REG - abrdn PLC - Final Results - Part 6 of 8
27/02/2024 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240227:nRSa5263Ea&default-theme=true
RNS Number : 5263E abrdn PLC 27 February 2024
abrdn plc
Full Year Results 2023
Part 6 of 8
31. Pension and other post-retirement benefit provisions
The Group operates two types of pension plans:
- Defined benefit plans which provide pension payments upon retirement to
members as defined by the plan rules. All of the Group's defined benefit
plans, with the exception of a small plan in Ireland, are closed to future
service accrual.
- Defined contribution plans where the Group makes contributions to a
member's pension plan but has no further payment obligations once the
contributions have been paid.
The Group's liabilities in relation to its defined benefit plans are valued by
at least annual actuarial calculations. The Group has funded these liabilities
in relation to its UK and Ireland defined benefit plans by ring-fencing assets
in trustee-administered funds. The Group has further smaller defined benefit
plans some of which are unfunded.
The statement of financial position reflects a net asset or net liability for
each defined benefit pension plan. The liability recognised is the present
value of the defined benefit obligation (estimated future cash flows are
discounted using the yields on high quality corporate bonds) less the fair
value of plan assets, if any. If the fair value of the plan assets exceeds the
defined benefit obligation, a pension surplus is only recognised if the Group
considers that it has an unconditional right to a refund of the surplus from
the plan. The amount of surplus recognised will be limited by tax and
expenses. Our judgement is that, in the UK, an authorised surplus tax charge
is not an income tax. Consequently, any UK surplus is recognised net of this
tax charge rather than the tax charge being included within deferred taxation.
For the principal defined benefit plan (abrdn UK Group plan), the Group
considers that it has an unconditional right to a refund of a surplus,
assuming the gradual settlement of the plan liabilities over time until all
members have left the plan. The plan trustees can purchase annuities to insure
member benefits and can, for the majority of benefits, transfer these
annuities to members. The trustees cannot unconditionally wind up the plan or
use the surplus to enhance member benefits without employer consent. Our
judgement is that these trustee rights do not prevent us from recognising an
unconditional right to a refund and therefore a surplus.
Net interest income (if a plan is in surplus) or interest expense (if a plan
is in deficit) is calculated using yields on high quality corporate bonds and
recognised in the consolidated income statement. A current service cost is
also recognised which represents the expected present value of the defined
benefit pension entitlement earned by members in the period. A past service
cost is also recognised which represents the change in the present value of
the defined benefit obligation for service in prior periods, resulting from an
amendment or curtailment to a plan.
Remeasurements, which include gains and losses as a result of changes in
actuarial assumptions, the effect of the limit on the plan surplus and returns
on plan assets (other than amounts included in net interest) are recognised in
other comprehensive income in the period in which they occur. Remeasurements
are not reclassified to profit or loss in subsequent periods.
For defined contribution plans, the Group pays contributions to separately
administered pension plans. The Group has no further payment obligations once
the contributions have been paid. The contributions are recognised in current
service cost in the consolidated income statement as staff costs and other
employee-related costs when they are due.
Defined contribution plans
The defined contribution plans comprise a mixture of arrangements depending on
the employing entity and other factors. Some of these plans are located within
the same legal vehicles as defined benefit plans. The Group contributes a
percentage of pensionable salary to each employee's plan. The contribution
levels vary by employing entity and other factors.
Defined benefit plans
UK plans
These plans are governed by trustee boards, which comprise employer and
employee nominated trustees and an independent trustee. The plans are subject
to the statutory funding objective requirements of the Pensions Act 2004,
which require that plans be funded to at least the level of their technical
provisions (an actuarial estimate of the assets needed to provide for benefits
already built-up under the plan). The trustees perform regular valuations to
check that the plans meet the statutory funding objective.
While the IAS 19 valuation reflects a best estimate of the financial position
of the plan, the funding valuation reflects a prudent estimate. There is no
material difference in how assets are measured. The funding measure of
liabilities (technical provisions) and the IAS 19 measure are materially
different. The key differences are the discount rate and inflation
assumptions. While IAS 19 requires that the discount rate reflect corporate
bond yields, the funding measure discount rate reflects a prudent estimate of
future investment returns based on the actual investment strategy. The funding
valuation adopts a market consistent measure of inflation without any
adjustment. The IAS 19 RPI inflation assumption is derived from market-implied
RPI inflation with an adjustment to remove the inflation risk premium believed
to exist within market prices, with an additional deduction required to derive
the IAS 19 CPI inflation assumption (to reflect differences between RPI and
CPI).
The trustees set the plan investment strategy to protect the ratio of plan
assets to the trustees' measure of the value of assets needed to meet the
trustees' objectives. This investment strategy does not aim to protect the IAS
19 surplus or the ratio of plan assets to the IAS 19 measure of liabilities.
After consulting the relevant employers, the trustees prepare statements of
funding and investment principles and set a schedule of contributions. If
necessary, this schedule includes a recovery plan that aims to restore the
funding level to the level of the technical provisions.
abrdn UK Group (SLSPS) plan (principal plan) This is the Group's principal defined benefit plan. The plan closed to new
membership in 2004 and changed from a final salary basis to a revalued career
average salary basis in 2008. Accrual ceased in April 2016.
Following a High Court ruling against a third party's pension scheme in 2018,
that required pension schemes to address inequalities for the effect of
unequal GMPs accrued between May 1990 and April 1997, an allowance for assumed
equalisation was recognised as a past service cost for our principal defined
benefit plan in 2018 and this adjustment has been carried forward to 2023.
There was a further judgement in 2020 requiring pension schemes to address
inequalities for the effect of unequal GMPs for those beneficiaries that
transferred out of the scheme between May 1990 and October 2018. The
estimated impact is immaterial and was recognised as a past service cost in
2020 and this adjustment has been carried forward to 2023.
The funding of the plan depends on the statutory valuation performed by the
trustee, and the relevant employers, with the assistance of the scheme actuary
- i.e. not the IAS 19 valuation. The funding valuation was last completed at
31 December 2022, and measured plan assets and liabilities to be £3.0bn and
£2.1bn respectively. This corresponds to a surplus of £0.9bn and a funding
level of 144%. As there is currently no deficit, no recovery plan is required.
As part of ongoing actions taken in recent years to reduce risk in abrdn's
principal defined benefit pension plan, the trustee submitted a petition to
the Court of Session in March 2023 seeking a direction on the destination of
any residual surplus assets that remain after all plan-related obligations are
settled or otherwise provided for. On 1 August 2023, the Court of Session,
among other things, confirmed that if a buy-out were to be completed and
sufficient provision made for: (i) any remaining liabilities; and (ii)
expenses of completing the winding-up of the pension scheme, there would be a
resulting trust in respect of any residual surplus assets in favour of the
employer. We are continuing to work with the trustee on next steps. Any
residual surplus will be determined on a different basis to IAS 19 or funding
measures of the plan surplus. The timing of release of any surplus remains a
matter for the trustee. The IAS 19 defined benefit plan asset is not included
in abrdn's regulatory capital.
Other UK plans The Group also operates two UK defined benefit plans as a result of the
acquisition of Aberdeen Asset Management PLC (now renamed abrdn Holdings
Limited) in 2017. These plans are final salary based, with benefits depending
on members' length of service and salary prior to retirement. At the last
statutory valuation date (30 June 2022), one plan, the Edinburgh Fund Managers
Group Scheme (the EFM Scheme) was in deficit and the Group agreed funding
plans with the plan's trustees which aimed to eliminate the deficit. The other
plan, the Murray Johnstone Limited Retirement Benefits Plan (the MJ Plan), was
in surplus. Refer Section 31(d) for details of the buy-in undertaken on the MJ
Plan in 2023.
Other plans
abrdn ROI plan In December 2009, this plan closed to new membership and changed from a final
salary basis to a career average revalued earnings (CARE) basis. Following the
sale of the UK and European insurance business in 2018, there remain two
employees who continue to accrue benefits under this plan.
At the last funding valuation, effective 1 January 2022, the plan was in
deficit and as above, the Group agreed funding plans with the plan's trustees
which aimed to eliminate the deficit.
Other The Group operates smaller funded and unfunded defined benefit plans in other
countries.
Plan regulations
The plans are administered according to local laws and regulations in each
country. Responsibility for the governance of the plans rests with the
relevant trustee boards (or equivalent). The UK pensions market is regulated
by the Pensions Regulator whose statutory objectives and regulatory powers are
described on its website, www.thepensionsregulator.gov.uk
(a) Analysis of amounts recognised in the consolidated income statement
The amounts recognised in the consolidated income statement for defined
contribution and defined benefit plans are as follows:
2023 2022
£m £m
Current service cost 55 56
Past service cost (5) -
Net interest income (38) (32)
Administrative expenses 4 3
Expense recognised in the consolidated income statement 16 27
Contributions made to defined contribution plans are included within current
service cost.
Contributions to defined benefit plans in the year ended 31 December 2023
comprised £8m (2022: £14m) to the Other UK plans and the abrdn ROI
plan. Contributions are expected to be £5m in 2024 and are not expected to
materially change in the two subsequent years. These contributions include a
mixture of deficit funding and funding to achieve a targeted level of overall
financial strength.
(b) Analysis of amounts recognised in the consolidated statement of
financial position
2023 2022
Principal Other Total Principal Other Total
plan
plan
£m £m £m £m £m £m
Present value of funded obligation (1,784) (234) (2,018) (1,755) (228) (1,983)
Present value of unfunded obligation - (2) (2) - (3) (3)
Fair value of plan assets 2,912 233 3,145 3,001 251 3,252
Net asset/(liability) before the limit on plan surplus 1,128 (3) 1,125 1,246 20 1,266
Effect of limit on plan surplus(1, 2) (394) (3) (397) (436) (11) (447)
Net asset/(liability) 734 (6) 728 810 9 819
1. UK recoverable surpluses are reduced to reflect an
authorised surplus payments charge of 35% that would arise on a refund. This
applies to both the principal plan surplus and the defined benefit plan within
Other which has a net asset of £6m at 31 December 2023 (2022: £21m).
2. The UK Government announced in the Autumn Statement
a proposed reduction in the authorised pension surplus charge from 35% to 25%
to be effective from 6 April 2024. This change has not yet been enacted. The
impact of the change would have been to increase the pension asset by £113m.
Other comprises a defined benefit plan asset of £6m (2022: £21m) and a
number of other defined benefit plans with a total liability of £12m (2022:
£12m).
A pension plan surplus is considered to be recoverable where an unconditional
right to a refund exists. The principal plan surplus had reduced significantly
in 2022 due to market movements, primarily driven by the increase in UK high
quality bond yields with a smaller impact from UK inflation changes during
2022. There was further impact from these in 2023 but this was less
significant.
(c) Movement in the net defined benefit asset
Present value Fair value of Net asset/(liability) before the limit on plan surplus Effect of limit on plan surpluses Net asset/(liability)
of obligation
plan assets
2023 2022 2023 2022 2023 2022 2023 2022 2023 2022
£m £m £m £m £m £m £m £m £m £m
At 1 January (1,986) (3,252) 3,252 5,686 1,266 2,434 (447) (865) 819 1,569
Total expense
Current service cost - - - - - - - - - -
Past service cost 5 - - - 5 - - - 5 -
Interest (expense)/income (88) (65) 146 115 58 50 (20) (18) 38 32
Administrative expenses (4) (3) - - (4) (3) - - (4) (3)
Total (expense)/income recognised in consolidated income statement (87) (68) 146 115 59 47 (20) (18) 39 29
Remeasurements
Return on plan assets, excluding amounts included in interest income - - (186) (2,473) (186) (2,473) - - (186) (2,473)
Gain from change in demographic assumptions 31 5 - - 31 5 - - 31 5
(Loss)/gain from change in financial assumptions (56) 1,450 - - (56) 1,450 - - (56) 1,450
Experience gains/(losses) 2 (211) - - 2 (211) - - 2 (211)
Change in effect of limit on plan surplus - - - - - - 70 436 70 436
Remeasurement (losses)/gains recognised in other comprehensive income (23) 1,244 (186) (2,473) (209) (1,229) 70 436 (139) (793)
Exchange differences 4 (6) (4) 5 - (1) - - - (1)
Employer contributions - - 8 14 8 14 - - 8 14
Benefit payments 72 96 (71) (95) 1 1 - - 1 1
At 31 December (2,020) (1,986) 3,145 3,252 1,125 1,266 (397) (447) 728 819
(d) Defined benefit plan assets
Investment strategy is directed by the trustee boards (where relevant) who
pursue different strategies according to the characteristics and maturity
profile of each plan's liabilities. Assets and liabilities are managed
holistically to create a portfolio with the dual objectives of return
generation and liability management. In the principal plan this is achieved
through a diversified multi-asset absolute return strategy seeking consistent
positive returns, and hedging techniques which protect liabilities against
movements arising from changes in interest rates and inflation expectations.
Derivative financial instruments support both of these objectives and may lead
to increased or decreased exposures to the physical asset categories disclosed
below.
To provide more information on the approach used to determine and measure the
fair value of the plan assets, the fair value hierarchy has been used as
defined in Note 36. Those assets which cannot be classified as level 1 have
been presented together as level 2 or 3.
The distribution of the fair value of the assets of the Group's funded defined
benefit plans is as follows:
Principal plan Other Total
2023 2022 2023 2022 2023 2022
£m £m £m £m £m £m
Assets measured at fair value based on level 1 inputs
Derivatives - 9 - - - 9
Equity securities - 55 - - - 55
Debt securities 1,403 2,186 - 93 1,403 2,279
Total assets measured at fair value based on level 1 inputs 1,403 2,250 - 93 1,403 2,343
Assets measured at fair value based on level 2 or 3 inputs
Derivatives (3) (7) (2) (3) (5) (10)
Equity securities 44 55 - - 44 55
Interests in pooled investment funds
Debt 286 284 19 16 305 300
Equity - - 7 6 7 6
Multi-asset private markets 230 224 - - 230 224
Property 82 95 11 12 93 107
Absolute return - - 9 24 9 24
Cash 9 39 73 41 82 80
Debt securities 1,110 581 2 12 1,112 593
Qualifying insurance policies 2 2 125 45 127 47
Total assets measured at fair value based on level 2 or 3 inputs 1,760 1,273 244 153 2,004 1,426
Cash and cash equivalents 103 160 4 5 107 165
Liability in respect of collateral held (354) (682) (15) - (369) (682)
Total 2,912 3,001 233 251 3,145 3,252
Further information on risks is provided at Section (g) of this Note. The
£2,515m (2022: £2,872m) of debt securities includes £1,608m (2022:
£2,550m) of government bonds (including conventional and index-linked). Of
the remaining £907m (2022: £322m) debt securities, £815m (2022: £190m) are
investment grade corporate bonds or certificates of deposit.
Included in the qualifying insurance policy asset of £127m (2022: £47m) is
£121m (2022: £42m) in relation to two insurance policies purchased by the
trustees of Other UK defined benefit plans to protect the plans against future
investment and actuarial risks.
- £43m (2022: £42m) in relation to the partial buy-in completed on the EFM
Scheme in 2015.
- £78m (2022: £nil) in relation to the substantially full buy-in completed
on the MJ Plan in 2023. The premium paid was £99m.
The MJ Plan buy-in is not considered to be a settlement therefore, as noted
above, the insurance policy has been recognised within the plan assets. The
buy-in transaction was an investment decision made by the trustee to increase
the security of plan benefits. The insurance policy does provide the option to
convert the buy-in into individual policies which would transfer the future
obligation to pay pensions to the insurer for the members covered by the
policy (known as a buy-out). However, this obligation remains with the Group
and while the conversion to a buy-out may be considered in the future, a
separate decision will be required, and certain conditions will need to be
met, including changes to the MJ Plan's trust deed and rules, before any
buy-out can be executed. Consequently the difference between the valuation of
the policy and the premium paid has been recognised within Remeasurement
(losses)/gains recognised in other comprehensive income.
On completion of the MJ Plan buy-in, a contract in place to hedge longevity
risk for pensioners on this plan was derecognised. The fair value of this
derivative at 31 December 2022 was a liability of £1m.
The £369m liability in respect of collateral held (2022: £682m) consists of
repurchase agreements of £353m (2022: £652m), margins on derivatives of
(£8m) (2022: (£10m)) and collateral of £24m (2022: £40m).
(e) Estimates and assumptions
Determination of the valuation of principal plan liabilities is a key estimate
as a result of the assumptions made relating to both economic and non-economic
factors.
The key economic assumptions for the principal plan, which are based in part
on current market conditions, are shown below:
2023 2022
% %
Discount rate 4.60 4.85
Rates of inflation
Consumer Price Index (CPI) 2.65 2.75
Retail Price Index (RPI) 3.00 3.10
The changes in economic assumptions over the period reflect changes in both
corporate bond prices and market implied inflation. The underlying methodology
used to set these assumptions has not changed over the reporting period. The
population of corporate bond prices excludes bonds issued by UK universities.
The inflation assumption reflects the future reform of RPI effective from 2030
as described in Section (g)(i) below.
The most significant non-economic assumption for the principal plan is
post-retirement longevity which is inherently uncertain. These non-economic
assumptions have been updated for the current reporting date. The longevity
assumptions (along with sample expectations of life) are illustrated below:
Normal Retirement Age (NRA) Expectation of life from NRA
Male age today Fe
ma
le
ag
e
to
da
y
2023 Table Improvements NRA 40 NRA 40
Plan specific basis (calibrated by Club Vita) reflecting membership Core parameterisation of the CMI 2021 mortality improvements model (SK 60 27 28 29 31
demographics parameter of 7.0), with an initial improvement (or 'A') parameter of +0.5% for
males and females, and a long-term rate of improvement of 1.5%.
