abrdn plc

Full Year Results 2024

Part 7 of 7

 

Company financial statements

Company statement of financial position

As at 31 December 2024

		2024	2023
	Notes	£m	£m
Assets
Investments in subsidiaries	A	4,273	4,402
Investments in associates and joint ventures	B	196	196
Deferred tax assets	N	138	150
Loans to subsidiaries	C	58	-
Derivative financial assets	C	50	41
Equity securities and interests in pooled investment funds	C	544	574
Debt securities	C	1	126
Receivables and other financial assets	C	60	46
Current tax recoverable	N	12	-
Other assets	F	6	47
Cash and cash equivalents	C	9	21
Total assets		5,347	5,603
Liabilities
Subordinated liabilities	L	597	599
Current tax liabilities	N	-	1
Other financial liabilities	L	189	166
Other liabilities	P	1	-
Total liabilities		787	766
Equity
Share capital	G	257	257
Shares held by trusts	H	(119)	(137)
Share premium reserve	G	640	640
Retained earnings	I
Brought forward retained earnings		3,547	3,665
(Loss)/profit for the year attributable to equity shareholders of abrdn plc¹		(16)	300
Other movements in retained earnings		(181)	(418)
Total retained earnings		3,350	3,547
Other reserves	J	225	323
Equity attributable to equity shareholders of abrdn plc		4,353	4,630
Other equity	K	207	207
Total equity		4,560	4,837
Total equity and liabilities		5,347	5,603

 

1.        The Company's total loss for the year was £5m (2023: profit of £311m) of which a profit of £11m was attributable to other equity holders (2023: profit of £11m).

The financial statements on pages 270 to 285 were approved by the Board and signed on its behalf by the following Directors:

Sir Douglas Flint	Jason Windsor
Chair 3 March 2025	Chief Executive Officer 3 March 2025

Company registered number: SC286832

The Notes on pages 273 to 285 are an integral part of these financial statements.

 

 

Company statement of changes in equity

For the year ended 31 December 2024

		Share capital	Shares held by trusts	Share premium reserve	Retained earnings	Other reserves	Total equity attributable to equity shareholders of abrdn plc	Other equity	Total equity
	Notes	£m	£m	£m	£m	£m	£m	£m	£m
1 January 2024		257	(137)	640	3,547	323	4,630	207	4,837
Loss for the year		-	-	-	(16)	-	(16)	11	(5)
Other comprehensive income for the year		-	-	-	-	2	2	-	2
Total comprehensive income for the year		-	-	-	(16)	2	(14)	11	(3)
Interest paid on other equity	K	-	-	-	-	-	-	(11)	(11)
Dividends paid on ordinary shares	I	-	-	-	(260)	-	(260)	-	(260)
Share buyback	G	-	-	-	-	-	-	-	-
Reserves credit for employee share-based payment	J	-	-	-	-	26	26	-	26
Transfer to retained earnings for vested employee share-based payment	J	-	-	-	32	(32)	-	-	-
Transfer between reserves on impairment of subsidiaries	J	-	-	-	94	(94)	-	-	-
Shares acquired by employee trusts	H	-	(26)	-	-	-	(26)	-	(26)
Shares distributed by employee and other trusts and related dividend equivalents	H	-	44	-	(47)	-	(3)	-	(3)
31 December 2024		257	(119)	640	3,350	225	4,353	207	4,560

 

The Notes on pages 273 to 285 are an integral part of these financial statements.

 

		Share capital	Shares held by trusts	Share premium reserve	Retained earnings	Other reserves	Total equity attributable to equity shareholders of abrdn plc	Other equity	Total equity
	Notes	£m	£m	£m	£m	£m	£m	£m	£m
1 January 2023		280	(145)	640	3,665	485	4,925	207	5,132
Profit for the year		-	-	-	300	-	300	11	311
Other comprehensive income for the year		-	-	-	-	(9)	(9)	-	(9)
Total comprehensive income for the year		-	-	-	300	(9)	291	11	302
Interest paid on other equity	K	-	-	-	-	-	-	(11)	(11)
Dividends paid on ordinary shares	I	-	-	-	(279)	-	(279)	-	(279)
Share buyback	G	(23)	-	-	(302)	23	(302)	-	(302)
Reserves credit for employee share-based payment	J	-	-	-	-	24	24	-	24
Transfer to retained earnings for vested employee share-based payment	J	-	-	-	31	(31)	-	-	-
Transfer between reserves on impairment of subsidiaries	J	-	-	-	169	(169)	-	-	-
Shares acquired by employee trusts	H	-	(27)	-	-	-	(27)	-	(27)
Shares distributed by employee and other trusts and related dividend equivalents	H	-	35	-	(37)	-	(2)	-	(2)
31 December 2023		257	(137)	640	3,547	323	4,630	207	4,837

 

The Notes on pages 273 to 285 are an integral part of these financial statements.

Company accounting policies

(a) Basis of preparation

These separate financial statements are presented as required by the Companies Act 2006. The Company meets the definition of a qualifying entity under Application of Financial Reporting Requirements 100 as issued by the Financial Reporting Council. Accordingly, the financial statements for year ended 31 December 2024 have been prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 101) as issued by the Financial Reporting Council.

The financial statements have been prepared on a going concern basis (see the Basis of preparation section of the Group financial statements for further details) and under the historical cost convention, as modified by the revaluation of financial assets and financial liabilities (including derivative instruments) at fair value through profit or loss (FVTPL). Climate risks have been taken into consideration in the preparation of the financial statements, primarily in relation to fair value calculations and impairment assessments.

As permitted by FRS 101, the Company has taken advantage of the following disclosure exemptions available under that standard:

-      A cash flow statement and related notes.

-      Capital management.

-      Effect of IFRSs issued but not effective.

-      Related party transactions with wholly owned subsidiaries.

 

As equivalent disclosures are given in the consolidated financial statements, we have also applied the disclosure exemptions for share based payments and financial instruments.

The principal accounting policies adopted are the same as those given in the consolidated financial statements, together with the Company specific policies set out below. These accounting policies have been consistently applied to all financial reporting periods presented in these financial statements.

The Company has taken advantage of the exemption in section 408 of the Companies Act 2006 not to present its own statement of comprehensive income in these financial statements. The auditors' remuneration for audit and other services is disclosed in Note 7 to the consolidated financial statements. The Company has no employees.

(a) (i) Investment in subsidiaries, associates and joint ventures

The Company has certain subsidiaries which are investment vehicles such as open-ended investment companies, unit trusts and limited partnerships whose primary function is to generate capital or income growth through holding investments. This category of subsidiary is held at FVTPL since they are managed on a fair value basis.

Investments in subsidiaries (other than those measured at FVTPL), associates (other than those measured at FVTPL) and joint ventures are initially recognised at cost and subsequently held at cost less any impairment charge. An impairment charge is recognised when the carrying amount of the investment exceeds its recoverable amount. Any gain or loss on disposal of a subsidiary, associate or joint venture is recognised in profit for the year.

Distributions received of non-cash assets, including investments in subsidiaries, are recognised at fair value in the balance sheet and as dividends in specie in income or other comprehensive income as appropriate in the statement of comprehensive income.

(a) (ii) Critical accounting estimates and judgements in applying accounting policies

The preparation of financial statements requires management to make estimates and assumptions and exercise judgements in applying the accounting policies that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses arising during the year. Estimates and judgements are continually evaluated and based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The areas where judgements have the most significant effect on the amounts recognised in the Company financial statements are as follows:

Financial statement area	Critical judgements in applying accounting policies	Related notes
Investments in subsidiaries held at cost	Given that the net assets attributable to shareholders of abrdn plc at 31 December 2024 were higher than the market capitalisation of the Company judgement was required to determine for which subsidiaries this was considered an indicator of impairment	Note A

The areas where assumptions and other sources of estimation uncertainty at the end of the reporting period have a significant risk of resulting in a material adjustment to the carrying amount of assets and liabilities within the next financial year are as follows:

Financial statement area	Critical accounting estimates and assumptions	Related notes
Investments in subsidiaries held at cost	Determination of the recoverable amount	Note A

Notes to the Company financial statements

 

A.     Investments in subsidiaries

	Investments in subsidiaries measured at cost	Investments in subsidiaries measured at FVTPL	Total
	£m	£m	£m
Cost
At 1 January 2023	8,592	170	8,762
Acquisition of subsidiaries1	40	180	220
Disposal of subsidiaries	-	(9)	(9)
At 31 December 2023	8,632	341	8,973
Acquisition of subsidiaries1	6	64	70
Disposal of subsidiaries	(25)	-	(25)
At 31 December 2024	8,613	405	9,018
Impairment
At 1 January 2023	(4,280)	-	(4,280)
Impairment of subsidiaries measured at cost	(304)	-	(304)
Reversal of impairment of subsidiaries measured at cost	13	-	13
Disposal of subsidiaries measured at cost	-	-	-
At 31 December 2023	(4,571)	-	(4,571)
Impairment of subsidiaries measured at cost	(179)	-	(179)
Reversal of impairment of subsidiaries measured at cost	-	-	-
Disposal of subsidiaries measured at cost	5	-	5
At 31 December 2024	(4,745)	-	(4,745)
Carrying amount
At 1 January 2023	4,312	170	4,482
At 31 December 2023	4,061	341	4,402
At 31 December 2024	3,868	405	4,273

 

1.        Includes investment into existing subsidiaries measured at cost of £6m (2023: £40m).

 

Details of the Company's subsidiaries are given in Note 44 of the Group financial statements.

(a) Acquisitions

During 2024, the Company made the following acquisitions of subsidiaries measured at cost:

-      The Company increased its investment in Aberdeen Corporate Services Limited (ACSL) through the purchase of 3,318 ordinary shares for a cash consideration of £3.3m.

-      The Company increased its investment in Focus Business Solutions Limited (FBS) through the purchase of 290,289,070 ordinary shares for a cash consideration of £2.9m. See Section (b) below for details of FBS's subsequent partial disposal.

 

During 2023, the Company made the following acquisitions of subsidiaries measured at cost:

-      The Company increased its investment in ACSL through the purchase of 26,278 ordinary shares for a cash consideration of £26.3m.

-      The Company increased its investment in abrdn Financial Planning Limited (aFPL) through the purchase of 12,150,000 ordinary shares for a cash consideration of £12.2m.

-      The Company increased its investment in abrdn Client Management Limited (aCM) through the purchase of 1,500,000 ordinary shares for a cash consideration of £1.5m.

 

See Section (d) below for details on investments in subsidiaries at FVTPL.

(b) Disposals

During 2024, the Company made the following disposals of subsidiaries measured at cost:

-      In March 2024, Antler Holdco Limited (Antler) was liquidated. Prior to liquidation, the carrying value of the Company's interest in Antler was £7m and the Company received final liquidation proceeds of £7m in the form of a distribution in specie of its intercompany balance due to Antler.

-      In July 2024, the Company sold its interest in threesixty services LLP (threesixty) to Fintel group. At the time of the sale, the carrying value of threesixty was £4m and the company received a consideration of £4m. The carrying value of threesixty at 31 December 2023 was £19m. This has been reduced by £15m in 2024 in relation to the following:

-      In June 2024, threesixty paid a dividend of £3m to the Company. This was considered an indicator of impairment and following the performance of a valuation, an impairment of the Company's interest in threesixty of £5m was recognised. The recoverable amount of £14m was based on Company's share of net consideration for the subsequent sale of the threesixty business - refer Note 1 of the Group financial statements for further details. The impairment was due to the payment of the dividend and a slight lowering of valuation of the threesixty business. This is a level 3 measurement as they are measured using inputs which are not based on observable market data.

-      At this time, threesixty also transferred its business to a subsidiary of abrdn Holdings Limited (aHL), abrdn Newco Limited (now renamed threesixty Services Limited) which was also sold to Fintel group in July 2024. Consequently £10m of the consideration for the threesixty business was then receivable by aHL not the Company. In recognition of this, £10m of the cost of threesixty was transferred to the cost of Company's interest in aHL which increased from £1,218m to £1,228m.

