REG - abrdn PLC - Q4 2024 AUMA & Flows Trading Update
21/01/2025 07:00
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RNS Number : 0317U abrdn PLC 21 January 2025
21 January 2025
abrdn plc
Q4 2024: AUMA and flows trading update
abrdn plc is today providing an update on its 2024 year-end assets under
management and administration (AUMA) and its Q4 2024 net flows.
Key highlights
- AUMA up 3% in 2024 to £511bn; with a 1% increase in Q4 reflecting
positive markets and a net inflow in Investments and interactive investor
- Q4 net inflow in Investments of £0.5bn driven by alternatives,
quantitative strategies and liquidity. Institutional & Retail Wealth
returned to a net inflow of £0.3bn in FY 2024 (FY 2023: £(17.9)bn)
- Adviser AUMA up 2% in 2024, with outflow of £3.9bn in FY 2024 offset by
positive markets
- interactive investor delivering continued strong growth, with net inflow
in FY 2024 almost doubling to £5.7bn (FY 2023: £2.9bn), AUMA up 17% and
customers up 8% to 439k
- Good progress in transformation: FY 2024 adjusted operating expenses
below £1,075m, in line with guidance; annualised run rate savings in excess
of £100m achieved; on track to deliver target of at least £150m of
annualised savings by the end of 2025
- FY 2024 adjusted operating profit expected to be in line with current
market expectations, providing a solid base from which to grow
AUMA and flows (unaudited)
AUMA Net flows
31 Dec 24 30 Sep 24 31 Dec 23 FY 2024 FY 2023 Q4 2024 Q4 2023
£bn £bn £bn £bn £bn £bn £bn
Institutional & Retail Wealth 210.5 209.0 211.2 0.3 (17.9) 2.3 (5.8)
Insurance Partners 159.2 159.2 155.5 (4.3) (1.1) (1.8) 0.3
Investments 369.7 368.2 366.7 (4.0) (19.0) 0.5 (5.5)
Adviser 75.2 75.1 73.5 (3.9) (2.1) (0.9) (1.0)
interactive investor 77.5 74.5 66.0 5.7 2.9 1.4 0.5
Eliminations (11.0) (11.1) (11.3) 1.1 0.6 0.2 0.3
Total 511.4 506.7 494.9 (1.1) (17.6) 1.2 (5.7)
Commenting, Jason Windsor, CEO abrdn plc, said:
"We made significant progress in 2024, exceeding our cost transformation
targets and also laying the foundations for the new management team to achieve
growth and efficiency as we enter 2025.
"Investments returned to inflow in the quarter, and while there remain
challenges to overcome, it was pleasing to see our Institutional & Retail
Wealth segment report £2.3bn of positive flow in Q4.
"interactive investor, which achieved the number 1 position in UK D2C net
flows, performed very strongly throughout 2024, and we expect continuation of
its growth this year.
"Outflows in Adviser are being addressed, with an absolute focus on an
improved service and value proposition for our clients.
"I look forward to providing further information on our performance and
strategy with the Full year results on 4 March."
Investments: Significant improvement in flows, with Institutional & Retail
Wealth returning to net inflow
- Investments AUM up £1.5bn in Q4 to £369.7bn, driven by inflow in
Institutional & Retail Wealth (I&RW), together with positive markets.
- AUM in I&RW increased by £1.5bn in Q4 to £210.5bn. Net flow
improved significantly, achieving a net inflow of £0.3bn for the year
compared to a net outflow of £17.9bn in FY 2023. Net inflow in Q4 of £2.3bn
was primarily driven by alternatives, quantitative strategies and liquidity.
- While equity flow continues to reflect challenging conditions in Asia
and emerging markets as well as switches to passive strategies, Q4 outflow of
£1.5bn improved relative to Q3 (£2.4bn outflow).
- Fixed income had a modest net outflow of £0.4bn in Q4, with a flat net
flow for FY 2024 marking a significant improvement year-on-year (FY 2023: net
outflow of £4.0bn).
- Our liquidity business performed well, with a net inflow of £5.0bn for
the year (2023: net outflow of £3.7bn) including a net inflow of £2.3bn in
Q4. Average AUM has been around £20bn during 2024, up c.4% on 2023.
- Insurance Partners AUM of £159.2bn was up 2% in 2024 and flat in the
last quarter, with a net outflow offset by positive market movements. Net
outflow, principally relating to run-off in the heritage business, was £4.3bn
for the year (FY 2023 net outflow: £1.1bn) and £1.8bn in Q4.
