REG - abrdn PLC - Half-year Report - Part 3 of 3

AberdeenAnnouncement

10/08/2021 07:05

RNS Number : 0774I
  
abrdn PLC
  
10 August 2021
  
 

abrdn plc
Half year results 2021                                                                                   
Part 3 of 3
10 August 2021
 
5. Supplementary information
5.1          Key performance indicators
 
Key performance indicators (KPIs) are defined as the measures by which the development, performance or position of the business can be measured effectively. The KPIs that we use may not be directly comparable with similarly named measures used by other companies.
5.2          Alternative performance measures
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 IFRS condensed consolidated income statement, IFRS condensed consolidated statement of financial position and IFRS condensed consolidated statement of cash flows, which are presented in the Financial information section of this report. Ratios are presented in Section 5.4.




KPI


 
KPIs are defined as the measures by which the development, performance or position of the business can be measured effectively.




Definition


Purpose




Adjusted operating profit


KPI


 


 


 




Adjusted operating profit before tax is the Group's key APM. Adjusted operating profit includes the results of the Group three growth vectors: Investments, Adviser; and Personal along with the Corporate/Strategic segment.
It excludes the Group's adjusted net financing costs and investment return, the results from the Group's associates, joint ventures and discontinued operations.
Adjusted operating profit also excludes the impact of the following items:
·  Restructuring costs 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 and associates accounted for using the equity method.
·  Change in fair value of/dividends from significant listed investments.
·  Fair value movements in contingent consideration in relation to continuing operations.
·  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 4.10 of the Financial information section.
Fee based revenue is a component of adjusted operating profit and includes revenue we generate from asset management charges (AMCs), platform charges and other transactional charges. Fee based revenue is shown net of fees, costs of sale, commissions and similar charges. Refer to Note 4.5 of the Financial information section.


Adjusted operating profit has replaced adjusted profit before tax as the Group's key APM. Adjusted operating profit reporting provides further analysis of the results reported under IFRS and the Directors believe it helps to give shareholders a fuller understanding of the performance of the business by identifying and analysing adjusting items.
Adjusted operating profit is consistent with the way that financial performance is measured by management and reported to the Board and executive leadership team.
Fee based revenue is shown net of commission, costs of sale and similar charges so as to show the net charges received on AUMA and provides the basis for reporting of the fee revenue yield financial ratio.
 




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. Adjusted profit before tax now excludes the share of profit from associates and joint ventures and 2020 comparatives have been restated on this basis.


Adjusted profit before tax is a key input to the adjusted earnings per share measure.




Adjusted capital generation



 KPI


 


 




Adjusted capital generation is part of the analysis of movements in CRDIV regulatory capital. Adjusted capital generation is calculated as adjusted profit after tax less returns relating to pension schemes in surplus, which do not benefit regulatory capital. It also includes dividends from associates, joint ventures and significant listed investments.


This measure aims to show how adjusted profit contributes to regulatory capital, and therefore provides insight into our ability to generate capital that is deployed to support value for shareholders.













 



Definition


Purpose




Cash and liquid resources


 




Cash and liquid resources are IFRS cash and cash equivalents (netted down for overdrafts), money market instruments and holdings in money market funds. It 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.


The purpose of this measure is to demonstrate how much cash and invested assets we hold and can be readily accessed.



 
5.2.1 Adjusted operating profit and adjusted profit
Reconciliation of adjusted operating profit and adjusted profit to IFRS profit by component
The key components of adjusted operating profit are fee based 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 Fee based revenue to the IFRS item Revenue from contracts with customers is provided in Note 4.5 of the Financial information section.



Adjusted profit term


Group adjusted profit


Presentation differences


Adjusting items


 Adjusted net financing costs and investment return


Associates and joint ventures


Group IFRS


IFRS term




H1 2021


£m


£m


£m


£m


£m


£m


 




Fee based revenue



KPI


755


179


147


3


-


1,084


Total income




Adjusted operating expenses


(595)


(179)


(164)


-


-


(938)


Total expenses




Adjusted operating profit


160


-


(17)


3


-


146


 




Adjusted net financing costs and investment return


3


-


-


(3)


-


-


N/A




N/A


-


-


-


-


(33)


(33)


Share of profit from associates and JVs




Adjusted profit before tax from continuing operations


163


-


(17)


-


(33)


113


Profit before tax




Tax on adjusted profit


(13)


-


2


-


-


(11)


Total tax expense




Adjusted profit after tax from continuing operations


150


-


(15)


-


(33)


102


Profit for the period from continuing operations




Adjusted profit after tax from discontinued operations


- 


-


-


-


-


-


Profit for the period from discontinued operations




Adjusted profit after tax


150


-


(15)


-


(33)


102


Profit for the period














 



Adjusted profit term


Group adjusted profit


Presentation differences


Adjusting items


 Adjusted net financing costs and investment return


Associates and joint ventures


Group IFRS


IFRS term




H1 2020


£m


£m


£m


£m


£m


£m


 




Fee based revenue


706


4


663


(13)


-


1,360


 Total income




Adjusted operating expenses


(601)


(4)


(1,259)


-


-


(1,864)


Total expenses




Adjusted operating profit


105


-


(596)


(13)


-


(504)


 




Adjusted net financing costs and investment return


(13)


-


-


13


-


-


N/A




N/A


-


-


-


-


6


6


Share of profit from associates and JVs1




Adjusted profit before tax from continuing operations


92


-



(596)


-


6


(498)


Profit before tax




Tax on adjusted profit


(13)


-


7


-


-


(6)


Total tax expense




Adjusted profit after tax from continuing operations


79


- 


(589)


-


6


(504)


