abrdn plc
Half year results 2021
Part 3 of 3
10 August 2021
5. Supplementary information
5.1 Key performance indicators
Key performance indicators (KPIs) are defined as the measures by which the development, performance or position of the business can be measured effectively. The KPIs that we use may not be directly comparable with similarly named measures used by other companies.
5.2 Alternative performance measures
We assess our performance using a variety of measures that are not defined under IFRS and are therefore termed alternative performance measures (APMs). The APMs that we use may not be directly comparable with similarly named measures used by other companies. We have presented below reconciliations from these APMs to the most appropriate measure prepared in accordance with IFRS. All APMs should be read together with the IFRS condensed consolidated income statement, IFRS condensed consolidated statement of financial position and IFRS condensed consolidated statement of cash flows, which are presented in the Financial information section of this report. Ratios are presented in Section 5.4.
KPI |
KPIs are defined as the measures by which the development, performance or position of the business can be measured effectively. |
||||||||
Definition |
Purpose |
||||||||
Adjusted operating profit |
KPI |
|
|
|
|||||
Adjusted operating profit before tax is the Group's key APM. Adjusted operating profit includes the results of the Group three growth vectors: Investments, Adviser; and Personal along with the Corporate/Strategic segment. It excludes the Group's adjusted net financing costs and investment return, the results from the Group's associates, joint ventures and discontinued operations. Adjusted operating profit also excludes the impact of the following items: · Restructuring costs and corporate transaction expenses. Restructuring includes the impact of major regulatory change. · Amortisation and impairment of intangible assets acquired in business combinations and through the purchase of customer contracts. · Profit or loss arising on the disposal of a subsidiary, joint venture and associates accounted for using the equity method. · Change in fair value of/dividends from significant listed investments. · Fair value movements in contingent consideration in relation to continuing operations.
· Items which are one-off and, due to their size or nature, are not indicative of the Further details are included in Note 4.10 of the Financial information section. Fee based revenue is a component of adjusted operating profit and includes revenue we generate from asset management charges (AMCs), platform charges and other transactional charges. Fee based revenue is shown net of fees, costs of sale, commissions and similar charges. Refer to Note 4.5 of the Financial information section. |
Adjusted operating profit has replaced adjusted profit before tax as the Group's key APM. Adjusted operating profit reporting provides further analysis of the results reported under IFRS and the Directors believe it helps to give shareholders a fuller understanding of the performance of the business by identifying and analysing adjusting items. Adjusted operating profit is consistent with the way that financial performance is measured by management and reported to the Board and executive leadership team. Fee based revenue is shown net of commission, costs of sale and similar charges so as to show the net charges received on AUMA and provides the basis for reporting of the fee revenue yield financial ratio.
|
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Adjusted profit before tax |
|
|
|
||||||
In addition to the results included in adjusted operating profit above, adjusted profit before tax includes adjusted net financing costs and investment return. Adjusted profit before tax now excludes the share of profit from associates and joint ventures and 2020 comparatives have been restated on this basis. |
Adjusted profit before tax is a key input to the adjusted earnings per share measure. |
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Adjusted capital generation |
KPI |
|
|
||||||
Adjusted capital generation is part of the analysis of movements in CRDIV regulatory capital. Adjusted capital generation is calculated as adjusted profit after tax less returns relating to pension schemes in surplus, which do not benefit regulatory capital. It also includes dividends from associates, joint ventures and significant listed investments. |
This measure aims to show how adjusted profit contributes to regulatory capital, and therefore provides insight into our ability to generate capital that is deployed to support value for shareholders. |
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Definition |
Purpose |
Cash and liquid resources |
|
Cash and liquid resources are IFRS cash and cash equivalents (netted down for overdrafts), money market instruments and holdings in money market funds. It also includes surplus cash that has been invested in liquid assets such as high quality corporate bonds, gilts and pooled investment funds. Seed capital and co-investments are excluded. |
The purpose of this measure is to demonstrate how much cash and invested assets we hold and can be readily accessed. |
5.2.1 Adjusted operating profit and adjusted profit
Reconciliation of adjusted operating profit and adjusted profit to IFRS profit by component
The key components of adjusted operating profit are fee based revenue and adjusted operating expenses. These components provide a meaningful analysis of our adjusted results. The table below provides a reconciliation of movements between adjusted operating profit component measures and relevant IFRS terms. A reconciliation of Fee based revenue to the IFRS item Revenue from contracts with customers is provided in Note 4.5 of the Financial information section.
Adjusted profit term |
Group adjusted profit |
Presentation differences |
Adjusting items |
Adjusted net financing costs and investment return |
Associates and joint ventures |
Group IFRS |
IFRS term |
|||
H1 2021 |
£m |
£m |
£m |
£m |
£m |
£m |
|
|||
Fee based revenue |
KPI |
755 |
179 |
147 |
3 |
- |
1,084 |
Total income |
||
Adjusted operating expenses |
(595) |
(179) |
(164) |
- |
- |
(938) |
Total expenses |
|||
Adjusted operating profit |
160 |
- |
(17) |
3 |
- |
146 |
|
|||
Adjusted net financing costs and investment return |
3 |
- |
- |
(3) |
- |
- |
N/A |
|||
N/A |
- |
- |
- |
- |
(33) |
(33) |
Share of profit from associates and JVs |
|||
Adjusted profit before tax from continuing operations |
163 |
- |
(17) |
- |
(33) |
113 |
Profit before tax |
|||
Tax on adjusted profit |
(13) |
- |
2 |
- |
- |
(11) |
Total tax expense |
|||
Adjusted profit after tax from continuing operations |
150 |
- |
(15) |
- |
(33) |
102 |
Profit for the period from continuing operations |
|||
Adjusted profit after tax from discontinued operations |
- |
- |
- |
- |
- |
- |
Profit for the period from discontinued operations |
|||
Adjusted profit after tax |
150 |
- |
(15) |
- |
(33) |
102 |
Profit for the period |
|||
Adjusted profit term |
Group adjusted profit |
Presentation differences |
Adjusting items |
Adjusted net financing costs and investment return |
Associates and joint ventures |
Group IFRS |
IFRS term |
H1 2020 |
£m |
£m |
£m |
£m |
£m |
£m |
|
Fee based revenue |
706 |
4 |
663 |
(13) |
- |
1,360 |
Total income |
Adjusted operating expenses |
(601) |
(4) |
(1,259) |
- |
- |
(1,864) |
Total expenses |
Adjusted operating profit |
105 |
- |
(596) |
(13) |
- |
(504) |
|
Adjusted net financing costs and investment return |
(13) |
- |
- |
13 |
- |
- |
N/A |
N/A |
- |
- |
- |
- |
6 |
6 |
Share of profit from associates and JVs1 |
Adjusted profit before tax from continuing operations |
92 |
- |
(596) |
- |
6 |
(498) |
Profit before tax |
Tax on adjusted profit |
(13) |
- |
7 |
- |
- |
(6) |
Total tax expense |
Adjusted profit after tax from continuing operations |
79 |
- |
(589) |
- |
6 |
(504) |
Profit for the period from continuing operations |
Adjusted profit after tax from discontinued operations |
- |
- |
- |
- |
- |
- |
Profit for the period from discontinued operations |
Adjusted profit after tax |
79 |
- |
(589) |
- |
6 |
(504) |
Profit for the period |
1 Includes £130m impairment of interests in associates and joint ventures.
This reconciliation includes a number of reconciling items which arise due to presentation differences between IFRS reporting requirements and the determination of fee based revenue and adjusted operating expenses. Fee based revenue and adjusted operating expenses exclude items which have an equal and opposite effect on IFRS income and IFRS expenses in the consolidated income statement. This particularly relates to income and expenses of unit linked funds, where investment returns are for the account of policyholders. Investment return from unit linked business in H1 2021 was £92m (H1 2020: (£88m)). Other presentation differences also include commission and other cost of sales expenses which are presented in expenses in the consolidated income statement but are netted against fee based revenue in the analysis of adjusted operating profit.