-      In December 2024, the Company sold 80% of its interest in FBS to Focus Advice Technology Holdings Limited. At the time of the sale, the carrying value of FBS was £8m and the Company received a consideration of £1. Following the sale, the Company's remaining 20% interest in FBS has been recognised as an investment in an associate based on a fair value of £nil.

 

(c) Impairment

The Company's net assets attributable to shareholders of abrdn plc at 31 December 2024 of £4.4bn are higher than the Company's market capitalisation of £2.6bn. Taking this into account along with the payment by abrdn Investment Holdings Limited (aIHL) and abrdn Holdings Limited (aHL) of dividends of £102m and £40m respectively to the Company in 2024 and the continued headwinds facing active asset managers, it was assessed that there were indicators of impairments in relation to aIHL and aHL, the Company's asset management holding companies. Following the performance of valuation exercises, impairments of aIHL and aHL of £115m and £15m respectively have been recognised.

Indicators of impairment were also identified in relation to abrdn Financial Planning Limited (aFPL) following the payment of distributions in specie totalling £47m. An impairment of £45m has been recognised.

Refer Section (b) above for details of the impairment of threesixty prior to its disposal during 2024.

No other indicators of impairment were identified on any material investment in subsidiaries including Interactive Investor Limited (IIL) for which illustrative sensitivities have been provided below.

Indicators of reversal of impairment have also been considered. There were no reversal of impairment in 2024. A reversal of impairment of £13m has been recognised in relation to Aberdeen Corporate Services Limited in 2023.

aIHL

The Company's investment in its subsidiary aIHL was impaired during 2024 by £115m (2023: £169m). The impairment primarily resulted from the payment of dividends from aIHL to the Company. The dividends included dividend income received by aIHL from its subsidiary, abrdn Investment Management Limited (aIML) following the sale of the European-headquartered Private Equity business (refer Note 1(c)(i) of the Group financial statements).

The recoverable amount of aIHL which is its FVLCD at 31 December 2024 was £704m. The FVLCD considered a number of valuation approaches, with the primary approach based on the net assets of aIHL and its subsidiaries. This is a level 3 measurement as it is measured using inputs which are not based on observable market data.

As the year end carrying values are the recoverable amount, any downside sensitivity will lead to a further future impairment loss. As the primary approach was net assets as set out above, the valuation is not considered sensitive to significant change. However, a 20% reduction in the net assets of aIHL and its subsidiaries would result in a further impairment of £141m.

The Company's investment in aIHL was also impaired during 2023 by £169m. The impairment primarily resulted from the payment of dividends from aIHL to the Company in 2023 following the sale of its interest in HDFC Asset Management held by aIML and abrdn Capital Limited.

The recoverable amount of aIHL which was its FVLCD at 31 December 2023 was £819m. The FVLCD considered a number of valuation approaches, with the primary approach based on the net assets of aIHL and its subsidiaries excluding those held for sale at 31 December 2023 as part of the sale of the European-headquartered Private Equity business which completed in 2024. The recoverable amount also included the valuation of European-headquartered Private Equity business which was based on an estimated price from the sale process.

aHL

The Company's investment in its subsidiary aHL was impaired during 2024 by £15m (2023: £40m). The impairment primarily resulted from the payment of a £40m dividend to the Company during 2024.

The recoverable amount of aHL which is its FVLCD at 31 December 2024 was £1,213m. The recoverable amount was based on FVLCD. The FVLCD considered a number of valuation approaches, applied to the elements of aHL's business as appropriate. The primary approach was discounted cash flow with cash flows which were based on the three year financial budgets approved by management split by region. Revenue in the management forecasts reflects past experience and modelling based on assets under management and fee revenue yields by asset class. Assets under management is modelled from future net flow assumptions and market movements. Expenses in the management forecasts were based on past experience adjusted for planned expense savings and inflation impacts.

Cash flow projections were extrapolated using a 3.5% revenue growth and 2% increase in expenses in years 4 and 5, and then a 1.9% terminal rate profit growth based on long-term inflation forecasts. Post tax discount rates of between 12.93% and 14.47% were used based on the peer companies cost of equity adjusted for forecasting risk and relative size. However, where the net assets of a significant element of aHL's business were higher, the valuation included the net asset value rather than the discounted cash flow value. The recoverable amount for aHL also included the value of its subsidiaries, associates and joint ventures not included in the discounted cash flow valuation. These primarily include Finimize Limited and Archax Group Limited. This is a level 3 measurement as it is measured using inputs which are not based on observable market data.

As the year end carrying values are the recoverable amount, any downside sensitivity will lead to a further future impairment loss. As noted above, net assets are not considered sensitive to significant change. However, earnings and the discount rate are more subject to change and the table below gives sensitivities for the carrying amount of aHL at 31 December 2024 in relation to these assumptions.

Impact on carrying amount at 31 December 2024	£m
25% reduction in forecast post tax adjusted earnings	(187)
2% increase in the post-tax discount rate	(109)

The Company's investment in its subsidiary aHL was also impaired during 2023 by £40m. The impairment in 2023 resulted from lower future cash flow projections reflecting the headwinds facing active asset managers.

The recoverable amount of aHL which was its FVLCD at 31 December 2023 was £1,218m. As above, the FVLCD considered a number of valuation approaches, with the primary approach being a discounted cash flow approach with net assets used for a significant element of aHL's business where these were higher than the discounted cash flow valuation. This recoverable amount for aHL also included the value of its subsidiaries, associates and joint ventures not included in the discounted cash flow valuation.

aFPL

The Company's investment in its subsidiary aFPL was impaired during 2024 by £45m. The impairment resulted from the payment of distributions in specie totalling £47m by aFPL to the Company in 2024. These distributions primarily related to an intercompany loan and accrued interest due to aFPL from IIL following the sale of aFPL's primary subsidiary, abrdn Financial Planning and Advice Limited to IIL in January 2024. aFPL is now in liquidation and following the distributions, the recoverable amount of aFPL was £1 which is also its carrying value. This was a level 3 measurement as they are measured using inputs which are not based on observable market data.

The Company's investment in its subsidiary aFPL was impaired during 2023 by £52m. The recoverable amount of aFPL at 31 December 2023 of £45m was based on FVLCD which considered a number of valuation approaches, with the primary approach also being a multiples approach based on price to revenue and price to assets under advice. Multiples were based on trading multiples for peer companies, adjusted to take into account profitability where appropriate, and were benchmarked against recent transactions.

abrdn (Mauritius Holdings) 2006 Limited (aMH06)

The carrying amount of the Company's investment in aMH06 is less than £1m (2023: less than £1m). During 2023, the Company's investment in its subsidiary aMH06 was impaired by £43m. The impairment resulted from the payment of dividends from aMH06 to the Company in 2023. These dividends primarily related to the sale of aMH06's final investment in HDFC Life.

IIL

The carrying amount of the Company's investment in IIL is £1,512m (2023: £1,512m). There are no indicators that recoverable amount of the Company's investment in IIL is less than its carrying amount.

The recoverable amount of IIL was determined at 31 December 2024 based on FVLCD for illustrative sensitivities purposes using the same approach and key assumptions as used in the impairment review for interactive investor goodwill set out in Note 13 of the Group financial statements. The basis for sensitivities of key assumptions is also set out in Note 13 of the Group financial statements. The impact of these illustrative sensitivities on the carrying amount of IIL at 31 December 2024 is as follows:

Impact on carrying amount at 31 December 2024	£m
20% reduction in forecast post tax adjusted earnings	-
40% reduction in market multiple	(187)

ACSL

The carrying amount of the Company's investment in ACSL is £105m (2023: £102m). Refer Section (a) for details of the capital injection during the year. There was no impairment or reversal of impairment in relation to the Company's investment in ACSL during the year ended 31 December 2024 and no indicators that recoverable amount of the Company's investment in ACSL is less than its carrying amount.

In 2023 the Company recognised a reversal of impairment in its investments in subsidiaries of £13m. The Company's investment in ACSL had previously been impaired by £13m in the year ended 31 December 2017.

On 1 August 2023, the Court of Session confirmed that any residual surplus assets that remain after all plan-related obligations of the Group's main defined benefit plan, the abrdn UK Group (SLSPS) plan, are settled or otherwise provided for would be available to ACSL as sponsoring employer (see Note 31 of the Group financial statements for further details). Following this confirmation, the Directors of the Company assessed that it was appropriate to consider ACSL's pension scheme asset in determining the recoverable amount of ACSL. The recoverable amount for ACSL was assessed based on the net assets of ACSL at 31 December 2023 which were £733m including a defined benefit asset of £734m. This value of £734m was determined on an IAS 19 basis net of an authorised surplus payments charge of 35%. The residual surplus assets that ACSL would realise would be significantly lower than this surplus as would be expected following a buy-out transaction. However, even allowing for a prudent haircut to the net assets for this, the net assets of ACSL would still be significantly in excess of ACSL's carrying value before any reversal of impairment of £13m and the reversal of impairment was recognised. This was a level 3 assessment as it was measured using inputs which are not based on observable market data.

(d) Investments in subsidiaries at FVTPL

Investments in subsidiaries at FVTPL, valued at £405m (2023: £341m), relate to holdings in funds over which the Company has control.

B.     Investments in associates and joint ventures

	2024	2023
	£m	£m
Investment in associates measured at cost	-	-
Investment in joint venture measured at cost	196	196
Investments in associates and joint ventures	196	196

(a) Investment in associates

The Company has an interest of 25.3% (2023: 25.3%) in Tenet Group Limited (Tenet), a company incorporated in England and Wales which is measured at cost less impairment. The carrying amount of the Company's investment in Tenet is £nil (2023: £nil). There were no capital contributions or impairments in relation to Tenet during the year ended 31 December 2024 (2023: none). Tenet is currently in administration.

As noted in Note A(b) above, the Company's remaining 20% interest in FBS is now also recognised as an investment in an associate with a carrying value at 31 December 2024 of £nil.

(b) Investment in joint ventures

The Company has a 50% (2023: 50%) interest in Heng An Standard Life Insurance Company Limited (HASL), a company incorporated in China. Further details on this joint venture are provided in Note 14 of the Group financial statements.

C.     Financial investments

		Fair value through profit or loss		Derivative financial instruments used for hedging		Amortised cost		Total
		2024	2023	2024	2023	2024	2023	2024	2023
	Notes	£m	£m	£m	£m	£m	£m	£m	£m
Investments in subsidiaries measured at FVTPL	A	405	341	-	-	-	-	405	341
Loan to subsidiaries		-	-	-	-	58	-	58	-
Derivative financial assets	D	-	-	50	41	-	-	50	41
Equity securities and interests in pooled investment funds		544	574	-	-	-	-	544	574
Debt securities		1	1	-	-	-	125	1	126
Receivables and other financial assets	E	-	-	-	-	60	46	60	46
Cash and cash equivalents		-	-	-	-	9	21	9	21
Total		950	916	50	41	127	192	1,127	1,149

The amount of debt securities expected to be recovered or settled after more than 12 months is £1m (2023: £1m). The amount of loans to subsidiaries expected to be recovered or settled after more than 12 months is £10m (2023: £nil). The amount of equity securities and interests in pooled investment funds expected to be recovered or settled after more than 12 months is £544m (2023: £574m).

Under IFRS 9 the Company calculates expected credit losses (ECL) on financial assets which are measured at amortised cost (refer to Note 34(c) of the Group financial statements), including loans to subsidiaries (which are unrated). At 31 December 2024 the Company does not hold 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. The expected credit losses recognised were less than £1m (2023: less than £1m). In making this assessment the Company 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.

D.     Derivative financial instruments

The Company uses derivative financial instruments in order to reduce the risk from potential movements in foreign exchange rates.