Profit for the period from continuing operations




Adjusted profit after tax from discontinued operations


-


-


-


-


-


-


Profit for the period from discontinued operations




Adjusted profit after tax


79


-



(589)


-


6


(504)


Profit for the period



1    Includes £130m impairment of interests in associates and joint ventures.
This reconciliation includes a number of reconciling items which arise due to presentation differences between IFRS reporting requirements and the determination of fee based revenue and adjusted operating expenses. Fee based revenue and adjusted operating expenses exclude items which have an equal and opposite effect on IFRS income and IFRS expenses in the consolidated income statement. This particularly relates to income and expenses of unit linked funds, where investment returns are for the account of policyholders. Investment return from unit linked business in H1 2021 was £92m (H1 2020: (£88m)). Other presentation differences also include commission and other cost of sales expenses which are presented in expenses in the consolidated income statement but are netted against fee based revenue in the analysis of adjusted operating profit.
Reconciliation to previously disclosed information



H1 2020 as previously disclosed






Asset management associates and joint ventures


Insurance associates and joint ventures






H1 2020 on revised basis








£m


£m


£m


£m


 




Fee based revenue


706


-


-


706


Fee based revenue




Adjusted operating expenses


(601)


-


-


(601)


Adjusted operating expenses




Adjusted operating profit


105


-


-


105


Adjusted operating profit




Capital management


(13)


-


-


(13)


Adjusted net financing costs and investment return




Share of associates' and joint ventures' profit before tax


103


(22)


(81)


-


N/A




Adjusted profit before tax


195


(22)


(81)


92


Adjusted profit before tax




Tax on adjusted profit


(13)


-


-


(13)


Tax on adjusted profit




Share of associates' and joint ventures' tax expense


(19)


7


12


-


N/A




Adjusted profit after tax


163


(15)


(69)


79


Adjusted profit after tax




Adjusted for the following items


















Adjusted for the following items




Restructuring and corporate transaction expenses


(147)


4


12


(131)


Restructuring and corporate transaction expenses




Amortisation and impairment of intangible assets acquired in business combinations and through the purchase of customer contracts


(1,175)


-


51


(1,124)


Amortisation and impairment of intangible assets acquired in business combinations and through the purchase of customer contracts




Profit on disposal of interests in subsidiaries


8


-


-


8


Profit on disposal of interests in subsidiaries




Profit on disposal of interests in associates


651


-


-


651


Profit on disposal of interests in associates




Impairment of associates and joint ventures


(130)


45


85


-


N/A




Change in fair value of significant listed investments


-


-


-


-


Change in fair value of significant listed investments




Investment return variances and economic assumption changes


124


-


(124)


-


N/A




N/A


-


-


-


-


Dividends from significant listed investments'




Other


(4)


-


4


-


Other




Total adjusting items


(673)


49


28


(596)


Adjusting items




N/A


-


30


106


136


Share of profit from associates and joint ventures




N/A


-


(45)


(85)


(130)


Impairment of associates and joint ventures




N/A


(673)


34


49


(590)


Total adjusting items including results of associates and joint ventures




Tax on adjusting items


7


-


-


7


Tax on adjusting items




Share of associates' and joint ventures' tax expense on adjusting items


(1)


(19)


20


-


N/A




Loss attributable to non-controlling interests (preference shares)


(5)


-


-


(5)


Loss attributable to non-controlling interests (preference shares)




Loss for the period attributable to equity shareholders of abrdn plc


(509)


-


-


(509)


Loss for the period attributable to equity shareholders of abrdn plc




Loss attributable to non-controlling interests


















Loss attributable to non-controlling interests




Preference shares


5


-


-


5


Preference shares




Loss for the period


(504)


-


-


(504)


Loss for the period



 



FY 2020 as previously disclosed






Asset management associates and joint ventures


Insurance associates and joint ventures






FY 2020 on revised basis








£m


£m


£m


£m


 




Fee based revenue


1,425


-


-


1,425


Fee based revenue




Adjusted operating expenses


(1,206)


-


-


(1,206)


Adjusted operating expenses




Adjusted operating profit


219


-


-


219


Adjusted operating profit




Capital management


21


-


-


21


Adjusted net financing costs and investment return




Share of associates' and joint ventures' profit before tax


247


(44)


(203)


-


N/A




Adjusted profit before tax


487


(44)


(203)


240


Adjusted profit before tax




Tax on adjusted profit


(38)


-


-


(38)


Tax on adjusted profit




Share of associates' and joint ventures' tax expense


(38)


12


26


-


N/A




Adjusted profit after tax


411


(32)


(177)


202


Adjusted profit after tax




Adjusted for the following items


















Adjusted for the following items




Restructuring and corporate transaction expenses


(355)


10


29


(316)


Restructuring and corporate transaction expenses




Amortisation and impairment of intangible assets acquired in business combinations and through the purchase of customer contracts


(1,287)


-


107


(1,180)


Amortisation and impairment of intangible assets acquired in business combinations and through the purchase of customer contracts




Profit on disposal of interests in subsidiaries


8


-


-


8


Profit on disposal of interests in subsidiaries




Profit on disposal of interests in associates


1,858


-


-


1,858


Profit on disposal of interests in associates




Impairment of associates and joint ventures


(45)


45


-


-


N/A




Change in fair value of significant listed investments


65


-


-


65


Change in fair value of significant listed investments




Investment return variances and economic assumption changes


46


-


(46)


-


N/A




N/A


-


-


-


-


Dividends from significant listed investments




Other


78


-


(64)


14


Other




Total adjusting items


368


55


26


449


Adjusting items




N/A


-


42


152


194


Share of profit from associates and joint ventures




N/A


-


(45)