Reconciliation to previously disclosed information
H1 2020 as previously disclosed |
|
Asset management associates and joint ventures |
Insurance associates and joint ventures |
|
H1 2020 on revised basis |
|
£m |
£m |
£m |
£m |
|
Fee based revenue |
706 |
- |
- |
706 |
Fee based revenue |
Adjusted operating expenses |
(601) |
- |
- |
(601) |
Adjusted operating expenses |
Adjusted operating profit |
105 |
- |
- |
105 |
Adjusted operating profit |
Capital management |
(13) |
- |
- |
(13) |
Adjusted net financing costs and investment return |
Share of associates' and joint ventures' profit before tax |
103 |
(22) |
(81) |
- |
N/A |
Adjusted profit before tax |
195 |
(22) |
(81) |
92 |
Adjusted profit before tax |
Tax on adjusted profit |
(13) |
- |
- |
(13) |
Tax on adjusted profit |
Share of associates' and joint ventures' tax expense |
(19) |
7 |
12 |
- |
N/A |
Adjusted profit after tax |
163 |
(15) |
(69) |
79 |
Adjusted profit after tax |
Adjusted for the following items |
|
|
|
|
Adjusted for the following items |
Restructuring and corporate transaction expenses |
(147) |
4 |
12 |
(131) |
Restructuring and corporate transaction expenses |
Amortisation and impairment of intangible assets acquired in business combinations and through the purchase of customer contracts |
(1,175) |
- |
51 |
(1,124) |
Amortisation and impairment of intangible assets acquired in business combinations and through the purchase of customer contracts |
Profit on disposal of interests in subsidiaries |
8 |
- |
- |
8 |
Profit on disposal of interests in subsidiaries |
Profit on disposal of interests in associates |
651 |
- |
- |
651 |
Profit on disposal of interests in associates |
Impairment of associates and joint ventures |
(130) |
45 |
85 |
- |
N/A |
Change in fair value of significant listed investments |
- |
- |
- |
- |
Change in fair value of significant listed investments |
Investment return variances and economic assumption changes |
124 |
- |
(124) |
- |
N/A |
N/A |
- |
- |
- |
- |
Dividends from significant listed investments' |
Other |
(4) |
- |
4 |
- |
Other |
Total adjusting items |
(673) |
49 |
28 |
(596) |
Adjusting items |
N/A |
- |
30 |
106 |
136 |
Share of profit from associates and joint ventures |
N/A |
- |
(45) |
(85) |
(130) |
Impairment of associates and joint ventures |
N/A |
(673) |
34 |
49 |
(590) |
Total adjusting items including results of associates and joint ventures |
Tax on adjusting items |
7 |
- |
- |
7 |
Tax on adjusting items |
Share of associates' and joint ventures' tax expense on adjusting items |
(1) |
(19) |
20 |
- |
N/A |
Loss attributable to non-controlling interests (preference shares) |
(5) |
- |
- |
(5) |
Loss attributable to non-controlling interests (preference shares) |
Loss for the period attributable to equity shareholders of abrdn plc |
(509) |
- |
- |
(509) |
Loss for the period attributable to equity shareholders of abrdn plc |
Loss attributable to non-controlling interests |
|
|
|
|
Loss attributable to non-controlling interests |
Preference shares |
5 |
- |
- |
5 |
Preference shares |
Loss for the period |
(504) |
- |
- |
(504) |
Loss for the period |
FY 2020 as previously disclosed |
|
Asset management associates and joint ventures |
Insurance associates and joint ventures |
|
FY 2020 on revised basis |
|
£m |
£m |
£m |
£m |
|
Fee based revenue |
1,425 |
- |
- |
1,425 |
Fee based revenue |
Adjusted operating expenses |
(1,206) |
- |
- |
(1,206) |
Adjusted operating expenses |
Adjusted operating profit |
219 |
- |
- |
219 |
Adjusted operating profit |
Capital management |
21 |
- |
- |
21 |
Adjusted net financing costs and investment return |
Share of associates' and joint ventures' profit before tax |
247 |
(44) |
(203) |
- |
N/A |
Adjusted profit before tax |
487 |
(44) |
(203) |
240 |
Adjusted profit before tax |
Tax on adjusted profit |
(38) |
- |
- |
(38) |
Tax on adjusted profit |
Share of associates' and joint ventures' tax expense |
(38) |
12 |
26 |
- |
N/A |
Adjusted profit after tax |
411 |
(32) |
(177) |
202 |
Adjusted profit after tax |
Adjusted for the following items |
|
|
|
|
Adjusted for the following items |
Restructuring and corporate transaction expenses |
(355) |
10 |
29 |
(316) |
Restructuring and corporate transaction expenses |
Amortisation and impairment of intangible assets acquired in business combinations and through the purchase of customer contracts |
(1,287) |
- |
107 |
(1,180) |
Amortisation and impairment of intangible assets acquired in business combinations and through the purchase of customer contracts |
Profit on disposal of interests in subsidiaries |
8 |
- |
- |
8 |
Profit on disposal of interests in subsidiaries |
Profit on disposal of interests in associates |
1,858 |
- |
- |
1,858 |
Profit on disposal of interests in associates |
Impairment of associates and joint ventures |
(45) |
45 |
- |
- |
N/A |
Change in fair value of significant listed investments |
65 |
- |
- |
65 |
Change in fair value of significant listed investments |
Investment return variances and economic assumption changes |
46 |
- |
(46) |
- |
N/A |
N/A |
- |
- |
- |
- |
Dividends from significant listed investments |
Other |
78 |
- |
(64) |
14 |
Other |
Total adjusting items |
368 |
55 |
26 |
449 |
Adjusting items |
N/A |
- |
42 |
152 |
194 |
Share of profit from associates and joint ventures |
N/A |
- |
(45) |
- |
(45) |
Impairment of joint ventures |
N/A |
368 |
52 |
178 |
598 |
Total adjusting items including results of associates and joint ventures |
Tax on adjusting items |
53 |
- |
- |
53 |
Tax on adjusting items |
Share of associates' and joint ventures' tax expense on adjusting items |
21 |
(20) |
(1) |
- |
N/A |
Profit attributable to non-controlling interests (preference shares) |
(5) |
- |
- |
(5) |
Profit attributable to non-controlling interests (preference shares) |
Profit for the year attributable to equity shareholders of abrdn plc |
848 |
- |
- |
848 |
Profit for the year attributable to equity shareholders of abrdn plc |
Profit attributable to non-controlling interests |
|
|
|
|
Profit attributable to non-controlling interests |
Preference shares |
5 |
- |
- |
5 |
Preference shares |
Profit for the year |
853 |
- |
- |
853 |
Profit for the year |
5.2.2 Adjusted capital generation
The table below provides a reconciliation of movements between adjusted profit after tax and adjusted capital generation. A reconciliation of adjusted profit after tax to IFRS profit for the period is included earlier in this section.