Normal Retirement Expectation of life from NRA
Age (NRA)
Male age today Fe
ma
le
ag
e
to
da
y
2022 Table Improvements NRA 40 NRA 40
Plan specific basis (calibrated by Club Vita) reflecting membership Core parameterisation of the CMI 2019 mortality improvements model (SK 60 27 29 29 31
demographics parameter of 7.0), with an initial improvement (or 'A') parameter of +0.5% for
males and females, and a long-term rate of improvement of 1.5%.
These assumptions reflect a cautious allowance for the recently observed
slowdown in longevity improvements. The updated mortality improvement
assumptions are in line with CMI 2021 but with a 10% weighting on 2020 and
2021 data. This makes some allowance for recent post-pandemic experience
whilst recognising that greater stability in recent 2022 mortality experience
may be indicative of expected future trends.
The changes in economic assumptions over the period reflect changes in both
corporate bond prices and market implied inflation. The underlying methodology
used to set these assumptions has not changed over the reporting period. The
population of corporate bond prices excludes bonds issued by UK universities.
The inflation assumption reflects the future reform of RPI effective from 2030
as described in Section (g)(i) below.
The most significant non-economic assumption for the principal plan is
post-retirement longevity which is inherently uncertain. These non-economic
assumptions have been updated for the current reporting date. The longevity
assumptions (along with sample expectations of life) are illustrated below:
Normal Retirement Age (NRA) Expectation of life from NRA
Male age today Fe
ma
le
ag
e
to
da
y
2023 Table Improvements NRA 40 NRA 40
Plan specific basis (calibrated by Club Vita) reflecting membership Core parameterisation of the CMI 2021 mortality improvements model (SK 60 27 28 29 31
demographics parameter of 7.0), with an initial improvement (or 'A') parameter of +0.5% for
males and females, and a long-term rate of improvement of 1.5%.
Normal Retirement Expectation of life from NRA
Age (NRA)
Male age today Fe
ma
le
ag
e
to
da
y
2022 Table Improvements NRA 40 NRA 40
Plan specific basis (calibrated by Club Vita) reflecting membership Core parameterisation of the CMI 2019 mortality improvements model (SK 60 27 29 29 31
demographics parameter of 7.0), with an initial improvement (or 'A') parameter of +0.5% for
males and females, and a long-term rate of improvement of 1.5%.
These assumptions reflect a cautious allowance for the recently observed
slowdown in longevity improvements. The updated mortality improvement
assumptions are in line with CMI 2021 but with a 10% weighting on 2020 and
2021 data. This makes some allowance for recent post-pandemic experience
whilst recognising that greater stability in recent 2022 mortality experience
may be indicative of expected future trends.
f) Duration of defined benefit obligation
The graph below provides an illustration of the undiscounted expected benefit
payments included in the valuation of the principal plan obligations.
Undiscounted benefit payments (£m)
2023 2022
Weighted average duration years years
Current pensioner 11 11
Non-current pensioner 22 22
The weighted average duration is calculated based on discounted benefit
payments so is impacted by changes in the discount and inflation rates used
(Refer Section (e)).
(g) Risk
(g)(i) Risks and mitigating actions
The Group's consolidated statement of financial position is exposed to
movements in the defined benefit plans' net asset. In particular, the
consolidated statement of financial position could be materially sensitive to
reasonably likely movements in the principal assumptions for the principal
plan. By having offered post-retirement defined benefit pension plans the
Group
is exposed to a number of risks. An explanation of the key risks and
mitigating actions in place for the principal plan
is given below.
Asset volatility
Investment strategy risks include underperformance of the absolute return
strategy and underperformance of the liability hedging strategy. As the
trustees set investment strategy to protect their own view of plan strength
(not the IAS 19 position), changes in the IAS 19 liabilities (e.g. due to
movements in corporate bond prices) may not always result in a similar
movement in plan assets.
Failure of the asset strategy to keep pace with changes in plan liabilities
would expose the plan to the risk of a deficit developing, which could
increase funding requirements for the Group. abrdn and the trustees are
working together to determine the most appropriate de-risking strategy to best
protect against the risk that this plan strength deteriorates in the future.
Yields/discount rate
Falls in yields would in isolation be expected to increase the defined benefit
plan liabilities.
The principal plan uses both bonds and derivatives to hedge out yield risks on
the relevant plan basis in order to meet the trustee's objectives, rather than
the IAS 19 basis, which is expected to minimise the plan's need to rely on
support from the Group.
Inflation
Increases in inflation expectations would in isolation be expected to increase
the defined benefit plan liabilities.
The principal plan uses both bonds and derivatives to hedge out inflation
risks on the relevant plan basis in order to meet the objectives, rather than
the IAS 19 basis, which is expected to minimise the plan's need to rely on
support from the Group.
In the principal plan, pensions in payment are generally linked to CPI,
however inflationary risks are hedged using RPI instruments due to lack of
availability of CPI linked instruments. Therefore, the plan is exposed to
movements in the actual and expected long-term gap between RPI and CPI.
A House of Lords report in 2019 raised the potential for changes to the RPI
measure of inflation, which was followed by recommendations from the UK
Statistics Authority. The results of the consultation on the reform of RPI
(announced on 25 November 2020) confirmed that RPI will be aligned to CPIH
(CPI excluding owner occupiers' housing costs) as proposed, but not before
2030. While uncertainty remains, there is a risk that future cash flows from,
and thus the value of, the plan's RPI-linked assets fall without a
corresponding reduction in the plan's CPI-linked liabilities. While not
directly observable from market data, the plan's RPI-linked asset values may
already reflect an element of the expected changes and risk of such changes.
Life expectancy
Increases in life expectancy beyond those currently assumed will lead to an
increase in plan liabilities. Regular reviews of longevity assumptions are
performed to ensure assumptions remain appropriate.
Climate
The principal plan adopts a low-risk strategy to investment, with the majority
of plan assets invested in UK government bonds. The trustees have assessed the
principal plan's exposure to severe climate change as being minimal, as a
result of the low-risk investment strategy alongside the plan's strong funding
level.
(g)(ii) Sensitivity to key assumptions
The sensitivity of the principal plan's obligation and assets to the key
assumptions is disclosed below.
2023 2022
Change in assumption (Increase)/decrease Increase/(decrease) (Increase)/decrease Increase/(decrease)
in present value
in fair value of
in present value
in fair value of
of obligation
plan assets
of obligation
plan assets
£m £m £m £m
Yield/discount rate Decrease by 1% (e.g. from 4.60% to 3.60%) (342) 566 (341) 698
Increase by 1% 266 (432) 268 (525)
Rates of inflation Decrease by 1% 233 (371) 235 (445)
Increase by 1% (306) 485 (305) 591
Life expectancy Decrease by 1 year 54 N/A 60 N/A
Increase by 1 year (54) N/A (60) N/A
32. Other financial liabilities
2023 2022
Notes £m £m
Accruals 284 326
Amounts due to counterparties and customers for unsettled trades and fund 464 300
transactions
Lease liabilities 16 223 224
Cash collateral held in respect of derivative contracts 34 40 109
Bank overdrafts 22 - 3
Contingent consideration liabilities 36 114 132
Deferred income(1) 4 3
Other 112 104
Other financial liabilities 1,241 1,201
1. The Group has made a presentational change to show
Deferred income within Other financial liabilities.
The amount of other financial liabilities expected to be settled after more
than 12 months is £323m (2022: £318m).
33. Provisions and other liabilities
Provisions are obligations of the Group which are of uncertain timing or
amount. They are recognised when the Group has a present obligation as a
result of a past event, it is probable that a loss will be incurred in
settling the obligation and a reliable estimate of the amount can be made.
Where some or all of the expenditure required to settle a provision is
expected to be reimbursed by another party, a separate reimbursement asset is
recognised when it is virtually certain that reimbursement will be received if
the Group settles the obligation.
(a) Provisions
The movement in provisions during the year is as follows:
Separation costs Process execution Tax related provisions Other provisions Total provisions
2023 2022 2023 2022 2023 2022 2023 2022 2023 2022
£m £m £m £m £m £m £m £m £m £m
At 1 January 33 35 41 - - - 23 14 97 49
Reclassified as held for sale during the year - - - - - - - (2) - (2)
Charged/(credited) to the consolidated income statement
Additional provisions - - - 41 42 - 33 18 75 59
Release of unused provision (32) - - - - - (4) (1) (36) (1)
Used during the year (1) (2) (41) - - - (28) (6) (70) (8)
At 31 December - 33 - 41 42 - 24 23 66 97
The separation cost provision recognised at 31 December 2022 of £33m was in
respect of costs expected to be incurred following the sale of the UK and
European insurance business to Phoenix. Following the completion of the
separation programme during the year ended 31 December 2023 the Group expects
no further costs to be incurred and £32m (2022: less than £1m) was released
from the provision. The remaining costs covered by the provision at 31
December 2022 were expected to be incurred in the next year.
A provision for a potential liability of £42m (2022: £nil) relates to a
disputed tax matter which is the subject of an ongoing appeal. Any resolution
is expected to be after 12 months. A reimbursement asset has been recognised
for £18m (2022: £nil) which is an expected recovery in the event of any
settlement.
The process execution provision recognised at 31 December 2022 for £41m in
respect of a payment required to compensate an asset management client
relating to the provision of certain services has been fully utilised in the
year ended 31 December 2023 to fully settle the compensation.
Following the settlement, the Group had agreed a recovery of £36m from its
liability insurance, being the cost of the compensation net of a £5m excess
of which £36m had been received by 31 December 2023. The recovery has been
credited against Other administrative expenses in the consolidated income
statement.
Other provisions primarily relates to restructuring and dilapidations on
leased properties. Restructuring provisions are generally expected to be
settled within 12 months. Dilapidations are generally expected to be settled
after more than 12 months. Refer Note 16 for further details of the Group's
leases.
The amount of provisions expected to be settled after more than 12 months is
£45m (2022: £3m).
(b) Other liabilities
As at 31 December 2023, other liabilities totalled £4m (2022: £8m). The
amount of other liabilities expected to be settled after more than 12 months
is £nil (2022: £3m).
34. Financial instruments risk management
(a) Overview
The principal risks and uncertainties that affect the Group's business model
and the Group's approach to risk management are set out in the Risk management
section of the Strategic report.
The Group's exposure to financial instrument risk is derived from the
financial instruments that it holds directly, the assets and liabilities of
the unit linked funds of the life operations of the Group and the Group's
defined benefit pension plans. In addition due to the nature of the business,
the Group's secondary exposure extends to the impact on treasury income and
investment management and other fees that are determined on the basis of a
percentage of AUMA and are therefore impacted by financial risks borne by
third party investors. In this Note, exposures and sensitivities provided
relate to the financial instrument assets and liabilities, in scope of IFRS 7,
to which the shareholder is directly exposed.
For the purposes of this Note:
- Shareholder business refers to the assets and liabilities to which the
shareholder is directly exposed. The shareholder refers to the equity holders
of the Company.
- Unit linked funds refers to the assets and liabilities of the unit linked
funds of the life operations of the Group. It does not include the cash flows
(such as asset management charges or investment expenses) arising from the
unit linked fund contracts. These cash flows are included in shareholder
business.
- Third party interest in consolidated funds and non-controlling interests
refers to the assets and liabilities recorded on the Group's consolidated
statement of financial position which belong to third parties. The Group
controls the entities which own the assets and liabilities but the Group does
not own 100% of the equity or units of the relevant entities.
Unit linked funds are excluded from the analysis in this Note. Details
regarding the financial risks of instruments relating to the Group's unit
linked funds can be found in Note 23 and the risks relating to the Group's
principal defined benefit pension plan are explained in Note 31.
Third party interests in consolidated funds do not expose the shareholder to
market, credit or liquidity risk since the financial risks from the assets and
obligations are borne by third parties. As a result equity risk, interest rate
risk and credit risk quantitative disclosures in this Note exclude these
assets.
Under IFRS 7 the following financial instruments are excluded from scope:
- Interests in subsidiaries, associates and joint ventures.
- Rights and obligations arising from employee benefit plans.
- Insurance contracts as defined by IFRS 17.
- Share-based payment transactions.
For the purposes of managing risks to the Group's financial instrument assets
and liabilities, the Group considers the following categories:
Risk Definition and exposure
Market The risk of financial loss as a result of adverse financial market movements.
The shareholder is directly exposed to the impact of movements in equity
prices, interest rates and foreign exchange rates on the value of assets held
by the shareholder business.
Credit The risk of financial loss as a result of the failure of a counterparty,
issuer or borrower to meet their obligations or perform them in a timely
manner. The shareholder is directly exposed to credit risk from holding cash,
debt securities, derivative financial instruments and receivables and other
financial assets.
Liquidity The risk of financial loss as a result of being unable to settle financial
obligations when they fall due, as a result of having insufficient liquid
resources or being unable to realise investments and other assets other than
at excessive costs. The shareholder is directly exposed to the liquidity risk
from the shareholder business if it is unable to realise investments and other
assets in order to settle its financial obligations when they fall due, or can
do so only at excessive cost.
As set out in the Risk management section of the Strategic report, the Group
reviews and manages climate related risks. We continue to assess the potential
impacts on our business with a view to the resilience of our operations and
investment strategies. This is monitored through our climate risk and
opportunity radar to ensure we are well positioned to realise opportunities
and mitigate risks. Our day-to-day business is predominantly exposed to
transition risk as markets, policy, and reputations come to terms with
alignment to net zero. We have a critical role to play as stewards of clients'
capital and this is reflected in our business strategy and our commitment to
reduce the carbon intensity of our portfolios and absolute emissions from our
direct operations. The Group is also exposed to climate risk in relation to
its investment property which are primarily properties which are no longer
being used operationally by the Group and are being sublet. Refer Note 15 for
details of the Group's consideration of climate related factors in relation to
investment property. We have considered the implications of climate related
risk, including transition risks, for the 2023 financial statements, and have
concluded that there are no material impacts on the valuation of the Group's
assets and liabilities including the valuation of financial instruments held
at fair value through profit or loss (in particular in relation to level 3
investments) or at amortised cost (in particular in relation to expected
credit losses).
(b) Market risk
The Group's largest exposure to market risk relates to our investment in
Phoenix. Other market risk exposures primarily arise as a result of holdings
in newly established investment vehicles which the Group has seeded and
co-investments in property and infrastructure funds in the Investments
segment. Seed capital is classified as held for sale when it is the intention
to dispose of the vehicle in a single transaction and within one year.
Co-investments are typically held for a longer term and align the Group's
economic interests with those of property, private equity and infrastructure
fund co-investors. The consolidated statement of financial position includes
the following amounts in respect of seed capital and co-investments.
2023 2022
£m £m
Equity securities and interests in pooled investment funds at FVTPL 209 213
Debt securities 86 76
Total seed capital 295 289
Equity securities and interests in pooled investment funds at FVTPL 116 107
Total co-investments 116 107
The Group sets limits for investing in seed capital and co-investment activity
and regularly monitors exposures arising from these investments. The Group
will consider hedging its exposure to market risk in respect of seed capital
investments where it is appropriate and efficient to do so. The Group will
also consider hedging its exposure to currency risk in respect of
co-investments where it is appropriate and efficient to do so. Other market
risks associated with co-investments are not hedged given the need for the
Group's economic interests to be aligned with those of the co-investors.
(b)(i) Elements of market risk
The main elements of market risk to which the Group is exposed are equity
risk, interest rate risk and foreign currency risk, which are discussed on the
following pages.
Information on the methods used to determine fair values for each major
category of financial instrument measured at fair value is presented in Note
36.
(b)(i)(i) Exposure to equity risk
The Group is exposed to the risk of adverse equity market movements which
could result in losses. This applies to daily changes in the market values and
returns on the holdings in equity securities.
At 31 December 2023 the shareholder exposure to equity markets was £792m
(2022: £1,577m) in relation to equity securities. This primarily relates to
the Group's investments in Phoenix of £557m (2022: £634m), seed capital
investments of £151m (2022: £171m), and equity securities held by the abrdn
Financial Fairness Trust of £64m (2022: £61m). At 31 December 2022, equity
securities also included the Group's investments in HDFC Life of £203m and
HDFC Asset Management of £477m.
The Group is also exposed to adverse market price movements on its interests
in pooled investment funds. The shareholder exposure of £235m (2022: £268m)
to pooled investment funds primarily relates to £174m (2022: £149m) of seed
capital and co-investments, investments in certain managed funds to hedge
against liabilities from variable pay awards that are deferred and settled in
cash by reference to the price of those funds of £35m (2022: £37m), pooled
investment funds held by the abrdn Financial Fairness Trust of £22m (2022:
£25m) and corporate funds held in absolute return funds of £nil (2022:
£50m).
The Equities and interests in pooled investment funds at FVTPL included in the
consolidated statement of financial position includes £112m (2022: £188m)
relating to third party interest in consolidated funds and non-controlling
interests - ordinary shares to which the shareholder is not exposed.
Exposures to equity risk are primarily managed though the hedging of market
risk in respect of seed capital investments where it is appropriate and
efficient to do so. Additionally limits are imposed on the amount of seed
capital and co-investment activity that may be undertaken. The Group does not
hedge equity risk in relation to its investment in Phoenix.
(b)(i)(ii) Exposure to interest rate risk
Interest rate risk is the risk that arises from exposures to changes in the
shape and level of yield curves which could result in losses due to the value
of financial assets and liabilities, or the cash flows relating to these,
fluctuating by different amounts.
The main financial assets held by the Group which give rise to interest rate
risk are debt securities and cash and cash equivalents. The Group is also
exposed to interest rate risk on its investments in pooled investment funds
where the underlying instruments are exposed to interest rate risk.
Interest rate exposures are managed in line with the Group's risk appetite.
