abrdn plc

Spotlight on Personal

Building a leading position in the UK savings and wealth market

abrdn plc is today holding a presentation for analysts and investors on its Personal vector with a focus on interactive investor (ii).

Stephen Bird, CEO abrdn plc, and Richard Wilson, CEO abrdn Personal, alongside members of his leadership team, will give the presentation.

Stephen Bird, CEO of abrdn plc, said: "Everyone in the UK is going to have to take more control of their own financial future. That means engaging more actively with our pensions and with our investments. The ii team has done a fantastic job at building a scalable business in a fast-growing market, which now sits at the heart of abrdn's Personal vector. We are supported by strong demographic trends, an improving policy landscape around retirement and a clear need for people to save more."

Richard Wilson, CEO abrdn Personal, said: "We have a clear ambition to build a leading position in the UK's personal wealth market and a proud record of delivering a trusted digital-led subscription service to our growing number of customers. We are excited to be able to set out our plans for the next phase of our development today and you can expect to see more of interactive investor in the coming months, as we deliver new products to market and invest in our brand."

Our Personal vector has undergone a significant transformation under Richard Wilson's leadership. This has seen the coming together of abrdn's existing Financial Planning business with ii, the sale agreed for our Discretionary Fund Management business and the transfer of our Managed Portfolio Service business to the Adviser vector. Reflecting its scale and growth potential, the key growth drivers for the business are:

·    customer growth;

·    increased product penetration, in particular SIPPs;

·    continued launch of new services, and

·    growth opportunities from being part of the wider abrdn group.

Today's event will highlight our differentiated offering, pricing approach, technology and data capabilities, and scalable and efficient financial model, all of which underpin our confidence in the future competitiveness of the ii model.

Additionally, we will update on key growth dynamics and ambitions, including:

·    Customer growth - Subdued outlook in 2023 due to market conditions. Targeting mid-single digit CAGR in total customer base over the next 5 years, driven by organic growth and new propositions, supported by investment in brand and advertising.

·    SIPP accounts - Continued growth in SIPP accounts from a SIPP penetration of c13% as at 31 December 2022 to market normal penetration levels of around 25-30%.

·    Trading transactions - Growth in market share of trades driven by expanded customer numbers and pipeline of new trading services and proposition enhancements.

·    Treasury income - ii has continued to increase the interest paid on client cash balances as base rates have risen, with the indicative average cash margin for 2023 now expected to be 180-200bps. Cash balances are expected to be 9-10% of AUA going forward.

·    Cost/Income ratio - ii has significant operating leverage with an efficient cost base. Post the restructure and full integration of the Financial Planning business, the combined Personal vector is positioned to deliver growth with a cost/income ratio of <60%.

The presentation will be audio webcast starting at 2:00pm (BST) and is expected to end by 4:00pm (BST). The materials used in the presentation and the audio webcast will be available here and a replay will be available.

6 July 2023

LEI number of abrdn plc: 0TMBS544NMO7GLCE7H90

Classification: 3.1. Additional regulated information required to be disclosed under the laws of the United Kingdom

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