	2024			2023
	Contract amount	Fair value assets	Fair value liabilities	Contract amount	Fair value assets	Fair value liabilities
	£m	£m	£m	£m	£m	£m
Cash flow hedges	599	50	-	588	41	-
Foreign exchange forwards	33	-	-	40	-	-
Derivative financial instruments	632	50	-	628	41	-

The derivative asset of £50m (2023: derivative asset of £41m) is expected to be settled after more than 12 months.

On 18 October 2017, the Company issued subordinated notes with a principal amount of US $750m. In order to manage the foreign exchange risk relating to the principal and coupons payable on these notes the Company entered into a cross-currency swap which is designated as a hedge of future cash flows. The maturity profile of the contractual undiscounted cash flows in relation to derivative financial instruments is as follows:

	Within 1 year		2-5 years		6-10 years		Total
	2024	2023	2024	2023	2024	2023	2024	2023
	£m	£m	£m	£m	£m	£m	£m	£m
Cash inflows
Cash flow hedges	25	25	663	676	-	-	688	701
Foreign exchange forwards	33	40	-	-	-	-	33	40
Total	58	65	663	676	-	-	721	741
Cash outflows
Cash flow hedges	(18)	(18)	(614)	(632)	-	-	(632)	(650)
Foreign exchange forwards	(33)	(40)	-	-	-	-	(33)	(40)
Total	(51)	(58)	(614)	(632)	-	-	(665)	(690)
Net derivative financial instruments cash flows	7	7	49	44	-	-	56	51

 

 

E.     Receivables and other financial assets

	2024	2023
	£m	£m
Amounts due from related parties	58	43
Other financial assets	2	3
Total receivables and other financial assets	60	46

The carrying amounts disclosed above reasonably approximate the fair values at the year end.

Receivables and other financial assets of £nil (2023: £nil) are expected to be recovered after more than 12 months.

F.     Other assets

	2024	2023
	£m	£m
Prepayments	6	23
Other	-	24
Other assets	6	47

The amount of Other assets which are expected to be recovered after more than 12 months is £1m (2023: £21m).

Prepayments relate to the Group's purchase of certain products in Phoenix's savings business offered through abrdn's Wrap platform together with Phoenix's trustee investment plan (TIP) business for UK pension scheme clients. Refer Note 39(b) of the Group financial statements for further details.

During 2024, the Group has released £15m of the £19m prepayment recognised in relation to the TIP business to other administrative expenses in the consolidated income statement following a review of the recoverability of these costs from future profits from the TIP business. The transfer of this business to the Group is now expected to occur in 2025.

Other includes £nil (2023: £24m) in respect of amounts due from related parties.

G.     Share capital and share premium

Details of the Company's share capital and share premium are given in Note 24 of the Group financial statements. In 2024 the Company has not undertaken any share buybacks. Details of the share buyback undertaken by the Company in 2023, including the impact on retained earnings and the capital redemption reserve (see Note J below), are also included in Note 24 of the Group financial statements.

H.     Shares held by trusts

Shares held by trusts relates to shares in abrdn plc that are held by the abrdn Employee Benefit Trust and the abrdn Employee Trust. Further details of these trusts are provided in Note 25 of the Group financial statements.

I.     Retained earnings

Details of the dividends paid on the ordinary shares by the Company are provided in Note 12 of the Group financial statements. Note 12 also includes information regarding the final dividend proposed by the Directors for the year ended 31 December 2024.

Refer Note J for details of the transfers from the merger reserve to retained earnings during the years ended 31 December 2024 and 31 December 2023.

J.     Movements in other reserves

The following tables show the movements in other reserves during the year:

	Merger reserve	Equity compensation reserve	Special reserve	Capital redemption reserve	Cash flow hedges	Total
	£m	£m	£m	£m	£m	£m
At 1 January 2024	106	40	115	48	14	323
Fair value losses on cash flow hedges	-	-	-	-	20	20
Realised losses on cash flow hedges transferred to income statement	-	-	-	-	(18)	(18)
Reserves credit for employee share-based payments	-	26	-	-	-	26
Transfer to retained earnings for vested employee share-based payments	-	(32)	-	-	-	(32)
Transfer between reserves on impairment of subsidiaries	(94)	-	-	-	-	(94)
At 31 December 2024	12	34	115	48	16	225

 

	Merger reserve	Equity compensation reserve		Special reserve	Capital redemption reserve	Cash flow hedges	Total
	£m	£m	£m		£m	£m	£m
At 1 January 2023	275	47	115		25	23	485
Fair value losses on cash flow hedges	-	-	-		-	(40)	(40)
Realised losses on cash flow hedges transferred to income statement	-	-	-		-	28	28
Shares bought back on-market and cancelled	-	-	-		23	-	23
Reserves credit for employee share-based payments	-	24	-		-	-	24
Transfer to retained earnings for vested employee share-based payments	-	(31)	-		-	-	(31)
Transfer between reserves on impairment of subsidiaries	(169)	-	-		-	-	(169)
Tax effect of items that may be reclassified subsequently to profit or loss	-	-	-		-	3	3
At 31 December 2023	106	40	115		48	14	323

Following the impairment losses recognised in 2024 and 2023 on the Company's investment in aIHL, £94m and £169m was transferred from the merger reserve to retained earnings during the years ended 31 December 2024 and 31 December 2023 respectively. Refer Note A for details of these impairments.

K.     Other equity

5.25 % Fixed Rate Reset Perpetual Subordinated Contingent Convertible Notes

In 2021, the Company issued £210m of 5.25% Fixed Rate Reset Perpetual Subordinated Contingent Convertible Notes (the Notes). The Notes are classified as other equity and were initially recognised at £207m (the proceeds received less issuance costs of £3m). Refer Note 28 (a) of the Group financial statements for further details.

The profit for the year attributable to other equity was £11m (2023: £11m).

L.     Financial liabilities

		Designated as Fair Value through Profit or loss		Amortised Cost		Total
		2024	2023	2024	2023	2024	2023
	Notes	£m	£m	£m	£m	£m	£m
Subordinated liabilities	M	-	-	597	599	597	599
Other financial liabilities	O	5	8	184	158	189	166
Total		5	8	781	757	786	765

 

 

M.     Subordinated liabilities

	2024		2023
	Principal	Carrying amount value	Principal	Carrying amount value
Subordinated notes:
4.25% US Dollar fixed rate due 30 June 2028	$750m	£597m	$750m	£599m
Total subordinated liabilities		£597m		£599m

The principal amount of the subordinated liabilities is expected to be settled after more than 12 months. There was no accrued interest on the subordinated liabilities at 31 December 2024 (2023: £13m). Any accrued interest is expected to be settled within 12 months.

Further information on the subordinated liabilities including the terms and conditions is given in Note 30 of the Group financial statements.

N.     Taxation

(a) Current tax

Current tax recoverable amounts at 31 December 2024 were £12m (2023: liability of £1m). Current tax assets at 31 December 2024 are expected to be recoverable in less than 12 months.

(b) Deferred tax

	2024	2023
	£m	£m
Deferred tax assets	138	150

The amount of deferred tax assets expected to be recovered or settled after more than 12 months are £121m (2023: £150m).

Recognised deferred tax

	2024	2023
	£m	£m
Deferred tax assets comprise:
Losses carried forward	143	155
Gross deferred tax assets	143	155
Less: Offset against deferred tax liabilities	(5)	(5)
Deferred tax assets	138	150
Deferred tax liabilities comprise:
Unrealised gains on cash flow hedges	5	5
Gross deferred tax liabilities	5	5
Less: Offset against deferred tax assets	(5)	(5)
Net deferred tax asset at 31 December	138	150
Movements in net deferred tax assets comprise:
At 1 January	150	143
Amounts credited to profit or loss	(12)	4
Amounts charged to other comprehensive income	-	3
At 31 December	138	150

The deferred tax assets and liabilities recognised are in respect of unused tax losses and unrealised gains on cash flow hedges respectively. The deferred tax assets are recognised to the extent that it is probable that the losses will be capable of being offset against future taxable profits (refer Note 9(d)(i) of the Group financial statements).

There is no unrecognised deferred tax relating to temporary timing differences associated with investments in subsidiaries, branches and associates and interests in joint arrangements (2023: none).

Due to uncertainty regarding recoverability, deferred tax assets have not been recognised in respect of capital losses carried forward of £32m (2023: £8m). UK capital losses can be carried forward indefinitely.

Movements in deferred tax assets and liabilities

	Losses carried forward	Unrealised  gains on investments	Unrealised gains or losses on cash flow hedges	Net deferred tax asset
	£m	£m	£m	£m
At 1 January 2024	155	-	(5)	150
Amounts credited to the income statement	(12)	-	-	(12)
Tax on cash flow hedge	-	-	-	-
At 31 December 2024	143	-	(5)	138

 

	Losses carried forward	Unrealised  gains on investments	Unrealised gains or losses on cash flow hedges	Net deferred tax asset
	£m	£m	£m	£m
At 1 January 2023	151		(8)	143
Amounts credited to the income statement	4		-	4
Tax on cash flow hedge	-	-	3	3
At 31 December 2023	155	-	(5)	150

 

 

O.     Other financial liabilities

	2024	2023
	£m	£m
Outstanding purchase of investment securities	1	1
Amounts due to related parties	121	109
Collateral held in respect of derivative contracts	52	39
Contingent consideration liabilities	5	8
Other	10	9
Other financial liabilities	189	166

Other financial liabilities of £5m (2023: £5m) are expected to be settled after more than 12 months.

P.     Provisions and other liabilities

The Company has no provisions at 31 December 2024 (2023: £nil). During the year ended 31 December 2023, the Company released a £32m provision relating to separation costs. Refer Note 33 of the Group financial statements for further information.

Of Other liabilities at 31 December 2024 of £1m (2023: £nil), £1m was expected to be settled within 12 months (2023: £nil) and was in respect of amounts due to related parties.

Q.     Contingent liabilities, contingent assets, indemnities and guarantees

(a) Legal proceedings and regulations

The Company, like other financial organisations, is subject to legal proceedings and complaints 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 Company 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. At 31 December 2024, there are no identified contingent liabilities expected to lead to a material exposure.

(b) Indemnities and guarantees

Under the trust deed in respect of the abrdn UK Group (SLSPS) plan, ACSL, the principal employer, must pay contributions to the pension plan as the trustee's actuary may certify necessary. The Company has guaranteed the obligations of ACSL in relation to this plan. In addition, the Company has guaranteed similar obligations in respect of certain other subsidiaries' UK and Ireland defined benefit pension plans.

None of the guarantees issued by the Company give rise to any significant liabilities at 31 December 2024 (2023: none).

R.     Related party transactions

(a)  Key management personnel

The Directors and key management personnel of the Company are considered to be the same as for the Group. See Note 41 of the Group financial statements for further information.

Supplementary information

1.     Alternative performance measures¹

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 consolidated income statement, consolidated statement of financial position and consolidated statement of cash flows, which are presented in the Group financial statements section of this report, and related metrics. Adjusted operating profit excludes certain items which are likely to be recurring such as restructuring costs, amortisation of certain intangibles, dividends from significant listed investments and the share of profit or loss from associates and joint ventures.

R          Metric used for executive remuneration in 2024. See page 127 for more information.