-


(45)


Impairment of joint ventures




N/A


368


52


178


598


Total adjusting items including results of associates and joint ventures




Tax on adjusting items


53


-


-


53


Tax on adjusting items




Share of associates' and joint ventures' tax expense on adjusting items


21


(20)


(1)


-


N/A




Profit attributable to non-controlling interests (preference shares)


(5)


-


-


(5)


Profit attributable to non-controlling interests (preference shares)




Profit for the year attributable to equity shareholders of abrdn plc


848


-


-


848


Profit for the year attributable to equity shareholders of abrdn plc




Profit attributable to non-controlling interests


















Profit attributable to non-controlling interests




Preference shares


5


-


-


5


Preference shares




Profit for the year


853


-


-


853


Profit for the year



 
5.2.2 Adjusted capital generation
The table below provides a reconciliation of movements between adjusted profit after tax and adjusted capital generation. A reconciliation of adjusted profit after tax to IFRS profit for the period is included earlier in this section.







H1 2021


H1 2020




 


£m


£m




Adjusted profit after tax1


150


79




Less net interest credit relating to the staff pension schemes


(9)


(10)




Add dividends received from associates, joint ventures and significant listed investments


35


34




Adjusted capital generation


176


103



1   H1 2020 restated to exclude the share of associates and joint ventures adjusted profit after tax.
Net interest credit relating to the staff pension schemes
The net interest credit relating to the staff pension schemes are the contribution to adjusted profit before tax from defined benefit pension schemes which are in surplus and reconciled below:







H1 2021


H1 2020




 


£m


£m




Total income recognised in the consolidated income statement


9


10




Net interest credit relating to the staff pension schemes


9


10



Dividends received from associates, joint ventures and significant listed investments
An analysis is provided below:







H1 2021


H1 2020




 


£m


£m




Phoenix


35


34




Dividends received from associates, joint ventures and significant listed investments


35


34



 
5.2.3 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.







H1 2021


FY 2020




 


£bn


£bn




Cash and cash equivalents per the IFRS condensed consolidated statement of financial position


1.3


1.5




Bank overdrafts


(0.2)


(0.2)




Debt securities excluding third party interests1


0.9


1.0




Corporate funds held in absolute return funds


0.2


0.2




Cash and liquid resources


2.2


2.5



1    Excludes £59m (FY 2020: £54m) relating to seeding.
5.3          Surplus regulatory capital
The £2.8bn indicative capital surplus below includes a deduction to allow for the interim dividend which will be paid in September 2021.
At 30 June 2021 the indicative regulatory capital position was as follows:







H1 2021


FY 2020




CRD IV Group regulatory capital position


£bn


£bn




Common Equity Tier 1 capital resources


3.4


2.9




Tier 2 capital resources


0.5


0.5




Total regulatory capital resources


3.9


3.4




Total regulatory capital requirements


(1.1)


(1.1)




Surplus regulatory capital


2.8


2.3



The Group's capital resources include c£0.8bn (FY 2020: c£0.8bn) from holdings in insurance entities that it is expected will no longer be eligible following the implementation of the Investment Firm Prudential Regime (IFPR) from 1 January 2022. The IFPR is also expected to introduce constraints on the proportion of the minimum capital requirement that can be met by each tier of capital. As a result, it is estimated that c£0.3bn of existing Tier 2 capital, whilst continuing to be reported within the Group's capital resources, would not be available to meet the current minimum capital requirement from 1 January 2022.
5.4          Financial ratios
We also use a number of financial ratios to help assess our performance and these are also not defined under IFRS. Details of our main financial ratios and how they are calculated are presented below:



Definition


Purpose and changes


 




Cost/income ratio


KPI


 


 




This is an efficiency measure that is calculated as adjusted operating expenses divided by fee based revenue in the period.


This ratio is used by management to assess efficiency and reported to the Board and executive leadership team.
This ratio is also a measure used to assess performance for remuneration purposes.


 




Adjusted diluted earnings per share


 
KPI


 


 




Adjusted diluted earnings per share is calculated on adjusted profit after tax. The weighted average number of ordinary shares in issue is adjusted during the period to assume the conversion of all dilutive potential ordinary shares, such as share options granted to employees.
Details on the calculation of adjusted diluted earnings per share are set out in Note 4.9 of the Financial information section.


Earnings per share is a commonly used financial metric which can be used to measure the profitability and capital efficiency of a company over time. We also calculate adjusted diluted earnings per share to illustrate the impact of adjusting items on the metric.
This ratio is used by management to assess performance and reported to the Board and executive leadership team.


 




Adjusted diluted capital generation per share


 


 








Adjusted diluted capital generation per share is calculated as adjusted capital generation divided by the weighted average number of diluted ordinary shares outstanding.


This ratio is a measure used to assess performance for remuneration purposes.


 




Fee revenue yield (bps)










 




The fee revenue yield is calculated as annualised fee based revenue (excluding performance fees, SL Asia, Focus and Threesixty) divided by monthly average fee based assets.


The average revenue yield on fee based business is a measure that illustrates the average margin being earned on the assets that we manage, administer or advise our clients on.
Fee revenue yield is now presented on a vector basis reflecting changes in our strategy. This includes changes in the allocation of fee based revenue, a reconciliation is provided in Section 5.4.4.


 




Investment performance


 
KPI






 




Investment performance has been aggregated using a money weighted average of our assets under management which are outperforming their respective benchmark. Calculations for investment performance are made gross of fees with the exception of those for which the stated comparator is net of fees. The investment performance calculation covers all funds that aim to outperform a benchmark, with certain assets excluded where this measure of performance is not appropriate or expected, such as private equity, execution only mandates and Aberdeen Standard Capital, as well as replication tracker funds which aim to perform in line with a given index.