(b)(i)(iii) Exposure to foreign currency risk
Foreign currency risk arises where adverse movements in currency exchange
rates impact the value of revenues received from, and the value of assets and
liabilities held in, currencies other than UK Sterling. The Group's financial
assets are generally held in the local currency of its operational geographic
locations. The Group generally does not hedge the currency exposure relating
to revenue and expenditure, nor does it hedge translation of overseas profits
in the income statement. Where appropriate, the Group may use derivative
contracts to reduce or eliminate currency risk arising from individual
transactions or seed capital and co-investment activity.
The table below summarises the financial instrument exposure to foreign
currency risks in UK Sterling.
UK Indian Rupee Euro US Singapore Other Total
Sterling
Dollar
currencies
Dollar
2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022
Notes £m £m £m £m £m £m £m £m £m £m £m £m £m £m
Financial assets 17 3,280 3,237 - 680 204 219 612 585 59 48 159 210 4,314 4,979
Financial liabilities(1) 29 (1,130) (1,205) - - (48) (53) (823) (776) (15) (8) (20) (23) (2,036) (2,065)
Cash flow hedges (588) (623) - - - - 588 623 - - - - - -
Non- designated derivatives 296 296 - - (66) (68) (186) (182) - - (44) (46) - -
1,858 1,705 - 680 90 98 191 250 44 40 95 141 2,278 2,914
1. The Group has made a presentational change to show
Deferred income within Other financial liabilities which is part of Financial
liabilities. Refer Note 32.
The Indian Rupee exposure at 31 December 2022 primarily related to the Group's
investments in HDFC Life and HDFC Asset Management which were fully disposed
of in 2023. Refer Note 11 for further details. Other currencies include assets
of £41m (2022: £85m) and liabilities of £nil (2022: £1m) in relation to
the fair value of derivatives used to manage currency risk.
On 18 October 2017, the Group issued US dollar subordinated notes with a
principal amount of US$750m. The related cash flows expose the Group to
foreign currency risk on the principal and coupons payable. The Group manages
the foreign exchange risk with a cross-currency swap which is designated as a
cash flow hedge.
Non-designated derivatives relate to foreign exchange forward contracts that
are not designated as cash flow hedges or net investment hedges and primarily
relate to the management of currency risk arising from seed capital and
co-investment activity.
In addition to financial instruments analysed above, the principal source of
foreign currency risk for shareholders arises from the Group's investments in
overseas subsidiaries and associates and joint ventures accounted for using
the equity method. The carrying value of the Group's Chinese joint venture is
disclosed in Note 14. The Group does not hedge foreign currency risk in
relation to these investments.
(b)(ii) Sensitivity of financial instruments to market
risk analysis
The Group's profit/loss after tax and equity are sensitive to variations in
respect of the Group's market risk exposures and a sensitivity analysis is
presented below. The analysis has been performed by calculating the
sensitivity of profit after tax and equity to changes in equity security
prices (equity risk), changes in interest rates (interest rate risk) and
changes in foreign exchange rate (foreign currency risk) as at the reporting
date applied to assets and liabilities other than those classified as held for
sale, and after allowing for the Group's hedging strategy.
The variables used in the sensitivity analysis are considered reasonable
assumptions and are consistent with market peers. Changes to variables are
provided by internal specialists who determine what are reasonable
assumptions.
Profit/loss after tax and equity sensitivity to market risk
31 December 2023 31 December 2022
A reasonable change in the variable within the next calendar year Increase/(decrease) in A reasonable change in the variable within the next calendar year Increase/(decrease) in post-tax profit
post-tax profit
% £m % £m
Equity prices Increase 10 74 10 148
Decrease 10 (74) 10 (148)
US Dollar against Sterling Strengthen 10 12 10 14
Weaken 10 (9) 10 (11)
Euro against Sterling Strengthen 10 10 10 11
Weaken 10 (8) 10 (9)
The reasonable change in variables have no impact on any other components of
equity. These sensitivities concern only the impact on financial instruments
and exclude indirect impacts of the variable on fee income and certain costs
which may be affected by the changes in market conditions.
Interest rate sensitivity to a reasonable change in the variable within the
next calendar year is not material in either 2023 or 2022.
Limitations
The sensitivity of the Group's profit after tax and equity may be non-linear
and larger or smaller impacts should not be derived from these results. The
sensitivities provided illustrate the impact of a reasonably possible change
in a single sensitivity factor, while the other sensitivity factors remain
unchanged. Correlations between the different risks and/or other factors may
mean that experience would differ from that expected if more than one risk
event occurred simultaneously.
(c) Credit risk
Exposures to credit risk and concentrations of credit risk are managed by
setting exposure limits for different types of financial instruments and
counterparties. The limits are established using the following controls:
Financial instrument with credit risk exposure Control
Cash and cash equivalents Maximum counterparty exposure limits are set with reference to internal credit
assessments.
Derivative financial instruments Maximum counterparty exposure limits, net of collateral, are set with
reference to internal credit assessments. The forms of collateral that may be
accepted are also specified and minimum transfer amounts in respect of
collateral transfers are documented.
Debt securities The Group's policy is to set exposure limits by name of issuer, sector and
credit rating.
Other financial instruments Appropriate limits are set for other financial instruments to which the Group
may have exposure at certain times.
Group Treasury perform central monitoring of exposures against limits and are
responsible for the escalation of any limit breaches to the Chief Risk
Officer.
Expected credit losses (ECL) are calculated on financial assets which are
measured at amortised cost.
Financial assets attract an ECL allowance equal to either:
12 month ECL (losses resulting from possible default within the next 12 No significant increase in credit risk since initial recognition.
months)
Trade receivables or contract assets with significant financing component, or
lease receivables if lifetime ECL measurement has not been elected.
Lifetime ECL (losses resulting from possible defaults over the remaining life Significant increase in credit risk since initial recognition.
of the financial asset)
Trade receivables or contract assets with no significant financing component.
Trade receivables or contract assets with significant financing component, or
lease receivables for which lifetime ECL measurement has been elected.
Changes in Lifetime ECL Credit-impaired at initial recognition.
In determining whether a default has taken place, or where there is an
increased risk of a default, a number of factors are taken into account
including a deterioration in the credit quality of a counterparty, the number
of days that a payment is past due, and specific events which could impact a
counterparty's ability to pay.
The Group assumes that a significant increase in credit risk has arisen when
contractual payments are more than 30 days past due. The Group assumes that
credit risk on a financial instrument has not increased significantly since
initial recognition if the financial instrument is determined to have low
credit risk at the reporting date. Financial instruments with an external
rating of 'investment grade' are presumed to have low credit risk in the
absence of evidence to the contrary. Investment grade financial instruments
are financial assets with credit ratings assigned by external rating agencies
with classification within the range of AAA to BBB. If a financial asset is
not rated by an external agency it is classified as 'not rated'.
The Group applies the simplified approach, as permitted under IFRS 9, to
calculate the ECL allowance for trade receivables and contract assets
including accrued income from contracts with customers and lease receivables.
Under the simplified approach, the ECL allowance is calculated over the
remaining life of the asset, using a provision matrix approach based on
historic observed default rates adjusted for knowledge of specific events
which could influence loss rates.
At 31 December 2023 the Group does not hold significant financial assets at
amortised cost that it regards as credit-impaired or for which it considers
the probability of default would result in material expected credit losses in
its Investments and Adviser segments. Historically, default levels have been
insignificant for the Group's customers within these segments. Trade debtors
past due but not in default at 31 December 2023 for these segments were £71m
(2022: £84m) of which £36m was over 90 days past due (2022: £33m). We have
not identified significant credit risk with counterparties with balances over
90 days past due and recovery is still expected. Consequently, the expected
credit losses recognised were less than £1m (2022: less than £1m). In making
this assessment the Group has considered if any evidence is available to
indicate the occurrence of an event which would result in a detrimental impact
on the estimated future cash flows of these assets.
The Group is exposed to a higher level of credit risk within its ii segment
(previously named Personal), primarily in relation to ii. Trade debtors past
due for the ii segment at 31 December 2023 were £5m (2022: £5m), the
majority of which were considered to be credit impaired. A lifetime loss
allowance of £2m (2022: £3m) has been recognised based on expected recovery.
(c)(i) Credit exposure
The following table presents an analysis of the credit quality of shareholder
financial assets and the maximum exposure to credit risk without taking into
account any collateral held.
Amortised cost
Fair value through profit or loss Cash flow hedge 12 month Lifetime ECL(1) Total
ECL
2023 2022 2023 2022 2023 2022 2023 2022 2023 2022
£m £m £m £m £m £m £m £m £m £m
AAA 30 - - - 115 89 - - 145 89
AA+ to AA- 169 164 - - 76 162 - - 245 326
A+ to A- 405 327 41 85 977 953 - - 1,423 1,365
BBB 86 76 - - 127 126 - - 213 202
BB - - - - - - - - - -
Not rated 12 21 - - 610 429 452 463 1,074 913
Gross carrying amount 702 588 41 85 1,905 1,759 452 463 3,100 2,895
Loss allowance - - - - - - (2) (3) (2) (3)
Carrying amount 702 588 41 85 1,905 1,759 450 460 3,098 2,892
Derivative financial assets 2 19 41 85 - - - - 43 104
Debt securities 689 550 - - 125 210 - - 814 760
Receivables and other financial assets 11 19 - - 610 428 450 460 1,071 907
Cash and cash equivalents - - - - 1,170 1,121 - - 1,170 1,121
Carrying amount 702 588 41 85 1,905 1,759 450 460 3,098 2,892
1. As noted in Section (c) above, Lifetime ECL
balances include trade debtors with a gross carrying value of £5m (2022:
£5m) which are credit impaired for which a loss allowance of £2m (2022:
£3m) has been recognised. All other Lifetime ECL balances are not credit
impaired.
In the table above debt securities exclude debt securities relating to third
party interests in consolidated funds of £51m (2022: £42m). Cash and cash
equivalents exclude cash and cash equivalents relating to third party
interests in consolidated funds of £26m (2022: £12m). The shareholder is not
exposed to the credit risk in respect of third party interests in consolidated
funds since the financial risk of the assets are borne by third parties.
(c)(ii) Collateral accepted and pledged in respect of
financial instruments
Collateral in respect of bilateral over-the-counter (OTC) derivative financial
instruments and bilateral repurchase agreements is accepted from and provided
to certain market counterparties to mitigate counterparty risk in the event of
default. The use of collateral in respect of these instruments is governed by
formal bilateral agreements between the parties. For OTC derivatives the
amount of collateral required by either party is determined by the daily
bilateral OTC exposure calculations in accordance with these agreements and
collateral is moved on a daily basis to ensure there is full
collateralisation. Under the terms of these agreements, collateral is posted
with the ownership captured under title transfer of the contract. With regard
to either collateral pledged or accepted, the Group may request the return of,
or be required to return, collateral to the extent it differs from that
required under the daily bilateral OTC exposure calculations.
Where there is an event of default under the terms of the agreements, any
collateral balances will be included in the close-out calculation of net
counterparty exposure. At 31 December 2023, the Group had pledged £19m (2022:
£14m) of cash and £nil (2022: £nil) of securities as collateral for
derivative financial liabilities. At 31 December 2023, the Group had accepted
£40m (2022: £109m) of cash and £35m (2022: £nil) of securities as
collateral for derivatives financial assets and reverse repurchase agreements.
None of the securities were sold or repledged at the year end.
(c)(iii) Offsetting financial assets and liabilities
Financial assets and liabilities are offset and the net amount reported on the
consolidated statement of financial position only when there is a legally
enforceable right to offset the recognised amounts and there is an intention
to settle on a net basis, or to realise the asset and settle the liability
simultaneously.
The Group does not offset financial assets and liabilities on the consolidated
statement of financial position, as there are no unconditional rights to set
off. Consequently, the gross amount of other financial instruments presented
on the consolidated statement of financial position is the net amount. The
Group's bilateral OTC derivatives are all subject to an International Swaps
and Derivative Association (ISDA) master agreement. ISDA master agreements and
reverse repurchase agreements entered into by the Group are considered master
netting agreements as they provide a right of set off that is enforceable only
in the event of default, insolvency, or bankruptcy.
The Group does not hold any other financial instruments which are subject to
master netting agreements or similar arrangements.
The following table presents the effect of master netting agreements and
similar arrangements.
Related amounts not offset on the consolidated
statement of financial position
Gross amounts of financial instruments as presented on the consolidated Financial Financial collateral pledged/(received) Net position
statement of financial position
instruments
2023 2022 2023 2022 2023 2022 2023 2022
£m £m £m £m £m £m £m £m
Financial assets
Derivatives(1) 43 102 (2) (1) (39) (100) 2 1
Reverse repurchase agreements 35 - - - (35) - - -
Total financial assets 78 102 (2) (1) (74) (100) 2 1
Financial liabilities
Derivatives(1) (2) (1) 2 1 - - - -
Total financial liabilities (2) (1) 2 1 - - - -
1. Only OTC derivatives subject to master netting
agreements have been included above.
(d) Liquidity risk
The shareholder is exposed to liquidity risk if the Group is unable to realise
investments and other assets in order to settle its financial obligations when
they fall due, or can do so only at excessive cost. The following quantitative
liquidity risk disclosures are provided in respect of these financial
liabilities.
The Group has a liquidity risk framework and processes in place for
monitoring, assessing, and managing liquidity risk.
This framework ensures that liquidity risks are identified across the Group
and, where relevant, mitigation measures are put in place. Stress testing of
the residual risks is performed to understand the quantum of risk under stress
conditions. This then informs the level of liquid resources that need to be
maintained. Where appropriate, this is enhanced with external credit
facilities and the Group has a syndicated revolving credit facility of £400m
which was undrawn at 31 December 2023.
The level of liquid resources in the Group is also projected under a number of
adverse scenarios. These are described more fully in the Viability Statement.
A contingency funding plan is maintained to ensure that if liquidity risk did
materialise, processes and procedures are already in place to assist with
resolving the issue. Regular monitoring of liquid resources is performed and
projections undertaken (under both base and stressed conditions) to understand
the outlook.
As a result of the policies and processes established to manage risk, the
Group expects to be able to manage liquidity risk on an ongoing basis. We
recognise there are a number of scenarios that can impact the liquid resources
of a business as discussed in the Risk management section of the Strategic
report.
(d)(i) Maturity analysis
The analysis that follows presents the undiscounted cash flows payable under
contractual maturity at the reporting date for all financial liabilities,
other than those related to unit linked funds which are discussed in Note 23.
Within 1-5 5-10 10-15 15-20 Greater than Total
1 year
years
years
years
years
20 years
2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022
£m £m £m £m £m £m £m £m £m £m £m £m £m £m
Subordinated liabilities 24 24 647 94 - 577 - - - - - - 671 695
Other financial liabilities(1) 950 894 185 198 97 105 46 48 6 6 - 15 1,284 1,266
Total 974 918 832 292 97 682 46 48 6 6 - 15 1,955 1,961
1. The Group has made a presentational change to show
Deferred income within Other financial liabilities. Refer Note 32.
Refer Note 18 for the maturity profile of undiscounted cash flows of
derivative financial instruments.
The Group also had unrecognised commitments in respect of financial
instruments as at 31 December 2023 (refer Note 39) with a contractual maturity
of within one year, between one and five years and over five years of £2m,
£29m and £36m respectively (2022: £3m, £32m and £37m). The commitments
may generally be requested anytime up to the contractual maturity.
35. Structured entities
A structured entity is an entity that is structured in such a way that voting
or similar rights are not the dominant factor in deciding who controls the
entity. The Group has interests in structured entities through investments in
a range of investment vehicles including:
- Pooled investment funds managed internally and externally, including
OEICs, SICAVs, unit trusts and limited partnerships.
- Debt securitisation vehicles which issue asset-backed securities.
The Group consolidates structured entities which it controls. Where the Group
has an investment in, but not control over these types of entities, the
investment is classified as an investment in associate when the Group has
significant influence. Investments in associates at FVTPL are included in
equity securities and pooled investment funds in the analysis of financial
investments.
The Group also has interests in structured entities through asset management
fees and other fees received from these entities.
(a) Consolidated structured entities
As at 31 December 2023 and 31 December 2022, the Group has not provided any
non-contractual financial or other support to any consolidated structured
entity and there are no current intentions to do so.
(b) Unconsolidated structured entities
As at 31 December 2023 and 31 December 2022, the Group has not provided any
non-contractual financial or other support to any unconsolidated structured
entities and there are no current intentions to do so.
The following table shows the carrying value of the Group's interests in
unconsolidated structured entities by line item in the consolidated statement
of financial position.
2023 2022
£m £m
Financial investments
Equity securities and interests in pooled investment funds 482 558
Debt securities - -
Total financial investments 482 558
Receivables and other financial assets 196 215
Other financial liabilities 114 95
The Group's exposure to loss in respect of unconsolidated structured entities
is limited to the carrying value of the Group's investment in these entities
and the loss of future asset management and other fees received by the Group
for the management of these entities. Exposure to loss arising from market and
credit risk in relation to investments held in the unit linked funds and
relating to third party interest in consolidated funds and non-controlling
interests - ordinary shares is not borne by the shareholder.
Additional information on the Group's exposure to financial risk and the
management of these risks can be found in Note 23 and Note 34.
The total assets under management of unconsolidated structured entities are
£108,993m at 31 December 2023 (2022: £126,019m). The fees recognised in
respect of these assets under management during the year to 31 December 2023
were £453m (2022: £566m).
As at 31 December 2023, the Group had no investments in unconsolidated
structured debt securitisation vehicles (2022: £nil).
36. Fair value of assets and liabilities
The Group uses fair value to measure many of its assets and liabilities. Fair
value is the amount for which an asset could be exchanged, or a liability
settled, between knowledgeable willing parties in an arm's length transaction.
An analysis of the Group's financial assets and financial liabilities in
accordance with the categories of financial instrument set out in IFRS 9
Financial Instruments is presented in Notes 17, 23 and 29 and includes those
financial assets and liabilities held at fair value.