|
H1 2021 |
H1 2020 |
|
£m |
£m |
Adjusted profit after tax1 |
150 |
79 |
Less net interest credit relating to the staff pension schemes |
(9) |
(10) |
Add dividends received from associates, joint ventures and significant listed investments |
35 |
34 |
Adjusted capital generation |
176 |
103 |
1 H1 2020 restated to exclude the share of associates and joint ventures adjusted profit after tax.
Net interest credit relating to the staff pension schemes
The net interest credit relating to the staff pension schemes are the contribution to adjusted profit before tax from defined benefit pension schemes which are in surplus and reconciled below:
|
H1 2021 |
H1 2020 |
|
£m |
£m |
Total income recognised in the consolidated income statement |
9 |
10 |
Net interest credit relating to the staff pension schemes |
9 |
10 |
Dividends received from associates, joint ventures and significant listed investments
An analysis is provided below:
|
H1 2021 |
H1 2020 |
|
£m |
£m |
Phoenix |
35 |
34 |
Dividends received from associates, joint ventures and significant listed investments |
35 |
34 |
5.2.3 Cash and liquid resources
The table below provides a reconciliation between IFRS cash and cash equivalents and cash and liquid resources. Seed capital and
co-investments are excluded.
|
H1 2021 |
FY 2020 |
|
£bn |
£bn |
Cash and cash equivalents per the IFRS condensed consolidated statement of financial position |
1.3 |
1.5 |
Bank overdrafts |
(0.2) |
(0.2) |
Debt securities excluding third party interests1 |
0.9 |
1.0 |
Corporate funds held in absolute return funds |
0.2 |
0.2 |
Cash and liquid resources |
2.2 |
2.5 |
1 Excludes £59m (FY 2020: £54m) relating to seeding.
5.3 Surplus regulatory capital
The £2.8bn indicative capital surplus below includes a deduction to allow for the interim dividend which will be paid in September 2021.
At 30 June 2021 the indicative regulatory capital position was as follows:
|
H1 2021 |
FY 2020 |
CRD IV Group regulatory capital position |
£bn |
£bn |
Common Equity Tier 1 capital resources |
3.4 |
2.9 |
Tier 2 capital resources |
0.5 |
0.5 |
Total regulatory capital resources |
3.9 |
3.4 |
Total regulatory capital requirements |
(1.1) |
(1.1) |
Surplus regulatory capital |
2.8 |
2.3 |
The Group's capital resources include c£0.8bn (FY 2020: c£0.8bn) from holdings in insurance entities that it is expected will no longer be eligible following the implementation of the Investment Firm Prudential Regime (IFPR) from 1 January 2022. The IFPR is also expected to introduce constraints on the proportion of the minimum capital requirement that can be met by each tier of capital. As a result, it is estimated that c£0.3bn of existing Tier 2 capital, whilst continuing to be reported within the Group's capital resources, would not be available to meet the current minimum capital requirement from 1 January 2022.
5.4 Financial ratios
We also use a number of financial ratios to help assess our performance and these are also not defined under IFRS. Details of our main financial ratios and how they are calculated are presented below:
Definition |
Purpose and changes |
|
||||||
Cost/income ratio |
KPI |
|
|
|||||
This is an efficiency measure that is calculated as adjusted operating expenses divided by fee based revenue in the period. |
This ratio is used by management to assess efficiency and reported to the Board and executive leadership team. This ratio is also a measure used to assess performance for remuneration purposes. |
|
||||||
Adjusted diluted earnings per share |
KPI |
|
|
|||||
Adjusted diluted earnings per share is calculated on adjusted profit after tax. The weighted average number of ordinary shares in issue is adjusted during the period to assume the conversion of all dilutive potential ordinary shares, such as share options granted to employees. Details on the calculation of adjusted diluted earnings per share are set out in Note 4.9 of the Financial information section. |
Earnings per share is a commonly used financial metric which can be used to measure the profitability and capital efficiency of a company over time. We also calculate adjusted diluted earnings per share to illustrate the impact of adjusting items on the metric. This ratio is used by management to assess performance and reported to the Board and executive leadership team. |
|
||||||
Adjusted diluted capital generation per share |
|
|
|
|||||
Adjusted diluted capital generation per share is calculated as adjusted capital generation divided by the weighted average number of diluted ordinary shares outstanding. |
This ratio is a measure used to assess performance for remuneration purposes. |
|
||||||
Fee revenue yield (bps) |
|
|
|
|||||
The fee revenue yield is calculated as annualised fee based revenue (excluding performance fees, SL Asia, Focus and Threesixty) divided by monthly average fee based assets. |
The average revenue yield on fee based business is a measure that illustrates the average margin being earned on the assets that we manage, administer or advise our clients on. Fee revenue yield is now presented on a vector basis reflecting changes in our strategy. This includes changes in the allocation of fee based revenue, a reconciliation is provided in Section 5.4.4. |
|
||||||
Investment performance |
KPI |
|
|
|||||
Investment performance has been aggregated using a money weighted average of our assets under management which are outperforming their respective benchmark. Calculations for investment performance are made gross of fees with the exception of those for which the stated comparator is net of fees. The investment performance calculation covers all funds that aim to outperform a benchmark, with certain assets excluded where this measure of performance is not appropriate or expected, such as private equity, execution only mandates and Aberdeen Standard Capital, as well as replication tracker funds which aim to perform in line with a given index. |
As an asset managing business this measure demonstrates our ability to generate investment returns for our clients.
|
|
||||||
5.4.1 Cost/income ratio
|
H1 2021 |
H1 2020 |
Adjusted operating expenses (£m) |
(595) |
(601) |
Fee based revenue (£m) |
755 |
706 |
Cost/income ratio (%) |
79 |
85 |
5.4.2 Adjusted diluted capital generation per share
A reconciliation of adjusted capital generation to adjusted profit after tax is included in 5.2.2 above.
|
H1 2021 |
H1 2020 |
Adjusted capital generation (£m) |
176 |
103 |
Weighted average number of diluted ordinary shares outstanding (millions) - Note 4.9 |
2,156 |
2,244 |
Adjusted diluted capital generation per share (pence) |
8.2 |
4.6 |
In accordance with IAS 33, no share options and awards were treated as dilutive for the six months ended 30 June 2020 due to the loss attributable to equity holders of the Company from continuing operations in that period. See Note 4.9.
