REG - Standard Life Aberdn - Final Results - Part 8 of 8

AberdeenAnnouncement

09/03/2021 07:00

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RNS Number : 5733R  Standard Life Aberdeen plc  09 March 2021

 

Standard Life Aberdeen plc

Full Year Results 2020

Part 8 of 8

 

 

10. Glossary

 

Aberdeen Asset Management or Aberdeen

Aberdeen Asset Management PLC, or Aberdeen Asset Management PLC and its
subsidiaries.

Adjusted operating expenses

Adjusted operating expenses is a component of adjusted profit and relates to
the day-to-day expenses of managing our business.

Adjusted profit

Adjusted profit before tax is the Group's key alternative performance measure.
Adjusted profit 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 or
associate

·  Impairment loss/reversal of impairment loss recognised on investments in
associates and joint ventures accounted for using the equity method

·  Changes in fair value of significant listed investments

·  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 also excludes impacts arising from investment return variances
and economic assumption changes in the Group's associate and joint venture
insurance entities where they have a policy for determining investment return
variances and economic assumption changes. This currently applies only to the
Group's investment in Phoenix.

Dividends payable on preference shares classified as non-controlling interests
are excluded from adjusted profit in line with the treatment of ordinary
shares. Similarly to preference shares, coupons paid on perpetual debt
instruments classified as equity for which interest is only accounted for when
paid is excluded from adjusted profit. This includes our share of interest
payable on Tier 1 debt instruments held by associates. Coupons payable on
perpetual debt instruments classified as equity for which interest is accrued
are included in adjusted profit before tax.

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 Aberdeen Standard Investments
manages 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.

Capital management

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.

Chief Operating Decision Maker

The executive leadership team.

Company

Standard Life Aberdeen plc.

Cost/income ratio

This is an efficiency measure that is calculated as adjusted operating
expenses divided by fee based revenue. The measure may also be disclosed on a
basis that includes the share of associates' and joint ventures' profit before
tax.

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

Responsible for providing overall leadership of the business and comprises:
Chief Executive Officer; Chief Financial Officer; CEO Aberdeen Standard
Capital; CEO Aberdeen Standard Investments Asia Pacific; CEO Adviser
Platforms; Chief HR Officer; Chief Investment Officer; Chief Brand, Marketing
and Corporate Affairs Officer; Chief Risk Officer; General Counsel; Global
Chief Operating Officer; Global Head of Aberdeen Standard Investments; Global
Head of Product and Client Solutions; Global Head of Strategic Partnerships;
Head of Americas and Head of EMEA and UK.

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 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.

Global absolute return strategies (GARS)

A discretionary multi-asset fund provided under several regulated pooled and
segregated structures globally by Aberdeen Standard Investments. The
investment objective is to target a level of return over a rolling three-year
period equivalent to cash plus 5% a year (gross of fees), and to do so with as
little risk as possible.

Group, Standard Life Aberdeen Group or Standard Life Aberdeen

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
markets, 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.standardlifeaberdeen.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.

Pro forma basis

The merger of Standard Life plc and Aberdeen completed on 14 August 2017, with
the merger accounted for as an acquisition of Aberdeen by Standard Life plc on
that date. Pro forma results for the Group are prepared as if Standard Life
Group and Aberdeen had always been merged and are included for comparative
periods to assist in explaining trends in financial performance by showing a
full 12 months performance for the combined Group for all years.

Reported basis

The merger of Standard Life plc and Aberdeen completed on 14 August 2017, with
the merger accounted for as an acquisition of Aberdeen by Standard Life plc on
that date. The financial statements for 2017 have been prepared on this basis,
with Aberdeen results included only from the date of merger onwards. This is
referred to as the Reported basis.

Subordinated liabilities

Subordinated liabilities are debts of a company which, in the event of
liquidation, rank below its other debts but above share capital.

11. Shareholder information

Registered office

1 George Street

Edinburgh

EH2 2LL

Scotland

Company registration number: SC286832

For shareholder services call:

0345 113 0045*

*Calls may be monitored and/or recorded to protect both you and us and help
with our training. Call charges will vary.

Secretary

Kenneth A Gilmour

Registrar

Link Market Services Limited (Link)

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, Link, who manage this service for us. Their
details can be found on the inside back cover.

·  Visit our share portal at www.standardlifeaberdeenshares.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.standardlifeaberdeenshares.com

Preventing unsolicited mail

By law, the Company has to make certain details from its share register
publicly available. Because of this, it is possible that some registered
shareholders could receive unsolicited mail or phone calls. You could also be
targeted by fraudulent 'investment specialists'. Frauds are becoming much more
sophisticated and may use company branding, 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@aberdeenstandard.com and we'll
look into it for you.

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 Standard Life Aberdeen Share Account - by contacting Link, 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 2020                                9 March
 Ex-dividend date for 2020 final dividend              15 April
 Record date for 2020 final dividend                   16 April
 Last date for DRIP elections for 2020 final dividend  5 May
 Annual General Meeting - Edinburgh                    18 May
 Dividend payment date for 2020 final dividend         25 May
 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                 8 September

interim dividend
 Dividend payment date for 2021 interim dividend       28 September

Analysis of registered shareholdings at 31 December 2020

 Range of shares  Number of holders  % of total holders  Number of shares  % of total shares
 1-1,000          63,666             65.24               25,688,131        1.17
 1,001-5,000      29,045             29.76               59,210,354        2.70
 5,001-10,000     2,778              2.85                18,480,640        0.84
 10,001-100,000   1,564              1.60                38,235,469        1.74
 (#)100,001+      538                0.55                2,052,501,022     93.55
 Total            97,591             100.00              2,194,115,616     100.00

#              These figures include the Company-sponsored nominee
- the Standard Life Aberdeen Share Account - which had 994,615 participants
holding 665,021,873 shares.

 

12. 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.

 

 

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