- Other highlights in Q4 include a strengthening of the leadership team,
including the appointment of Xavier Meyer as CEO Investments in November.
Adviser: Strengthened leadership team in place, with focus on delivering
improved service for clients
- AUMA up 2% year-on-year to £75.2bn with positive markets offsetting
continued net outflow.
- Net outflow remains elevated despite a modest uptick in new business,
with an outflow of £0.9bn in Q4. Overall outflow of £3.9bn for the year.
- Consistent with our priority to return to net inflow as soon as
possible, we have redoubled our efforts to deliver improved service for our
clients. Improvements delivered include reduced sign-up and transfer-in times
for clients on our Wrap platform. This has helped drive more favourable client
sentiment, with average service net promoter scores ending the year at 41, up
from an average of 29 in H1 2024.
- Strengthened senior leadership team all now in place, including a new
Chief Financial Officer, Chief Product and Technology Officer, and Chief
Distribution Officer.
interactive investor (ii): Consistent strong growth, with customers responding
to increased brand awareness and value proposition, market-leading SIPP,
reliable service delivery and global trading capabilities
- Strong and sustained organic growth, with total customers up 8% to 439k
in the year and up 2% in Q4, helped by an increase in brand awareness.
- SIPP customers, a key growth area, increased to 81k, up 29% in the year
(31 December 2023: 62k) and 5% in Q4 (30 September 2024: 76k).
- AUMA up 17% year-on-year and 4% in Q4 to £77.5bn, driven by robust
growth in net inflows and positive markets.
- Net inflow in Q4 of £1.4bn compared to £0.5bn in Q4 2023. Net inflow
for FY 2024 of £5.7bn almost doubled year-on-year (FY 2023: £2.9bn) and
ranked ii as number one for UK D2C net flow in Q1-Q3(1).
- Trading volumes in 2024 up 29% year-on-year, with a notable increase in
international trading supported by increased use of the platform's global
trading and FX capabilities.
Transformation: Building a more efficient and focused company
- Transformation programme delivering cost savings while allowing
investment in our people, technology and data enablement, and process and
control enhancements.
- Strong progress against our transformation targets, with in excess of
£100m of the programme's total targeted annualised run rate savings (of at
least £150m by the end of 2025) achieved from actions completed in 2024.
- FY 2024 adjusted operating expenses to be in line with guidance given at
our H1 2024 results
(i.e. below £1,075m), and exceeding the c.£60m in-year target.
- Sale of Focus Solutions business in December consistent with our
strategy to simplify the Group.
Outlook: FY 2024 adjusted operating profit expected to be in line with current
market expectations, providing a solid base from which to grow
- Our confidence in the outlook for the group reflects:
o An anticipated significant uplift in contribution from interactive
investor - building on the strong growth in customer numbers and AUMA achieved
in 2024, coupled with increased customer trading activity and ongoing cost
discipline.
o Strong momentum in transformation, with the programme on track to deliver
its target of at least £150m of annualised savings by the end of 2025.
o Continued improvement in Investments, driven by the new team's disciplined
client focus, underpinned by greater cost efficiency.
o An ongoing focus on returning to net inflow in Adviser through service
improvement and repricing. In line with previous guidance, platform revenue
margin expected to be 2-3bps lower in FY 2025 as repricing of back book takes
effect.
All figures to 31 December 2024. All figures in this announcement are
unaudited and subject to revision.
1. Source: Fundscape, Direct Matters, Q3 2024
Management will be hosting a call for analysts at 8:30am (GMT) today. To
access a webcast of the conference call, please use the following link:
https://brrmedia.news/ABDN_Q4 (https://brrmedia.news/ABDN_Q4)
Enquiries:
Institutional equity investors and analysts
Duncan Heath +44 (0) 207 1562 495 / (0)788 4109 285
Media
Duncan Young +44 (0) 792 0868 865
Iain Dey (Teneo) +44 (0) 797 6295 906
LEI: OTMBS544NMO7GLCE7H90
Appendix 1
Analysis of AUMA
Opening Gross inflows Redemptions Net flows Market Corporate Closing
AUMA at
and other movements(1)
actions
AUMA at
1 Oct 2024
31 Dec 2024
3 months ended 31 December 2024 £bn £bn £bn £bn £bn £bn £bn
Institutional & Retail Wealth 209.0 9.5 (7.2) 2.3 (0.8) - 210.5
Insurance Partners 159.2 7.7 (9.5) (1.8) 1.8 - 159.2
Investments 368.2 17.2 (16.7) 0.5 1.0 - 369.7
Adviser(2) 75.1 1.8 (2.7) (0.9) 1.0 - 75.2
interactive investor(3) 74.5 3.5 (2.1) 1.4 1.6 - 77.5
Eliminations (11.1) (0.7) 0.9 0.2 (0.1) - (11.0)
Total AUMA 506.7 21.8 (20.6) 1.2 3.5 - 511.4
Opening Gross inflows Redemptions Net flows Market Corporate Closing
AUMA at
and other movements(1)
actions(4)
AUMA at
1 Jan 2024
31 Dec 2024
12 months ended 31 December 2024 £bn £bn £bn £bn £bn £bn £bn
Institutional & Retail Wealth 211.2 36.7 (36.4) 0.3 5.6 (6.6) 210.5
Insurance Partners 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
Adviser(2) 73.5 6.5 (10.4) (3.9) 5.6 - 75.2
interactive investor(3) 66.0 13.7 (8.0) 5.7 5.8 - 77.5
Eliminations (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
1. Market and other movements includes transfer of £1.7bn assets from
Quantitative mandates in Institutional & Retail Wealth to Insurance
Partners.
