REG - Aberdeen Group PLC - Q1 2025 AUMA and flows trading update

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RNS Number : 7093G  Aberdeen Group PLC  30 April 2025

 

30 April 2025
 

Aberdeen Group plc

Q1 2025: AUMA and flows trading update

 

Aberdeen Group plc ("Aberdeen" or the "Group") is today providing an update on
its Q1 assets under management and administration (AUMA) and net flows.

 

Key highlights:

-   AUMA of £500.1bn reflected lower markets, with continued strong inflows
at interactive investor of £1.6bn offset by net outflows in Investments and
Adviser.

-   Strong organic growth was delivered in interactive investor, with
year-on-year increases in total customers of 9% to 450k and 29% in SIPP
customers to 88k; acquisition of small retail customer book announced on 15
April.

-   Restored service levels, enhanced platform functionality and repricing
led to net outflows in Adviser of £(0.6)bn being over 30% better than Q1 and
Q4 2024.

-   The previously highlighted £(4.2)bn redemption from a low-margin
mandate was the principal driver of net outflows of £(6.4)bn in Investments.

-   Investments (I&RW) net flows are positive year to date, following a
large quant win in April.

 

AUMA and flows (unaudited)

                                    AUMA                  Net flows
                                    31 Mar 25  31 Dec 24  Q1 2025  Q1 2024
                                    £bn        £bn        £bn      £bn
 Wealth
 interactive investor               77.7       77.5       1.6      1.2
 Adviser                            73.7       75.2       (0.6)    (0.9)
 Investments
 Institutional & Retail Wealth      204.8      210.5      (4.1)    0.7
 Insurance Partners                 154.8      159.2      (2.3)    (0.5)
 Investments total(1)               359.6      369.7      (6.4)    0.2
 Eliminations                       (10.9)     (11.0)     0.2      0.3
 Total                              500.1      511.4      (5.2)    0.8

1.        Includes £(4.2)bn outflow from single mandate redemption for
Phoenix with negligible impact on FY 2025 revenue. Recognised across
quantitative strategies £(3.2)bn, fixed income £(0.4)bn, multi-assets
£(0.1)bn and Insurance Partners £(0.5)bn.

 

Commenting, Jason Windsor, CEO of Aberdeen, said:

"Our strategy is to become the UK's leading wealth business and to reposition
our Investments business to areas of strength and market growth. So far this
year, we have made good progress against these objectives, despite the current
heightened levels of market uncertainty.

"interactive investor has seen significant growth in new customers, and in
trading volumes, which have risen to record levels during the recent period of
market volatility.

"In Adviser, net outflows improved in Q1, and while there remains work to be
done, we are encouraged by the business's progress, most notably in meeting or
exceeding client service targets.

"In Investments, Q1 flows were impacted by the large redemption we noted at
our Full Year results. We saw good inflows in fixed income in the quarter, but
outflows in equities remained elevated. A major quant win in April has taken
I&RW net flows to positive in the year to date. With clear strategic
priorities and an ongoing focus on efficiency, we continue to target a
material uplift in profitability."

 

interactive investor: Continued strong organic customer growth, including in
high-value SIPP accounts

-   AUMA up to £77.7bn (31 December 2024: £77.5bn), reflecting £1.6bn of
net inflows and sustained customer growth: total customers up 9% year-on-year
to 450k and SIPP customers up 29% to 88k.

-   Daily average retail trades up 19% and 15% versus Q1 and Q4 2024,
respectively.

-   Customer cash balances of £6.8bn up 10% compared to the end of 2024.

-   Early performance in Q2 characterised by continuation of strong inflows,
elevated daily trading volumes and higher customer cash balances.

-   On 15 April, ii announced the acquisition of Jarvis Management Limited's
direct-to-consumer retail book. The acquisition, expected to complete in Q3,
is for a consideration of up to £11m, and is expected to bring between 20-30k
long-term customers along with c.£1bn of assets.

Adviser: Outflows reducing and service levels back to long term average, with
further improvements expected

-   AUMA of £73.7bn (31 December 2024: £75.2bn), primarily reflecting
lower markets.

-   Net outflows of £(0.6)bn were an improvement on Q1 and Q4 2024
(outflows of £(0.9)bn in both periods) and at their lowest level since Q3
2023.

-   Significant progress made towards our goal of delivering market-leading
service levels as part of our broader priority of returning to net inflows as
soon as possible; further supported by an improving new business pipeline.

Investments: Repositioning to win in areas of strength and market growth

-   AUM of £359.6bn (31 December 2024: £369.7bn) with movement in the
quarter reflecting net outflows and lower markets.