Definition	Purpose
Adjusted operating profit APM R
Adjusted operating profit is the Group's key APM, and is reported on a pre-tax basis. Adjusted operating profit includes the results of the Group's three businesses: ii, Adviser and Investments, along with Other business operations and corporate costs. It excludes the Group's adjusted net financing costs and investment return. Adjusted operating profit also excludes the impact of the following items: -  Restructuring and corporate transaction expenses. Restructuring includes the impact of major regulatory change. -  Amortisation and impairment of intangible assets acquired in business combinations and through the purchase of customer contracts. -  Profit or loss arising on the disposal of a subsidiary, joint venture or equity accounted associate. -  Change in fair value of/dividends from significant listed investments. -  Share of profit or loss from associates and joint ventures. -  Impairment loss/reversal of impairment loss recognised on investments in associates and joint ventures accounted for using the equity method. -  Fair value movements in contingent consideration. -  Items which are one-off and, due to their size or nature, are not indicative of the long-term operating performance of the Group. -  Further details are included in Note 11 of the Group financial statements.	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. Segment reporting used in management information is reported to the level of adjusted operating profit.
Adjusted net operating revenue APM
Adjusted net operating revenue is a component of adjusted operating profit and includes revenue we generate from asset management charges (AMCs), platform charges, treasury income 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. Treasury income is the interest earned on cash balances less the interest paid to customers. It excludes 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 net operating revenue is shown net of fees, cost of sales, commissions and similar charges. Cost of sales include revenue from fund platforms which is passed to the product provider	Adjusted net operating revenue is a component of adjusted operating profit and provides the basis for reporting of the revenue yield financial ratio. Adjusted net operating revenue is also used to calculate the cost/income ratio.
Adjusted operating expenses APM
Adjusted operating expenses is a component of adjusted operating profit and relates to the day-to-day expenses of managing our business. Adjusted operating expenses excludes restructuring and corporate transaction expenses. Adjusted operating expenses also excludes amortisation and impairment of intangible assets acquired in business combinations and through the purchase of customer contracts.	Adjusted operating expenses is a component of adjusted operating profit and is used to calculate the cost/income ratio.
Adjusted profit before tax APM
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 is a key input to the adjusted earnings per share measure.
Adjusted net financing costs and investment return APM
Adjusted net financing costs and investment return 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 net financing costs and investment return is a component of adjusted profit before tax.

 

1.       Supplementary information is unaudited in line with previous years.

 

Definition	Purpose
Cost/income ratio APM
This is an efficiency measure that is calculated as adjusted operating expenses divided by adjusted net operating revenue.	This ratio is used by management to assess efficiency and reported to the Board and the 'Chief Operating Decision Maker'.
Adjusted net operating revenue yield (bps) APM
The adjusted net operating revenue yield is a measure that illustrates the average margin being earned on the assets that we manage or administer and excludes the ii business. It is calculated as annualised adjusted net operating revenue (excluding performance fees, ii and revenue for which there are no attributable assets) divided by monthly average fee based assets. The ii business is excluded from the calculation of adjusted net operating revenue yield as fees charged for this business are primarily from subscriptions and trading transactions.	The adjusted net operating revenue yield is a measure that illustrates the average margin being earned on the assets that we manage or administer and excludes the ii business.
Adjusted diluted earnings per share APM
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 10 of the Group financial statements.	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 'Chief Operating Decision Maker'.
Adjusted capital generation APM
Adjusted capital generation is part of the analysis of movements in IFPR regulatory capital. Adjusted capital generation is calculated as adjusted profit after tax less returns relating to pension schemes in surplus and interest paid on other equity (Additional Tier 1 instruments). It also includes dividends from associates, joint ventures and significant listed investments.	These measures aim 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.
Net capital generation APM
Net capital generation is calculated as adjusted capital generation less restructuring and corporate transaction expenses (net of tax).
Adjusted diluted capital generation per share APM
Adjusted diluted capital generation per share is calculated as adjusted capital generation divided by the weighted average number of diluted ordinary shares outstanding.	These ratios are measures used to assess performance for dividend paying capability.
Net diluted capital generation per share APM R
Net diluted capital generation per share is calculated as net capital generation divided by the weighted average number of diluted ordinary shares outstanding.
Cash and liquid resources APM
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. Cash collateral, cash held for charitable funds and cash held in employee benefit trusts are excluded from cash and liquid resources.	The purpose of this measure is to demonstrate how much cash and invested assets we hold and can be readily accessed.

1.1.     Adjusted operating profit and adjusted profit

Reconciliation of adjusted operating profit and adjusted profit to IFRS profit by component

The components of adjusted operating profit are adjusted net operating 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 Adjusted operating expenses to the IFRS item Total administrative and other expenses, and a reconciliation of Adjusted net financing costs and investment return to the IFRS item Net gains on financial instruments and other income are provided in Note 2b(ii) of the Group financial statements. A reconciliation of adjusted net operating revenue to the IFRS item Revenue from contracts with customers is provided in Note 3 of the Group financial statements.

IFRS term	IFRS	Presentation differences	Adjusting items	Adjusted profit		Adjusted profit term
2024	£m	£m	£m	£m
Net operating revenue	1,305	-	16	1,321		Adjusted net operating revenue1
Total administrative and other expenses	(1,313)	(16)	263	(1,066)		Adjusted operating expenses2
	(8)	(16)	279	255		Adjusted operating profit
Total net gains or losses on financial instruments and other income	160	(7)	(54)	99		Adjusted net financing costs and investment return
Finance costs	(25)	23	2	-		N/A
Profit on disposal of subsidiaries and other operations	89	-	(89)	-		N/A
Profit on disposal of interests in joint ventures	11	-	(11)	-		N/A
Share of profit or loss from associates and joint ventures	24	-	(24)	-		N/A
Profit before tax	251	-	103	354		Adjusted profit before tax
Total tax expense	(3)	-	(67)	(70)		Tax on adjusted profit
Profit for the year	248	-	36	284		Adjusted profit after tax

 

1.        The measure of segmental revenue has been renamed from net operating revenue to adjusted net operating revenue.

2.        Adjusted operating expenses includes staff and other related costs of £548m compared with IFRS staff costs and other employee-related costs of £510m. The difference primarily relates to the inclusion of contractor, temporary agency staff and recruitment and training costs of £18m (IFRS basis: Reported within other administrative expenses) and gains on funds to hedge deferred bonus awards of £2m (IFRS basis: Reported within other net gains on financial instruments and other income) within staff and other related costs. IFRS staff costs and other employee-related costs includes the benefit from the net interest credit relating to the staff pension schemes of £22m (Adjusted profit basis: Reported within adjusted net financing costs and investment return and other adjusting items respectively).

 

IFRS term	IFRS	Presentation differences	Adjusting items	Adjusted profit
2023	£m	£m	£m	£m		Adjusted profit term
Net operating revenue	1,398	-	-	1,398		Adjusted net operating revenue
Total administrative and other expenses	(1,463)	(29)	343	(1,149)		Adjusted operating expenses
	(65)	(29)	343	249		Adjusted operating profit
Net gains or losses on financial instruments and other income	2	6	73	81		Adjusted net financing costs and investment return
Finance costs	(25)	23	2	-		N/A
Profit on disposal of subsidiaries and other operations	79	-	(79)	-		N/A
Share of profit or loss from associates and joint ventures	1	-	(1)	-		N/A
Reversal of impairment of interests in joint ventures	2	-	(2)	-		N/A
Loss before tax	(6)	-	336	330		Adjusted profit before tax
Total tax credit	18	-	(68)	(50)		Tax on adjusted profit
Profit for the year	12	-	268	280		Adjusted profit after tax

Presentation differences primarily relate to amounts presented in a different line item of the consolidated income statement.

Analysis of adjusting items

The table below provides detail of the adjusting items made in the calculation of adjusted profit before tax:

	2024	2023
	£m	£m
Restructuring and corporate transaction expenses	(100)	(152)
Amortisation and impairment of intangible assets acquired in business combinations and through the purchase of customer contracts	(129)	(189)
Profit on disposal of subsidiaries and other operations	89	79
Profit on disposal of interests in joint ventures	11	-
Change in fair value of significant listed investments	(27)	(178)
Dividends from significant listed investments	56	64
Share of profit or loss from associates and joint ventures	24	1
Reversal of impairment of interests in joint ventures	-	2
Other	(27)	37
Total adjusting items including results of associates and joint ventures	(103)	(336)

An explanation for why individual items are excluded from adjusted profit is set out below:

-      Restructuring and corporate transaction expenses are excluded from adjusted profit. Restructuring includes the impact of major regulatory change. By highlighting and excluding these costs we aim to give shareholders a fuller understanding of the performance of the business. Restructuring and corporate transaction expenses include costs relating to acquisitions and our transformation programmes. Other restructuring costs excluded from adjusted profit relate to projects which have a significant impact on the way the Group operates. Costs are only excluded from adjusted profit where they are out-with business as usual activities and the costs would not have been incurred had the restructuring project not taken place. The 2024 expenses mainly comprised £61m of costs to implement our cost transformation programme (total 2024 implementation costs of £73m includes £12m loss on disposal of subsidiary in respect of the partial disposal of Focus Business Solutions), £12m in respect of platform transformation (2023: £26m), £7m in relation to specific costs to effect savings in investments (2023: £17m) and £8m in respect of other restructuring activities. In 2023, restructuring costs were, partially offset by a credit of £30m in respect of Phoenix separation costs following the £(32)m release of a related provision. Corporate transaction costs of £12m (2023: £31m) mainly related to prior period acquisitions. Restructuring expenses in 2025 are expected to include costs of c.£80m relating to the multi-year cost transformation programme which is expected to complete in 2025.

-      Amortisation and impairment of intangible assets acquired in business combinations and through the purchase of customer contracts is included as an adjusting item. This is consistent with peers and therefore excluding these items aids comparability. Highlighting this as an adjusting item aims to give a fuller understanding of these accounting impacts which arise where businesses have been acquired but do not arise where businesses have grown organically. Further details are provided in Note 13 of the Group financial statements.

-      Profit on disposal of subsidiaries and other operations of £89m in 2024 relates to £92m from the sale of our European-headquartered Private Equity business, £9m from the sale of threesixty services, and £(12)m from the sale of 80% of Focus Business Solutions. In 2023 the profit on disposal of subsidiaries and other operations mainly related to the sales of our discretionary fund management business and our US private equity and venture capital business. These items are excluded from adjusted profit as they are non-recurring in nature.

-      Profit on disposal of interests in joint ventures of £11m (2023: £nil) relates to the sale of our shareholding in Virgin Money UTM. Refer to Note 14 for further details.

-      The change in fair value of significant listed investments was negative £27m (2023: negative £178m) and in 2024 represents the impact of market movements on our shareholding in Phoenix. Excluding fair value movements on significant listed investments for the purposes of adjusted profit is aligned with our treatment of gains on disposal for these holdings when they were classified as an associate, and reflects that the fair value movements are not indicative of the long-term operating performance of the Group.

-      Dividends from significant listed investments relates to our shareholding in Phoenix. The £56m in 2024 relates to dividends received from Phoenix. The £64m in 2023 relates to dividends from Phoenix (£54m) and HDFC Asset Management (£10m). Dividends from significant listed investments are included in adjusting items, as such dividends result in fair value movements.

-      Share of profit or loss from associates and joint ventures was a profit of £24m (2023: profit £1m). In 2024, this mainly comprises the share of profit or loss from our holdings in HASL and Archax. Associate and joint venture results are excluded from adjusted profit to help in understanding the performance of our core business separately from these holdings.

-      The reversal of impairment of interests in associates and joint ventures in 2023 of £2m related to our joint venture in Virgin Money UTM. Refer to Note 14 for further details.

-      Details on items classified as 'Other' in the table above are provided in Note 11 of the Group financial statements. Other adjusting items in 2024 primarily relates to £(16)m negative adjustment to revenue recognised in prior periods which were not restated as the impact was not considered material, £(15)m negative release of the prepayment recognised in relation to the Group's purchase of Phoenix's trustee investment plan business for UK pension scheme clients and £(10)m net expense (2023: £(9)m) related to properties which are not being used operationally. Other adjusting items in 2024 also includes a £11m gain (£23m gain) for net fair value movements in contingent consideration. Other adjusting items in 2023 also included a £36m insurance liability recovery in relation to the single process execution event in 2022.