2. Includes Platform AUA as at 31 December 2024 of £72.4bn (1 October 2024:
£72.3bn, 1 January 2024: £70.9bn).
3. Includes D2C platform AUA as at 31 December 2024 of £73.8bn (1 October
2024: £70.6bn, 1 January 2024: £61.7bn). Associated net inflows in 2024 of
£6.1bn representing c.10% net flows on opening AUA. Also includes financial
planning business AUA as at 31 December 2024 of £3.7bn (1 October 2024:
£3.9bn, 1 January 2024: £4.3bn).
4. Corporate actions relate to the disposal of our European-headquartered
Private Equity business in April 2024 (£7.0bn) and the acquisition of
closed-end funds from First Trust in July 2024 (£0.3bn) and September 2024
(£0.1bn).
Quarterly AUMA
31 Dec 24 30 Sep 24 30 Jun 24 31 Mar 24 31 Dec 23
12 months ended 31 December 2024 £bn £bn £bn £bn £bn
Institutional & Retail Wealth 210.5 209.0 210.7 215.1 211.2
Insurance Partners 159.2 159.2 158.6 159.2 155.5
Investments 369.7 368.2 369.3 374.3 366.7
Adviser 75.2 75.1 75.0 75.2 73.5
interactive investor 77.5 74.5 72.9 69.6 66.0
Eliminations (11.0) (11.1) (11.3) (11.4) (11.3)
Total AUMA 511.4 506.7 505.9 507.7 494.9
Quarterly net flows
3 months to 3 months to 3 months to 3 months to 3 months to
31 Dec 24
30 Sep 24
30 Jun 24
31 Mar 24
31 Dec 23
15 months ended 30 September 2024 £bn £bn £bn £bn £bn
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)
Adviser (0.9) (1.0) (1.1) (0.9) (1.0)
interactive investor 1.4 1.2 1.9 1.2 0.5
Eliminations 0.2 0.2 0.4 0.3 0.3
Total net flows 1.2 (3.1) - 0.8 (5.7)
Institutional & Retail Wealth AUM
Detailed asset class split
Opening Gross inflows Redemptions Net flows Market Corporate actions Closing
AUM at
and other movements(1)
AUM at
1 Oct 2024
31 Dec 2024
3 months ended 31 December 2024 £bn £bn £bn £bn £bn £bn £bn
Developed markets equities 11.2 0.2 (0.5) (0.3) (0.3) - 10.6
Emerging markets equities 9.6 0.4 (0.8) (0.4) (0.3) - 8.9
Asia Pacific equities 15.6 0.5 (1.1) (0.6) - - 15.0
Global equities 8.6 0.2 (0.4) (0.2) 0.1 - 8.5
Total equities 45.0 1.3 (2.8) (1.5) (0.5) - 43.0
Developed markets credit 22.3 0.6 (0.8) (0.2) - - 22.1
Developed markets rates 2.9 0.2 (0.3) (0.1) (0.1) - 2.7
Emerging markets fixed income 9.8 0.5 (0.6) (0.1) 0.6 - 10.3
Total fixed income 35.0 1.3 (1.7) (0.4) 0.5 - 35.1
Absolute return(2) - - - - - - -
Diversified growth/income 1.0 - (0.1) (0.1) - - 0.9
MyFolio 16.4 0.4 (0.6) (0.2) - - 16.2
Other multi-asset(2) 7.6 0.2 (0.2) - - - 7.6
Total multi-asset 25.0 0.6 (0.9) (0.3) - - 24.7
Total private equity - - - - - - -
UK real estate 15.1 0.3 (0.1) 0.2 (0.5) - 14.8
European real estate 12.8 0.1 - 0.1 (0.2) - 12.7
Global real estate 1.7 0.1 (0.1) - - - 1.7
Real estate multi-manager 1.4 - - - - - 1.4
Infrastructure equity 6.4 0.1 - 0.1 0.1 - 6.6
Total real assets 37.4 0.6 (0.2) 0.4 (0.6) - 37.2
Total alternative investment solutions (including private credit) 25.1 1.1 (0.4) 0.7 1.8 - 27.6
Total quantitative 21.1 1.8 (0.7) 1.1 (1.9) - 20.3
Total excluding liquidity 188.6 6.7 (6.7) - (0.7) - 187.9
Total liquidity 20.4 2.8 (0.5) 2.3 (0.1) - 22.6
Total 209.0 9.5 (7.2) 2.3 (0.8) - 210.5
1. Market and other movements includes transfer of £1.7bn assets from
Quantitative mandates in Institutional & Retail Wealth to Insurance
Partners.