5.4.3 Fee revenue yield (bps)1
|
Average AUMA (£bn) |
|
Fee based revenue (£m) |
|
Fee revenue yield (bps) |
|||
|
H1 2021 |
H1 2020 |
|
H1 2021 |
H1 2020 |
|
H1 2021 |
H1 2020 |
Investments |
|
|
|
|
|
|
|
|
Institutional and Wholesale2 |
249.4 |
230.1 |
|
490 |
454 |
|
39.4 |
39.3 |
Insurance |
202.0 |
210.7 |
|
101 |
115 |
|
10.1 |
11.0 |
Adviser |
69.0 |
60.0 |
|
87 |
69 |
|
25.3 |
23.1 |
Personal2 |
13.7 |
12.3 |
|
41 |
38 |
|
55.9 |
56.1 |
Parmenion3 |
7.2 |
7.0 |
|
14 |
11 |
|
38.1 |
33.4 |
Eliminations |
(10.9) |
(9.9) |
|
N/A |
N/A |
|
N/A |
N/A |
Fee revenue yield2 |
530.4 |
510.2 |
|
733 |
687 |
|
27.6 |
26.8 |
SL Asia |
|
|
|
- |
7 |
|
|
|
Performance fees |
|
|
|
22 |
12 |
|
|
|
Fee based revenue |
|
|
|
755 |
706 |
|
|
|
Analysis of Institutional and Wholesale by asset class4,5
|
Average AUM (£bn) |
|
Fee based revenue (£m) |
|
Fee revenue yield (bps) |
|||
|
H1 2021 |
H1 2020 |
|
H1 2021 |
H1 2020 |
|
H1 2021 |
H1 2020 |
Equities |
69.7 |
61.2 |
|
225 |
198 |
|
64.8 |
65.1 |
Fixed income |
47.4 |
47.0 |
|
67 |
68 |
|
28.7 |
29.5 |
Multi-asset |
34.4 |
32.4 |
|
58 |
64 |
|
34.1 |
39.8 |
Private equity |
11.0 |
12.3 |
|
31 |
27 |
|
56.1 |
43.6 |
Real assets |
34.2 |
31.6 |
|
82 |
75 |
|
48.5 |
47.6 |
Alternatives6 |
20.0 |
18.5 |
|
12 |
9 |
|
12.6 |
9.5 |
Quantitative |
6.0 |
6.8 |
|
2 |
2 |
|
6.5 |
4.8 |
Liquidity |
26.7 |
20.3 |
|
10 |
7 |
|
7.8 |
7.0 |
Institutional and Wholesale |
249.4 |
230.1 |
|
487 |
450 |
|
39.4 |
39.3 |
1 Fee revenue yield is now presented on a vector basis and H1 2020 has been restated on this basis. See Section 5.4.4 for more information.
2 Institutional and Wholesale fee revenue yield excludes revenue of £3m (H1 2020: £4m) and Personal fee revenue yield excludes revenue of £3m (H1 2020: £3m), for which there are no attributable assets.
3 Parmenion is included in the Corporate/strategic vector.
4 Excludes revenue of £3m (H1 2020: £4m), for which there are no attributable assets.
5 Analysis by asset class has been revised following a strategic review of our private markets capabilities. The changes reflect the creation of a real assets franchise, which brings together our real estate and infrastructure businesses, and consolidation of our private credit capabilities within fixed income. Comparatives have been restated on this basis.
6 Alternatives average AUM includes c£12bn (H1 2020: c£12bn) of lower margin advisory mandates.
Analysis of Adviser revenue yield
Fee based revenue (gross basis) includes revenue passed to the product provider as shown below in other cost of sales. The cost of sales are netted against fee based revenue as presented in 5.4.3 above. The fee revenue yield presented on a gross basis in the table below represents the average bps charge payable by clients.
|
Average AUMA (£bn) |
|
Fee based revenue (£m) |
|
Fee revenue yield (bps) |
|||
|
H1 2021 |
H1 2020 |
|
H1 2021 |
H1 2020 |
|
H1 2021 |
H1 2020 |
Fee based revenue (net of cost of sales) |
69.0 |
60.0 |
|
87 |
69 |
|
25.3 |
23.1 |
Add: Other cost of sales - Note 4.5 |
N/A |
N/A |
|
1 |
13 |
|
N/A |
N/A |
Fee based revenue (gross of cost of sales) |
69.0 |
60.0 |
|
88 |
82 |
|
25.6 |
27.4 |
5.4.4 Fee based revenue - reconciliation to previously disclosed information
|
Fee based revenue |
Methodology change |
Reallocation of technology business and Virgin Money revenue |
Parmenion reallocation |
Fee based revenue |
|
H1 2020 as previously disclosed |
£m |
£m |
£m |
£m |
£m |
H1 2020 on revised basis |
|
|
|
|
|
|
Investments |
Institutional and Wholesale |
445 |
4 |
5 |
- |
454 |
Institutional and Wholesale |
Strategic insurance partners |
115 |
- |
- |
- |
115 |
Insurance |
Platforms and Wealth |
|
|
|
|
|
|
Wrap and Elevate |
69 |
- |
- |
- |
69 |
Adviser |
Wealth |
58 |
(4) |
(5) |
(11) |
38 |
Personal |
|
- |
- |
- |
11 |
11 |
Parmenion |
Eliminations |
N/A |
- |
- |
- |
N/A |
Eliminations |
|
687 |
- |
- |
- |
687 |
|
SL Asia |
7 |
- |
- |
- |
7 |
SL Asia |
Performance fees |
12 |
- |
- |
- |
12 |
Performance fees |
Fee based revenue |
706 |
- |
- |
- |
706 |
Fee based revenue |
5.4.5 Investment performance
|
1 year |
|
3 years |
|
5 years |
|||
% of AUM ahead of benchmark1 |
H1 2021 |
FY 2020 |
|
H1 2021 |
FY 2020 |
|
H1 2021 |
FY 2020 |
Equities |
55 |
73 |
|
65 |
74 |
|
45 |
62 |
Fixed income |
75 |
78 |
|
85 |
81 |
|
93 |
85 |
Multi-asset |
47 |
61 |
|
31 |
33 |
|
43 |
36 |
Real assets |
63 |
41 |
|
56 |
37 |
|
52 |
44 |
Alternatives |
26 |
95 |
|
98 |
95 |
|
98 |
93 |
Quantitative |
88 |
32 |
|
16 |
17 |
|
39 |
24 |
Liquidity |
88 |
94 |
|
87 |
89 |
|
87 |
87 |
Total |
65 |
71 |
|
66 |
66 |
|
65 |
68 |
1 The investment performance calculation covers all funds (including Insurance) that aim to outperform a benchmark, with certain assets excluded where this measure of performance is not appropriate or expected. Calculations for investment performance are made gross of fees except where the stated comparator is net of fees. Further details about the calculation of investment performance are included in the Glossary.