(a) Fair value hierarchy
In determining fair value, the following fair value hierarchy categorisation
has been used:
- Level 1: Fair values measured using quoted prices (unadjusted) in active
markets for identical assets or liabilities. An active market exists where
transactions take place with sufficient frequency and volume to provide
pricing information on an ongoing basis.
- Level 2: Fair values measured using inputs other than quoted prices
included within level 1 that are observable for the asset or liability, either
directly (i.e. as prices) or indirectly (i.e. derived from prices).
- Level 3: Fair values measured using inputs that are not based on
observable market data (unobservable inputs).
Information on the methods and assumptions used to determine fair values for
equity securities and interests in pooled investment funds, debt securities
and derivatives measured at fair value is given below:
Equities and interests in pooled investment funds(1,2) Debt securities Derivatives(3)
Level 1 Equity instruments listed on a recognised exchange valued using prices sourced Debt securities listed on a recognised exchange valued using prices sourced Exchange traded derivatives valued using prices sourced from the relevant
from their primary exchange. from their primary exchange. exchange.
Level 2 Pooled investment funds where daily unit prices are available and reference is Debt securities valued using prices received from external pricing providers Over-the-counter derivatives measured using a range of valuation models
made to observable market data. based on quotes received from a number of market participants. including discounting future cash flows and option valuation techniques.
Debt securities valued using models and standard valuation formulas based on
observable market data(4).
Level 3 These relate primarily to interests in private equity, real estate and Debt securities valued using prices received from external pricing providers N/A
infrastructure funds which are valued at net asset value. Underlying real based on a single broker indicative quote.
estate and private equity investments are generally valued in accordance with
independent professional valuation reports or International Private Equity and
Venture Capital Valuation Guidelines where relevant. The underlying
investments in infrastructure funds are generally valued based on the phase of Debt securities valued using models and standard valuation formulas based on
individual projects forming the overall investment and discounted cash flow unobservable market data(4).
techniques based on project earnings.
Where net asset values are not available at the same date as the reporting
date, the latest available valuations are reviewed and, where appropriate,
adjustments are made to reflect the estimated impact of changes in market
conditions between the date of the valuation and the end of the reporting
period.
Other unlisted equity securities are generally valued using a calibration to
the price of a recent investment.
1. Investments in associates at FVTPL are valued in
the same manner as the Group's equity securities and interests in pooled
investment funds.
2. Where pooled investment funds have been seeded and
the investment in the funds have been classified as held for sale, the costs
to sell are assumed to be negligible. The fair value of pooled investment
funds held for sale is calculated as equal to the observable unit price.
3. Non-performance risk arising from the credit risk
of each counterparty is also considered on a net exposure basis in line with
the Group's risk management policies. At 31 December 2023 and 31 December
2022, the residual credit risk is considered immaterial and no credit risk
adjustment has been made.
4. If prices are not available from the external
pricing providers or are considered to be stale, the Group has established
procedures to arrive at an internal assessment of the fair value.
The fair value of liabilities in respect of third party interest in
consolidated funds and non-participating investment contracts are calculated
equal to the fair value of the underlying assets and liabilities.
Thus, the value of these liabilities is dependent on the methods and
assumptions set out above in relation to the underlying assets and
liabilities:
- For third party interest in consolidated funds, when the underlying assets
and liabilities are valued using readily available market information the
liabilities in respect of third party interest in consolidated funds are
treated as level 2. Where the underlying assets and liabilities are not valued
using readily available market information the liabilities in respect of third
party interest in consolidated funds are treated as level 3.
- For non-participating investment contracts, the underlying assets and
liabilities are predominately categorised as level 1 or 2 and as such, the
inputs into the valuation of the liabilities are observable and these
liabilities are predominately categorised within level 2 of the fair value
hierarchy. Where the underlying assets are categorised as level 3, the
liabilities are also categorised as level 3.
In addition, contingent consideration assets and contingent consideration
liabilities are also categorised as level 3 in the fair value hierarchy.
Contingent consideration assets and liabilities have been recognised in
respect of acquisitions and disposals. Generally valuations are based on
unobservable assumptions regarding the probability weighted cash flows and,
where relevant, discount rate.
(a)(i) Fair value hierarchy for assets measured at fair value in the statement of financial position
The table below presents the Group's non-unit linked assets measured at fair
value by level of the fair value hierarchy (refer Note 23 for fair value
analysis in relation to assets backing unit linked liabilities).
Fair value hierarchy
Total Level 1 Level 2 Level 3
2023 2022 2023 2022 2023 2022 2023 2022
£m £m £m £m £m £m £m £m
Owner occupied property 1 1 - - - - 1 1
Derivative financial assets 43 104 - 3 43 101 - -
Equity securities and interests in pooled investment vehicles(1) 1,139 2,033 769 1,621 137 181 233 231
Debt securities 740 592 7 2 732 588 1 2
Contingent consideration assets 11 19 - - - - 11 19
Total assets at fair value 1,934 2,749 776 1,626 912 870 246 253
1. Includes £557m (2022: £634m) for the Group's
listed equity investment in Phoenix which is classified as a significant
listed investment. The Group's listed equity investments in HDFC Asset
Management and HDFC Life which were also classified as significant listed
investments were sold in the year ended 31 December 2023 (HDFC Asset
Management: 2022: £477m, HDFC Life: 2022: £203m).
There were no significant transfers from level 1 to level 2 during the year
ended 31 December 2023 (2022: none). There were also no significant transfers
from level 2 to level 1 during the year ended 31 December 2023 (2022: none).
Transfers generally relate to assets where changes in the frequency of
observable market transactions resulted in a change in whether the market was
considered active and are deemed to have occurred at the end of the calendar
quarter in which they arose.
Refer Section (a)(iii) below for details of movements in level 3.
(a)(ii) Fair value hierarchy for liabilities measured at fair value in the statement of financial position
The table below presents the Group's non-unit linked liabilities measured at
fair value by level of the fair value hierarchy.
Fair value hierarchy
Total Level 1 Level 2 Level 3
2023 2022 2023 2022 2023 2022 2023 2022
£m £m £m £m £m £m £m £m
Liabilities in respect of third party interest in consolidated funds(1) 187 242 - - 117 168 70 74
Derivative financial liabilities 9 1 7 - 2 1 - -
Contingent consideration liabilities 114 132 - - - - 114 132
Other financial liabilities(2) 15 11 - - - - 15 11
Total liabilities at fair value 325 386 7 - 119 169 199 217
1. Liabilities in respect of third party interest in
consolidated funds at 31 December 2022 were previously all disclosed as Level
2 (£242m). £74m of the liability at this date has been represented in the
table above as Level 3 to be consistent with the categorisation of the
underlying assets.
2. Excluding contingent consideration liabilities.
There were no significant transfers between levels 1 and 2 during the year
(2022: none). Refer Section (a)(iii) below for details of movements in level
3. Transfers are deemed to have occurred at the end of the calendar quarter in
which they arose.
(a)(iii) Reconciliation of movements in level 3 instruments
The movements during the year of level 3 assets and liabilities held at fair
value, excluding unit linked assets and liabilities and assets and liabilities
held for sale, are analysed below.
Owner occupied property Equity securities Debt securities Liabilities in respect of third party interest in consolidated funds
and interests in
pooled investment
funds
2023 2022 2023 2022 2023 2022 2023 2022
£m £m £m £m £m £m £m £m
At 1 January 1 1 231 106 2 1 (74) -
Total gains recognised in the consolidated income statement - - 1 2 - (2) - -
Purchases - - 18 139 - 3 - (70)
Sales and other adjustments - - (17) (16) (1) - 4 (4)
At 31 December 1 1 233 231 1 2 (70) (74)
Contingent Contingent Other financial liabilities(1)
consideration assets
consideration liabilities
2023 2022 2023 2022 2023 2022
£m £m £m £m £m £m
At 1 January 19 31 (132) (165) (11) -
Total amounts recognised in the consolidated income statement 7 3 16 32 (5) (11)
Additions 7 1 (11) (6) - -
Settlements (21) (18) 12 7 1 -
Other movements (1) 2 1 - - -
At 31 December 11 19 (114) (132) (15) (11)
1. Excluding contingent consideration liabilities.
For the year ended 31 December 2023, gains of £19m (2022: gains of £24m)
were recognised in the consolidated income statement in respect of non-unit
linked assets and liabilities held at fair value classified as level 3 at the
year end, excluding assets and liabilities held for sale. Of this amount,
gains of £19m (2022: gains of £24m) were recognised in Net gains or losses
on financial instruments and other income.
Transfers of equity securities and interests in pooled investment funds and
debt securities into level 3 generally arise when external pricing providers
stop providing a price or where the price provided is considered stale.
Transfers of equity securities and interests in pooled investment funds and
debt securities out of level 3 arise when acceptable prices become available
from external pricing providers.
(a)(iv) Significant unobservable inputs in level 3 instrument valuations
The table below identifies the significant unobservable inputs in relation to
equity securities and interests in pooled investment funds categorised as
level 3 instruments at 31 December 202 3 with a fair value of
£233m (2022: £231m).
Fair value
2023 2022 Valuation technique Unobservable input Range (weighted average)
£m £m
Private equity, real estate, hedge and infrastructure funds 221 219 Net asset value Net asset value statements provided for a large number of funds including nine A range of unobservable inputs is not applicable as we have determined that
significant funds (fair value >£5m). the reported NAV represents fair value at the end of the reporting period.
Other unlisted equity securities 12 12 Indicative share price Calibration to the price of a recent investment. A range of unobservable inputs is not applicable as we have determined that
the calibration to the price of a recent investment represents fair value at
the end of the reporting period.
The unobservable input for the Group's related liabilities in respect of third
party interest in consolidated funds categorised as level 3 instruments at 31
December 202 3 with a fair value of (£70m) (2022:
(£74m)) are the same as for the private equity, real estate, hedge and
infrastructure funds above. There are no single significant funds in relation
to liabilities in respect of third party interest in consolidated funds.
The table below identifies the significant unobservable inputs in relation to
contingent consideration assets and liabilities and other financial instrument
liabilities categorised as level 3 instruments at 31 December 2023 with a fair
value of (£118m) (2022: (£124m)).
Fair value
2023 2022
£m £m Valuation technique Unobservable input Input used
Contingent consideration assets and liabilities and other financial instrument (118) (124) Probability weighted cash flow and where applicable discount rates Unobservable inputs relate to probability weighted cash flows and, where
liabilities relevant, discount rates.
The most significant unobservable inputs relate to assumptions used to value
the contingent consideration liability related to the acquisition of Tritax of
£90m (2022: £112m). For Tritax a number of scenarios were prepared, around a
base case, with probabilities assigned to each scenario (based on an The base scenario for Tritax contingent consideration used a revenue compound
assessment of the likelihood of each scenario). The value of the contingent annual growth rate (CAGR) from 31 March 2023 to 31 March 2026 of 9% (2022:
consideration was determined for each scenario, and these were then CAGR from 31 March 2022 to 31 March 2026 of 14%) with other scenarios using a
probability weighted, with this probability weighted valuation then discounted range of revenue growth rates around this base. The base scenario used a
from the payment date to the balance sheet date. It was assumed that the cost/income ratio of c56% (2022: c52%) with other scenarios using a range of
timing of the exercise of the earn out put options between 2024, 2025 and 2026 cost/income ratios around this base.
would be that which is most beneficial to the holders of the put options.
The risk adjusted contingent consideration cash flows have been discounted
using a primary discount rate of 4% (2022: 4.5%).
(a)(v) Sensitivity of the fair value of level 3 instruments to changes in key assumptions
At 31 December 2023 the shareholder is directly exposed to movements in the
value of all non-unit linked level 3 instruments. See Note 23 for unit linked
level 3 instruments.
Sensitivities for material level 3 assets and liabilities are provided below.
Changing unobservable inputs in the measurement of the fair value of the other
level 3 financial assets and financial liabilities to reasonably possible
alternative assumptions would not have a material impact on loss attributable
to equity holders or on total assets.
(a)(v)(i) Equity securities and interests in pooled investment funds/ liabilities in respect of third party interest in consolidated funds
As noted above, of the level 3 equity securities and interests in pooled
investment funds, £221m relates to private equity, real estate, hedge and
infrastructure funds (2022: £219m) which are valued using net asset value
statements. A 10% increase or decrease in the net asset value of these
investments would increase or decrease the fair value of the investments by
£22m (2022: £22m).
(a)(v)(ii) Liabilities in respect of third party interest in consolidated funds
As noted above, £70m of liabilities in respect of third party interest in
consolidated funds of the level 3 equity securities and interests in pooled
investment funds (2022: £74m) are also valued using net asset value
statements. A 10% increase or decrease in the net asset value of these
investments would increase or decrease the fair value of the liability by £7m
(2022: £7m).
(a)(v)(iii) Contingent consideration assets and liabilities and other financial instrument liabilities
As noted above, the most significant unobservable inputs for level 3
instruments relate to assumptions used to value the contingent consideration
related to the purchase of Tritax. Sensitivities for reasonably possible
changes to key assumptions are provided in the table below.
Assumption Change in assumption Consequential increase/(decrease) in contingent consideration liability
2023
£m
Revenue compound annual growth rate (CAGR) from 31 March 2023 to 31 March 2026 Decreased by 5% (17)
Increased by 10% 34
Cost/income ratio Decreased by 5% 14
Increased by 5% (15)
Discount rate Decreased by 2% 4
Increased by 2% (4)
(b) Assets and liabilities not carried at fair value
The table below presents estimated fair values by level of the fair value
hierarchy of non-unit linked financial assets and liabilities whose carrying
value does not approximate fair value. Fair values of assets and liabilities
are based on observable market inputs where available, or are estimated using
other valuation techniques.
As recognised in the consolidated statement of financial position line item Fair value Level 1 Level 2 Level 3
2023 2022 2023 2022 2023 2022 2023 2022 2023 2022
Notes £m £m £m £m £m £m £m £m £m £m
Assets
Debt securities 125 210 125 211 - - 125 210 - 1
Liabilities
Subordinated liabilities 30 599 621 534 550 - - 534 550 - -
The estimated fair values for subordinated liabilities are based on the quoted
market offer price.
The carrying value of all other financial assets and liabilities measured at
amortised cost approximates their fair value.
37. Statement of cash flows
The Group classifies cash flows in the consolidated statement of cash flows as
arising from operating, investing or financing activities.
Cash flows are classified based on the nature of the activity to which they
relate and with consideration to generally accepted presentation adopted by
peers. For activities related to asset management business, cash flows arising
from the sale and purchase of debt securities and equity securities and
interests in pooled investment funds, with the exception of those related to
unit linked funds, are classified as cash flows arising from investing
activities. For activities related to insurance business, including those
related to unit linked funds, cash flows arising from the sale and purchase of
debt securities and equity securities and interests in pooled investment funds
are classified as cash flows arising from operating activities.
For activities related to the acquisition and disposal of subsidiaries,
associates and joint ventures, cash flows are classified as investing
activities. The settlement of contingent and deferred amounts recognised on
acquisitions and disposals are classified as investing activities where there
is not considered to be a significant financing component of the related
inflows or outflows.
Purchases and sales of financial investments are presented on a gross basis
except for purchases and sales of short-term instruments with a high turnover
held in consolidated liquidity funds which are presented on a net basis.
Dividends received from associates and joint ventures are presented as cash
flows arising from operating activities.
Movements in cash collateral held in relation to derivative contracts hedging
subordinated debt are presented as cash flows arising from financing
activities.
The tables below provide further analysis of the balances in the consolidated
statement of cash flows.
(a) Change in operating assets
2023 2022
£m £m
Equity securities and interests in pooled investment funds 314 680
Debt securities 13 89
Derivative financial instruments 30 (11)
Receivables and other financial assets and other assets (184) 174
Assets held for sale (16) (16)
Change in operating assets 157 916
Change in operating assets includes related non-cash items.
(b) Change in operating liabilities
2023 2022
£m £m
Other financial liabilities, provisions and other liabilities(1) 76 (179)
Pension and other post-retirement benefit provisions (48) (44)
Investment contract liabilities (90) (315)
Change in liability for third party interest in consolidated funds (53) (196)
Liabilities held for sale 6 9
Change in operating liabilities (109) (725)
1. The change in Other financial liabilities,
provisions and other liabilities for the year ended 31 December 2022 of
(£179m) includes £1m previously separately disclosed as Deferred income. The
Group has made a presentational change to show Deferred income within Other
financial liabilities.
Change in operating liabilities includes related non-cash items.
(c) Other non-cash and non-operating items
2023 2022
restated(1)
£m £m
Gain on sale of subsidiaries and other operations (79) -
Profit on disposal of interests in associates - (6)
(Gain)/loss on disposal or derecognition of property, plant and equipment (6) 7
Depreciation of property, plant and equipment 32 39
Amortisation of intangible assets 128 129
Impairment losses on intangible assets 65 369
(Reversal of impairment)/impairment of interests in associates and joint (2) 9
ventures
Impairment losses recognised on property, plant and equipment 50 7
Reversal of impairment losses recognised on property, plant and equipment (3) -
Movement in contingent consideration assets/liabilities (23) (35)
Equity settled share-based payments 24 24
Finance costs 25 29
Share of profit or loss from associates and joint ventures accounted for using (1) (5)
the equity method
Other non-cash and non-operating items 210 567
1. Comparatives for 2022 have been restated for the
implementation of IFRS 17. Refer Basis of preparation.
(d) Disposal of subsidiaries and other operations
2023(1)
Notes £m
Intangibles 59
Other assets of operations disposed of 30
Other liabilities of operations disposed of (12)
Net assets disposed of 77
Items transferred to profit or loss on disposal of subsidiaries 1 (1)
Fair value of deferred and contingent consideration (5)
Non-cash consideration 1 (3)
Gain on sale 1 79
Transaction costs 13
Total cash consideration 160
Cash and cash equivalents disposed of (21)
Cash inflow from disposal of subsidiary 139
1. Relates to a number of 2023 disposals. Refer Note
1(c)(i) for further details.