As an asset managing business this measure demonstrates our ability to generate investment returns for our clients.
 


 














 
5.4.1 Cost/income ratio



 


H1 2021


H1 2020




Adjusted operating expenses (£m)


(595)


(601)




Fee based revenue (£m)


755


706




Cost/income ratio (%)


79


85



 
5.4.2 Adjusted diluted capital generation per share
A reconciliation of adjusted capital generation to adjusted profit after tax is included in 5.2.2 above.







H1 2021


H1 2020




Adjusted capital generation (£m)


176


103




Weighted average number of diluted ordinary shares outstanding (millions) - Note 4.9


2,156


2,244




Adjusted diluted capital generation per share (pence)


8.2


4.6



In accordance with IAS 33, no share options and awards were treated as dilutive for the six months ended 30 June 2020 due to the loss attributable to equity holders of the Company from continuing operations in that period. See Note 4.9.
5.4.3 Fee revenue yield (bps)1



 


Average AUMA (£bn)






Fee based revenue (£m)






Fee revenue yield (bps)








H1 2021


H1 2020






H1 2021


H1 2020






H1 2021


H1 2020




Investments


 


 






 


 






 


 




Institutional and Wholesale2


249.4


230.1






490


454






39.4


39.3




Insurance


202.0


210.7






101


115






10.1


11.0




Adviser


69.0


60.0






87


69






25.3


23.1




Personal2


13.7


12.3






41


38






55.9


56.1




Parmenion3


7.2


7.0






14


11






38.1


33.4




Eliminations


(10.9)


(9.9)






N/A


N/A






N/A


N/A




Fee revenue yield2


530.4


510.2






733


687






27.6


26.8




SL Asia


 


 






-


7






 


 




Performance fees


 


 






22


12






 


 




Fee based revenue


 


 






755


706






 


 



 
Analysis of Institutional and Wholesale by asset class4,5
 



 


Average AUM (£bn)






Fee based revenue (£m)






Fee revenue yield (bps)








H1 2021


H1 2020






H1 2021


H1 2020






H1 2021


H1 2020




Equities


69.7


61.2






225


198






64.8


65.1




Fixed income


47.4


47.0






67


68






28.7


29.5




Multi-asset


34.4


32.4






58


64






34.1


39.8




Private equity


11.0


12.3






31


27






56.1


43.6




Real assets


34.2


31.6






82


75






48.5


47.6




Alternatives6


20.0


18.5






12


9






12.6


9.5




Quantitative


6.0


6.8






2


2






6.5


4.8




Liquidity


26.7


20.3






10


7






7.8


7.0




Institutional and Wholesale


249.4


230.1


 


487


450






39.4


39.3



1    Fee revenue yield is now presented on a vector basis and H1 2020 has been restated on this basis. See Section 5.4.4 for more information.
2    Institutional and Wholesale fee revenue yield excludes revenue of £3m (H1 2020: £4m) and Personal fee revenue yield excludes revenue of £3m (H1 2020: £3m), for which there are no attributable assets.
3    Parmenion is included in the Corporate/strategic vector.
4    Excludes revenue of £3m (H1 2020: £4m), for which there are no attributable assets.
5    Analysis by asset class has been revised following a strategic review of our private markets capabilities. The changes reflect the creation of a real assets franchise, which brings together our real estate and infrastructure businesses, and consolidation of our private credit capabilities within fixed income. Comparatives have been restated on this basis.
6    Alternatives average AUM includes c£12bn (H1 2020: c£12bn) of lower margin advisory mandates.
Analysis of Adviser revenue yield
Fee based revenue (gross basis) includes revenue passed to the product provider as shown below in other cost of sales. The cost of sales are netted against fee based revenue as presented in 5.4.3 above. The fee revenue yield presented on a gross basis in the table below represents the average bps charge payable by clients.



 


Average AUMA (£bn)






Fee based revenue (£m)






Fee revenue yield (bps)








H1 2021


H1 2020






H1 2021


H1 2020






H1 2021


H1 2020




Fee based revenue (net of cost of sales)


69.0


60.0






87


69






25.3


23.1




Add: Other cost of sales - Note 4.5


N/A


N/A






1


13






N/A


N/A




Fee based revenue (gross of cost of sales)


69.0


60.0






88


82






25.6


27.4



 
5.4.4 Fee based revenue - reconciliation to previously disclosed information







Fee based revenue


Methodology change


Reallocation of technology business and Virgin Money revenue


Parmenion
reallocation 


Fee based revenue 








H1 2020 as previously disclosed


£m


£m


£m


£m


£m


H1 2020 on revised basis




 






 


 


 


 


Investments




Institutional and Wholesale


445


4


5


-


454


Institutional and Wholesale




Strategic insurance partners


115


-


-


-


115


Insurance




Platforms and Wealth


 


 


 


 


 


 




Wrap and Elevate


69


-


-


-


69


Adviser




Wealth


58


(4)


(5)


(11)


38


Personal




 


-


-


-


11


11


Parmenion




Eliminations


N/A


-


-


-


N/A


Eliminations




 


687


-


-


-


687


 




SL Asia


7


-


-


-


7


SL Asia




Performance fees


12


-


-


-


12


Performance fees




Fee based revenue


706


-


-


-


706


Fee based revenue



 
5.4.5 Investment performance



 