5.5 Assets under management and administration and flows
Definition |
Purpose and changes |
|
AUMA |
|
|
AUMA is a measure of the total assets we manage, administer or advise on behalf of our clients. It includes assets under management (AUM), assets under administration (AUA) and assets under advice (AUAdv). AUM is a measure of the total assets that we manage on behalf of individual and institutional clients. AUM also includes captive assets managed on behalf of the Group including assets managed for corporate purposes. AUA is a measure of the total assets we administer for clients through platform products such as ISAs and SIPPs. AUAdv is a measure of the total assets we advise our clients on, for which there is an ongoing charge. |
The amount of funds that we manage, administer or advise directly impacts the level of fee based revenue that we receive. AUMA is now presented on a vector basis and H1 2020 comparatives have been restated on this basis. See Section 5.9 for a reconciliation to previously disclosed information. |
|
Net flows |
|
|
Net flows represent gross flows less redemptions. Gross flows are new funds from clients. Redemptions is the money withdrawn by clients during the period. |
The level of net flows that we generate directly impacts the level of fee based revenue that we receive. Net flows are now presented on a vector basis and H1 2020 comparatives have been restated on this basis. |
5.5.1 Analysis of AUMA1
|
Opening AUMA at |
Gross flows |
Redemptions |
Net flows |
Market |
Corporate |
Closing AUMA at |
6 months ended 30 June 2021 |
£bn |
£bn |
£bn |
£bn |
£bn |
£bn |
£bn |
Investments |
|
|
|
|
|
|
|
Institutional |
171.7 |
9.1 |
(12. 5 ) |
(3.4) |
0.8 |
2.5 |
171.6 |
Wholesale |
80.0 |
12.9 |
( 14.0 ) |
(1.1) |
1.6 |
- |
80.5 |
Insurance |
205.2 |
9.1 |
(12.9) |
(3.8) |
3.1 |
- |
204.5 |
Adviser |
67.0 |
4.6 |
(2.6) |
2.0 |
3.3 |
- |
72.3 |
Personal2 |
13.3 |
1.0 |
(0.5) |
0.5 |
0.6 |
- |
14.4 |
Parmenion |
8.1 |
0.7 |
(0.4) |
0.3 |
0.3 |
(8.7) |
- |
Eliminations2 |
(10.7) |
(1.4) |
1.3 |
(0.1) |
(0.7) |
- |
(11.5) |
Total AUMA |
534.6 |
36.0 |
(41.6) |
(5.6) |
9.0 |
(6.2) |
531.8 |
|
Opening AUMA at |
Gross flows |
Redemptions |
Net flows |
Market |
Corporate |
Closing AUMA at |
6 months ended 30 June 2020 |
£bn |
£bn |
£bn |
£bn |
£bn |
£bn |
£bn |
Investments |
|
|
|
|
|
|
|
Institutional |
160.6 |
14.0 |
(12.6) |
1.4 |
0.5 |
- |
162.5 |
Wholesale |
76.1 |
11.5 |
(13.5) |
(2.0) |
0.2 |
- |
74.3 |
Insurance |
235.8 |
9.2 |
(35.4) |
(26.2) |
(5.5) |
- |
204.1 |
Adviser |
62.6 |
3.2 |
(2.1) |
1.1 |
(2.5) |
- |
61.2 |
Personal2 |
12.8 |
0.6 |
(0.5) |
0.1 |
(0.2) |
- |
12.7 |
Parmenion |
6.9 |
0.8 |
(0.2) |
0.6 |
(0.2) |
- |
7.3 |
Eliminations2 |
(10.2) |
(1.1) |
1.3 |
0.2 |
(0.3) |
- |
(10.3) |
Total AUMA |
544.6 |
38.2 |
(63.0) |
(24.8) |
(8.0) |
- |
511.8 |
1 AUMA is now presented on a vector basis and H1 2020 has been restated on this basis. See Section 5.9 for more information.
2 Eliminations remove the double count reflected in Investments, Adviser and Personal. The Personal vector includes assets that are reflected in both Aberdeen Standard Capital and Advice businesses. This double count is also removed within Eliminations.
3 Corporate actions relate to the acquisition of a majority interest in Tritax on 1 April 2021 supplementing Institutional AUM by c£6bn at the acquisition date. This is partially offset by the disposal of our domestic real estate business in the Nordics region on 31 May 2021 which reduced AUM by c£3bn. The sale of Parmenion completed on 30 June 2021.
5.5.2 Quarterly net flows1
|
3 months to |
3 months to |
3 months to |
3 months to |
3 months to |
15 months ended 30 June 2021 |
£bn |
£bn |
£bn |
£bn |
£bn |
Investments |
|
|
|
|
|
Institutional |
(0.7) |
(2.7) |
1.4 |
0.4 |
2.4 |
Wholesale |
(0.5) |
(0.6) |
(0.4) |
(0.5) |
(0.2) |
Insurance |
(1.5) |
(2.3) |
(2.6) |
(4.0) |
0.3 |
Adviser |
0.9 |
1.1 |
0.5 |
0.3 |
0.4 |
Personal |
0.3 |
0.2 |
(0.1) |
- |
0.2 |
Parmenion |
0.2 |
0.1 |
0.2 |
0.2 |
0.3 |
Eliminations |
- |
(0.1) |
0.2 |
0.2 |
- |
Total net flows |
(1.3) |
(4.3) |
(0.8) |
(3.4) |
3.4 |
5.6 Institutional and Wholesale AUM2
Detailed asset class split
|
Opening AUM at |
Gross flows |
Redemptions |
Net flows |
Market |
Corporate actions |
Closing |
6 months ended 30 June 2021 |
£bn |
£bn |
£bn |
£bn |
£bn |
£bn |
£bn |
Developed markets equities |
14.7 |
1.7 |
(2.0) |
(0.3) |
1.5 |
- |
15.9 |
Emerging markets equities |
19.0 |
1.1 |
(2.0) |
(0.9) |
1.0 |
- |
19.1 |
Asia Pacific equities |
26.6 |
2.7 |
(3.0) |
(0.3) |
0.2 |
- |
26.5 |
Global equities |
8.9 |
0.8 |
(0.8) |
- |
0.6 |
- |
9.5 |
Total equities |
69.2 |
6.3 |
(7.8) |
(1.5) |
3.3 |
- |
71.0 |
Developed markets credit |
32.2 |
2.9 |
(4.4) |
(1.5) |
(1.5) |
- |
29.2 |
Developed markets rates |
2.8 |
0.3 |
(0.2) |
0.1 |
(1.8) |
- |
1.1 |
Emerging markets fixed income |
12.2 |
2.3 |
(2.2) |
0.1 |
1.3 |
- |
13.6 |
Private credit |
1.0 |
0.7 |
- |
0.7 |
0.6 |
- |
2.3 |
Total fixed income |
48.2 |
6.2 |
(6.8) |
(0.6) |
(1.4) |
- |
46.2 |
Absolute return |
11.5 |
0.4 |
(1.1) |
(0.7) |
(0.6) |
- |
10.2 |
Diversified growth/income |
0.6 |
- |
(0.1) |
(0.1) |
- |
- |
0.5 |
MyFolio |
15.6 |
1.1 |
(1.4) |
(0.3) |
2.0 |
- |
17.3 |
Other multi-asset |
10.0 |
0.6 |
(0.7) |
(0.1) |
(3.0) |
- |
6.9 |
Total multi-asset |
37.7 |
2.1 |
(3.3) |
(1.2) |
(1.6) |
- |
34.9 |
Total private equity |
10.9 |
1.3 |
(0.5) |
0.8 |
0.3 |
- |
12.0 |
UK real estate |
9.2 |
0.7 |
(0.5) |
0.2 |
3.2 |
5.8 |
18.4 |
European real estate |
12.1 |
0.6 |
(0.2) |
0.4 |
0.7 |
(3.3) |
9.9 |
Global real estate |
1.8 |
0.2 |
(0.2) |
- |
- |
- |
1.8 |
Real estate multi-manager |
1.6 |
0.1 |
(0.1) |
- |
(0.6) |
- |
1.0 |
Infrastructure equity |
5.3 |
0.6 |
(0.3) |
0.3 |
- |
|
5.6 |
Total real assets |
30.0 |
2.2 |
(1.3) |
0.9 |
3.3 |
2.5 |
36.7 |
Total alternatives |
19.5 |
1.4 |
(0.6) |
0.8 |
- |
- |
20.3 |
Total quantitative |
6.4 |
0.5 |
(0.5) |
- |
(0.4) |
- |
6.0 |
Total liquidity |
29.8 |
2.0 |
(5.7) |
(3.7) |
(1.1) |
- |
25.0 |
Total |
251.7 |
22.0 |
(26.5) |
(4.5) |
2.4 |
2.5 |
252.1 |
1 AUMA is now presented on a vector basis and H1 2020 has been restated on this basis. See Section 5.9 for more information.
