$m Revenue) and the
corresponding holdings' weight in the portfolio after adjusting for
non-eligible assets. WACI can be calculated at different levels of aggregation
across holdings, portfolio and asset classes.
Shareholder information
Registered office
1 George Street
Edinburgh
EH2 2LL
Scotland
Company registration number: SC286832
Secretary: Iain Jones
Registrar: Equiniti
Auditors: KPMG LLP
Solicitors: Slaughter and May
Brokers: JP Morgan Cazenove, Goldman Sachs
Shareholder services
We offer a wide range of shareholder services. For more information, please:
- Contact our registrar, Equiniti, who manage this service for us.
Their full details can be found on the inside back cover.
- Visit our share portal at www.abrdnshares.com
For shareholder services call: +44 (0)371 384 2464*
* Calls are monitored/recorded to meet regulatory obligations
and for training and quality purposes. Call charges will vary.
A Dividend Reinvestment Plan (DRIP) is provided by Equiniti Financial Services
Limited. The DRIP enables the Company's shareholders to elect to have their
cash dividend payments used to purchase the Company's shares. More information
can be found at www.abrdnshares.com
Sign up for Ecommunications
Signing up means:
- You'll receive an email when documents like the annual report and
accounts, Half year results and AGM guide are available on our website.
- Voting instructions for the Annual General Meeting will be sent to
you electronically.
Set up a share portal account
Having a share portal account means you can:
- Manage your account at a time that suits you.
- Download your documents when you need them.
To find out how to sign up, visit www.abrdnshares.com
Preventing unsolicited mail
By law, the Company has to make certain details from its share register
publicly available. As a result it is possible that some registered
shareholders could receive unsolicited mail, emails or phone calls. You could
also be targeted by fraudulent 'investment specialists', clone firms or
scammers posing as government bodies e.g. HMRC, FCA. Frauds are becoming much
more sophisticated and may use real company branding, the names of real
employees or email addresses that appear to come from the company. If you get
a social or email message and you're unsure if it is from us, you can send it
to emailscams@abrdn.com and we'll let you know.
You can also check the FCA warning list and warning from overseas regulators,
however, please note that this is not an exhaustive list and do not assume
that a firm is legitimate just because it does not appear on the list as
fraudsters frequently change their name and it may not have been reported yet.
www.fca.org.uk/consumers/unauthorised-firms-individuals
www.iosco.org/investor_protection/?subsection=investor_alerts_portal
You can find more information about share scams at the Financial Conduct
Authority website www.fca.org.uk/consumers/scams
If you are a certificated shareholder, your name and address may appear on a
public register. Using a nominee company to hold your shares can help protect
your privacy. You can transfer your shares into the Company-sponsored nominee
- the abrdn Share Account - by contacting Equiniti, or you could get in touch
with your broker to find out about their nominee services. If you want to
limit the amount of unsolicited mail you receive generally, please visit
www.mpsonline.org.uk
Financial calendar
Full year results 2024 4 March
Ex-dividend date for 2024 final dividend 27 March
Record date for 2024 final dividend 28 March
Last date for DRIP elections for 2024 final dividend 23 April
Annual General Meeting - Edinburgh 8 May
Dividend payment date for 2024 final dividend 13 May
Half year results 2025 30 July
Ex-dividend date for 2025 interim dividend 14 August
Record date for 2025 interim dividend 15 August
Last date for DRIP elections for 2025 interim dividend 3 September
Dividend payment date for 2025 interim dividend 23 September
Analysis of registered shareholdings at 31 December 2024
Range of shares Number of holders % of total holders Number of shares % of total shares
1-1,000 53,491 65.77 20,846,069 1.13
1,001-5,000 23,548 28.96 49,439,323 2.69
5,001-10,000 2,636 3.24 17,959,369 0.97
10,001-100,000 1,350 1.66 29,560,951 1.61
(#)100,001+ 304 0.37 1,722,936,917 93.60
Total 81,329 100.00 1,840,742,629 100.00
* These figures include the Company-sponsored nominee - the
abrdn Share Account - which had 834,638 participants holding 613,561,526
shares.
Forward-looking statements
This document may contain certain 'forward-looking statements' with respect to
the financial condition, performance, results, strategies, targets (including
ESG targets), objectives, plans, goals and expectations of the Company and its
affiliates. These forward-looking statements can be identified by the fact
that they do not relate only to historical or current facts.
Forward-looking statements are prospective in nature and are not based on
historical or current facts, but rather on current expectations, assumptions
and projections of management of the abrdn Group about future events, and are
therefore subject to known and unknown risks and uncertainties which could
cause actual results to differ materially from the future results expressed or
implied by the forward-looking statements.