1 year






3 years






5 years




% of AUM ahead of benchmark1


H1 2021


FY 2020






H1 2021


FY 2020






H1 2021


FY 2020




Equities


55


73






65


74






45


62




Fixed income


75


78






85


81






93


85




Multi-asset


47


61






31


33






43


36




Real assets


63


41






56


37






52


44




Alternatives


26


95






98


95






98


93




Quantitative


88


32






16


17






39


24




Liquidity


88


94






87


89






87


87




Total


65


71






66


66






65


68



1    The investment performance calculation covers all funds (including Insurance) that aim to outperform a benchmark, with certain assets excluded where this measure of performance is not appropriate or expected. Calculations for investment performance are made gross of fees except where the stated comparator is net of fees. Further details about the calculation of investment performance are included in the Glossary.
5.5          Assets under management and administration and flows



Definition


Purpose and changes




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).
AUM is a measure of the total assets that we manage on behalf of individual and institutional clients. AUM also includes captive assets managed on behalf of the Group including assets managed for corporate purposes.
AUA is a measure of the total assets we administer for clients through platform products such as ISAs and SIPPs.
AUAdv is a measure of the total assets we advise our clients on, for which there is an ongoing charge.


The amount of funds that we manage, administer or advise directly impacts the level of fee based revenue that we receive.
AUMA is now presented on a vector basis and H1 2020 comparatives have been restated on this basis.
See Section 5.9 for a reconciliation to previously disclosed information.




Net flows


 


 




Net flows represent gross flows less redemptions. Gross flows are new funds from clients. Redemptions is the money withdrawn by clients during the period.


The level of net flows that we generate directly impacts the level of fee based revenue that we receive.
Net flows are now presented on a vector basis and H1 2020 comparatives have been restated on this basis.



 
5.5.1 Analysis of AUMA1



 


Opening AUMA at

1 Jan 2021


Gross flows


Redemptions


Net flows


Market

and other movements


Corporate

actions3


Closing AUMA at

30 Jun 2021 




6 months ended 30 June 2021


£bn


£bn


£bn


£bn


£bn


£bn


£bn




Investments


 


 


 


 


 


 


 




Institutional


171.7


9.1


(12.5)


(3.4)


0.8


2.5


171.6




Wholesale


80.0


12.9


(14.0)


(1.1)


1.6


-


80.5




Insurance


205.2


9.1


(12.9)


(3.8)


3.1


-


204.5




Adviser


67.0


4.6


(2.6)


2.0


3.3


-


72.3




Personal2


13.3


1.0


(0.5)


0.5


0.6


-


14.4




Parmenion


8.1


0.7


(0.4)


0.3


0.3


(8.7)


-




Eliminations2


(10.7)


(1.4)


1.3


(0.1)


(0.7)


-


(11.5)




Total AUMA


534.6


36.0


(41.6)


(5.6)


9.0


(6.2)


531.8



 



 


Opening AUMA at

1 Jan 2020


Gross flows


Redemptions


Net flows


Market

and other movements


Corporate

actions


Closing AUMA at

30 Jun 2020 




6 months ended 30 June 2020


£bn


£bn


£bn


£bn


£bn


£bn


£bn




Investments


 


 


 


 


 


 


 




Institutional


160.6


14.0


(12.6)


1.4


0.5


-


162.5




Wholesale


76.1


11.5


(13.5)


(2.0)


0.2


-


74.3




Insurance


235.8


9.2


(35.4)


(26.2)


(5.5)


-


204.1




Adviser


62.6


3.2


(2.1)


1.1


(2.5)


-


61.2




Personal2


12.8


0.6


(0.5)


0.1


(0.2)


-


12.7




Parmenion


6.9


0.8


(0.2)


0.6


(0.2)


-


7.3




Eliminations2


(10.2)


(1.1)


1.3


0.2


(0.3)


-


(10.3)




Total AUMA


544.6


38.2


(63.0)


(24.8)


(8.0)


-


511.8



1    AUMA is now presented on a vector basis and H1 2020 has been restated on this basis. See Section 5.9 for more information.
2    Eliminations remove the double count reflected in Investments, Adviser and Personal. The Personal vector includes assets that are reflected in both Aberdeen Standard Capital and Advice businesses. This double count is also removed within Eliminations.
3    Corporate actions relate to the acquisition of a majority interest in Tritax on 1 April 2021 supplementing Institutional AUM by c£6bn at the acquisition date. This is partially offset by the disposal of our domestic real estate business in the Nordics region on 31 May 2021 which reduced AUM by c£3bn. The sale of Parmenion completed on 30 June 2021.
5.5.2 Quarterly net flows1



 


3 months to

30 Jun 21


3 months to

31 March 21


3 months to

31 Dec 20


3 months to

30 Sep 20


3 months to

30 Jun 20




15 months ended 30 June 2021


£bn


£bn


£bn


£bn


£bn




Investments


 


 


 


 


 




Institutional


(0.7)


(2.7)


1.4


0.4


2.4




Wholesale


(0.5)


(0.6)


(0.4)


(0.5)


(0.2)




Insurance


(1.5)


(2.3)


(2.6)


(4.0)


0.3




Adviser


0.9


1.1


0.5


0.3


0.4




Personal


0.3


0.2


(0.1)


-


0.2




Parmenion


0.2


0.1


0.2


0.2


0.3




Eliminations


-


(0.1)


0.2


0.2


-




Total net flows


(1.3)


(4.3)


(0.8)


(3.4)


3.4



 
5.6          Institutional and Wholesale AUM2
Detailed asset class split



 


Opening AUM at

1 Jan 2021


Gross flows


Redemptions


Net flows


Market

and other movements


Corporate actions


Closing

AUM at

30 Jun 2021




6 months ended 30 June 2021


£bn


£bn


£bn


£bn


£bn


£bn


£bn




Developed markets equities


14.7


1.7


(2.0)