2 Analysis by asset class has been revised following a strategic review of our private markets capabilities. The changes reflect the creation of a real assets franchise, which brings together our real estate and infrastructure businesses, and consolidation of our private credit capabilities within fixed income. Comparatives have been restated on this basis.
|
Opening AUM at |
Gross flows |
Redemptions |
Net flows |
Market |
Corporate actions |
Closing |
6 months ended 30 June 20201 |
£bn |
£bn |
£bn |
£bn |
£bn |
£bn |
£bn |
Developed markets equities |
14.7 |
2.0 |
(2.0) |
- |
(1.6) |
- |
13.1 |
Emerging markets equities |
21.6 |
0.9 |
(4.0) |
(3.1) |
(1.9) |
- |
16.6 |
Asia Pacific equities |
23.3 |
1.9 |
(2.5) |
(0.6) |
(0.2) |
- |
22.5 |
Global equities |
9.4 |
0.6 |
(1.9) |
(1.3) |
- |
- |
8.1 |
Total equities |
69.0 |
5.4 |
(10.4) |
(5.0) |
(3.7) |
- |
60.3 |
Developed markets credit |
32.2 |
3.7 |
(4.3) |
(0.6) |
1.6 |
- |
33.2 |
Developed markets rates |
3.3 |
0.3 |
(0.6) |
(0.3) |
0.2 |
- |
3.2 |
Emerging markets fixed income |
10.9 |
2.1 |
(1.7) |
0.4 |
(0.1) |
- |
11.2 |
Private credit |
- |
0.3 |
- |
0.3 |
0.5 |
- |
0.8 |
Total fixed income |
46.4 |
6.4 |
(6.6) |
(0.2) |
2.2 |
- |
48.4 |
Absolute return |
12.7 |
0.3 |
(1.5) |
(1.2) |
0.6 |
- |
12.1 |
Diversified growth/income |
1.9 |
0.1 |
(0.3) |
(0.2) |
- |
- |
1.7 |
MyFolio |
15.7 |
1.3 |
(1.1) |
0.2 |
(1.0) |
- |
14.9 |
Other multi-asset |
4.2 |
- |
(0.5) |
(0.5) |
0.4 |
- |
4.1 |
Total multi-asset |
34.5 |
1.7 |
(3.4) |
(1.7) |
- |
- |
32.8 |
Total private equity |
11.8 |
0.4 |
(0.7) |
(0.3) |
0.9 |
- |
12.4 |
UK real estate |
13.4 |
0.3 |
(0.9) |
(0.6) |
- |
- |
12.8 |
European real estate |
12.1 |
0.6 |
(0.3) |
0.3 |
0.7 |
- |
13.1 |
Global real estate |
1.0 |
0.1 |
(0.1) |
- |
0.6 |
- |
1.6 |
Real estate multi-manager |
1.4 |
- |
(0.1) |
(0.1) |
- |
- |
1.3 |
Infrastructure equity |
4.2 |
- |
- |
- |
0.1 |
- |
4.3 |
Total real assets |
32.1 |
1.0 |
(1.4) |
(0.4) |
1.4 |
- |
33.1 |
Total alternatives |
17.7 |
1.2 |
(0.5) |
0.7 |
1.3 |
- |
19.7 |
Total quantitative |
7.8 |
0.4 |
(1.0) |
(0.6) |
(0.3) |
- |
6.9 |
Total liquidity |
17.4 |
9.0 |
(2.1) |
6.9 |
(1.1) |
- |
23.2 |
Total |
236.7 |
25.5 |
(26.1) |
(0.6) |
0.7 |
- |
236.8 |
5.7 Analysis of Insurance
|
Opening AUM at |
Gross flows |
Redemptions |
Net |
Market |
Corporate |
Closing |
6 months ended 30 June 2021 |
£bn |
£bn |
£bn |
£bn |
£bn |
£bn |
£bn |
Phoenix |
171.5 |
6.0 |
(9.9) |
(3.9) |
1.1 |
- |
168.7 |
Lloyds |
31.8 |
3.1 |
(2.9) |
0.2 |
2.2 |
- |
34.2 |
Other |
1.9 |
- |
(0.1) |
(0.1) |
(0.2) |
- |
1.6 |
Total |
205.2 |
9.1 |
(12.9) |
(3.8) |
3.1 |
- |
204.5 |
|
Opening AUMA at |
Gross flows |
Redemptions |
Net flows |
Market |
Corporate |
Closing AUMA at |
6 months ended 30 June 2020 |
£bn |
£bn |
£bn |
£bn |
£bn |
£bn |
£bn |
Phoenix2 |
169.7 |
6.7 |
(7.8) |
(1.1) |
1.9 |
- |
170.5 |
Lloyds |
64.5 |
2.2 |
(27.5) |
(25.3) |
(7.3) |
- |
31.9 |
Other2 |
1.6 |
0.3 |
(0.1) |
0.2 |
(0.1) |
- |
1.7 |
Total |
235.8 |
9.2 |
(35.4) |
(26.2) |
(5.5) |
- |
204.1 |
1 AUMA is now presented on a vector basis and H1 2020 has been restated on this basis. See Section 5.9 for more information.
2 Following the acquisition of ReAssure by the Phoenix Group in 2020, ReAssure is now included within Phoenix for the analysis of Insurance AUM. H1 2020 has been restated on the same basis.
5.8 Analysis of total AUM (excluding Parmenion)1
5.8.1 AUM by geography
|
30 Jun 2021 |
31 Dec 2020 |
||||||
|
Institutional and Wholesale |
Insurance |
Personal2 |
Total |
Institutional and Wholesale |
Insurance |
Personal2 |
Total |
|
£bn |
£bn |
£bn |
£bn |
£bn |
£bn |
£bn |
£bn |
UK |
115.5 |
204.5 |
8.7 |
328.7 |
116.5 |
205.2 |
7.8 |
329.5 |
Europe, Middle East and Africa (EMEA) |
65.0 |
- |
- |
65.0 |
65.9 |
- |
- |
65.9 |
Asia Pacific (APAC) |
18.0 |
- |
- |
18.0 |
16.8 |
- |
- |
16.8 |
Americas |
53.6 |
- |
- |
53.6 |
52.5 |
- |
- |
52.5 |
Total AUM |
252.1 |
204.5 |
8.7 |
465.3 |
251.7 |
205.2 |
7.8 |
464.7 |
5.8.2 AUM by asset class3
|
30 Jun 2021 |
31 Dec 2020 |
||||||
|
Institutional and Wholesale |
Insurance |
Personal2 |
Total |
Institutional and Wholesale |
Insurance |
Personal2 |
Total |
|
£bn |
£bn |
£bn |
£bn |
£bn |
£bn |
£bn |
£bn |
Equities |
71.0 |
53.2 |
- |
124.2 |
69.2 |
48.8 |
- |
118.0 |
Fixed income |
46.2 |
64.1 |
- |
110.3 |
48.2 |
69.0 |
- |
117.2 |
Multi-asset |
34.9 |
7.2 |
8.7 |
50.8 |
37.7 |
7.0 |
7.8 |
52.5 |
Private equity |
12.0 |
1.8 |
- |
13.8 |
10.9 |
1.8 |
- |
12.7 |
Real assets |
36.7 |
8.2 |
- |
44.9 |
30.0 |
8.3 |
- |
38.3 |
Alternatives |
20.3 |
- |
- |
20.3 |
19.5 |
- |
- |
19.5 |
Quantitative |
6.0 |
47.6 |
- |
53.6 |
6.4 |
45.0 |
- |
51.4 |
Liquidity |
25.0 |
22.4 |
- |
47.4 |
29.8 |
25.3 |
- |
55.1 |
Total AUM |
252.1 |
204.5 |
8.7 |
465.3 |
251.7 |
205.2 |
7.8 |
464.7 |
1 AUMA is now presented on a vector basis and H1 2020 has been restated on this basis. See Section 5.9 for more information.