-   Net outflows of £(6.4)bn, driven by £(4.2)bn low-margin mandate
redemption, as previously announced (£(3.7)bn reflected in Institutional
& Retail Wealth ("I&RW") and £(0.5)bn in Insurance Partners).

-   Gross inflows in I&RW (ex- liquidity) of £8.9bn at highest level
for over 2 years and 30% higher than Q4 2024.

-   Equity net outflows of £(3.3)bn include £(0.7)bn from previously
announced fund merger, as well as an additional £(0.7)bn mandate redemption
that will have a negligible revenue impact.

-   Strong performance in fixed income, with net inflows of £1.5bn in the
quarter benefiting from a significant European pension client mandate win.

Outlook

-   Last month we set out our ambition to be the UK's leading Wealth &
Investments group, and we are committed to the FY 2026 targets of adjusted
operating profit above £300m, and net capital generation of c.£300m.

-   Clear strategic priorities to transform performance, improve client
experience and strengthen our talent and culture.

-   On course to meet transformation target of at least £150m of annualised
cost savings by the end of this year; Group COO to drive long-term benefits of
transformation.

-   ii on track to meet FY 2026 growth targets and deliver Managed SIPP, ii
Advice, and ii 360 to further broaden customer appeal.

-   Adviser service improvements and enhanced platform functionality support
target to achieve at least £1bn of net inflows in FY 2026.

-   Investments benefiting from a £6bn quantitative strategies mandate
funding in April; FY 2026 targeting at least £100m of adjusted operating
profit.

Management will be hosting a call for analysts at 8:30am (BST) today. To
access a webcast of the conference call, please use the following link:
https://brrmedia.news/ABDN_Q1_25 (https://brrmedia.news/ABDN_Q1_25)

 

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: 0TMBS544NMO7GLCE7H90

Appendix 1

interactive investor

Quarterly net flows and additional data

                                              Q1 2025  Q4 2024  Q3 2024  Q2 2024  Q1 2024  Q4 2023  Q3 2023  Q2 2023
 Total customers at period end(1) (k)         450      439      430      422      414      407      400      399
 Customers holding a SIPP account(1) (k)      88       81       76       73       68       62       60       57

 Net flows (£bn)                              1.6      1.4      1.2      1.9      1.2      0.5      0.6      1.1
 Customer cash balances(1) (£bn)              6.8      6.2      6.1      5.9      5.7      5.5      5.5      5.7
 Daily average retail trading volumes(1) (k)  24.0     20.8     18.6     21.0     20.1     15.4     14.2     15.8

 Market Share: Trades UK Cash Market(1,2)     -        26%      26%      25%      25%      26%      26%      25%
 Market Share: Trades non-UK(1,2)             -        32%      32%      30%      28%      31%      29%      29%
 Market Share: SIPP AUA(1,2)                  -        18%      17%      17%      17%      16%      16%      15%
 Market Share: Total AUA(1,2)                 -        20%      20%      20%      20%      19%      19%      19%

1.     Excludes our financial planning business.

2.     Source: Compeer, data for Q1 2025 not yet available.

 

Analysis of AUMA

                                    Opening      Gross inflows  Redemptions  Net flows  Market                Corporate  Closing

AUMA at
and other movements
actions
AUMA at

1 Jan 2025
31 Mar 2025
 3 months ended 31 March 2025       £bn          £bn            £bn          £bn        £bn                   £bn        £bn
 Wealth
 interactive investor(1)            77.5          3.7           (2.1)         1.6       (1.4)                  -          77.7
 Adviser(2)                         75.2          1.7           (2.3)        (0.6)      (0.9)                  -          73.7
 Investments
 Institutional & Retail Wealth      210.5         10.2          (14.3)       (4.1)      (1.6)                             204.8
 Insurance Partners                 159.2         5.3           (7.6)        (2.3)      (2.1)                  -          154.8
 Investments total                  369.7         15.5          (21.9)       (6.4)      (3.7)                  -          359.6
 Eliminations                       (11.0)       (0.5)           0.7          0.2        (0.1)                 -         (10.9)
 Total AUMA                         511.4         20.4          (25.6)       (5.2)      (6.1)                  -          500.1

1.  Includes financial planning business AUA as at 31 March 2025 of
£3.6bn (31 December 2024: £3.7bn).

2.  Includes Platform AUA as at 31 March 2025 of £70.9bn (31 December 2024:
£72.4bn).

 