(0.3)


1.5


-


15.9




Emerging markets equities


19.0


1.1


(2.0)


(0.9)


1.0


-


19.1




Asia Pacific equities


26.6


2.7


(3.0)


(0.3)


0.2


-


26.5




Global equities


8.9


0.8


(0.8)


-


0.6


-


9.5




Total equities


69.2


6.3


(7.8)


(1.5)


3.3


-


71.0




Developed markets credit


32.2


2.9


(4.4)


(1.5)


(1.5)


-


29.2




Developed markets rates


2.8


0.3


(0.2)


0.1


(1.8)


-


1.1




Emerging markets fixed income


12.2


2.3


(2.2)


0.1


1.3


-


13.6




Private credit


1.0


0.7


-


0.7


0.6


-


2.3




Total fixed income


48.2


6.2


(6.8)


(0.6)


(1.4)


-


46.2




Absolute return


11.5


0.4


(1.1)


(0.7)


(0.6)


-


10.2




Diversified growth/income


0.6


-


(0.1)


(0.1)


-


-


0.5




MyFolio


15.6


1.1


(1.4)


(0.3)


2.0


-


17.3




Other multi-asset


10.0


0.6


(0.7)


(0.1)


(3.0)


-


6.9




Total multi-asset


37.7


2.1


(3.3)


(1.2)


(1.6)


-


34.9




Total private equity


10.9


1.3


(0.5)


0.8


0.3


-


12.0




UK real estate


9.2


0.7


(0.5)


0.2


3.2


5.8


18.4




European real estate


12.1


0.6


(0.2)


0.4


0.7


(3.3)


9.9




Global real estate


1.8


0.2


(0.2)


-


-


-


1.8




Real estate multi-manager


1.6


0.1


(0.1)


-


(0.6)


-


1.0




Infrastructure equity


5.3


0.6


(0.3)


0.3


-






5.6




Total real assets


30.0


2.2


(1.3)


0.9


3.3


2.5


36.7




Total alternatives


19.5


1.4


(0.6)


0.8


-


-


20.3




Total quantitative


6.4


0.5


(0.5)


-


(0.4)


-


6.0




Total liquidity


29.8


2.0


(5.7)


(3.7)


(1.1)


-


25.0




Total


251.7


22.0


(26.5)


(4.5)


2.4


2.5


252.1



1    AUMA is now presented on a vector basis and H1 2020 has been restated on this basis. See Section 5.9 for more information.
2    Analysis by asset class has been revised following a strategic review of our private markets capabilities. The changes reflect the creation of a real assets franchise, which brings together our real estate and infrastructure businesses, and consolidation of our private credit capabilities within fixed income. Comparatives have been restated on this basis.



 


Opening AUM at

1 Jan 2020


Gross flows


Redemptions


Net flows


Market

and other movements


Corporate actions


Closing

AUM at

30 Jun 20




6 months ended 30 June 20201


£bn


£bn


£bn


£bn


£bn


£bn


£bn




Developed markets equities


14.7


2.0


(2.0)


-


(1.6)


-


13.1




Emerging markets equities


21.6


0.9


(4.0)


(3.1)


(1.9)


-


16.6




Asia Pacific equities


23.3


1.9


(2.5)


(0.6)


(0.2)


-


22.5




Global equities


9.4


0.6


(1.9)


(1.3)


-


-


8.1




Total equities


69.0


5.4


(10.4)


(5.0)


(3.7)


-


60.3




Developed markets credit


32.2


3.7


(4.3)


(0.6)


1.6


-


33.2




Developed markets rates


3.3


0.3


(0.6)


(0.3)


0.2


-


3.2




Emerging markets fixed income


10.9


2.1


(1.7)


0.4


(0.1)


-


11.2




Private credit


-


0.3


-


0.3


0.5


-


0.8




Total fixed income


46.4


6.4


(6.6)


(0.2)


2.2


-


48.4




Absolute return


12.7


0.3


(1.5)


(1.2)


0.6


-


12.1




Diversified growth/income


1.9


0.1


(0.3)


(0.2)


-


-


1.7




MyFolio


15.7


1.3


(1.1)


0.2


(1.0)


-


14.9




Other multi-asset


4.2


-


(0.5)


(0.5)


0.4


-


4.1




Total multi-asset


34.5


1.7


(3.4)


(1.7)


-


-


32.8




Total private equity


11.8


0.4


(0.7)


(0.3)


0.9


-


12.4




UK real estate


13.4


0.3


(0.9)


(0.6)


-


-


12.8




European real estate


12.1


0.6


(0.3)


0.3


0.7


-


13.1




Global real estate


1.0


0.1


(0.1)


-


0.6


-


1.6




Real estate multi-manager


1.4


-


(0.1)


(0.1)


-


-


1.3




Infrastructure equity


4.2


-


-


-


0.1


-


4.3




Total real assets


32.1


1.0


(1.4)


(0.4)


1.4


-


33.1




Total alternatives


17.7


1.2


(0.5)


0.7


1.3


-


19.7




Total quantitative


7.8


0.4


(1.0)


(0.6)


(0.3)


-


6.9




Total liquidity


17.4


9.0


(2.1)


6.9


(1.1)


-


23.2




Total


236.7


25.5


(26.1)


(0.6)


0.7


-


236.8



 
5.7          Analysis of Insurance



 


Opening AUM at

1 Jan 2021


Gross flows


Redemptions


Net

 flows


Market

and other movements


Corporate

actions


Closing

AUM at

30 Jun 2021




6 months ended 30 June 2021


£bn


£bn


£bn


£bn


£bn


£bn


£bn




Phoenix


171.5


6.0


(9.9)