2 Excludes assets under advice of £5.7bn at 30 June 2021 (FY 2020: £5.5bn).
3 Analysis by asset class has been revised following a strategic review of our private markets capabilities. The changes reflect the creation of a real assets franchise, which brings together our real estate and infrastructure businesses, and consolidation of our private credit capabilities within fixed income. Comparatives have been restated on this basis.
5.9 AUMA - Reconciliation to previously disclosed information
|
Closing AUMA |
Parmenion |
Virgin Money |
Closing AUMA |
|
H1 2020 as previously disclosed |
£bn |
£bn |
£bn |
£bn |
H1 2020 on revised basis |
|
|
|
|
|
Investments |
Institutional |
162.5 |
- |
- |
162.5 |
Institutional |
Wholesale |
71.1 |
- |
3.2 |
74.3 |
Wholesale |
Strategic insurance partners |
204.1 |
- |
- |
204.1 |
Insurance |
Platforms and Wealth |
|
|
|
|
|
Wrap and Elevate |
61.2 |
- |
- |
61.2 |
Adviser |
Wealth |
23.2 |
(7.3) |
(3.2) |
12.7 |
Personal |
|
|
7.3 |
- |
7.3 |
Parmenion |
Eliminations |
(10.3) |
- |
- |
(10.3) |
Eliminations |
Total AUMA |
511.8 |
- |
- |
511.8 |
Total AUMA |
6. Glossary
Adjusted net financing costs and investment return
Adjusted net financing costs and investment return (previously named Capital management) is a component of adjusted profit and relates to the return from the net assets of the shareholder business, net of costs of financing. This includes the net assets in defined benefit staff pension plans and net assets relating to the financing of subordinated liabilities.
Adjusted operating expenses
Adjusted operating expenses is a component of adjusted operating profit and relates to the day-to-day expenses of managing our business.
Adjusted operating profit
Adjusted operating profit is the Group's key alternative performance measure. Adjusted operating profit includes the results of the Group three growth vectors: Investments, Adviser; and Personal along with the Corporate/Strategic segment.
It excludes the Group's adjusted net financing costs and investment return, the results from the Group's associates, joint ventures and discontinued operations.
Adjusted operating profit also excludes the impact of the following items:
· Restructuring costs and corporate transaction expenses. Restructuring includes the impact of major regulatory change.
· Amortisation and impairment of intangible assets acquired in business combinations and through the purchase of customer contracts.
· Profit or loss arising on the disposal of a subsidiary, joint venture and associates accounted for using the equity method.
· Change in fair value in/dividends from significant listed investments.
· Fair value movements in contingent consideration in relation to continuing operations.
· Items which are one-off and, due to their size or nature, are not indicative of the long-term operating performance of the Group.
Adjusted profit before tax
In addition to the results included in adjusted operating profit above, adjusted profit before tax includes adjusted net financing costs and investment return.
Assets under management and administration (AUMA)
AUMA is a measure of the total assets we manage, administer or advise on behalf of our clients. It includes assets under management (AUM), assets under administration (AUA) and assets under advice (AUAdv). AUMA does not include assets for associates and joint ventures.
AUM is a measure of the total assets that we manage on behalf of individual and institutional clients. AUM also includes assets managed for corporate purposes.
AUA is a measure of the total assets we administer for clients through our Platforms. AUAdv is a measure of the total assets we advise our clients on, for which there is an ongoing charge.
Board
The Board of Directors of the Company.
Chief Operating Decision Maker
The Executive leadership team.
Company
abrdn plc.
Cost/income ratio
This is an efficiency measure that is calculated as adjusted operating expenses divided by fee based revenue.
CRD IV
CRD IV is the European regulatory capital regime (comprising the Capital Requirements Directive and Capital Requirements Regulation) that applies to investment firms.
Director
A director of the Company.
Earnings per share (EPS)
EPS is a commonly used financial metric which can be used to measure the profitability and strength of a company over time. EPS is calculated by dividing profit by the number of ordinary shares. Basic EPS uses the weighted average number of ordinary shares outstanding during the year. Diluted EPS adjusts the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares, such as share options awarded to employees.
Effective tax rate
Tax expense/(credit) attributable to equity holders' profit divided by profit before tax attributable to equity holders' profits expressed as a percentage.
Executive leadership team
Our Executive leadership team (ELT) leads the business across our regions and functions and is responsible for executing and monitoring progress on the delivery of our business plans. The ELT also ensures we meet our obligations to our clients, people, shareholders, regulators and partners.
Fair value through profit or loss (FVTPL)
FVTPL is an IFRS measurement basis permitted for assets and liabilities which meet certain criteria. Gains or losses on assets or liabilities measured at FVTPL are recognised directly in the income statement.
FCA
Financial Conduct Authority of the United Kingdom.
Fee based revenue
Fee based revenue is a component of adjusted operating profit and includes revenue we generate from asset management charges (AMCs), platform charges and other transactional charges. AMCs are earned on products such as mutual funds, and are calculated as a percentage fee based on the assets held. Investment risk on these products rests principally with the client, with our major indirect exposure to rising or falling markets coming from higher or lower AMCs. Fee based revenue is shown net of fees, costs of sale, commissions and similar charges. Costs of sale include revenue from fund platforms which is passed to the product provider.
Fee revenue yield (bps)
The average revenue yield on fee based business is a measure that illustrates the average margin being earned on the assets under management, administration or advice. It is calculated as annualised fee based revenue (excluding performance fees, SL Asia, Focus and Threesixty) divided by monthly average fee based assets.
Group or abrdn
Relates to the Company and its subsidiaries.
Growth vectors
We provide services across three growth vectors:
· Investments: Asset management investment solutions for institutional, wholesale and insurance clients.
· Adviser: Our Wrap and Elevate adviser platforms.
· Personal: Comprises our 1825 financial planning and advice business and our Aberdeen Standard Capital discretionary investment management business.
ICAAP
Internal Capital Adequacy Assessment Process. The ICAAP is the means by which the Group assesses the level of capital that adequately supports all of the relevant current and future risks in its business.
International Financial Reporting Standards (IFRS)
International Financial Reporting Standards are accounting standards issued by the International Accounting Standards Board (IASB).
Investment performance
Investment performance has been aggregated using a money weighted average of our assets under management which are outperforming their respective benchmark. Calculations for investment performance are made gross of fees with the exception of those for which the stated comparator is net of fees. Benchmarks differ by fund and are defined in each fund's Investment Management Agreement (for example, the benchmark for our GARS unit trust fund is six-month GBP LIBOR). The investment performance calculation covers all funds that aim to outperform a benchmark, with certain assets excluded where this measure of performance is not appropriate or expected, such as private equity, execution only mandates and Aberdeen Standard Capital, as well as replication tracker funds which aim to perform in line with a given index. Investment performance is calculated as if Standard Life Group and Aberdeen had always been merged.
LBG tranche withdrawals
On 24 July 2019, the Group announced that it had agreed a final settlement in relation to the arbitration proceedings between the parties concerning LBG's attempt to terminate investment management arrangements under which assets were managed by members of the Group for LBG entities. In its decision of March 2019, the arbitral tribunal found that LBG was not entitled to terminate these investment management contracts. The Group had continued to manage approximately £104bn (as at 30 June 2019) of assets under management (AUM) for LBG entities during the period of the dispute. Approximately two thirds of the total AUM (the transferring AUM) will be transferred to third party managers appointed by LBG through a series of planned tranches from 24 July 2019. During this period, the Group will continue to be remunerated for its services in relation to the transferring AUM.