For example but without limitation, statements containing words such as 'may',
'will', 'should', 'could', 'continues', 'aims', 'estimates', 'projects',
'believes', 'intends', 'expects', 'hopes', 'plans', 'pursues', 'ensure',
'seeks', 'targets' and 'anticipates', and words of similar meaning (including
the negative of these terms), may be forward-looking. These statements are
based on assumptions and assessments made by the Company in light of its
experience and its perception of historical trends, current conditions, future
developments and other factors it believes appropriate.
By their nature, all forward-looking statements involve risk and uncertainty
because they are based on information available at the time they are made,
including current expectations and assumptions, and relate to future events
and/or depend on circumstances which may be or are beyond the Group's control,
including, among other things: UK domestic and global political, economic and
business conditions; market related risks such as fluctuations in interest
rates and exchange rates, and the performance of financial markets generally;
the impact of inflation and deflation; the impact of competition; the timing,
impact and other uncertainties associated with future acquisitions, disposals
or combinations undertaken by the Company or its affiliates and/or within
relevant industries; experience in particular with regard to mortality and
morbidity trends, lapse rates and policy renewal rates; the value of and
earnings from the Group's strategic investments and ongoing commercial
relationships; default by counterparties; information technology or data
security breaches (including the Group being subject to cyberattacks);
operational information technology risks, including the Group's operations
being highly dependent on its information technology systems (both internal
and outsourced) and the continued development and enhancement of said
technology systems (including the utilisation of artificial intelligence
(AI)); natural or man-made catastrophic events; the impact of pandemics;
climate change and a transition to a low-carbon economy (including the risk
that the Group may not achieve its relevant ESG targets); exposure to
third-party risks including as a result of outsourcing; the failure to attract
or retain necessary key personnel; the policies and actions of regulatory
authorities and the impact of changes in capital, solvency or accounting
standards, ESG disclosure and reporting requirements, and tax and other
legislation and regulations (including changes to the regulatory capital
requirements) that the Group is subject to in the jurisdictions in which the
Company and its affiliates operate. As a result, the Group's actual future
financial condition, performance and results may differ materially from the
plans, goals, objectives and expectations set forth in the forward-looking
statements.
Neither the Company, nor any of its associates, directors, officers or
advisers, provides any representation, assurance or guarantee that the
occurrence of the events expressed or implied in any forward-looking
statements in this document will actually occur. Persons receiving this
document should not place reliance on forward-looking statements. All
forward-looking statements contained in this document are expressly qualified
in their entirety by the cautionary statements contained or referred to in
this section. Each forward-looking statement speaks only as at the date of the
particular statement. Neither the Company nor its affiliates assume any
obligation to update or correct any of the forward-looking statements
contained in this document or any other forward-looking statements it or they
may make (whether as a result of new information, future events or otherwise),
except as required by law. Past performance is not an indicator of future
results and the results of the Company and its affiliates in this document may
not be indicative of, and are not an estimate, forecast or projection of, the
Company's or its affiliates' future results.
Notes
Contact us
Got a shareholder question? Contact our shareholder services team.
UK and overseas
visit www.abrdnshares.com
email questions@abrdnshares.com
phone 44(0)371 384 2464*
mail abrdn Shareholder Services
Aspect House
Spencer Road
Lancing, West Sussex
BN99 6DA, United Kingdom
* Calls are monitored/recorded to meet regulatory obligations
and for training and quality purposes. Call charges will vary.
Extensive information, including many answers to frequently asked questions,
can also be found online at www.abrdnshares.com
Designed by Black Sun Global (Strategic report) and abrdn plc (rest of Annual
report and accounts).
Published by Adare SEC (Nottingham) Limited.
Please remember that the value of shares can go down as well as up and you may
not get back the full amount invested or any income from it. All figures and
share price information have been calculated as at 31 December 2024 (unless
otherwise indicated).
This document has been published by abrdn plc for information only. It is
based on our understanding as at March 2025 and does not provide financial or
legal advice.
abrdn plc is registered in Scotland (SC286832) at 1 George Street, Edinburgh
EH2 2LL.
www.abrdn.com (http://www.abrdn.com) © 2025 abrdn, images reproduced under
licence. All rights reserved.
UKARA24 032
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END FR GGGDXIBGDGUSRecent news on Aberdeen
See all newsREG - Invesco Markets II - Notice to Shareholders
AnnouncementREG - Invesco Markets II - Notice to Shareholders
AnnouncementREG - Invesco Markets II - Notice of AGM
AnnouncementREG - Aberdeen Group PLC Primary Health Props - Form 8.3 - Primary Health Properties plc
AnnouncementREG - Aberdeen Group PLC Assura plc - Form 8.3 - Assura plc
Announcement