There were no operations disposed of in the year ended 31 December 2022.
(e) Movement in subordinated liabilities
The following table reconciles the movement in subordinated liabilities in the
year, split between cash and non-cash items.
2023 2022
£m £m
At 1 January 621 644
Cash flows from financing activities
Repayment of subordinated liabilities - (92)
Interest paid(1) (13) (31)
Cash flows from financing activities (13) (123)
Non-cash items
Interest expense 26 30
Foreign exchange adjustment (35) 70
At 31 December 599 621
1. Interest paid on subordinated liabilities and other
equity in the consolidated statement of cash flows of £20m (2022: £34m)
includes an inflow of £4m (2022: £8m) in relation to the related cash flow
hedge (refer Note 18) and an outflow of £11m (2022: £11m) in relation to
other equity (refer Note 28). Other movements in the fair value of the cash
flow hedge relate to non-cash movements. Cash collateral held in respect of
derivative contracts of £40m (2022: £109m) in Other financial liabilities
(refer Note 32) includes collateral held in respect of the cash flow hedge of
£39m (2022: £89m).
(f) Movement in lease liabilities
The following table reconciles the movement in lease liabilities in the year,
split between cash and non-cash items.
2023 2022
£m £m
At 1 January 224 225
Cash flows from financing activities
Payment of lease liabilities - principal (24) (46)
Payment of lease liabilities - interest (6) (6)
Cash flows from financing activities (30) (52)
Non-cash items
Additions 28 46
Disposals and adjustments (2) (8)
Interest capitalised 6 6
Foreign exchange adjustment (3) 7
At 31 December 223 224
38. Contingent liabilities and contingent assets
Contingent liabilities are possible obligations of the Group of which timing
and amount are subject to significant uncertainty. Contingent liabilities are
not recognised on the consolidated statement of financial position but are
disclosed, unless they are considered remote. If such an obligation becomes
probable and the amount can be measured reliably it is no longer considered
contingent and is recognised as a liability.
Conversely, contingent assets are possible benefits to the Group. Contingent
assets are only disclosed if it is probable that the Group will receive the
benefit. If such a benefit becomes virtually certain it is no longer
considered contingent and is recognised as an asset.
Legal proceedings, complaints and regulations
The Group is subject to regulation in all of the territories in which it
operates investment management and insurance businesses. In the UK, where the
Group primarily operates, the FCA has broad powers, including powers to
investigate marketing and sales practices.
The Group, like other financial organisations, is subject to legal
proceedings, complaints and regulatory and tax authority discussions and
reviews in the normal course of its business. All such material matters are
periodically reassessed, with the assistance of external professional advisers
where appropriate, to determine the likelihood of the Group incurring a
liability. Where it is concluded that it is more likely than not that a
material outflow will be made a provision is established based on management's
best estimate of the amount that will be payable. A subsidiary of the Group is
currently responding to certain information requests from an overseas Tax
Authority in connection with its Income Tax Return. Interpretation of tax
legislation is complex and therefore, as part of the normal course of
business, local tax authorities may sometimes request further information in
order to clarify facts and technical approach. These types of enquiries can
sometimes be prolonged due to inherent complexity. At this stage of enquiry,
it is not possible to reliably predict the outcome.
There are no other identified contingent liabilities expected to lead to a
material exposure.
39. Commitments
The Group has contractual commitments which will be payable in future periods.
These commitments are not recognised on the Group's statement of financial
position at the year end but are disclosed to give an indication of the
Group's future committed cash flows.
(a) Unrecognised financial instruments
As at 31 December 2023, the Group has committed to investing an additional
£67m (2022: £72m) into funds in which it holds a co-investment interest.
(b) Capital commitments
As at 31 December 2023, the Group has no capital commitments other than in
relation to financial instruments (2022: £2m).
In addition, the Group has commitments relating to future acquisitions.
- In February 2021, the Group announced the purchase of certain products in
the Phoenix Group's savings business offered through abrdn's Wrap platform,
comprising a self-invested pension plan (SIPP) and an onshore bond product;
together with the Phoenix Group's trustee investment plan (TIP) business for
UK pension scheme clients. The transaction is not expected to fully complete
before 2025 and is subject to regulatory and court approvals. The upfront
consideration paid by the Group in February 2021 was £62.5m, which is offset
in part by payments from Phoenix to the Group relating to profits of the
products prior to completion of the legal transfer. The net amount of
consideration paid is included in prepayments in the consolidated statement of
financial position with cash movements in relation to the consideration
included in prepayment in respect of potential acquisition of customer
contracts in the consolidated statement of cash flows.
- At 31 December 2023, the Group had other commitments for the cost of
obtaining customer contracts for £22m. These commitments are still subject to
the satisfaction of certain conditions.
40. Employee share-based payments and deferred fund awards
The Group operates share incentive plans for its employees. These generally
take the form of an award of options, conditional awards or restricted shares
in abrdn plc (equity-settled share-based payments) but can also take the form
of a cash award based on the share price of abrdn plc (cash-settled
share-based payments). The Group also incentivises certain employees through
the award of units in Group managed funds (deferred fund awards) which are
cash-settled. All the Group's incentive plans have conditions attached before
the employee becomes entitled to the award. These can be performance and/or
service conditions (vesting conditions) or the requirement of employees to
save in the save-as-you-earn scheme (non-vesting condition). The period over
which all vesting conditions are satisfied is the vesting period and the
awards vest at the end of this period.
For all share-based payments, services received for the incentive granted are
measured at fair value.
For equity-settled share-based payment transactions, the fair value of
services received is measured by reference to the fair value of the equity
instruments at the grant date. The fair value of the number of instruments
expected to vest is charged to the income statement over the vesting period
with a corresponding credit to the equity compensation reserve in equity.
At each period end the Group reassesses the number of equity instruments
expected to vest and recognises any difference between the revised and
original estimate in the consolidated income statement with a corresponding
adjustment to the equity compensation reserve.
At the time the equity instruments vest, the amount recognised in the equity
compensation reserve in respect of those equity instruments is transferred to
retained earnings.
For cash-settled share-based payment and deferred fund awards transactions,
services received are measured at the fair value of the liability. The fair
value of the liability is remeasured at each reporting date and any changes in
fair value are recognised in the consolidated income statement.
The following plans made awards during the year ended 31 December 2023:
Plan Options Conditional awards Restricted shares Typical vesting period (years) Contractual life for options Recipients Conditions which must be met prior to vesting
abrdn plc Deferred Share Plan/ Discretionary Share Plan/Executive LTIP Plan(1) Yes Yes No 1-3 years Up to 10 years from date of grant Executives and senior management Service, or service and performance conditions. These can be tailored to the
(3 years for Executive LTIP) individual award.
Sharesave (Save-as-you-earn) Yes No No 3 or 5 Up to six months after vesting UK and Irish employees Service only
Share incentive plan No No Yes 3 years Not applicable UK and Irish employees Service only
1. Included in Deferred and discretionary share plans
in Section (b)(i) below.
All of the awards made under these plans are equity-settled except for a small
number of cash-settled awards for the deferred and discretionary share plans
(see Section (d)(ii) below).
The fair value of awards granted under the Group's incentive schemes is
determined using a relevant valuation technique, such as the Black Scholes
option pricing model. The fair value of awards is recharged to employing
entities over the life of the awards.
The awards made under the deferred and discretionary share plans include
awards for deferred bonuses of the prior year. With the exception of the
Executive Incentive Plan (EIP) awards, the deferred bonus awards have service
conditions of one, two and three years after the date of the award and no
outstanding performance conditions. The awards for deferred bonus for
executive Directors in 2020 were made under the conditions of the EIP
including a performance underpin.
The awards made include the awards for executive Directors under the Executive
LTIP plan and certain awards under the deferred and discretionary share plans
to senior management with specific performance conditions.
Further details of the EIP and the Executive LTIP are set out in the
Directors' remuneration report.
The deferred and discretionary share plans also made a number of deferred fund
awards in the year end 31 December 2023 (see Section (d)(i) below).
Options and conditional awards are all at nil cost with the exception of
Sharesave where eligible employees in the UK and Ireland save a monthly amount
from their salaries, over either a three or five year period, which can be
used to purchase shares in the Company at a predetermined price.
The share incentive plan allows employees the opportunity to buy up to £1,800
of shares from their salary each year with the Group matching up to £600 per
year. The matching shares awarded are granted each month but are restricted
for three years (two years for Ireland).
In addition, the Group operates the following plans for which there are
outstanding awards but for which no awards were made during the year ended 31
December 2023:
Plan Options Conditional awards Restricted shares Typical vesting period (years) Contractual life for options Recipients Conditions which must be met prior to vesting
Aberdeen Asset Management Deferred Share Plan 2009(1) Yes No No 1-3 (3-5 for executive management) Up to 10 years from date of grant Executives and senior management Service only. There are no outstanding performance conditions at date of
grant.
Aberdeen Asset Management USA Deferred Share Award Plan No Yes No 1-3 (3-5 for executive management) Not applicable US based executives and senior management Service only. There are no outstanding performance conditions at date of
grant.
1. Included in Annual bonus deferred share options
Section (b)(i) below.
The Group also operated the following plans for which no awards were made
during the year ended 31 December 2023 and for which all outstanding awards
were exercised by 31 December 2022:
Plan Options Conditional awards Restricted shares Typical vesting period (years) Contractual life for options Recipients Conditions which must be met prior to vesting
Standard Life Restricted stock plan (RSP) Yes No No 1-3 Up to six months after vesting Executives (other than executive Directors) and senior management Service, or service and performance conditions. These are tailored to the
individual award.
(a) Employee share-based payments and deferred fund awards expense
The amounts recognised as an expense for equity-settled share-based payment
transactions and deferred fund awards with employees are as follows:
2023 2022
£m £m
Share options and share awards granted under deferred and discretionary share 22 22
plans(1)
Share options granted under Sharesave 1 1
Matching shares granted under share incentive plans 1 1
Equity-settled share-based payments 24 24
Cash-settled deferred fund awards(2) 7 2
Total expense 31 26
1. Includes expense for annual bonus deferred share
options and conditional awards.
2. The expense for cash-settled deferred fund awards
includes £3m (2022: £2m) for awards related to funds which are consolidated.
Included in the expense above is £12m (2022: £6m) which is included in
Restructuring and corporate transaction expenses in the consolidated income
statement.
(b) Options and conditional awards granted
(b)(i) Deferred and discretionary share plans
The number and remaining contractual life for options outstanding and the
share price at exercise of options exercised during the year are as follows:
2023 2022
Deferred and discretionary share plans Annual bonus Deferred and discretionary share plans Annual bonus deferred share options
deferred share
options
Outstanding at 1 January 61,117,377 5,574,422 37,133,812 6,604,504
Granted 7,847,719 - 45,752,914 -
Forfeited (15,690,306) (58,611) (3,540,675) -
Exercised (9,904,530) (1,662,020) (18,228,674) (1,030,082)
Outstanding at 31 December 43,370,260 3,853,791 61,117,377 5,574,422
Exercisable at 31 December 6,840,715 3,853,791 3,907,131 5,418,292
Remaining contractual life of options outstanding (years)(1) 5.96 2.70 6.45 3.56
Options exercised during the year - - - -
Share price at time of exercise(1) 198p 204p 194p 189p
1. Weighted average.
The options granted under the deferred and discretionary share plans were made
throughout the year ended 31 December 2023 with a main grant date of 11 April
2023 and had a £nil exercise price. The weighted average option term was 2.52
years. The weighted average share price at grant date was 194p and the
weighted average fair value at grant date was 172p. The options include an
entitlement to the receipt of dividends in respect of awards that ultimately
vest between the date of grant and the vesting date.
In addition to nil costs options, 357,888 nil cost conditional awards were
also granted under the deferred and discretionary share plans (2022:
2,464,050) with a weighted average share price at grant date of 194p which was
also the weighted average fair value at grant date.
(b)(ii) Standard Life RSP
As noted above the final RSP options were exercised in 2022.
2022
RSP
Outstanding at 1 January 3,372
Granted -
Forfeited -
Exercised (3,372)
Outstanding at 31 December -
Exercisable at 31 December -
Options exercised during the year
Share price at time of exercise(1) 241p
1. Weighted average.
(b)(iii) Sharesave
The number, exercise price and remaining contractual life for options
outstanding and the share price at exercise of options exercised during the
year are as follows:
2023 2022
Sharesave Weighted average exercise price for Sharesave Sharesave Weighted average exercise price for Sharesave
Outstanding at 1 January 9,981,563 143p 7,862,031 203p
Granted 1,864,914 132p 6,997,665 118p
Forfeited (501,929) 154p (165,551) 191p
Exercised (440,123) 186p (46,727) 200p
Expired (1,045,470) 205p (759,965) 235p
Cancelled (749,465) 154p (3,905,890) 197p
Outstanding at 31 December 9,109,490 130p 9,981,563 143p
Exercisable at 31 December 774,894 173p 1,390,636 206p
Remaining contractual life of options outstanding (years)(1) 2.85 3.12
Options exercised during the year
Share price at time of exercise(1) 201p 223p
1. Weighted average.
The Sharesave options were granted on 10 October 2023 with an exercise price
of 132p. The weighted average option term was 3.50 years. The weighted average
share price at grant date was 161p and the weighted average fair value at
grant date was 28p. Sharesave options have no dividend entitlement. In
determining the fair value of options granted under the Sharesave scheme the
historic volatility of the share price over a period of up to five years and a
risk-free rate determined by reference to swap rates was also considered.
The following table shows the range of exercise prices of Sharesave options
outstanding.
2023 2022
Number of options outstanding Number of options outstanding
117p-188p 7,980,740 6,930,983
189p-199p 742,875 2,390,606
200p-327p 385,875 587,801
328p-345p - 72,173
Outstanding at 31 December 9,109,490 9,981,563
(c) Matching shares granted under share incentive plans
During the year ended 31 December 2023, 338,001 matching shares were granted
under the share incentive plan (2022: 490,814). The weighted average share
price at grant date was 192p which was also the weighted average fair value at
grant date. The plans include the entitlement to the receipt of dividends in
respect of awards that ultimately vest between the date of grant and the
vesting date.
(d) Deferred fund awards and cash settled share based payments
(d)(i) Deferred fund awards
At 31 December 2023, the liability recognised for cash-settled deferred fund
awards was £27m (2022: £44m). There is no liability (2022: £9m) for
deferred fund awards relating to funds which are consolidated. The intrinsic
value for vested deferred fund awards related to funds which were consolidated
at 31 December 2022 was £6m.
(d)(ii) Cash settled share based payments
At 31 December 2023, the liability recognised for cash-settled share based
payments was £nil (2022: £nil).
41. Related party transactions
(a) Transactions and balances with related parties
In the normal course of business, the Group enters into transactions with
related parties that relate to investment management and insurance businesses.
In the year ended 31 December 2023, there have been no changes in the nature
of these transactions.
During the year, the Group recognised management fees of £2m (2022: £3m)
from the Group's defined benefit pension plans. The Group's defined benefit
pension plans have assets of £748m (2022: £847m) invested in investment
vehicles managed by the Group.
During the year, there were no sales to associates accounted for using the
equity method in relation to management fees (2022: £nil) and no purchases in
relation to services received (2022: £nil).
During the year ended 31 December 2023, there were sales to joint ventures
accounted for using the equity method of £4m (2022: £4m) and no purchases
from joint ventures (2022: £nil). During the year ended 31 December 2023, the
Group contributed no capital to a joint venture (2022: £2m). At 31 December
2023, there was no outstanding funding commitment to this joint venture (2022:
£nil).
The Group had no balances due to or from associates accounted for using the
equity method as at 31 December 2023 (2022: £nil). The Group had no balances
due from joint ventures as at 31 December 2023 (2022: £1m). There were no
balances due to joint ventures (2022: £nil). During the year ended 31
December 2023, the Group contributed capital of £2m to an associate (2022:
£3m). At 31 December 2023, the Group had no commitments to make capital
contributions to an associate (2022: £2m).
In addition to these transactions between the Group and the above related
parties during the year, in the normal course of business the Group made a
number of investments into/divestments from investment vehicles managed by the
Group which may be considered to be related parties including investment
vehicles which are classified as investments in associates measured at FVTPL.
Group entities paid amounts for the issue of shares or units and received
amounts for the cancellation of shares or units. Information in relation to
unconsolidated structured entities can be found in Note 35.
(b) Compensation of key management personnel
Key management personnel includes Directors of abrdn plc (since appointment)
and the members of the executive leadership team (since appointment).
The summary of compensation of key management personnel is as follows:
2023 2022
£m £m
Salaries and other short-term employee benefits 10 11
Post-employment benefits - -
Share-based payments and deferred fund awards 7 6
Termination benefits 1 2
Total compensation of key management personnel 18 19
(c) Transactions with key management personnel and their close family
members
Certain members of key management personnel hold investments in investments
products which are managed by the Group. None of the amounts concerned are
material in the context of funds managed by the Group. All transactions
between key management and their close family members and investments products
which are managed by the Group during the year are on terms which are
equivalent to those available to all employees of the Group.
42. Capital management
(a) Capital and risk management policies and objectives
Managing capital is the ongoing process of determining and maintaining the
quantity and quality of capital appropriate for the Group and ensuring capital
is deployed in a manner consistent with the expectations of our stakeholders.
For these purposes, the Board considers our key stakeholders to be our
clients, the providers of capital (our equity holders and holders of our
subordinated liabilities) and the Financial Conduct Authority (FCA) as the
lead prudential supervisor for the Group.
There are two primary objectives of capital management within the Group. The
first objective is to ensure that capital is, and will continue to be,
adequate to maintain the required level of financial stability of the Group
and hence to provide an appropriate degree of security to our stakeholders.
The second objective is to create equity holder value by driving profit
attributable to equity holders.