 

1.2.     Cost/income ratio

	2024	2023
Adjusted operating expenses (£m)	(1,066)	(1,149)
Adjusted net operating revenue (£m)	1,321	1,398
Cost/income ratio (%)	81	82

 

 

1.3.     Adjusted net operating revenue yield (bps)

	Average AUMA (£bn)			Adjusted net operating revenue (£m)			Adjusted net operating revenue yield (bps)
	2024	2023		2024	2023		2024	2023
Adviser1	74.7	70.8		237	224		31.2	30.6
Institutional and Retail Wealth	210.5	220.0		648	716		30.8	32.6
Insurance Partners	158.0	147.7		137	148		8.7	10.0
Investments	368.5	367.7		785	864		21.3	23.5
Eliminations2	(7.4)	(7.8)		N/A	N/A		N/A	N/A
Adjusted net operating revenue yield2	435.8	430.7		1,022	1,088		23.4	25.1
ii2				278	287
Performance fees3				12	14
Other				9	9
Adjusted net operating revenue				1,321	1,398

Analysis of Institutional & Retail Wealth by asset class

	Average AUM (£bn)			Adjusted net operating revenue (£m)			Adjusted net operating revenue yield (bps)
	2024	2023		2024	2023		2024	2023
Equities	45.5	49.1		288	298		63.3	60.7
Fixed income	34.8	35.2		91	89		26.2	25.1
Multi-asset	24.9	26.5		43	61		17.1	23.1
Private equity	2.2	10.7		10	48		44.4	44.7
Real assets	37.6	39.5		159	171		42.4	43.4
Alternative investment solutions including private credit	26.0	23.8		34	31		13.2	13.1
Quantitative	19.3	15.9		7	5		3.7	3.1
Liquidity	20.2	19.3		16	13		7.9	6.9
Institutional and Retail Wealth	210.5	220.0		648	716		30.8	32.6

 

1.        Adviser adjusted net operating revenue yield excludes revenue of £4m (2023: £7m) for which there are no attributable assets.

2.        ii is excluded from the calculation of adjusted net operating revenue yield as fees charged for this business are primarily from subscriptions and trading transactions. ii includes financial planning revenue previously classified as Personal Wealth, comparatives also include revenue relating to abrdn Capital. Comparatives, including Eliminations have been restated.

3.        Performance fees consist of Institutional & Retail Wealth £6m (2023: £8m) and Insurance Partners £6m (2023: £6m).

 

1.4.     Additional ii information

The tables below provide additional detail of ii operational metrics.

ii operational metrics1	2024	2023
Total customers at period end	439k	407k
Customers holding a SIPP account	80.6k	62.4k
Customer cash balances	£6.2bn	£5.5bn
AUA per customer	£168k	£152k
New customers	50.7k	30.2k
Daily average retail trading volumes	20.1k	15.7k

1.        Excludes our financial planning business.

 

1.5.     Net capital generation

The table below provides a reconciliation of movements between adjusted profit after tax and net capital generation. A reconciliation of adjusted profit after tax to IFRS profit for the year is included earlier in this section.

	2024	2023
	£m	£m
Adjusted profit after tax	284	280
Less net interest credit relating to the staff pension schemes	(22)	(34)
Less interest paid on other equity	(11)	(11)
Add dividends received from associates, joint ventures and significant listed investments	56	64
Adjusted capital generation	307	299
Less restructuring and corporate transaction expenses (net of tax)	(69)	(121)
Net capital generation	238	178

Net interest credit relating to the staff pension schemes

The net interest credit relating to the staff pension schemes is the contribution to adjusted profit before tax from defined benefit pension schemes which are in surplus.

Dividends received from associates, joint ventures and significant listed investments

An analysis is provided below:

	2024	2023
	£m	£m
Phoenix	56	54
HDFC Asset Management	-	10
Dividends received from associates, joint ventures and significant listed investments	56	64

The table below provides detail of dividend coverage on an adjusted capital generation basis.

	2024	2023
Adjusted capital generation (£m)	307	299
Full year dividend (£m)	260	267
Dividend cover on an adjusted capital generation basis (times)	1.18	1.12

 

 

1.6.     Net diluted capital generation per share

A reconciliation of net capital generation to adjusted profit after tax is included in 1.5 above.

	2024	2023
Adjusted capital generation (£m)	307	299
Net capital generation (£m)	238	178
Weighted average number of diluted ordinary shares outstanding (millions)	1,818	1,930
Adjusted diluted capital generation per share (pence)	16.9	15.5
Net diluted capital generation per share (pence)	13.1	9.2

 

 

1.7.     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.

	2024	2023
	£bn	£bn
Cash and cash equivalents per the consolidated statement of financial position	1.3	1.2
Debt securities excluding third party interests1 - Note 34 (c)(i) of the Group financial statements	0.5	0.7
Other2	(0.1)	(0.1)
Cash and liquid resources	1.7	1.8

1.    Excludes £69m (2023: £86m) relating to seeding.

2.    Cash collateral, cash held for charitable funds and cash held in employee benefit trusts are excluded from cash and liquid resources.

 

2.     Investment performance

Definition	Purpose
Investment performance
Investment performance is a measure of how investments are performing relative to a benchmark, target, or other comparator. The calculation covers funds that aim to outperform or track a benchmark/target, with certain assets excluded where these measures of performance are not appropriate or expected, such as certain private markets and execution only mandates. Benchmarks and targets differ by fund and are defined in the relevant investment management agreement or prospectus, as appropriate. The investment performance data is calculated internally by abrdn to give users guidance on how we are delivering positive investment outcomes for our clients. It is not intended for clients or potential clients investing in our products as more specific information and reporting is available for this purpose. Investment performance has been aggregated using a money weighted average of our assets under management. Calculations for investment performance are made gross of fees except for those funds for which the stated comparator is net of fees. The calculation uses a closing AUM weighting basis and is based on AUM data available as at the relevant reporting date. As at 31 December 2024, 80% of AUM is covered by this metric, performance is calculated relative to the relevant comparator for each investment strategy on the basis of: -  Assets ahead of the benchmark or target defined in the investment management agreement or prospectus, as appropriate. This applies to 60% of the AUM. -  Assets where the objective is to track an index are assessed based on being within or above an applicable tolerance for the strategy. This applies to 20% of the AUM.	As an asset managing business this measure demonstrates our ability to generate investment returns for our clients.

 

	1 year				3 year				5 year
% of AUM performing	2024	2023 restated1	2023		2024	2023 restated1	2023		2024	2023 restated1	2023
Equities	32	27	27		15	17	17		25	48	48
Fixed income	83	81	81		90	75	75		93	84	84
Multi-asset	85	12	12		36	15	15		71	22	22
Real assets	30	30	30		46	56	56		56	45	45
Alternatives	94	98	100		100	98	100		100	98	100
Quantitative	98	100	100		90	100	100		96	95	37
Liquidity	100	100	100		100	95	95		100	97	97
Total	77	55	44		60	51	42		71	58	52
% of AUM covered by metric	80%	75%	61%

The extension to the scope of the investment performance calculation primarily relates to alternatives and quantitative asset classes; the table below provides additional detail highlighting the change to these asset classes:

	1 year				3 years				5 years
% of AUM performing	2024	2023 restated1	2023		2024	2023 restated1	2023		2024	2023 restated1	2023
Alternatives	94	98	100		100	98	100		100	98	100
Active	100	97	100		100	97	100		100	97	100
Index	78	100	N/A		100	100	N/A		100	N/A	N/A
Quantitative	98	100	100		90	100	100		96	95	37
Active	100	100	100		27	100	100		94	37	37
Index	98	100	N/A		100	100	N/A		96	99	N/A

 

1.        The scope of the investment performance calculation has been extended to include index tracker funds which were previously excluded from this metric. 2023 comparatives have been restated. We believe that this approach provides a more representative view of our overall investment performance.

 

3.     Assets under management and administration and flows

Definition	Purpose
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.	The amount of funds that we manage, administer or advise directly impacts the level of revenue that we receive.
Net flows
Net flows represent gross inflows less gross outflows or redemptions. Gross inflows are new funds from clients. Redemptions is the money withdrawn by clients during the period. Cash dividends which are retained on the ii platform are included in net flows for the ii business only. Cash dividends are included in market movements for other parts of the group including the Investments and Adviser platform businesses. We consider that this different approach is appropriate for the ii business as cash dividend payments which are retained result in additional income for ii, but are largely revenue neutral for the rest of the Group.	The level of net flows that we generate directly impacts the level of revenue that we receive.

 

 

3.1.     Analysis of AUMA

	Opening AUMA at 1 Jan 2024	Gross inflows	Redemptions	Net flows	Market and other movements	Corporate actions6	Closing AUMA at 31 Dec 2024
12 months ended 31 December 2024	£bn	£bn	£bn	£bn	£bn	£bn	£bn
ii1	66.0	13.7	(8.0)	5.7	5.8	-	77.5
Adviser2	73.5	6.5	(10.4)	(3.9)	5.6	-	75.2
Institutional & Retail Wealth3	211.2	36.7	(36.4)	0.3	5.6	(6.6)	210.5
Insurance Partners3,4	155.5	23.8	(28.1)	(4.3)	8.0	-	159.2
Investments	366.7	60.5	(64.5)	(4.0)	13.6	(6.6)	369.7
Eliminations5	(11.3)	(2.4)	3.5	1.1	(0.8)	-	(11.0)
Total AUMA	494.9	78.3	(79.4)	(1.1)	24.2	(6.6)	511.4

 

	Opening AUMA at 1 Jan 2023	Gross inflows	Redemptions	Net flows	Market and other movements	Corporate actions7	Closing AUMA at 31 Dec 2023
12 months ended 31 December 2023	£bn	£bn	£bn	£bn	£bn	£bn	£bn
ii1	67.1	10.2	(7.3)	2.9	4.1	(8.1)	66.0
Adviser2	68.5	5.8	(7.9)	(2.1)	4.6	2.5	73.5
Institutional & Retail Wealth	231.2	28.1	(46.0)	(17.9)	(1.0)	(1.1)	211.2
Insurance Partners4	144.9	22.2	(23.3)	(1.1)	11.7	-	155.5
Investments	376.1	50.3	(69.3)	(19.0)	10.7	(1.1)	366.7
Eliminations5	(11.7)	(2.2)	2.8	0.6	-	(0.2)	(11.3)
Total AUMA	500.0	64.1	(81.7)	(17.6)	19.4	(6.9)	494.9

 

1.        Includes financial planning business AUA at 31 December 2024 of £3.7bn (2023: £4.3bn).

2.        Includes Platform AUA at 31 December 2024 of £72.4bn (2023: £70.9bn).

3.        Market and other movements includes transfer of £1.7bn assets from Quantitative mandates in Institutional & Retail Wealth to Insurance Partners.

4.        Insurance Partners AUM at 31 December 2024 includes £158.1bn (2023: £154.4bn) relating to Phoenix and £1.1bn (2023: £1.1bn) of other AUM.

5.        Eliminations remove the double count reflected in Investments, Adviser and ii.

6.        Corporate actions in 2024 relate to the disposal of our European-headquartered Private Equity business in April 2024 (£(7.0)bn) and the acquisition of First Trust Advisors closed-end funds in July and September 2024 (£0.3bn and £0.1bn).

7.        Corporate actions in 2023 relate to the acquisition of Macquarie closed-end funds in March and July 2023 (£0.5bn and £0.2bn) and Tekla healthcare fund management capabilities in October 2023 (£2.3bn) and the disposals of our discretionary fund management business in September 2023 (£6.1bn) and US private equity and venture capital business in October 2023 (£4.1bn). Corporate actions also include the transfer of the MPS business from Personal Wealth to Adviser in May 2023 of £2.5bn, and investment share plan and ISA customers who moved on to the ii platform in December 2023 (£0.5bn), and resulting impact on eliminations.