(3.9)


1.1


-


168.7




Lloyds


31.8


3.1


(2.9)


0.2


2.2


-


34.2




Other


1.9


-


(0.1)


(0.1)


(0.2)


-


1.6




Total


205.2


9.1


(12.9)


(3.8)


3.1


-


204.5



 



 


Opening AUMA at

1 Jan 2020


Gross flows


Redemptions


Net flows


Market

and other movements


Corporate

 actions


Closing AUMA at

30 Jun 2020




6 months ended 30 June 2020


£bn


£bn


£bn


£bn


£bn


£bn


£bn




Phoenix2


169.7


6.7


(7.8)


(1.1)


1.9


-


170.5




Lloyds


64.5


2.2


(27.5)


(25.3)


(7.3)


-


31.9




Other2


1.6


0.3


(0.1)


0.2


(0.1)


-


1.7




Total


235.8


9.2


(35.4)


(26.2)


(5.5)


-


204.1



1    AUMA is now presented on a vector basis and H1 2020 has been restated on this basis. See Section 5.9 for more information.
2    Following the acquisition of ReAssure by the Phoenix Group in 2020, ReAssure is now included within Phoenix for the analysis of Insurance AUM. H1 2020 has been restated on the same basis.
5.8          Analysis of total AUM (excluding Parmenion)1
5.8.1 AUM by geography



 


30 Jun 2021


31 Dec 2020




 


Institutional and Wholesale


Insurance


Personal2


Total


Institutional and Wholesale


Insurance


Personal2


Total




 


£bn


£bn


£bn


£bn


£bn


£bn


£bn


£bn




UK


115.5


204.5


8.7


328.7


116.5


205.2


7.8


329.5




Europe, Middle East and Africa (EMEA)


65.0


-


-


65.0


65.9


-


-


65.9




Asia Pacific (APAC)


18.0


-


-


18.0


16.8


-


-


16.8




Americas


53.6


-


-


53.6


52.5


-


-


52.5




Total AUM


252.1


204.5


8.7


465.3


251.7


205.2


7.8


464.7



 
5.8.2 AUM by asset class3







30 Jun 2021


31 Dec 2020




 


Institutional and Wholesale


Insurance


Personal2


Total


Institutional and Wholesale


Insurance


Personal2


Total




 


£bn


£bn


£bn


£bn


£bn


£bn


£bn


£bn




Equities


71.0


53.2


-


124.2


69.2


48.8


-


118.0




Fixed income


46.2


64.1


-


110.3


48.2


69.0


-


117.2




Multi-asset


34.9


7.2


8.7


50.8


37.7


7.0


7.8


52.5




Private equity


12.0


1.8


-


13.8


10.9


1.8


-


12.7




Real assets


36.7


8.2


-


44.9


30.0


8.3


-


38.3




Alternatives


20.3


-


-


20.3


19.5


-


-


19.5




Quantitative


6.0


47.6


-


53.6


6.4


45.0


-


51.4




Liquidity


25.0


22.4


-


47.4


29.8


25.3


-


55.1




Total AUM


252.1


204.5


8.7


465.3


251.7


205.2


7.8


464.7



1    AUMA is now presented on a vector basis and H1 2020 has been restated on this basis. See Section 5.9 for more information.
2    Excludes assets under advice of £5.7bn at 30 June 2021 (FY 2020: £5.5bn).
3    Analysis by asset class has been revised following a strategic review of our private markets capabilities. The changes reflect the creation of a real assets franchise, which brings together our real estate and infrastructure businesses, and consolidation of our private credit capabilities within fixed income. Comparatives have been restated on this basis.
5.9          AUMA - Reconciliation to previously disclosed information







Closing AUMA


Parmenion

reallocation


Virgin Money

reallocation


Closing AUMA








H1 2020 as previously disclosed


£bn


£bn


£bn


£bn


H1 2020 on revised basis




 






 


 


 


Investments




Institutional


162.5


-


-


162.5


Institutional




Wholesale


71.1


-


3.2


74.3


Wholesale




Strategic insurance partners


204.1


-


-


204.1


Insurance




Platforms and Wealth


 


 


 


 


 




Wrap and Elevate


61.2


-


-


61.2


Adviser




Wealth


23.2


(7.3)


(3.2)


12.7


Personal




 


 


7.3


-


7.3


Parmenion




Eliminations


(10.3)


-


-


(10.3)