The treasury and capital management policy, which is subject to review at
least annually, forms one element of the Group's overall management framework.
Most notably, it operates alongside and complements the strategic investment
policy and the Group risk policies. Integrating policies in this way enables
the Group to have a capital management framework that robustly links the
process of capital allocation, value creation and risk management.
Capital requirements are forecast on a periodic basis and assessed against the
forecast available capital resources. In addition, rates of return achieved on
capital invested are assessed against hurdle rates, which are intended to
represent the minimum acceptable return given the risks associated with each
investment. Ongoing monitoring of investments is incorporated into the Group's
established performance management process. The capital planning process is
the responsibility of the Chief Financial Officer. Capital plans are
ultimately subject to approval by the Board.
The formal procedures for identifying and assessing risks that could affect
the capital position of the Group are described in the Risk management section
of the Strategic report. Information on financial instruments risk is also
provided in Note 34.
(b) Regulatory capital
(b)(i) Regulatory capital framework (unaudited)
The Group is supervised under the Investment Firms Prudential Regime (IFPR).
The Group's regulatory capital position under IFPR is determined by
consolidating the eligible capital and reserves of the Group (subject to a
number of deductions) to derive regulatory capital resources, and comparing
this to the Group's regulatory capital requirements.
Stress testing is completed to inform the appropriate level of regulatory
capital and liquidity that the Group must hold, with results shared with the
FCA at least annually. In addition, the Group monitors a range of capital and
liquidity statistics on a daily, monthly or less frequent basis as required.
Surplus capital levels are forecast, taking account of projected dividends and
investment requirements, to ensure that appropriate levels of capital
resources are maintained.
The Group is required to hold capital resources to cover both the Own Funds
Requirement and the Own Funds Threshold Requirement described below in
complying with the Overall Financial Adequacy Rule.
Own Funds Requirement
The Own Funds Requirement focuses on the Group's permanent minimum capital
requirement, its fixed overhead requirement and its K-factor requirement with
the own funds requirement being the highest of the three. At 31 December 2023,
the Group's indicative Own Funds Requirement was £314m.
Own Funds Threshold Requirement
The Own Funds Threshold Requirement supplements the own funds requirement via
the Internal Capital Adequacy and Risk Assessment (ICARA), which 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, taking into account
potential periods of financial stress during the economic cycle as well as a
potential wind-down scenario with the own funds threshold requirement being
the highest of the two, as per the Overall Financial Adequacy Rule. The
results of the Group's ICARA process is subject to periodic review by the FCA
under the Supervisory Review and Evaluation Process (SREP). The first review
was conducted in 2023.
Under IFPR the Group fully excludes the value of its holding in significant
listed investments from its capital resources. IFPR also includes constraints
on the proportion of the minimum capital requirement that can be met by each
tier of capital. As a result, approximately £275m of Tier 2 capital, whilst
continuing to be reported within the Group's capital resources, is not
available to meet the minimum capital requirement.
(b)(ii) IFPR (unaudited)
2023(1) 2022
£m £m
IFRS equity attributable to equity holders of abrdn plc 4,878 5,628
Deductions for intangibles and defined benefit pension assets, net of related (2,168) (2,319)
deferred tax liabilities
Deductions for significant investments in financial sector entities (780) (1,366)
Deductions for non-significant investments in financial sector entities (12) (229)
Other deductions and adjustments, including provision for foreseeable dividend (452) (413)
Common Equity Tier 1 capital resources 1,466 1,301
Additional Tier 1 capital resources 207 207
Total Tier 1 capital resources 1,673 1,508
Tier 2 capital resources 539 621
Total regulatory capital resources 2,212 2,129
Total regulatory capital requirement (1,054) (1,054)
CET1 capital requirement(2) (590) (590)
Surplus CET1 regulatory capital 876 711
Own Funds Requirement 314 319
CET1 ratio (CET1 as % of Own Funds Requirement) 467% 408%
1. 2023 draft position on 26 February 2024 following
finalisation of the Annual report and accounts.
2. 56% of total regulatory capital requirement.
The Group has complied with all externally imposed capital requirements during
the year.
43. Events after the reporting date
On 24 January 2024, the Group announced a new transformation programme
targeting an annualised cost reduction of at least £150m by the end of 2025.
The bulk of the savings will be in non-staff costs. However, the programme is
expected to result in the reduction of approximately 500 roles. To achieve the
desired simplification and cost savings, total implementation costs are
estimated to be around £150m.
On 14 February 2024, the agreed sale of the Group's interest in Virgin Money
UTM to its joint venture partner, Clydesdale Bank, was announced. The interest
in Virgin Money UTM does not form part of the Group's reportable segments. The
sale is expected to complete in H1 2024. The Group's interest in Virgin Money
UTM was classified as held for sale at 31 December 2023 (refer Note 21). The
sale is expected to result in an IFRS profit on disposal of interests in joint
ventures of approximately £11m.
44. Related undertakings
The Companies Act 2006 requires disclosure of certain information about the
Group's related undertakings which is set out in this Note. Related
undertakings are subsidiaries, joint ventures, associates and other
significant holdings. In this context significant means either a shareholding
greater than or equal to 20% of the nominal value of any class of shares, or a
book value greater than 20% of the Group's assets.
The particulars of the Company's related undertakings at 31 December 2023 are
listed below. For details of the Group's consolidation policy refer to (b)
Basis of consolidation in the Presentation of consolidated financial
statements section. Under that policy limited partnerships and limited
liability companies in which the Group has no interest but whose general
partner or manager is controlled by the Group are not consolidated. However,
such limited partnerships are considered to be subsidiaries under Companies
Act 2006 and therefore are listed below. Where the Group has no interest in a
limited partnership or limited liability company that is considered a related
entity, the interest held is disclosed as 0%.
The ability of subsidiaries to transfer cash or other assets within the Group
for example through payment of cash dividends is generally restricted only by
local laws and regulations, and solvency requirements. Included in equity
attributable to equity holders of abrdn plc at 31 December 2023 is £94m
(2022: £90m) related to the abrdn Financial Fairness Trust, a subsidiary
undertaking of the Group. The assets of the abrdn Financial Fairness Trust are
restricted to be used for charitable purposes.
The registered head office of all related undertakings is 1 George Street,
Edinburgh, EH2 2LL unless otherwise stated.
(a) Direct subsidiaries
Name of related undertaking Share class(1) % interest held(2)
30 STMA 1 Limited(3) Ordinary shares 100%
30 STMA 2 Limited(3) Ordinary shares 100%
30 STMA 3 Limited(3) Ordinary shares 100%
30 STMA 4 Limited(3) Ordinary shares 100%
30 STMA 5 Limited(3) Ordinary shares 100%
6 SAS 3 Limited(3) Ordinary shares 100%
Aberdeen Corporate Services Limited Ordinary shares 100%
abrdn Charitable Foundation(4) N/A 100%
abrdn Client Management Limited Ordinary shares 100%
abrdn Finance Limited Ordinary shares 100%
abrdn Financial Fairness Trust N/A 100%
abrdn Financial Planning Limited(3) Ordinary shares 100%
abrdn Holdings Limited(4) Ordinary shares 100%
abrdn Investments (Holdings) Limited Ordinary shares 100%
abrdn (Mauritius Holdings) 2006 Limited(5) Ordinary shares 100%
Antler Holdco Limited(6) Ordinary shares 100%
Interactive Investor Limited(7) Ordinary shares 100%
Focus Business Solutions Limited(8) Ordinary shares 100%
Standard Life Aberdeen Trustee Company Limited Ordinary shares 100%
Standard Life Savings Limited Ordinary shares 100%
The abrdn Company 2006 N/A 100%
Threesixty Services LLP(9) Limited Liability Partnership 100%
Threesixty Support LLP(9) Limited Liability Partnership 100%
(b) Other subsidiaries
Name of related undertaking Share class(1) % interest held(2)
6 SAS 1 Limited Ordinary shares 100%
6 SAS 2 Limited Ordinary shares 100%
Aberdeen ACM Team LP(4) Limited Partnership 0%
Aberdeen ACP LLP(4) Limited Liability Partnership 100%
Aberdeen Asia III Property Fund Of Funds(10) SIF fund with only Class A1 Units 2%
Aberdeen Asia IV (General Partner) S.a.r.l.(11) Ordinary shares 100%
Aberdeen Asia Pacific Fund, LP (12) Limited Partnership 0%
Aberdeen Asia Pacific Fund II, LP (12) Limited Partnership 0%
Aberdeen Asia Pacific II (Offshore), LP (12) Limited Partnership 0%
Aberdeen Asia Pacific III Ex-Co-Investment (Offshore), LP (12) Limited Partnership 0%
Name of related undertaking Share class(1) % interest held(2)
Aberdeen Asia Pacific III Ex-Co-Investment, LP (12) Limited Partnership 0%
Aberdeen Asia Pacific III, LP(12) Limited Partnership 0%
Aberdeen Asia Partners III, LP(13) Limited Partnership 0%
Aberdeen ASIF Carry LP(4) Limited Partnership 25%
Aberdeen Asset Management (Thailand) Ltd(14) Ordinary shares 100%
Aberdeen Asset Management Denmark A/S(15) Ordinary shares 100%
Aberdeen Asset Management Finland Oy(16) Ordinary shares 100%
Aberdeen Claims Administration, Inc.(17) Ordinary shares 100%
Aberdeen Co-Investment Mandate LP(4) Limited Partnership 0%
Aberdeen Direct Property (Holding) Limited(3) Ordinary shares 100%
Aberdeen Emerging Asia Fund, LP (12) Limited Partnership 0%
Aberdeen Emerging Asia Pacific II (Offshore), LP(12) Limited Partnership 0%
Aberdeen Emerging Asia Pacific III Ex-Co-Investments, LP(12) Limited Partnership 0%
Aberdeen Energy & Resource Company IV, LLC(13) Limited Liability Company 73%
Aberdeen Energy & Resources Company V, LLC(13) Limited Liability Company 93%
Aberdeen Energy & Resources Partners II, LP(13) Limited Partnership 0%
Aberdeen Energy & Resources Partners III, LP(13) Limited Partnership 0%
Aberdeen Energy & Resources Partners IV, LP(13) Limited Partnership 1%
Aberdeen Energy & Resources Partners V, LP(13) Limited Partnership 2%
Aberdeen European Infrastructure Carry GP Limited (4) Ordinary shares 100%
Aberdeen European Infrastructure Carry Limited (4) Ordinary shares 100%
Aberdeen European Infrastructure Co-Invest II LP(3) Limited Partnership 0%
Aberdeen European Infrastructure GP II Limited(3) Ordinary shares 100%
Aberdeen European Infrastructure GP III Limited(3) Ordinary shares 100%
Aberdeen European Infrastructure GP Limited(3) Ordinary shares 100%
Aberdeen European Infrastructure III A Limited(3) Ordinary shares 100%
Aberdeen European Infrastructure III B Limited(3) Ordinary shares 100%
Aberdeen European Infrastructure IV Ltd(3) Ordinary shares 100%
Aberdeen European Infrastructure Partners Carry LP(4) Limited Partnership 25%
Aberdeen European Infrastructure Partners Carry II LP(4) Limited Partnership 25%
Aberdeen European Infrastructure Partners Carry III LP(4) Limited Partnership 25%
Aberdeen European Infrastructure Partners LP(3) Limited Partnership 3%
Aberdeen European Infrastructure Partners II LP(3) Limited Partnership 2%
Aberdeen European Infrastructure Partners III LP(3) Limited Partnership 5%
Aberdeen European Opportunities Property Fund of Funds LLC(18) Limited Liability Company 3%
Aberdeen European Residential Opportunities Fund SCSp(10) Limited Partnership 0%
Aberdeen Fund Distributors LLC(17) Limited Liability Company 100%
Aberdeen Fund Management II Oy(16) Ordinary shares 100%
Aberdeen General Partner 1 Limited(4) Ordinary shares 100%
Aberdeen General Partner 2 Limited(4) Ordinary shares 100%
Aberdeen General Partner CAPELP Limited(12) Ordinary shares 100%
Aberdeen General Partner CGPLP Limited(12) Ordinary shares 100%
Aberdeen General Partner CMENAPELP Limited(12) Ordinary shares 100%
Aberdeen General Partner CPELP II Limited(12) Ordinary shares 100%
Aberdeen General Partner CPELP Limited(12) Ordinary shares 100%
Aberdeen Global ex-Japan Property Fund of Funds LP(12) Limited Partnership 5%
Aberdeen Global ex-Japan GP Limited(12) Ordinary shares 100%
Aberdeen Global Infrastructure Carry GP Limited(4) Ordinary shares 100%
Aberdeen Global Infrastructure GP II Limited(19) Ordinary shares 100%
Aberdeen Global Infrastructure GP Limited(19) Ordinary shares 100%
Aberdeen Global Infrastructure Partners II Carry LP(4) Limited Partnership 25%
Aberdeen Global Infrastructure Partners II LP(20) Limited Partnership 0%
Aberdeen Global Infrastructure Partners III Carry LP Limited Partnership 25%
Aberdeen Global Infrastructure Partners LP(20) Limited Partnership 0%
Name of related undertaking Share class(1) % interest held(2)
Aberdeen GP 1 LLP(4) Limited Liability Partnership 100%
Aberdeen GP 2 LLP(4) Limited Liability Partnership 100%
Aberdeen GP 3 LLP(4) Limited Liability Partnership 100%
Aberdeen Indirect Property Partners II FCP-FIS(10) Class A1, A2 and A3 units 1%
Aberdeen Infrastructure Feeder GP Limited(4) Ordinary shares 100%
Aberdeen Infrastructure Finance GP Limited(19) Ordinary shares 100%
Aberdeen Infrastructure GP II Limited(3) Ordinary shares 100%
Aberdeen Infrastructure Partners II Carry LP (4) Limited Partnership 25%
Aberdeen Infrastructure Partners II LP(3) Limited Partnership 0%
Aberdeen Infrastructure Partners LP Inc(20) Limited Partnership 0%
Aberdeen Investment Company Limited(4) Ordinary shares 100%
Aberdeen Keva Asia IV Property Partners SCSp(11) Limited Partnership 1%
Aberdeen Pension Trustees Limited(4) Ordinary shares 100%
Aberdeen Pooling II GP AB (21) Ordinary shares 100%
Aberdeen Property Fund Management Estonia Ou(22) Ordinary shares 100%
Aberdeen Property Investors (General Partner) S.a.r.l.(23) Ordinary shares 100%
Aberdeen Property Investors Estonia Ou(22) Ordinary shares 100%
Aberdeen Property Investors Limited Partner Oy(16) Ordinary shares 100%
Aberdeen Property Investors The Netherlands BV(24) Ordinary shares 100%
Aberdeen Property Secondaries Partners II(10) Limited Partnership 23%
Aberdeen Real Asset Partners, LP(13) Limited Partnership 0%
Aberdeen Real Estate Fund Finland II LP (25) Limited Partnership 100%
Aberdeen Real Estate Partners II, LP(13) Limited Partnership 0%
Aberdeen Real Estate Partners III, LP(13) Limited Partnership 0%
Aberdeen Secondaries II GP S.a.r.l.(10) Ordinary shares 100%
Aberdeen Sidecar LP Inc(20) Limited Partnership 0%
Aberdeen Standard 2019 European PE A Carry LP Limited Partnership 40%
Aberdeen Standard 2019 European PE B Carry LP Limited Partnership 40%
Aberdeen Standard Carlsbad Carry LP(4) Limited Partnership 25%
Aberdeen Standard Carlsbad GP Limited(19) Ordinary shares 100%
Aberdeen Standard Carlsbad LP(20) Limited Partnership 0%
Aberdeen Standard Global Infrastructure Partners III LP(20) Limited Partnership 5%
Aberdeen Standard Core Infrastructure III LTP LP Limited Partnership 25%