 

3.2.     Quarterly net flows

	3 months to 31 Dec 2024	3 months to 30 Sep 2024	3 months to 30 Jun 2024	3 months to 31 Mar 2024	3 months to 31 Dec 2023
15 months ended 31 December 2024	£bn	£bn	£bn	£bn	£bn
ii	1.4	1.2	1.9	1.2	0.5
Adviser	(0.9)	(1.0)	(1.1)	(0.9)	(1.0)
Institutional & Retail Wealth	2.3	(2.4)	(0.3)	0.7	(5.8)
Insurance Partners	(1.8)	(1.1)	(0.9)	(0.5)	0.3
Investments	0.5	(3.5)	(1.2)	0.2	(5.5)
Eliminations	0.2	0.2	0.4	0.3	0.3
Total net flows	1.2	(3.1)	-	0.8	(5.7)

 

 

4.     Public markets and Alternatives investment capability

We have simplified and focused our investment capabilities on areas where we have both the skill and the scale to capitalise on the key themes shaping the market, through either public markets or alternative asset classes. This analysis includes Institutional, Retail Wealth and Insurance Partners.

Analysis of AUM and adjusted net operating revenue

	AUM (£bn)			Adjusted net operating revenue (£m)
	2024	2023		2024	2023
Equities	62.4	67.8		318	341
Fixed income (including Liquidity)1	124.2	122.4		165	156
Multi-asset	28.7	32.3		57	81
Quantitative	84.7	67.8		23	18
Public markets	300.0	290.3		563	596
Real assets	41.5	42.8		173	188
Private credit	7.7	8.8		17	15
Alternative investment solutions	20.5	17.1		32	28
Private equity	-	7.7		12	51
Alternatives	69.7	76.4		234	282
Total Investments	369.7	366.7		797	878

 

1.        Total liquidity AUM at 31 December 2024 was £38.6bn (2023: £35.3bn). Total liquidity adjusted net operating revenue was £25m (2023: £23m).

 

5.     Institutional and Retail Wealth AUM

Detailed asset class split

	Opening AUM at 1 Jan 2024	Gross inflows	Redemptions	Net flows	Market and other movements1	Corporate actions2	Closing AUM at 31 Dec 2024
12 months ended 31 December 2024	£bn	£bn	£bn	£bn	£bn	£bn	£bn
Developed markets equities	11.8	1.0	(2.6)	(1.6)	0.4	-	10.6
Emerging markets equities	11.1	1.4	(3.9)	(2.5)	0.3	-	8.9
Asia Pacific equities	16.3	2.0	(5.1)	(3.1)	1.8	-	15.0
Global equities	8.5	1.1	(1.8)	(0.7)	0.7	-	8.5
Total equities	47.7	5.5	(13.4)	(7.9)	3.2	-	43.0
Developed markets credit	21.4	4.0	(3.5)	0.5	(0.2)	0.4	22.1
Developed markets rates	3.3	0.5	(0.9)	(0.4)	(0.2)	-	2.7
Emerging markets fixed income	9.8	1.9	(2.0)	(0.1)	0.6	-	10.3
Total fixed income	34.5	6.4	(6.4)	-	0.2	0.4	35.1
Absolute return3	-	-	-	-	-	-	-
Diversified growth/income	0.2	-	(0.1)	(0.1)	0.8	-	0.9
MyFolio	16.2	1.4	(2.6)	(1.2)	1.2	-	16.2
Other multi-asset3	8.7	0.9	(1.1)	(0.2)	(0.9)	-	7.6
Total multi-asset	25.1	2.3	(3.8)	(1.5)	1.1	-	24.7
Total private equity	7.2	-	-	-	(0.2)	(7.0)	-
UK real estate	15.9	0.6	(1.4)	(0.8)	(0.3)	-	14.8
European real estate	13.6	0.3	-	0.3	(1.2)	-	12.7
Global real estate	1.2	0.9	(0.3)	0.6	(0.1)	-	1.7
Real estate multi-manager	1.5	0.2	(0.1)	0.1	(0.2)	-	1.4
Infrastructure equity	6.1	0.7	(0.1)	0.6	(0.1)	-	6.6
Total real assets	38.3	2.7	(1.9)	0.8	(1.9)	-	37.2
Total alternative investment solutions (including private credit)	24.0	2.1	(1.8)	0.3	3.3	-	27.6
Total quantitative	17.1	6.5	(2.9)	3.6	(0.4)	-	20.3
Total excluding liquidity	193.9	25.5	(30.2)	(4.7)	5.3	(6.6)	187.9
Total liquidity	17.3	11.2	(6.2)	5.0	0.3	-	22.6
Total	211.2	36.7	(36.4)	0.3	5.6	(6.6)	210.5

 

1.        Market and other movements includes transfer of £1.7bn assets from Quantitative mandates in Institutional & Retail Wealth to Insurance Partners.

2.        Corporate actions in 2024 relate to the disposal of our European-headquartered Private Equity business in April 2024 (£(7.0)bn) and the acquisition of First Trust Advisors closed-end funds in July and September 2024 (£0.3bn and £0.1bn).

3.        Other multi-asset includes opening AUM of £3.4bn, flows of £nil, market and other movements of £nil and closing AUM of £3.4bn relating to assets previously classified as Absolute return.

 

	Opening AUM at 1 Jan 2023	Gross inflows	Redemptions		Net flows	Market and other movements	Corporate actions1	Closing AUM at 31 Dec 2023
12 months ended 31 December 2023	£bn	£bn	£bn	£bn		£bn	£bn	£bn
Developed markets equities	11.1	1.1	(3.5)	(2.4)		0.8	2.3	11.8
Emerging markets equities	12.5	0.7	(2.2)	(1.5)		0.1	-	11.1
Asia Pacific equities	20.5	2.1	(4.7)	(2.6)		(1.6)	-	16.3
Global equities	8.2	1.3	(2.0)	(0.7)		0.6	0.4	8.5
Total equities	52.3	5.2	(12.4)	(7.2)		(0.1)	2.7	47.7
Developed markets credit	22.5	3.1	(5.7)	(2.6)		1.4	0.1	21.4
Developed markets rates	2.0	1.1	(0.8)	0.3		0.8	0.2	3.3
Emerging markets fixed income	11.3	1.4	(3.1)	(1.7)		0.2	-	9.8
Total fixed income	35.8	5.6	(9.6)	(4.0)		2.4	0.3	34.5
Absolute return2	1.4	0.1	(1.0)	(0.9)		(0.5)	-	-
Diversified growth/income	0.3	0.1	(0.3)	(0.2)		0.1	-	0.2
MyFolio	15.6	1.8	(2.7)	(0.9)		1.5	-	16.2
Other multi-asset2	11.0	0.8	(2.0)	(1.2)		(1.1)	-	8.7
Total multi-asset	28.3	2.8	(6.0)	(3.2)		-	-	25.1
Total private equity	12.3	0.1	(0.5)	(0.4)		(0.6)	(4.1)	7.2
UK real estate	19.3	0.2	(1.0)	(0.8)		(2.6)	-	15.9
European real estate	14.3	0.3	-	0.3		(1.0)	-	13.6
Global real estate	1.6	0.3	(0.6)	(0.3)		(0.1)	-	1.2
Real estate multi-manager	1.4	0.2	-	0.2		(0.1)	-	1.5
Infrastructure equity	6.1	0.4	(0.1)	0.3		(0.3)	-	6.1
Total real assets	42.7	1.4	(1.7)	(0.3)		(4.1)	-	38.3
Total alternative investment solutions (including private credit)	24.0	1.3	(1.5)	(0.2)		0.2	-	24.0
Total quantitative	15.0	3.1	(2.0)	1.1		1.0	-	17.1
Total excluding liquidity	210.4	19.5	(33.7)	(14.2)		(1.2)	(1.1)	193.9
Total liquidity	20.8	8.6	(12.3)	(3.7)		0.2	-	17.3
Total	231.2	28.1	(46.0)	(17.9)		(1.0)	(1.1)	211.2

1.        Corporate actions in 2023 relate to the acquisition of Macquarie closed-end funds in March and July 2023 (£0.5bn and £0.2bn) and Tekla healthcare fund management capabilities in October 2023 (£2.3bn) and the disposal of US private equity and venture capital business in October 2023 (£(4.1)bn).

2.        Other multi-asset includes opening AUM of £4.3bn, net outflows of £0.6bn, market and other movements of £(0.3)bn and closing AUM of £3.4bn relating to assets previously classified as Absolute return.

 

6.     Investments AUM by geography

	31 December 2024			31 December 2023
	Institutional & Retail Wealth	Insurance Partners	Total	Institutional & Retail Wealth	Insurance Partners	Total
	£bn	£bn	£bn	£bn	£bn	£bn
UK	97.2	159.2	256.4	102.0	155.5	257.5
Europe, Middle East and Africa (EMEA)	52.9	-	52.9	51.9	-	51.9
Asia Pacific (APAC)	17.3	-	17.3	15.7	-	15.7
Americas	43.1	-	43.1	41.6	-	41.6
Total AUM	210.5	159.2	369.7	211.2	155.5	366.7

 

Other information

Contents
Sustainability - independent limited assurance report	300
Sustainability reporting criteria	302
Glossary	306
Shareholder information	310
Forward-looking statements	311
Contact us	IBC

 

Independent Practitioner's Limited Assurance Report to abrdn plc

 

Report on selected sustainability information included within abrdn plc's Annual Report and Accounts for the year ended 31 December 2024.

Conclusion

We have performed a limited assurance engagement on whether selected information on pages 50 and 56 of  abrdn plc's ("abrdn" or the "Company") Sustainability section of abrdn's Annual Report and Accounts (the "Report") for the year ended 31 December 2024 has been properly prepared in accordance with abrdn's Sustainability reporting criteria as set out on pages 302 - 305 of the Annual Report and Accounts (the "Reporting Criteria"). The information within the Report that was subject to assurance is indicated with the symbol "∆ " and is in respect of the year ended 31 December 2024 (the "Selected Information") and is also listed in Appendix 1.

Based on the procedures performed and evidence obtained, nothing has come to our attention that causes us to believe that the Selected Information has not been properly prepared, in all material respects, in accordance with the Reporting Criteria.

Our conclusion is to be read in the context of the remainder of this report, in particular the "Inherent limitations in preparing the Selected Information" and "Intended use of our report" sections below.

Our conclusion on the Selected Information does not extend to other information that accompanies or contains the Selected Information and our assurance report (hereafter referred to as "Other Information"). We have not performed any procedures as part of this engagement with respect to such Other Information. We audited the financial statements included within the Other Information, and the part of the Directors' Remuneration Report to be audited, and our report thereon is included with the Other Information.

Basis of conclusion

We conducted our engagement in accordance with International Standard on Assurance Engagements (UK) 3000 Assurance Engagements Other Than Audits or Reviews of Historical Financial Information ("ISAE (UK) 3000") issued by the Financial Reporting Council ("FRC") and, in respect of the greenhouse gas emissions information included within the Selected Information, in accordance with International Standard on Assurance Engagements 3410 Assurance Engagements on Greenhouse Gas Statements ("ISAE 3410") issued by the International Auditing and Assurance Standards Board ("IAASB"). Our responsibilities under those standards are further described in the "Our responsibilities" section of our report.

We have complied with the Institute of Chartered Accountants in England and Wales ("ICAEW") Code of Ethics, which includes independence and other ethical requirements founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour, that are at least as demanding as the applicable provisions of the International Ethics Standards Board for Accountants ("IESBA") International Code of Ethics for Professional Accountants (including International Independence Standards).

Our firm applies International Standard on Quality Management (UK) 1 Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements ("ISQM (UK) 1"), issued by the FRC, which requires the firm to design, implement and operate a system of quality management including policies or procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.

We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion.

Inherent limitations in preparing the Selected Information

The nature of non-financial information; the absence of a significant body of established practice on which to draw; and the methods and precision used to determine non-financial information, allow for different, but acceptable, evaluation and measurement techniques and can result in materially different measurements, affecting comparability between entities and over time.

The greenhouse gas ("GHG") emissions quantification process is subject to: scientific uncertainty, which arises because of incomplete scientific knowledge about the measurement of GHGs; and estimation (or measurement) uncertainty resulting from the measurement and calculation processes used to quantify emissions within the bounds of existing scientific knowledge.