Quarterly AUMA

                                    31 Mar 25  31 Dec 24  30 Sep 24  30 Jun 24  31 Mar 24
 12 months ended 31 March 2025      £bn        £bn        £bn        £bn        £bn
 Wealth
 interactive investor                77.7      77.5       74.5       72.9       69.6
 Adviser                             73.7      75.2       75.1       75.0       75.2
 Investments
 Institutional & Retail Wealth       204.8     210.5      209.0      210.7      215.1
 Insurance Partners                  154.8     159.2      159.2      158.6      159.2
 Investments total                   359.6     369.7      368.2      369.3      374.3
 Eliminations                       (10.9)     (11.0)     (11.1)     (11.3)     (11.4)
 Total AUMA                          500.1     511.4      506.7      505.9      507.7

Quarterly net flows

                                    3 months to  3 months to  3 months to  3 months to  3 months to

31 Mar 25
31 Dec 24
30 Sep 24
30 Jun 24
31 Mar 24
 15 months ended 31 March 2025      £bn          £bn          £bn          £bn          £bn
 Wealth
 interactive investor                1.6         1.4          1.2          1.9          1.2
 Adviser                            (0.6)        (0.9)        (1.0)        (1.1)        (0.9)
 Investments
 Institutional & Retail Wealth      (4.1)        2.3          (2.4)        (0.3)        0.7
 Insurance Partners                 (2.3)        (1.8)        (1.1)        (0.9)        (0.5)
 Investments total                  (6.4)        0.5          (3.5)        (1.2)        0.2
 Eliminations                        0.2         0.2          0.2          0.4          0.3
 Total net flows                    (5.2)        1.2          (3.1)        -            0.8

 

Institutional & Retail Wealth AUM

Detailed asset class split

                                                                    Opening      Gross inflows  Redemptions  Net flows  Market                Corporate actions  Closing

AUM at
and other movements
AUM at

1 Jan 2025
31 Mar 2025
 3 months ended 31 March 2025                                       £bn          £bn            £bn          £bn        £bn                   £bn                £bn
 Developed markets equities                                         10.6          0.2           (0.5)        (0.3)      (0.2)                  -                  10.1
 Emerging markets equities                                          8.9           0.3           (1.0)        (0.7)      (0.4)                  -                  7.8
 Asia Pacific equities                                              15.0          0.2           (2.3)        (2.1)      (1.0)                  -                  11.9
 Global equities                                                    8.5           0.4           (0.6)        (0.2)      (0.4)                  -                  7.9
 Total equities                                                     43.0          1.1           (4.4)        (3.3)      (2.0)                  -                  37.7
 Developed markets credit                                           22.1          3.8           (1.4)         2.4        0.8                   -                  25.3
 Developed markets rates                                            2.7           0.1           (0.4)        (0.3)      (0.3)                  -                  2.1
 Emerging markets fixed income                                      10.3          0.8           (1.4)        (0.6)      (0.2)                  -                  9.5
 Total fixed income                                                 35.1          4.7           (3.2)         1.5        0.3                   -                  36.9
 Diversified growth/income                                          0.9           -             (0.1)        (0.1)       -                     -                  0.8
 MyFolio                                                            16.2          0.4           (0.6)        (0.2)      (0.1)                  -                  15.9
 Other multi-asset                                                  7.6           0.1           (0.6)        (0.5)       0.1                   -                  7.2
 Total multi-asset                                                  24.7          0.5           (1.3)        (0.8)       -                     -                  23.9
 UK real estate                                                     14.8          -             (0.1)        (0.1)      (0.3)                  -                  14.4
 European real estate                                               12.7          0.1            -            0.1       (0.3)                  -                  12.5
 Global real estate                                                 1.7           0.1           (0.1)         -           (0.1)                -                  1.6
 Real estate multi-manager                                          1.4           -              -            -          0.1                   -                  1.5
 Infrastructure equity                                              6.6           -              -            -          0.1                   -                  6.7
 Total real assets                                                  37.2          0.2           (0.2)         -         (0.5)                  -                  36.7
 Total alternative investment solutions (including private credit)  27.6          0.7           (0.5)         0.2        0.6                   -                  28.4
 Total quantitative                                                 20.3          1.7           (3.9)        (2.2)       0.3                   -                  18.4
 Total excluding liquidity                                          187.9         8.9           (13.5)       (4.6)      (1.3)                  -                  182.0
 Total liquidity                                                    22.6          1.3           (0.8)         0.5       (0.3)                  -                  22.8
 Total                                                              210.5         10.2          (14.3)       (4.1)      (1.6)                  -                  204.8

 3 months ended 31 March 2024(1)                                    211.2         9.5           (8.8)        0.7        3.2                    -                  215.1

1.  Total Institutional & Retail Wealth figures, with opening AUM at 1
January 2024 and closing AUM at 31 March 2024.

 

 

 

 

 

 

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