Aberdeen Standard Core Infrastructure III SCSp(10) Limited Partnership 1%
Aberdeen Standard ECF II GP LP Limited Partnership 40%
Aberdeen Standard European Infrastructure GP IV Limited (3) Ordinary shares 100%
Aberdeen Standard European Infrastructure Partners Carry IV LP Limited Partnership 25%
Aberdeen Standard European Infrastructure Partners Co-invest IV LP(3) Limited Partnership 0%
Aberdeen Standard European Infrastructure Partners IV LP (3) Limited Partnership 5%
Aberdeen Standard European Long Income Real Estate Fund SCSp(10) Limited Partnership 0%
Aberdeen Standard Global Infrastructure GP III Ltd(19) Ordinary shares 100%
Aberdeen Standard Global Infrastructure Partners I (2021) Carry LP Limited Partnership 25%
Aberdeen Standard Gulf Carry GP Limited(4) Ordinary shares 100%
Aberdeen Standard Gulf Carry LP(4) Limited Partnership 12%
Aberdeen Standard Investments Sweden AB(26) Ordinary shares 100%
Aberdeen Standard Private Real Assets Co-Investment Fund I GP, LLC(13) Limited liability company 80%
Aberdeen Standard Private Real Assets Co-Investment Fund I, LLC(13) Limited Liability Company 79%
Aberdeen Standard Private Real Assets Co-Investment Fund I, LP(13) Limited Partnership 1%
Aberdeen Standard SOF IV Feeder LP Limited Partnership 0%
Aberdeen Standard SOF IV GP LP Limited Partnership 25%
Aberdeen Standard SOF IV LP Limited Partnership 0%
Aberdeen Standard SOF Evergreen GP LP Limited Partnership 40%
Aberdeen Standard SOF Evergreen LP Limited Partnership 0%
Aberdeen Trust Limited(4) Ordinary shares 100%
Aberdeen UK Infrastructure Carry GP Limited(4) Ordinary shares 100%
Name of related undertaking Share class(1) % interest held(2)
Aberdeen UK Infrastructure Carry Limited(4) Ordinary shares 100%
Aberdeen Unit Trust Managers Limited(4) Ordinary shares 100%
abrdn - Emerging Markets Equity ADR Fund(13) Corporate Fund 100%
abrdn - US SMID Cap Equity Fund(13) Corporate Fund 100%
abrdn III ICAV - abrdn Global Real Estate Active Thematics UCITS ETF(27) ICAV 91%
abrdn Alternative Funds Limited Ordinary shares 100%
abrdn Alternative Holdings Limited(4) Ordinary shares 100%
abrdn Alternative Investments Limited(3) Ordinary shares 100%
abrdn APAC PE 4 Executive Co-investment LP Limited Partnership 0%
abrdn APAC Private Equity 4 LP(12) Limited Partnership 0%
abrdn Asia Limited(28) Ordinary shares 100%
abrdn Bloomberg Industrial Metals Strategy K-1 Free ETF(29) ETF 72%
abrdn Brasil Investimentos Ltda(30) Limited Liability Company 100%
abrdn Canada Funds - Global Smaller Companies Equity Fund(31) Private Commingled Fund 100%
abrdn Canada Limited(32) Ordinary shares 100%
abrdn Capital Partners LLP Limited Liability Partnership 100%
abrdn Colombia SAS(33) Ordinary shares 100%
abrdn Commercial Real Estate Debt LP(3) Limited Partnership 0%
abrdn Commercial Real Estate Debt II LP Limited Partnership 0%
abrdn Corporate Secretary Limited Ordinary shares 100%
abrdn CP (Holdings) Limited Ordinary shares 100%
abrdn (CRED II) GP Limited Ordinary shares 100%
abrdn Eclipse HFRI 500 SP(12) Private Commingled Fund 36%
abrdn ETFs Advisors LLC(13) Limited liability company 100%
abrdn ETFs Sponsor LLC(13) Limited liability company 100%
abrdn European Property Growth Fund LP(3) Limited Partnership 0%
abrdn Financial Planning & Advice Limited(3) Ordinary A shares 100%
Ordinary B shares
abrdn Founder Co Limited Ordinary shares 100%
abrdn Fund Managers Limited(3) Ordinary shares 100%
abrdn (General Partner CRED) Limited(3) Ordinary shares 100%
abrdn (General Partner ELIREF) S.a.r.l.(10) Ordinary shares 100%
abrdn (General Partner EPGF) Limited Ordinary shares 100%
abrdn (General Partner PFF 2018) S.a.r.l.(10) Ordinary shares 100%
abrdn (General Partner SCF 1) Limited Ordinary shares 100%
abrdn Global Absolute Return Strategies Offshore Feeder Fund Limited(12) Ordinary shares 100%
abrdn Global Absolute Return Strategies Onshore Feeder Fund, LP(13) Limited Partnership 0%
abrdn Global Risk Mitigation Fund(34) Unit Trust 38%
abrdn Hong Kong Limited(35) Ordinary shares 100%
abrdn (IL Infrastructure Debt) GP Limited(3) Ordinary shares 100%
abrdn Inc.(13) Ordinary shares 100%
abrdn Inflation-Linked Infrastructure Debt LP(3) Limited Partnership 0%
abrdn Infrastructure Fibre Co-Investment SCSp(10) Limited Partnership 100%
abrdn Investment Management Limited Ordinary shares 100%
abrdn Investments Beteiligungs GmbH(36) Limited Liability Company 90%
abrdn Investments Deutschland AG(36) Ordinary shares 90%
abrdn Investments (General Partner UK Shopping Centre Feeder Fund LP) Ordinary shares 100%
Limited(3)
abrdn Investments Group Limited(3) Ordinary shares 100%
abrdn Investments Holdings Europe Limited(3) Ordinary shares 100%
abrdn Investments Ireland Limited(37) Ordinary shares 100%
abrdn Investments Jersey Limited(38) Ordinary shares 100%
abrdn Investments Limited(4) Ordinary shares 100%
abrdn Investments Luxembourg Corporate Manager S.a.r.l.(10) Ordinary shares 100%
abrdn Investments Luxembourg S.A.(10) Ordinary shares 100%
abrdn Investments Middle East Limited(39) Ordinary shares 100%
Name of related undertaking Share class(1) % interest held(2)
abrdn Investments Switzerland AG(40) Ordinary shares 100%
abrdn Islamic Malaysia Sdn. Bhd(.41) Ordinary shares 100%
abrdn Japan Limited(42) Ordinary shares 100%
abrdn Jersey Limited(43) Ordinary shares 100%
abrdn Korea Co. Limited.(44) Ordinary shares 100%
abrdn Korea GP 2 Pte. Ltd(45) Ordinary shares 100%
abrdn Korea Separate Account 2 LP(45) Limited Partnership 1%
abrdn Life and Pensions Limited(3) Ordinary shares 100%
abrdn Liquidity Fund (Lux) - Seabury Sterling Liquidity 1 Fund(10) SICAV 100%
abrdn Malaysia Sdn. Bhd.(41) Ordinary shares Irredeemable non-convertible preference shares 100%
abrdn MSPC General Partner S.a.r.l.(10) Ordinary shares 100%
abrdn Multi-Sector Private Credit Fund SCSp(10) Limited Partnership 3%
abrdn Nominees Services HK Limited(35) Ordinary shares 100%
abrdn OEIC I - abrdn China A Share Equity Fund(3) OEIC 47%
abrdn OEIC III - abrdn MyFolio Sustainable I Fund(3) OEIC 46%
abrdn OEIC III - abrdn MyFolio Sustainable Index I Fund(3) OEIC 72%
abrdn OEIC III - abrdn MyFolio Sustainable Index V Fund(3) OEIC 32%
abrdn OEIC III - abrdn Multi-Sector Credit Fund(3) OEIC 100%
abrdn OEIC V - abrdn Multi-Asset Climate Solutions Fund(3) OEIC 84%
abrdn Oceania Pty Ltd(46) Ordinary shares 100%
Abrdn Pan European Residential Property Feeder S.C.A. SICAV RAIF(10) Limited Partnership 0%
abrdn Phoenix Fund Financing SCSp(10) Limited Partnership 0%
abrdn Poinsettia GP Ltd(12) Ordinary shares 100%
abrdn Portfolio Investments abrdn Asia-China Bond(47) Corporate Fund 100%
abrdn Portfolio Investments Limited Ordinary shares 100%
abrdn Portfolio Investments US Inc.(13) Ordinary shares 100%
abrdn Portfolio Solutions Limited(3) Ordinary shares 100%
abrdn Premises Services Limited Ordinary shares 100%
abrdn Private Equity (Europe) Limited Ordinary shares 100%
abrdn Private Fund Management (Shanghai) Company Limited(48) Ordinary shares 100%
abrdn Property Investors France SAS(49) Ordinary shares 100%
abrdn Real Estate Operations Limited(4) Ordinary shares 100%
abrdn Secure Credit LP Limited Partnership 0%
abrdn SICAV I - Asian Credit Sustainable Bond Fund(10) SICAV 67%
abrdn SICAV I - Asian Sustainable Development Equity Fund(10) SICAV 93%
abrdn SICAV I - CCBI Belt & Road Bond Fund(10) SICAV 33%
abrdn SICAV I - China Next Generation Fund(10) SICAV 62%
abrdn SICAV I - Asian High Yield Sustainable Bond Fund(10) SICAV 99%
abrdn SICAV I - Climate Transition Bond Fund(10) SICAV 51%
abrdn SICAV I - Global Climate & Environment Equity Fund(10) SICAV 89%
abrdn SICAV I - Global Mid-Cap Equity Fund(10) SICAV 42%
abrdn SICAV II - Multi Asset Climate Opportunities(50) SICAV 97%
abrdn Si Yuan Private Fund Management (Shanghai) Company Limited(48) Ordinary shares 100%
abrdn (SLSPS) Pension Trustee Company Ltd Ordinary shares 100%
abrdn SPT Management Pte. Ltd.(51) Ordinary shares 100%
abrdn Pan European Residential Property Fund SICAV-RAIF(10) Limited Partnership 0%
abrdn UK Shopping Centre Feeder Fund Company Limited(52) Ordinary shares 100%
abrdn UK Shopping Centre Feeder Fund Limited Partnership(3) Limited Partnership 100%
ACM Carry LP(4) Limited Partnership 40%
AEROF (Luxembourg) GP S.a.r.l.(10) Ordinary shares 100%
AERP V-A Master, LP(13) Limited Partnership 0%
AIA Series T Holdings LLC(18) Limited liability company 0%
AIPP Folksam Europe (10) Limited Partnership 0%
AIPP Folksam Europe II Kommanditbolag(21) Limited Partnership 0%
AIPP Pooling I SA(10) Ordinary shares 100%
Name of related undertaking Share class(1) % interest held(2)
Airport Industrial GP Limited(53) Ordinary shares 60%
Airport Industrial Limited Partnership(54) Limited Partnership 0%
Airport Industrial Nominees B Limited(53) Ordinary shares 60%
Airport Industrial Nominees Limited(53) Ordinary shares 60%
Aldwych Capital Partners, LP Limited Partnership 0%
Alliance Trust Savings Limited Ordinary shares 100%
Andean Social Infrastructure (No. 1) Limited(3) Ordinary shares 100%
Andean Social Infrastructure Fund I LP(12) Limited Partnership 5%
Andean Social Infrastructure GP Limited(12) Ordinary shares 100%
aPE NewCo 1 Limited Ordinary shares 100%
aPE NewCo 2 Limited Ordinary shares 100%
Arden Garden State NJ Fund, LP(18) Limited Partnership 0%
Arden Institutional Advisers, LP(18) Limited Partnership 0%
Arthur House (No.6) Limited(3) Ordinary shares 100%
Artio Global Investors Inc.(17) Ordinary shares 100%
ASI Direct RE GP LLP Limited Liability Partnership 100%
ASI European Private Equity 2019 B LP(13) Limited Partnership 0%
ASI (General Partner 2019 European PE A Carry) Limited Ordinary shares 100%
ASI (General Partner 2019 European PE A) S.a.r.l.(10) Ordinary shares 100%
ASI (General Partner 2019 European PE B) Limited Ordinary shares 100%
ASI (General Partner 2019 European PE B) LLC(13) Ordinary shares 0%
ASI (General Partner ECF II) Limited Ordinary shares 100%
ASI (General Partner PE2) Limited Ordinary shares 100%
ASI (General Partner SOF IV) Limited Ordinary shares 100%
ASI Han Co-Investment LP Limited Partnership 93%
ASI (KFAS) RE GP LLP Limited Liability Partnership 100%
ASI Little Mill Carry LP(4) Limited Partnership 0%
ASI Little Mill Co-Invest LP(4) Limited Partnership 0%
ASI Little Mill LP(4) Limited Partnership 0%
ASI Mid-Market 1 LP(4) Limited Partnership 0%
ASI MM Executive Co Investment LP(4) Limited Partnership 0%
ASI (NWPE 2021) Carry LP Limited Partnership 0%
ASI PE 1 Carry LP(4) Limited Partnership 40%
ASI (PGPE III) GP LP Limited Partnership 40%
ASI Phoenix Global Private Equity III LP Limited Partnership 0%
ASI Private Equity 1 LP(4) Limited Partnership 0%
ASI Private Equity 2 GP LP Limited Partnership 40%
ASI Private Equity 2 LP Limited Partnership 0%
ASI REMM GP LLP(4) Limited Liability Partnership 100%
ASI Shin Co-Investment LP(4) Limited Partnership 100%
ASI Shin Global Investment GP Limited(12) Ordinary shares 100%
ASI (SOF E GP) Limited Ordinary shares 100%
ASIF Sidecar Carry LP(4) Limited Partnership 25%
ASPER (Luxembourg) GP S.a.r.l. (10) Ordinary shares 100%
BOSEMP Feeder LP(4) Limited Partnership 0%
Brain Co-Invest General Partner LLP Limited Liability Partnership 100%
Brain Co-Invest LP Limited Partnership 0%
Coutts Asian Private Equity Limited Partnership(12) Limited Partnership 0%
Coutts Global Property Limited Partnership(12) Limited Partnership 0%
Coutts Middle East and North Africa Private Equity Limited Partnership(12) Limited Partnership 0%
Coutts Private Equity Limited Partnership(12) Limited Partnership 0%
Coutts Private Equity Limited Partnership II(12) Limited Partnership 0%
CPP General Partner Limited Partnership Limited Partnership 20%
Edinburgh Fund Managers Group Limited(4) Ordinary shares 100%
Edinburgh Fund Managers Plc Ordinary shares 100%
Edinburgh Unit Trust Managers Limited(4) Ordinary shares 100%
Deferred shares
Name of related undertaking Share class(1) % interest held(2)
Elevate Portfolio Services Limited(3) Ordinary shares 100%
Emerging Markets ex-China Equity Fund, a series of the aICF, LLC(13) Private Commingled Fund 91%
Emerging Markets Income Equity Fund, a series of the aICF, LLC(13) Private Commingled Fund 99%
ESF I Executive Co Investment Limited Partnership Limited Partnership 0%
ESP 2004 Co Investment Limited Partnership Limited Partnership 0%
ESP 2004 Conduit LP Limited Partnership 0%
ESP 2004 General Partner Limited Partnership Limited Partnership 0%
ESP 2006 Co Investment Limited Partnership Limited Partnership 0%
ESP 2006 Conduit LP Limited Partnership 0%
ESP 2006 General Partner Limited Partnership Limited Partnership 5%
ESP 2008 Conduit LP Limited Partnership 0%
ESP 2008 Executive Co Investment Limited Partnership Limited Partnership 0%
ESP 2008 General Partner Limited Partnership Limited Partnership 0%
ESP CPPIB European Mid Market Fund Limited Partnership 1%
ESP General Partner Limited Partnership Limited Partnership 0%
ESP Golden Bear Europe Fund Limited Partnership 3%
ESP Golden Bear General Partner Limited Partnership Limited Partnership 0%
ESP II Co Investment Limited Partnership Limited Partnership 0%
ESP II Conduit LP Limited Partnership 0%
ESP II General Partner Limited Partnership Limited Partnership 0%
ESP Tidal Reach General Partner Limited Partnership Limited Partnership 20%
ESP Tidal Reach LP Limited Partnership 1%
European Strategic Partners Limited Partnership 0%
European Strategic Partners - I LP(55) Limited Partnership 0%
European Strategic Partners 2004 'A' Limited Partnership 0%
European Strategic Partners 2004 'B' Limited Partnership 0%
European Strategic Partners 2006 'A' Limited Partnership 0%
European Strategic Partners 2006 'B' Limited Partnership 0%
European Strategic Partners 2008 'A' Limited Partnership 0%
European Strategic Partners 2008 'B' Limited Partnership 0%
European Strategic Partners II 'A' Limited Partnership 0%
European Strategic Partners II 'B' Limited Partnership 0%
European Strategic Partners II 'C' Limited Partnership 0%
European Strategic Partners II 'D' Limited Partnership 0%
European Strategic Partners II 'E' Limited Partnership 0%
European Strategic Partners Scottish 'B' Limited Partnership 0%
European Strategic Partners Scottish 'C' Limited Partnership 0%
Finimize Limited(3) Ordinary shares 100%
Flag Asia Company III, LLC(13) Limited liability company 100%
Flag Asia Company III, LP(13) Limited Partnership 0%
Flag Energy & Resource Company II, LLC(13) Limited liability company 0%
Flag Energy & Resource Company III, LLC(13) Limited liability company 0%
Flag Real Assets Company LLC(13) Limited liability company 0%
Flag Real Asset Company, LP(13) Limited Partnership 0%
Flag Real Estate Company II, LLC(13) Limited liability company 0%
Flag Real Estate Company III, LLC(13) Limited liability company 0%
Flag Squadron Asia Pacific III GP LP(12) Limited Partnership 100%
Fraser Heath Financial Management Limited(56) Ordinary shares 100%
FSA III EA SPV, LP(12) Limited Partnership 0%
FSA III Pacific SPV, LP(12) Limited Partnership 0%
Griffin Nominees Limited(3) Ordinary shares 100%
Ignis Asset Management Limited Ordinary shares 100%
Ignis Cayman GP2 Limited(12) Ordinary shares 100%
Ignis Cayman GP3 Limited(12) Ordinary shares 100%
Ignis Investment Services Limited Ordinary shares 100%
Ignis Private Equity Fund LP(12) Limited Partnership 0%
Ignis Strategic Credit Fund LP(12) Limited Partnership 0%
Name of related undertaking Share class(1) % interest held(2)
Interactive Investor Services Limited(7) Ordinary shares 100%
Interactive Investor Services Nominees Limited(7) Ordinary shares 100%
Investor Nominees (Dundee) Limited Ordinary shares 100%