For Scope 3 GHG emissions, there are also significant limitations in the availability and quality of GHG emissions data from third parties, resulting in abrdn's reliance on proxy data in determining estimated Scope 3 GHG emissions. Over time better information may become available from third parties and the principles and methodologies used to measure and report Scope 3 GHG emissions may change based on market practice and regulation.

The Reporting Criteria has been developed to assist abrdn in reporting sustainability information selected by abrdn as key metrics to measure the success of its sustainability strategy. As a result, the Selected Information may not be suitable for another purpose.

Directors' responsibilities

The Directors of abrdn are responsible for:

-      designing, implementing and maintaining internal controls relevant to the preparation and presentation of the Selected Information that is free from material misstatement, whether due to fraud or error;

-      selecting and/or developing suitable Reporting Criteria for preparing the Selected Information;

-      properly preparing the Selected Information in accordance with the Reporting Criteria; and

-      the contents and statements contained within the Report and the Reporting Criteria

 

Our responsibilities

We are responsible for:

-      planning and performing the engagement to obtain limited assurance about whether the Selected Information is free from material misstatement, whether due to fraud or error;

-      forming an independent limited assurance conclusion, based on the procedures we have performed and the evidence we have obtained; and

-      reporting our conclusion to abrdn.

 

Summary of the work we performed as the basis for our conclusion

We exercised professional judgment and maintained professional scepticism throughout the engagement. We planned and performed our procedures to obtain evidence that is sufficient and appropriate to obtain a meaningful level of assurance over the Selected Information to provide a basis for our limited assurance conclusion. Planning the engagement involves assessing whether abrdn's Reporting Criteria are suitable for the purposes of our limited assurance engagement. Our procedures selected depended on our judgement, on our understanding of the Selected Information and other engagement circumstances, and our consideration of areas where material misstatements are likely to arise.

In carrying out our engagement, we performed procedures which included:

-      conducting interviews with management and key staff responsible for the Selected Information to obtain an understanding of the key processes, systems and controls in place for the preparation of the Selected Information;

-      obtaining documentation for a selection of transactions, which supports the processes, systems and controls in place for the Selected Information, but did not include evaluating the design of controls, obtaining evidence about their implementation nor testing their operating effectiveness;

-      evaluating whether abrdn's methods for developing key estimates were appropriate and had been consistently applied, but did not include testing the data on which the estimates are based or separately developing our own estimates against which to evaluate abrdn's estimates;

-      performing limited substantive testing, including agreeing a selection of the Selected Information to corresponding supporting information, including invoices, survey data, human resources systems, and published emission factors; and

-      reading the Report with regard to the Reporting Criteria and for consistency with our findings over the Selected Information.

 

The procedures performed in a limited assurance engagement vary in nature and timing from, and are less in extent than for, a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been performed.

Intended use of our report

Our report has been prepared for abrdn solely in accordance with the terms of our engagement. We have consented to the publication of our report on abrdn's website at abrdn.com for the purpose of abrdn showing that it has obtained an independent assurance report in connection with the Selected Information.

Our report was designed to meet the agreed requirements of abrdn determined by abrdn's needs at the time. Our report should not therefore be regarded as suitable to be used or relied on by any party wishing to acquire rights against us other than abrdn for any purpose or in any context. Any party other than abrdn who obtains access to our report or a copy and chooses to rely on our report (or any part of it) will do so at its own risk. To the fullest extent permitted by law, KPMG LLP will accept no responsibility or liability in respect of our report to any other party.

 

Joshua Olomolaiye

for and on behalf of KPMG LLP

Chartered Accountants

15 Canada Square

London

E14 5GL

3 March 2025

The maintenance and integrity of abrdn's website is the responsibility of the Directors of abrdn; the work carried out by us does not involve consideration of these matters and, accordingly, we accept no responsibility for any changes that may have occurred to the reported Selected Information, Reporting Criteria or Report presented on abrdn's website since the date of our report.

Appendix 1 - Selected Information

No.	Metric
1	Percentage of women on abrdn plc Board level
2	Percentage of women in Senior leadership
3	Percentage of women in Global workforce
4	Number of Directors of abrdn plc Board identifying as minority ethnic
5	Percentage of Senior leadership identifying as minority ethnic
6	Scope 1 operational emissions
7	Scope 2 operational emissions (location based)
8	Scope 3 operational emissions
9	Total energy consumption (kWh)

 

Sustainability reporting criteria

Operational emissions disclosure

 

Reporting boundary

Our methodology aligns with Greenhouse Gas (GHG) Protocol. We use an operational control boundary and exclude any joint ventures and associates. Emissions associated with our direct operations are therefore representative of abrdn plc and its wholly-owned and operated subsidiaries, reported as at 31 December 2024.

Data collection and collation

Our Corporate Sustainability team collects activity data for Scope 1, 2 and 3 emissions categories from across the business¹ and use third-party software to support conversion, and aggregation of inputs to tonnes of carbon dioxide equivalent (tCO₂e)². Note that receipt of information is varied in terms of KPI and sources. As such, the collection of data is varied, dependent upon the availability of such data. We are reliant on third-parties for the collection of some data.

Scope 1 emissions

We report emissions from natural gas, fluorinated gas, company-owned vehicles used solely for business purposes, and stationary fuel³. Recorded metrics, such as kilowatt-hours (kWh), relate to energy use in our buildings and car mileage, and are converted to tCO₂e using regional guidance on conversion factors. The recorded metrics are collected from various sources, e.g. meter readings and supplier invoices, and differ for each emission source (kWh, m³, kg, litres).

Scope 2 emissions

Consumption from electricity and district heating is metered and measured in kWh for in-scope operations and converted to tCO₂e using regional guidance on conversion factors. The source for this information is typically energy bills from utility providers.

Reported Scope 3 emissions categories

We report fuel and energy related activities (Category 3), waste from UK operations (Category 5), business travel (Category 6), and an estimate for employees working from home (Category 7). For each category we follow GHG Protocol guidance and prioritise the conversion of real data, such as: meter readings and supplier invoices (Category 3); third-party data provided by waste contractors (Category 5); and passenger kilometres travelled obtained by third-parties (Category 6), to tCO₂e using applicable conversion factors.

Energy consumption

We report energy consumption associated with purchased electricity, natural gas, company-owned vehicles used solely for business purposes, stationary fuel, and district heating in kWh. This data is reported in both aggregated and disaggregated forms.

Estimating working from home emissions

Our approach

To calculate our estimated emissions associated with colleagues working from home (part of Category 7), we revised our approach in 2023 in collaboration with our external partners, Pawprint. The basis of the approach is to use the Pawprint methodology to calculate the estimated emissions profile of an abrdn colleague working from home, which is aggregated to an annual tCO₂e figure based upon inputs such as headcount⁴ and assumed office occupancy. We are using the technical model developed by Pawprint⁵, as we believe this has a strong basis for this purpose.

Inputs from our colleague survey

We ask all colleagues to respond to a voluntary survey, with questions designed to enable the generation of an average emissions profile for abrdn colleagues. In 2024, we received an 18% response rate across global colleagues, which we use as the basis for the output.

Average emissions profile

The applied method builds an average emissions profile based on survey inputs capturing home size, working patterns, heating, cooling, and equipment use. Consumption values are drawn and converted from regional averages sourced from guidance published by those such as the Department for Business, Energy & Industrial Strategy (BEIS).

Office occupancy

Our colleagues are generally expected to work from our offices three days a week and we use this as our ratio to aggregate a 2024 average emissions profile. This is after making allowances for annual leave and part-time work. We also assume a seven-hour working day, based on standard contractual terms. In practice, we acknowledge that this will vary.

Total colleagues

Our survey was conducted during September and October 2024, and we are using an average FTE across the year as the basis for our total population.

 

1.	See page 48 of the Sustainability and TCFD report 2024 for the number of countries we operate in.
2.	Conversion factors applied differ by region and source of emissions data. Primary sources are DEFRA, IEA, NGA, UNFCCC, and www.carbonfootprint.com
3.	Fluorinated gas and stationary fuel limited to 5 sites, with 50% FTE coverage
4.	In 2024, we improved our FTE coverage to include contingent workers.
5.	Pawprint emissions methodology available at www.pawprint.eco/methodology

 

Operational emissions disclosure

Key limitations to our approach

Our 2024 approach uses colleague survey inputs to create a more nuanced average emissions profile, paired with the third-party model from Pawprint. We believe this is a more robust approach for long-term utility but stress that the calculation of working from home emissions is inherently reliant on some key inputs and assumptions. The reported figure should be treated as an estimated value only. Figures such as the office occupancy ratio and employee headcount have significant bearing on the aggregate figures reported. This means that changes to policy, or our business, may result in higher or lower reported figures that are unrelated to real-world emissions changes.

Improvements in 2024

Following the completion of our 2023 exercise, we implemented several refinements to the methodology, which allows for greater specificity in the calculations. For example, we now account for specific laptop models and types of lighting in use in the home.

Limitations and exclusions

Market-based emissions

We report both location- and market-based emissions, but note that our operational targets are measured using location-based emissions. We believe this to be best practice, with the outputs reflecting absolute emission reductions over time. Market-based emissions are not included as part of our external assurance engagement but are disclosed on page 56.

Use of estimates

We source primary data wherever possible but if data is not available, we will estimate based on an equivalent time for the previous year, the average consumption for the facility, or a similar site within the portfolio, scaled according to energy consumption and relative FTE. The sites we estimate are immaterial in terms of our overall emissions impact.

If data is completely unavailable for a site, we may choose not to disclose a value rather than providing an estimate; for example, there are limitations linked to the completeness of some reported data such as waste disposal across all global office locations.

Due to the nature of our operations, we focus our efforts on the facilities with the largest proportion of FTE, and we aim for continuous improvement year on year.

Other Scope 3 emissions categories

We do not currently report against all 15 categories of Scope 3 defined by the GHG Protocol. Our assessment is that some categories are not material due to the nature of our operations, but we acknowledge gaps related to purchased goods and services (Category 1) capital goods (Category 2), employee commuting (Category 7) and investments (Category 15). Scope 3 reported emissions do not include some emissions categories deemed to be material, but where data is currently unavailable.

During 2023, our procurement function worked to develop a Category 1 and 2 baseline, which we expect to report in future. We also carried out an employee survey which will enable us to establish a Category 7 baseline. In 2024, our focus has been to improve and refine these data sets in preparation for future disclosure. Our focus for Category 15 has been to enable our clients to understand emissions related to their portfolios and we disclose portfolio carbon intensity metrics on page 57, with scope limited by data coverage and availability. This does not currently include financed emissions associated with the assets on the abrdn plc balance sheet.

Our intention is to disclose all material emissions categories over time. However, our priority is to ensure that abrdn's data capability meets our reporting requirements and to enable reporting of our emissions to our clients. We will continue to allocate resources with that view but expect to add to our disclosure in future. This may result in adjustments to our reported baseline and targets.

DEI - gender and ethnic representation

Outlining our reporting scope

Reporting boundary

Our reporting boundary for our global workforce and senior leadership populations is representative of abrdn plc and its wholly-owned and operated subsidiaries. Data is reported as of 31 December 2024, unless otherwise stated.

abrdn plc Board

The abrdn plc Board is comprised of one Chair, eight Non-Executive Directors, and one Executive Director. Diversity information for all Board members is self-reported at point of joining, with option of updating at any stage during tenure.

Global workforce

Our global workforce includes all full-time, part-time, fixed term, graduates, apprentices, secondees and intern employees. We do not make any adjustments for part-time working and count each person as one employee. As independent members of the Board, Non-Executive Directors are not included in total populations. All diversity characteristics are self-reported by all colleagues through our people systems at point of joining and self-service update at any stage during employment. This information is typically disclosed during onboarding processes, but colleagues do have the ability to change and update their own information, should this be required. Gender representation is calculated based on a total headcount of 4,420 as at 31 December 2024. This is reported as a percentage of the total workforce population.