Net flows
Net flows represent gross inflows less gross outflows or redemptions. Gross inflows are new funds from clients. Gross outflows or redemptions is the money withdrawn by clients during the period.
Phoenix or Phoenix Group
Phoenix Group Holdings plc or Phoenix Group Holdings plc and its subsidiaries.
Pillar 1
Under CRD IV, Pillar 1 focuses on fixed overhead requirements and the Group's exposure to credit and market risks in respect of risk-weighted assets, and sets a minimum requirement for capital based on these measures.
Pillar 2
The requirement for companies to assess the level of additional capital held against risks not covered in Pillar 1.
Pillar 3
This complements Pillar 1 and Pillar 2 with the aim of improving market discipline by requiring companies to publish certain details of their risks, capital and risk management. The latest available Group's Pillar 3 disclosures are published at www.abrdn.com/annualreport
Platform
An investment platform (e.g. Wrap or Elevate) which is essentially a trading platform enabling investment funds, pensions, direct equity holdings and some life assurance contracts to be held in the same administrative account rather than as separate holdings.
Subordinated liabilities
Subordinated liabilities are debts of a company which, in the event of liquidation, rank below its other debts but above share capital.
7. Shareholder information
Registered office
1 George Street
Edinburgh
EH2 2LL
Scotland
Company registration number: SC286832
0371 384 2464*
*Calls are monitored/recorded to meet regulatory obligations and for training and quality purposes. Call charges will vary.
Kenneth A Gilmour
Equiniti
Note - Equiniti is the registrar for shareholder data. Our employee share plan data is administered by Link Market Services.
KPMG LLP
Slaughter and May
JP Morgan Cazenove
Goldman Sachs
We offer a wide range of shareholder services. For more information, please:
· Contact our registrar, Equiniti, who manage this service for us. Their details can be found on the back cover.
· Visit our share portal at www.abrdnshares.com
Signing up means:
· You'll receive an email when documents like the Annual report and accounts, Half year results and AGM guide are available on our website.
· Voting instructions for the Annual General Meeting will be sent to you electronically.
Having a share portal account means you can:
· Manage your account at a time that suits you.
· Download your documents when you need them.
To find out how to sign up, visit www.abrdnshares.com
Preventing unsolicited mail
By law, the Company has to make certain details from its share register publicly available. As a result it is possible that some registered shareholders could receive unsolicited mail, emails or phone calls. You could also be targeted by fraudulent 'investment specialists', clone firms or scammers posing as government bodies e.g. HMRC, FCA. Frauds are becoming much more sophisticated and may use real company branding, the names of real employees or email addresses that appear to come from the company. If you get a social or email message and you're unsure if it is from us, you can send it to emailscams@abrdn.com and we'll let you know.
You can also check the FCA warning list and warning from overseas regulators, however, please note that this is not an exhaustive list and do not assume that a firm is legitimate just because it does not appear on the list as fraudsters frequently change their name and it may not have been reported yet.
www.fca.org.uk/consumers/unauthorised-firms-individuals
www.iosco.org/investor_protection/?subsection=investor_alerts_portal
You can find more information about share scams at the Financial Conduct Authority website www.fca.org.uk/consumers/scams
If you are a certificated shareholder, your name and address may appear on a public register. Using a nominee company to hold your shares can help protect your privacy. You can transfer your shares into the Company-sponsored nominee - the abrdn Share Account - by contacting Equiniti, or you could get in touch with your broker to find out about their nominee services.
If you want to limit the amount of unsolicited mail you receive generally, please visit www.mpsonline.org.uk
Half year results 2021 |
10 August |
Ex-dividend date for 2021 interim dividend |
19 August |
Record date for 2021 interim dividend |
20 August |
Last date for DRIP elections for 2021 interim dividend |
8 September |
Dividend payment date for 2021 interim dividend |
28 September |
Analysis of registered shareholdings at 30 June 2021
Range of shares |
Number of holders |
% of total holders |
Number of shares |
% of total shares |
1-1,000 |
63,137 |
65.37% |
25,429,057 |
1.16% |
1,001-5,000 |
28,558 |
29.57% |
58,367,716 |
2.68% |
5,001-10,000 |
2,743 |
2.84% |
18,268,854 |
0.84% |
10,001-100,000 |
1,587 |
1.64% |
39,078,701 |
1.79% |
#100,001+ |
563 |
0.58% |
2,039,579,386 |
93.53% |
Total |
96,588 |
100.00% |
2,180,723,714 |
100.00% |
# These figures include the Company-sponsored nominee - the Standard Life
Aberdeen Share Account - now renamed the abrdn Share Account - which had 988,109 participants holding 663,992,725 shares.
8. Forward-looking statements
This document may contain certain 'forward-looking statements' with respect to the financial condition, performance, results, strategy, targets, objectives, plans, goals and expectations of the Company and its affiliates. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts.
Forward-looking statements are prospective in nature and are not based on historical or current facts, but rather on current expectations, assumptions and projections of management about future events, and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. For example but without limitation, statements containing words such as 'may', 'will', 'should', 'could', 'continue', 'aims', 'estimates', 'projects', 'believes', 'intends', 'expects', 'hopes', 'plans', 'pursues', 'ensure', 'seeks', 'targets' and 'anticipates', and words of similar meaning (including the negative of these terms), may be forward-looking. These statements are based on assumptions and assessments made by the Company in light of its experience and its perception of historical trends, current conditions, future developments and other factors it believes appropriate.
By their nature, all forward-looking statements involve risk and uncertainty because they are based on information available at the time they are made, including current expectations and assumptions, and relate to future events and/or depend on circumstances which may be or are beyond the Group's control, including among other things: the direct and indirect impacts and implications of the coronavirus COVID-19 on the economy, nationally and internationally, and on the Group, its operations and prospects; UK domestic and global political, economic and business conditions (such as the UK's exit from the EU); market related risks such as fluctuations in interest rates and exchange rates, and the performance of financial markets generally; the impact of inflation and deflation; the impact of competition; the timing, impact and other uncertainties associated with future acquisitions, disposals or combinations undertaken by the Company or its affiliates and/or within relevant industries; the value of and earnings from the Group's strategic investments and ongoing commercial relationships; default by counterparties; information technology or data security breaches (including the Group being subject to cyberattacks); operational information technology risks, including the Group's operations being highly dependent on its information technology systems (both internal and outsourced); natural or man-made catastrophic events (including the impact of the coronavirus COVID-19); climate change and a transition to a low-carbon economy (including the risk that the Group may not achieve its targets); exposure to third party risks including as a result of outsourcing; the failure to attract or retain necessary key personnel; the policies and actions of regulatory authorities (including changes in response to the coronavirus COVID-19 and its impact on the economy); and the impact of changes in capital, solvency or accounting standards, and tax and other legislation and regulations (including changes to the regulatory capital requirements that the Group is subject to or changes in connection with the coronavirus COVID-19) in the jurisdictions in which the Company and its affiliates operate. As a result, the Group's actual future financial condition, performance and results may differ materially from the plans, goals, objectives and expectations set forth in the forward-looking statements.
Persons receiving this document should not place reliance on forward-looking statements. Neither the Company nor its affiliates assume any obligation to update or correct any of the forward-looking statements contained in this document or any other forward-looking statements it or they may make (whether as a result of new information, future events or otherwise), except as required by law. Past performance is not an indicator of future results and the results of the Company and its affiliates in this document may not be indicative of, and are not an estimate, forecast or projection of, the Company's or its affiliates' future results.