Investor Nominees Limited(7) Ordinary shares 100%
Investor SIPP Trustees Ltd(7) Ordinary shares 100%
KFAS Real Estate Limited Partnership Limited Partnership 0%
Local2Local Limited(53) Ordinary shares 60%
Murray Johnstone Limited(4) Ordinary shares 100%
MYS Living Limited Ordinary shares 75%
NASP 2006 General Partner Limited Partnership Limited Partnership 62%
NASP 2006 Special Limited Partnership Limited Partnership 0%
NASP 2008 General Partner Limited Partnership Limited Partnership 0%
NASP 2008 Special Limited Partnership Limited Partnership 0%
North American Strategic Partners 2006 LP(17) Limited Partnership 0%
North American Strategic Partners 2008 LP(17) Limited Partnership 0%
North American Strategic Partners (Feeder) 2006 Limited Partnership 0%
North American Strategic Partners (Feeder) 2008 Limited Partnership Limited Partnership 0%
North East Trustees Limited(3) Ordinary A shares 100%
Ordinary B shares
Orion Partners CLP Inc.(57) Ordinary shares 100%
Orion Partners Services Inc. (57) Ordinary shares 100%
Ostara China Real Estate Fund LP(57) Limited Partnership 0%
Ostara Japan Fund 3 LP(57) Limited Partnership 1%
Ostara Korea GP 2 Pte. Ltd(45) Ordinary shares 100%
Ostara Korea Separate Account LP(45) Limited Partnership 0%
Ostara Partners Inc. China(57) Ordinary shares 100%
Ostara Partners Inc. Japan 3(57) Ordinary shares 100%
PE1 LP(4) Limited Partnership 0%
PE1A LP(4) Limited Partnership 0%
PE2 Carry LP(4) Limited Partnership 40%
PE2 LP(4) Limited Partnership 0%
Pearl Private Equity LP Limited Partnership 0%
Pearl Strategic Credit LP Limited Partnership 0%
Pearson Jones & Company (Trustees) Limited(3) Ordinary shares 100%
Pearson Jones Nominees Limited(3) Ordinary shares 100%
PGB European Buy-out Fund I SCSp(10) Limited Partnership 1%
PGB European Co-Investment Fund I SCSp(10) Limited Partnership 1%
Poinsettia Holdco LP(12) Limited Partnership 0%
PT Aberdeen Standard Investments Indonesia(58) Limited Liability Company 99%
Regent Property Partners (Retail Parks) Limited(56) Ordinary shares 100%
SG Commercial LLP(53) Limited Liability Partnership 60%
Share Limited(7) Ordinary shares 100%
Share Nominees Limited(7) Ordinary shares 100%
Shin Global Investment Partners LP(12) Limited Partnership 0%
SL Capital 2016 Co-Investment GP LP Limited Partnership 5%
SL Capital 2016 Co-Investment LP Limited Partnership 0%
SL Capital ECF GP LP Limited Partnership 4%
SL Capital ESF I GP LP Limited Partnership 0%
SL Capital ESF I LP Limited Partnership 1%
SL Capital European Co-Investment B LP Limited Partnership 0%
SL Capital European Co-Investment LP Limited Partnership 0%
SL Capital Ignis Private Equity Founder LP Limited Partnership 65%
SL Capital Ignis Strategic Credit Founder LP Limited Partnership 0%
SL Capital Infrastructure Fund II Top-Up Co-Investment Fund SCSp(10) Limited Partnership 0%
SL Capital Infrastructure I GP LP Limited Partnership 100%
SL Capital Infrastructure I LP Limited Partnership 0%
SL Capital Infrastructure II LTP LP Limited Partnership 25%
Name of related Share class(1) % interest held(2)
undertaking
SL Capital Infrastructure II SCSp(10) Limited Partnership 1%
SL Capital Infrastructure Secondary I GP LP Limited Partnership 25%
SL Capital Infrastructure Secondary I LP Limited Partnership 0%
SL Capital Infrastructure Secondary II LP Limited Partnership 0%
SL Capital NASF I A LP Limited Partnership 2%
SL Capital NASF I Carry LP Limited Partnership 0%
SL Capital NASF I GP LP Limited Partnership 0%
SL Capital NASF I LP(13) Limited Partnership 0%
SL Capital Pearl Private Equity GP LP Limited Partnership 0%
SL Capital Pearl Strategic Credit GP LP Limited Partnership 1%
SL Capital SOF I Feeder LP Limited Partnership 0%
SL Capital SOF II Feeder LP Limited Partnership 1%
SL Capital SOF III Feeder LP Limited Partnership 0%
SL Capital SOF I GP LP Limited Partnership 0%
SL Capital SOF II GP LP Limited Partnership 0%
SL Capital SOF III GP LP Limited Partnership 0%
SL Capital SOF I LP Limited Partnership 0%
SL Capital SOF II LP Limited Partnership 0%
SL Capital SOF III LP Limited Partnership 0%
SLC EC I Executive Co Investment Limited Partnership Limited Partnership 0%
SLCI I Executive Co Investment Limited Partnership Limited Partnership 0%
SLCI II Executive Co-Investment LP Limited Partnership 0%
SLCI Rail Co-Invest LP Limited Partnership 0%
SLCP (Founder Partner Ignis Private Equity) Limited Ordinary shares 100%
SLCP (Founder Partner Ignis Strategic Credit) Limited Ordinary shares 100%
SLCP (General Partner) Limited Ordinary shares 100%
SLCP (General Partner II) Limited Ordinary shares 100%
SLCP (General Partner 2016 Co-investment) Limited Ordinary shares 100%
SLCP (General Partner CPP) Limited Ordinary shares 100%
SLCP (General Partner EC) Limited Ordinary shares 100%
SLCP (General Partner ESF I) Limited Ordinary shares 100%
SLCP (General Partner ESP 2004) Limited Ordinary shares 100%
SLCP (General Partner ESP 2006) Limited Ordinary shares 100%
SLCP (General Partner ESP 2008) Limited Ordinary shares 100%
SLCP (General Partner ESP CAL) Limited Ordinary shares 100%
SLCP (General Partner Infrastructure I) Limited Ordinary shares 100%
SLCP (General Partner Infrastructure Secondary I) Limited Ordinary shares 100%
SLCP (General Partner NASF I) Limited Ordinary shares 100%
SLCP (General Partner NASP 2006) Limited Ordinary shares 100%
SLCP (General Partner NASP 2008) Limited Ordinary shares 100%
SLCP (General Partner Pearl Private Equity) Limited Ordinary shares 100%
SLCP (General Partner Pearl Strategic Credit) Limited Ordinary shares 100%
SLCP (General Partner SOF I) Limited Ordinary shares 100%
SLCP (General Partner SOF II) Limited Ordinary shares 100%
SLCP (General Partner SOF III) Limited Ordinary shares 100%
SLCP (General Partner Tidal Reach) Limited Ordinary shares 100%
SLCP (General Partner USA) Limited Ordinary shares 100%
SLIPC (General Partner Infrastructure II LTP 2017) Limited Ordinary shares 100%
SLIPC (General Partner Infrastructure II) S.a.r.l.(10) Ordinary shares 100%
SLIPC (General Partner Infrastructure III) S.a.r.l.(10) Ordinary shares 100%
SLTM Limited Ordinary shares 100%
SOF I Executive Co Investment Limited Partnership Limited Partnership 0%
SOF II Executive Co Investment Limited Partnership Limited Partnership 0%
SOF III Executive Co Investment Limited Partnership Limited Partnership 0%
SOF IV Carry LP Limited Partnership 25%
SOF IV Executive Co Investment Limited Partnership Limited Partnership 0%
Squadron Asia Pacific Fund, LP(12) Limited Partnership 0%
Name of related undertaking Share class(1) % interest held(2)
Squadron Asia Pacific Fund II, LP(12) Limited Partnership 0%
Squadron Capital Asia Pacific GP, LP(12) Limited Partnership 100%
Squadron Capital Asia Pacific II GP LP(12) Limited Partnership 100%
Squadron Capital Partners Limited(12) Ordinary shares 100%
Squadron GP Participation, LP(12) Limited Partnership 0%
Squadron GP Participation II, LP(12) Limited Partnership 0%
Standard Life Investments Brent Cross General Partner Limited Ordinary shares 100%
Standard Life investments Brent Cross LP Limited Partnership 0%
Standard Life Investments European Real Estate Club II LP(3) Limited Partnership 1%
Standard Life Investments European Real Estate Club III LP(3) Limited Partnership 2%
Standard Life Investments (General Partner European Real Estate Club) Ordinary shares 100%
Limited(3)
Standard Life Investments (General Partner European Real Estate Club II) Ordinary shares 100%
Limited(3)
Standard Life Investments (General Partner European Real Estate Club III) Ordinary shares 100%
Limited(3)
Standard Life Investments (General Partner GARS) Limited Ordinary shares 100%
Standard Life Investments (General Partner GFS) Limited Ordinary shares 100%
Standard Life Investments (General Partner Global Tactical Asset Allocation) Ordinary shares 100%
Limited
Standard Life Investments (General Partner MAC) Limited Ordinary shares 100%
Tenon Nominees Limited(4) Ordinary shares 100%
The Share Centre (Administration Services) Ltd(7) Ordinary shares 100%
The Share Centre Limited(7) Ordinary shares 100%
Touchstone Insurance Company Limited(59) Ordinary shares 100%
TPIF (No. 1) GP LLP(60) Limited Liability Partnership 60%
TPIF (No. 1) LP(60) Limited Partnership 0%
TPIF (Portfolio No. 1) GP LLP(53) Limited Liability Partnership 60%
TPIF (Portfolio No. 1) LP(54) Limited Partnership 0%
TPIF (Portfolio No. 1) Nominee Limited(53) Ordinary shares 60%
Tritax abrdn Supply Chain Carry GP LLP (53) Limited Liability Partnership 60%
Tritax abrdn Supply Chain Carry LP(60) Limited Partnership 0%
Tritax abrdn Supply Chain GP LLP(53) Limited Liability Partnership 60%
Tritax abrdn Supply Chain LP(54) Limited Partnership 0%
Tritax Assets LLP(53) Limited Liability Partnership 60%
Tritax LMR Carry GP LLP(60) Limited Liability Partnership 60%
Tritax LMR Carry Limited Partnership(60) Limited Partnership 7%
Tritax Management LLP(3) Limited Liability Partnership 60%
Tritax PowerBox Limited(53) Ordinary shares 60%
Tritax Securities LLP(53) Limited Liability Partnership 60%
UK PRS Opportunities General Partner Limited(3) Ordinary shares 100%
UK PRS Opportunities LP(3) Limited Partnership 0%
VZWL Bestandsimmobilien GmbH & Co geschlossene Investment KG(36) Limited Partnership 0%
VZWL Private Equity GmbH & Co geschlossene Investment KG(36) Limited Partnership 0%
(c) Associates and joint ventures
Name of related undertaking Share class(1) % interest held(2)
abrdn Investcorp Infrastructure Investments Manager Limited(61) Ordinary shares 50%
abrdn SICAV I - Short Dated Enhanced Income Fund(10) SICAV 25%
Archax Holdings Limited(62) Ordinary shares 11%
Criterion Tec Holdings Ltd(63) Ordinary shares 21%
Heng An Standard Life Insurance Company Limited(64) Ordinary shares 50%
PURetail Luxembourg Management Company S.a.r.l.(65) Class A shares 50%
Tenet Group Limited(66) Ordinary B shares 25%
Virgin Money Unit Trust Managers Limited(67) Ordinary shares 50%
1. OEIC = Open-ended investment company
SICAV = Société d'investissement à capital variable
ETF = Exchange traded fund
ICAV = Irish collective asset-management vehicle
2. Limited Partnerships or limited
liability companies in which the Group has no interest but whose general
partner or manager is controlled by the Group are considered subsidiaries
under Companies Act 2006. Where the Group has no interest in a limited
partnership or limited liability company that is considered a subsidiary, the
interest held is disclosed as 0%.
3. 280 Bishopsgate, London, EC2M 4AG
4. 10 Queens Terrace, Aberdeen, AB10 1XL
5. c/o IQ EQ Fund Services (Mauritius) Ltd, 33 Edith Cavell Street, Port
Louis, 11324, Mauritius
6. PO Box 19, Martello Court, Admiral Park, St Peter Port, GY1 3HB,
Guernsey
7. 201 Deansgate, Manchester, M3 3NW
8. Cranford House, Kenilworth Road, Blackdown, Leamington Spa, CV32 6RQ
9. 2nd Floor, The Royals, Altrincham Road, Sharston, Manchester M22 4BJ
10. 35a Avenue John F. Kennedy, L-1855
Luxembourg, Luxembourg
11. 287-289, route d'Arlon, L-1150
Luxembourg, Luxembourg
12. c/o Maples Corporate Services
Limited, Ugland House, P.O. Box 309, Grand Cayman, KY1-1104, Cayman Islands
13. c/o Corporation Service Company, 251
Little Falls Drive, Wilmington, DE, 19808, USA
14. Bangkok City Tower, 28th Floor, 179
South Sathorn Road, Thungmahamek, Sathorn, Bangkok, 10120, Thailand
15. Strandvejen 171,3, 2900 Hellerup,
Denmark
16. c/o Aatsto DLA Piper Finland Oy,
Fabianinkatu 23, FI-00130 Helsinki, Finland
17. c/o Corporation Service Company,
2711 Centerville Road, Suite 400, Wilmington, DE, 19808, USA
18. 1900 Market Street, Suite 200,
Philadelphia, PA 19103, USA
19. Western Suite, Ground Floor Mill
Court, La Charroterie, St Peter Port, Guernsey, GY1 1EJ
20. Top Floor, Mill Court, La
Charroterie, St Peter Port, Guernsey, GY1 1EJ
21. Box 162 85, 103 25 Stockholm, Sweden
22. Parnu mnt 22, Tallinn, Harju
maakond, 10141, Estonia
23. 2 Boulevard de la Foire, L-1528
Luxembourg, Luxembourg
24. WTC, H-Tower, 20th Floor, Zuidplein
166, 1077 XV Amsterdam, Netherlands
25. One London Wall, London, EC2Y 5AB
26. Johan Fjellstrom, Deloitte AB 113
79, Stockholm, Sweden
27. 70 Sir John Rogerson's Quay, Dublin
2, D02 R296, Ireland
28. 7 Straits View, #23-04 Marina One
East Tower, 018936, Singapore
29. 712 5th Ave, New York, NY 10019, USA
30. Rua Joaquim Floriano, 913 - 7th
floor - Cj. 71, Itaim Bibi, São Paulo, 04534-013, Brasil
31. 1 First Canadian Place, 100 King
Street West, Toronto, Ontario, Canada
32. 4 Chipman Hill, Suite 100, Saint
John, New Brunswick, E2L 2A9, Canada
33. AC 82 NO. 10 60 P 5 Bogota DC,
Columbia
34. Level 2, 395 Collins Street,
Melbourne, Victoria 3000, Australia
35. 6th Floor, Alexandra House, 18
Chater Road, Central, Hong Kong
36. Bockenheimer Landstrasse 25, 60325
Frankfurt am Main, Germany
37. 2-4 Merrion Row, Dublin 2, D02 WP23,
Ireland
38. 1st Floor, Sir Walter Raleigh House,
Esplanade, St Helier, JE2 3QB, Jersey
39. Office Unit 8, 6th Floor, Al Khatem
Tower, Abu Dhabi Global Market Square, Al Marya Island, PO Box 764605, Abu
Dhabi, United Arab Emirates
40. Schweizergasse 14, Zurich, 8001,
Switzerland
41. Suite 1005, 10th Floor, Wisma
Hamzah-Kwong Hing No.1, Leboh Ampang 50100 Kuala Lumpur, Malaysia
42. Otemachi Financial City Grand Cube
9F, 1-9-2 Otemachi, Chiyoda-ku, Tokyo, 100-0004, Japan
43. 44 Esplanade, St Helier, Jersey, JE4
9WG
44. 13th Fl., B Tower (Seocho-dong,
Kyobo Tower Building), 465, Gangnam-daero, Seocho-gu, Seoul, Korea
45. 9 Raffles Place, #26-01 Republic
Plaza, 048619, Singapore
46. Governor Macquarie Tower, Level 40,
1 Farrer Place, Sydney, NSW, 2000, Australia
47. 21 Church Street, #01-01, Capital
Square Two, 049480, Singapore
48. West Area, 2F, No.707 Zhangyang
Road, China (Shanghai) Pilot Free Trade Zone
49. 29 Rue De Berri, Paris, 75008,
France
50. 2-4, Rue Eugène Ruppert, L-2453
Luxembourg, Luxembourg
51. 1 Marina Boulevard, #28-00, 018989,
Singapore
52. Ogier House, Esplanade, St Helier,
JE4 9WG, Jersey
53. 72 Broadwick Street, London, W1F
9QZ
54. 3rd Floor, 6 Duke Street St James's,
London, SW1Y 6BN
55. c/o The Corporation Trust Company,
Corporation Trust Center, 1209 Orange Street, Wilmington, DE, 19801, USA
56. 30 Finsbury Square, London, EC2A 1AG
57. Campbells Corporate Services
Limited, 4th Floor, Willow House, Cricket Square, Grand Cayman, KY1-9010,
Cayman Islands
58. 16th Floor, Menara DEA Tower 2, 16th
Floor, Kawasan Mega Kuningan, Jl Mega Kuningan Barat Kav. E4.3 No. 1-2, 12950
Jakarta, Indonesia
59. c/o Aon, PO Box 33, Maison Trinity,
Trinity Square, St Peter Port, Guernsey GY1 4AT
60. 50 Lothian Road, Festival Square,
Edinburgh, EH3 9WJ
61. c/o Paget-Brown Trust Company Ltd,
Boundary Hall, Cricket Square, P.O. Box 1111, Grand Cayman, KY1-1102, Cayman
Islands
62. 4th Floor, 1 Old Jewry, London, EC2R
8DN
63. 9 - 10 St Andrew Square, Edinburgh,
EH2 2AF
64. 18F, Tower II, The Exchange, 189
Nanjing Road, Heping District, Tianjin, People's Republic of China, 300051
65. 11, rue Jean Piret, L-2350
Luxembourg, Luxembourg
66. 5 Lister Hill, Horsforth, Leeds LS18
5AZ
67. Jubilee House, Gosforth,
Newcastle-Upon-Tyne, NE3 4PL
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END FR DXGDDUXDDGSLRecent news on Abrdn
See all newsREG - abrdn PLC International Paper - Form 8.3 - International Paper Company
AnnouncementREG - abrdn PLC Tyman PLC - Form 8.3 - Tyman plc
AnnouncementREG - abrdn PLC International Paper - Form 8.3 - International Paper Company
AnnouncementREG - abrdn PLC Wood Group (John)PLC - Form 8.3 - Wood Group (John) plc
AnnouncementREG - abrdn PLC Alpha Fin. Markets - Form 8.3 - Alpha Financial Markets Consulting plc
Announcement