2. 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 Gross inflows Redemptions Net flows Market Corporate actions(2) Closing
AUM at
and other movements(1)
AUM at
1 Jan 2024
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
12 months ended 31 December 2023(4) 231.2 28.1 (46.0) (17.9) (1.0) (1.1) 211.2
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 the twelve months ended 31 December 2024 relate to
the disposal of our European-headquartered Private Equity business in April
2024 (£7.0bn) and the acquisition of closed-end funds from First Trust in
July 2024 (£0.3bn) and September 2024 (£0.1bn). Corporate actions in the
twelve months ended 31 December 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 (£2.3bn) in October 2023 and the
disposal of US private equity and venture capital business (£4.1bn) in
October 2023.
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.
4. Total Institutional & Retail Wealth figures, with opening AUM at 1
January 2023 and closing AUM at 31 December 2023.
interactive investor
Quarterly net flows and additional data
Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023
Total customers at period end(1) (k) 439 430 422 414 407 400 399 401
Customers holding a SIPP account(1) (k) 81 76 73 68 62 60 57 55
Net flows (£bn) 1.4 1.2 1.9 1.2 0.5 0.6 1.1 0.7
Customer cash balances(1) (£bn) 6.2 6.1 5.9 5.7 5.5 5.5 5.7 5.7
Daily average retail trading volumes(1) (k) 20.8 18.6 21.0 20.1 15.4 14.2 15.8 17.7
Market Share: Trades UK Cash Market(1,2) - 26% 25% 25% 26% 26% 25% 24%
Market Share: Trades non-UK(1,2) - 32% 30% 28% 31% 29% 29% 27%
Market Share: SIPP AUA(1,2) - 17% 17% 17% 16% 16% 15% 15%
Market Share: Total AUA(1,2) - 20% 20% 20% 19% 19% 19% 19%
1. Excludes our financial planning business.
2. Source: Compeer, data for Q4 2024 not yet available.
Forward-looking statements
This announcement contains statements that are or may be "forward-looking
statements". All statements other than statements of historical facts included
in this announcement may be forward-looking statements, including statements
that relate to the abrdn Group's future prospects, developments and
strategies. Often, but not always, forward-looking statements can be
identified by the use of forward-looking words such as "plans", "expects", "is
expected", "believes", "targets", "aims", "anticipates", "projects", "would",
"could", "should", "may", "might", "envisages", "estimates", "intends",
"underway", or the negative of those, or by the use of references to
assumptions, budgets, strategies, prospects and schedules.
Although the abrdn Group believes that the expectations reflected in such
forward-looking statements are reasonable as at the date of this announcement,
it can give no assurance that such expectations will prove to be correct.
By their nature, 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 abrdn Group's
control.
Neither abrdn plc, its affiliates nor any of its associates or 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 announcement will actually occur. Recipients of this
announcement should not place any reliance on these forward-looking statements
and all forward-looking statements contained in this announcement are
expressly qualified in their entirety by the cautionary statements contained
or referred to in this section. Except as required by law or regulation,
neither abrdn plc nor its affiliates assume any obligation to update or revise
these forward-looking statements, whether as a result of new information,
future events or otherwise. Past performance is not an indicator of future
results and the results of abrdn plc and its affiliates in this document may
not be indicative of, and are not an estimate, forecast or projection of,
abrdn plc's or its affiliates' future results.
Please see abrdn plc's most recent Annual report and accounts for further
detail of the risks, uncertainties and other factors relevant to its business
and securities.
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