Eliminations




Total AUMA


511.8


-


-


511.8


Total AUMA



 
6. Glossary
Adjusted net financing costs and investment return
Adjusted net financing costs and investment return (previously named Capital management) 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 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 profit
Adjusted operating profit is the Group's key alternative performance measure. Adjusted operating profit includes the results of the Group three growth vectors: Investments, Adviser; and Personal along with the Corporate/Strategic segment.
It excludes the Group's adjusted net financing costs and investment return, the results from the Group's associates, joint ventures and discontinued operations.
Adjusted operating profit also excludes the impact of the following items:
·      Restructuring costs 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 and associates accounted for using the equity method.
·      Change in fair value in/dividends from significant listed investments.
·      Fair value movements in contingent consideration in relation to continuing operations.
·      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.
Chief Operating Decision Maker
The Executive leadership team.
Company
abrdn plc.
Cost/income ratio
This is an efficiency measure that is calculated as adjusted operating expenses divided by fee based revenue.
CRD IV
CRD IV is the European regulatory capital regime (comprising the Capital Requirements Directive and Capital Requirements Regulation) that applies to investment firms.
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
Our Executive leadership team (ELT) leads the business across our regions and functions and is responsible for executing and monitoring progress on the delivery of our business plans. The ELT also ensures we meet our obligations to our clients, people, shareholders, regulators and partners.
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.
Fee based revenue
Fee based revenue is a component of adjusted operating profit and includes revenue we generate from asset management charges (AMCs), platform charges 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. Fee based revenue is shown net of fees, costs of sale, commissions and similar charges. Costs of sale include revenue from fund platforms which is passed to the product provider.
Fee revenue yield (bps)
The average revenue yield on fee based business is a measure that illustrates the average margin being earned on the assets under management, administration or advice. It is calculated as annualised fee based revenue (excluding performance fees, SL Asia, Focus and Threesixty) divided by monthly average fee based assets.
Group or abrdn
Relates to the Company and its subsidiaries.
Growth vectors
We provide services across three growth vectors:
·      Investments: Asset management investment solutions for institutional, wholesale and insurance clients.
·      Adviser: Our Wrap and Elevate adviser platforms.
·      Personal: Comprises our 1825 financial planning and advice business and our Aberdeen Standard Capital discretionary investment management business.
ICAAP
Internal Capital Adequacy Assessment Process. The ICAAP is the means by which the Group assesses the level of capital that adequately supports 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 performance
Investment performance has been aggregated using a money weighted average of our assets under management which are outperforming their respective benchmark. Calculations for investment performance are made gross of fees with the exception of those for which the stated comparator is net of fees. Benchmarks differ by fund and are defined in each fund's Investment Management Agreement (for example, the benchmark for our GARS unit trust fund is six-month GBP LIBOR). The investment performance calculation covers all funds that aim to outperform a benchmark, with certain assets excluded where this measure of performance is not appropriate or expected, such as private equity, execution only mandates and Aberdeen Standard Capital, as well as replication tracker funds which aim to perform in line with a given index. Investment performance is calculated as if Standard Life Group and Aberdeen had always been merged.
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. During this period, the Group will continue to be remunerated for its services in relation to the transferring AUM.
Net flows
Net flows represent gross inflows less gross outflows or redemptions. Gross inflows are new funds from clients. Gross outflows or redemptions is the money withdrawn by clients during the period.
Phoenix or Phoenix Group
Phoenix Group Holdings plc or Phoenix Group Holdings plc and its subsidiaries.
Pillar 1
Under CRD IV, Pillar 1 focuses on fixed overhead requirements and the Group's exposure to credit and market risks in respect of risk-weighted assets, and sets a minimum requirement for capital based on these measures.
Pillar 2
The requirement for companies to assess the level of additional capital held against risks not covered in Pillar 1.
Pillar 3
This complements Pillar 1 and Pillar 2 with the aim of improving market discipline by requiring companies to publish certain details of their risks, capital and risk management. The latest available Group's Pillar 3 disclosures are published at www.abrdn.com/annualreport
Platform
An investment platform (e.g. Wrap or Elevate) which is essentially a trading platform enabling investment funds, pensions, direct equity holdings and some life assurance contracts to be held in the same administrative account rather than as separate holdings.
Subordinated liabilities
Subordinated liabilities are debts of a company which, in the event of liquidation, rank below its other debts but above share capital.
 
 
7. Shareholder information
Registered office
1 George Street

Edinburgh

EH2 2LL
Scotland
Company registration number: SC286832
For shareholder services call: 
0371 384 2464*
*Calls are monitored/recorded to meet regulatory obligations and for training and quality purposes. Call charges will vary.
Secretary
Kenneth A Gilmour
Registrar
Equiniti
Note - Equiniti is the registrar for shareholder data. Our employee share plan data is administered by Link Market Services.
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 details can be found on the back cover.
·  Visit our share portal 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



Half year results 2021


10 August




Ex-dividend date for 2021 interim dividend


19 August




Record date for 2021 interim dividend


20 August




Last date for DRIP elections for 2021 interim dividend


8 September




Dividend payment date for 2021 interim dividend


28 September



Analysis of registered shareholdings at 30 June 2021



Range of shares


Number of holders


% of total holders


Number of shares


% of total shares




1-1,000


63,137


65.37%


25,429,057


1.16%




1,001-5,000


28,558


29.57%


58,367,716


2.68%




5,001-10,000


2,743


2.84%


18,268,854


0.84%




10,001-100,000


1,587


1.64%


39,078,701


1.79%




#100,001+


563


0.58%


2,039,579,386


93.53%




Total


96,588 


100.00%


2,180,723,714 


100.00%



# These figures include the Company-sponsored nominee - the Standard Life
   Aberdeen Share Account - now renamed the abrdn Share Account - which had 988,109 participants holding 663,992,725 shares.    
 
8. Forward-looking statements
This document may contain certain 'forward-looking statements' with respect to the financial condition, performance, results, strategy, 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 about future events, and are therefore subject to 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', 'continue', '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: the direct and indirect impacts and implications of the coronavirus COVID-19 on the economy, nationally and internationally, and on the Group, its operations and prospects; UK domestic and global political, economic and business conditions (such as the UK's exit from the EU); 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; 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); natural or man-made catastrophic events (including the impact of the coronavirus COVID-19); climate change and a transition to a low-carbon economy (including the risk that the Group may not achieve its 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 (including changes in response to the coronavirus COVID-19 and its impact on the economy); and the impact of changes in capital, solvency or accounting standards, and tax and other legislation and regulations (including changes to the regulatory capital requirements that the Group is subject to or changes in connection with the coronavirus COVID-19) 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.
Persons receiving this document should not place reliance on forward-looking statements. 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.
 

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 or visit 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.
 
  END
 
 
IR EAEPNELKFEAA