Senior leadership

Our senior leadership is defined as those one and two reporting levels below the CEO of abrdn plc, excluding all administrative and support staff. This is a subset of our global workforce and follows the same self-reporting processes noted. Gender representation is calculated based on a total senior leadership population of 93 as of 31 December 2024. This is reported as a percentage of the total workforce population.

Definitions and exclusions

Gender

Reported representation figures are based upon self- disclosed information from colleagues and Directors. This is split by male and female gender identities for the purposes of formal and regulatory reporting. We recognise and are supportive of colleagues who may choose to identify as a different gender to that assigned at birth, as non-cisgender, or as non-binary.

Ethnicity

Our ethnicity data for the abrdn plc Board is based upon our Board members' self-reported ethnicity to our DEI team, compared with UK census data to identify ethnic minority backgrounds (all non-white groups). For our senior leadership population, data is self-reported via our people systems and is disclosed as the proportion of individuals identifying as being from non-white groups, in accordance with UK census data categories. The disclosure rate for this population is 82%.

Administrative roles

Colleagues in administrative and support roles are excluded from our senior leadership population for the purposes of our related target and reporting. These roles are defined by job title, or equivalent, with supporting information on our people systems used as the basis.

Leave

Colleagues on garden leave as at 31 December 2024 are excluded from the senior leadership population. In simple terms, this reflects colleagues in the process of leaving the business who remain on leave until the completion of a notice period. Other forms of leave are included.

Excluded data

When reporting aggregated gender representation, any colleagues without gender on our people systems as of 31 December 2024 are removed from the calculation. This related to 24 colleagues in 2024 (2023: 63). When reporting aggregated ethnicity representation, this is given as an overall percentage figure with no exclusions. Where possible, we report disclosure rate alongside ethnicity representation.

Portfolio emissions disclosure

Public markets: Weighted average carbon intensity (WACI)

WACI is our method of tracking public market decarbonisation, in line with the original recommendations of the TCFD. We source emissions data from our specialist third-party provider and use our proprietary tools to apply the data to our portfolios and enable aggregate reporting. In-scope assets include specific funds and mandates within equities, fixed income and active quantitative strategies, with demonstrable decarbonisation achieved across each of the asset classes.

Real estate: Carbon intensity by floor area

Calculation approach

Carbon emissions data for real estate is based on the energy consumed in the operation of real estate assets. Data is collated by asset class specialists and aggregated for reporting and disclosure purposes.

Existing scope

There is a significant lag to the collection of real estate metrics from individual assets. This prevents reporting to 31 December 2024, with disclosure on page 57 applicable to financial year 2023. The scope of carbon data disclosure reflects around 74% of direct real estate AUM as at 31 December 2023. This translates to approximately 4% of Group AUMA. Of this, 27% of direct real estate AUM has associated Scope 1 and 2 emissions. The remaining emissions are Scope 3 emissions, which fall outside the scope of this target.

Scope 1 and 2 emissions

Data from Scope 1 and 2 emissions categories is in-scope for our portfolio decarbonisation target (page 57). This is inclusive of activity data such as electricity, gas, and district heating, which is then converted to kgCO_₂e using location-based emissions factors. These factors are average grid carbon factors, which are subject to change each year. Scope 1 and 2 emissions relate to energy which the landlord (the investment manager) procures and excludes energy procured by tenants, which is categorised under Scope 3. This is important, as procurement responsibility varies by individual asset. Assets, such as multi-let office buildings, typically have landlord procurement responsibility for the entire building, whereas for asset types, such as retail parks, the landlord may only procure energy for common areas and exterior lighting. The result is that some assets are more carbon intensive than others based on the subdivision of this responsibility.

Scope 3 emissions

Our team collects and collates available Scope 3 emissions, but this data is not readily available to a high level of completeness and accuracy. Scope 3 data is not included as part of our portfolio decarbonisation target, or subject to disclosure in this report.

Intensity by floor area

Our portfolio decarbonisation target uses floor area (m²) as the denominator for carbon intensity across the in-scope real estate portfolio. We note that the availability of accurate floor area data across our entire portfolio is limited. We consider our confidence level in both this, and Scope 1 and 2 data, before including an asset as in-scope for our target. This is something we are working to improve over time.

Portfolio emissions metrics

As investors we do not have access to real-time emissions data from companies and assets. There also remain significant reporting gaps across some regions and sectors, with Scope 3 reporting still to fully develop. We use Scope 1 and 2 data to track progress against our target and report core portfolio level metrics (page 57). The source for this data set in public markets is a specialist third-party provider, whereas data for real estate is collected directly from occupiers of those assets. Both routes include a lag associated with data being reported, collated, and made available to investors. Asset classes other than listed equity, corporate credit, and real estate remain difficult to accurately monitor due to data availability and nascent methodologies. Our portfolio metrics are based upon the original recommendations of TCFD, and methods established by the Partnership for Carbon Accounting Financials (PCAF), which we believe to be best practice. It is also important to recognise that portfolio carbon metrics are subject to volatility not related to changes in emissions, with revenues, asset values, and markets as key drivers. We believe that tracking and reporting these metrics is critical, but that tools such as climate scenario analysis (page 55) are also essential to support decision-making.

Glossary

Adjusted capital generation

Adjusted capital generation is part of the analysis of movements in IFPR regulatory capital. Adjusted capital generation is calculated as adjusted profit after tax less returns relating to pension schemes in surplus and interest paid on other equity (Additional Tier 1 instruments). It also includes dividends from associates, joint ventures and significant listed investments.

Adjusted net financing costs and investment return

Adjusted net financing costs and investment return 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 net operating revenue

Adjusted net operating revenue is a component of adjusted operating profit and includes revenue we generate from asset management charges (AMCs), platform charges, treasury income 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. Treasury income is the interest earned on cash balances less the interest paid to customers. It excludes 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 net operating revenue is shown net of fees, cost of sales, commissions and similar charges. Cost of sales include revenue from fund platforms which is passed to the product provider

Adjusted net operating revenue yield (bps)

The adjusted net operating revenue yield is a measure that illustrates the average margin being earned on the assets that we manage or administer and excludes the ii business. It is calculated as annualised adjusted net operating revenue (excluding performance fees, ii and revenue for which there are no attributable assets) divided by monthly average fee based assets. The ii business is excluded from the calculation of adjusted net operating revenue yield as fees charged for this business are primarily from subscriptions and trading transactions.

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 expenses excludes restructuring and corporate transaction expenses. Adjusted operating expenses also excludes amortisation and impairment of intangible assets acquired in business combinations and through the purchase of customer contracts.

Adjusted operating profit

Adjusted operating profit is the Group's key APM, and is reported on a pre-tax basis. Adjusted operating profit includes the results of the Group's three businesses: ii, Adviser and Investments, along with Other business operations and corporate costs.

It excludes the Group's adjusted net financing costs and investment return.

Adjusted operating profit also excludes the impact of the following items:

-      Restructuring and corporate transaction expenses. Restructuring includes the impact of major regulatory change.

-      Amortisation and impairment of intangible assets acquired in business combinations and through the purchase of customer contracts.

-      Profit or loss arising on the disposal of a subsidiary, joint venture or equity accounted associate.

-      Change in fair value of/dividends from significant listed investments.

-      Share of profit or loss from associates and joint ventures.

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

-      Fair value movements in contingent consideration.

-      Items which are one-off and, due to their size or nature, are not indicative of the long-term operating performance of the Group.

 

Adjusted profit 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.

Carbon intensity

Is a measure of the amount of carbon dioxide (CO₂) or other greenhouse gases emitted per unit of activity, such as energy produced, economic output, or product manufactured. It is often used to compare the environmental impact of different fuels, processes, or activities.

Carbon offsetting

Carbon offsetting is an internationally recognised way to take responsibility for carbon emissions. The aim of carbon offsetting is that for every one tonne of offsets purchased there will be one less tonne of carbon dioxide in the atmosphere than there would otherwise have been. To offset emissions we purchase the equivalent volume of carbon credits (independently verified emissions reductions) to compensate for our operational carbon emissions. We have been reviewing our use of offsetting, and although we will continue to use offsets as a means of addressing our residual emissions, our prime objective is always to reduce our environmental impact before compensating for it.

Common Equity Tier 1 (CET1) Capital Coverage

CET1 capital coverage is calculated as CET1 own funds as a percentage of total own funds threshold requirement.

Company

abrdn plc.

Cost/income ratio

This is an efficiency measure that is calculated as adjusted operating expenses divided by adjusted net operating revenue.

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 (ELT)

The ELT is responsible to the CEO for the execution of corporate objectives and strategy, competitive analysis, sharing client insights, ensuring communication and alignment across senior leadership, oversight of annual budget and business plan proposals, review of performance against targets and plan, idea generation, oversight and delivery of people-related matters, oversight of sustainability and oversight of risk and controls.

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.

Greenhouse gases

Greenhouse gases are the atmospheric gases responsible for causing global warming (i.e. the greenhouse effect) and climate change. These gases, both natural and anthropogenic in origin include carbon dioxide, methane and nitrous oxide. Other greenhouse gases which are less prevalent but with a greater Global Warming Potential include hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulphur hexafluoride (SF6).

Group or abrdn

Relates to the Company and its subsidiaries.

Group Operating Committee (GOC)

The GOC is responsible to the CEO for the development of corporate objectives and strategy, oversight of commercial operations, finalisation of the annual budget and business plan, proposals for inorganic strategic activity, commercial aspects of people-related matters and to support the effective operation and cohesion of the ELT.

Internal Capital Adequacy and Risk Assessment (ICARA)

The ICARA is the means by which the Group assesses the levels of capital and liquidity that adequately support 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 Firms Prudential Regime (IFPR)

The Investment Firms Prudential Regime is the FCA's prudential regime for MiFID investment firms.

Investment performance

Investment performance is a measure of how investments are performing relative to a benchmark, target, or other comparator. The calculation covers funds that aim to outperform or track a benchmark/target, with certain assets excluded where these measures of performance are not appropriate or expected, such as certain private markets and execution only mandates. Benchmarks and targets differ by fund and are defined in the relevant investment management agreement or prospectus, as appropriate. The investment performance data is calculated internally by abrdn to give users guidance on how we are delivering positive investment outcomes for our clients. It is not intended for clients or potential clients investing in our products as more specific information and reporting is available for this purpose.

Investment performance has been aggregated using a money weighted average of our assets under management. Calculations for investment performance are made gross of fees except for those funds for which the stated comparator is net of fees. The calculation uses a closing AUM weighting basis and is based on AUM data available as at the relevant reporting date.

As at 31 December 2024, 80% of AUM is covered by this metric, performance is calculated relative to the relevant comparator for each investment strategy on the basis of:

-      Assets ahead of the benchmark or target defined in the investment management agreement or prospectus, as appropriate. This applies to 60% of the AUM.

-      Assets where the objective is to track an index are assessed based on being within or above an applicable tolerance for the strategy. This applies to 20% of the AUM.

 

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. The Group continued to be remunerated for its services in relation to the transferring AUM until the final tranche withdrawal was completed in H1 2022.

Market Disclosure

This IFPR disclosure complements the Own funds requirement and Own funds threshold requirement with the aim of improving market discipline by requiring companies to publish certain details of their risks, capital and risk management. Relevant disclosures are made in the abrdn plc consolidated annual report and accounts and alongside the accounts of the Group's individual IFPR-regulated entities, all of which can be found on the abrdn plc Group's website.

Net capital generation

Net capital generation is calculated as adjusted capital generation less restructuring and corporate transaction expenses (net of tax).

Net flows

Net flows represent gross inflows less gross outflows or redemptions. Gross inflows are new funds from clients. Redemptions is the money withdrawn by clients during the period. Cash dividends which are retained on the ii platform are included in net flows for the ii business only. Cash dividends are included in market movements for other parts of the group including the Investments and Adviser platform businesses. We consider that this different approach is appropriate for the ii business as cash dividend payments which are retained result in additional income for ii, but are largely revenue neutral for the rest of the Group.

Net zero

It is generally accepted that net zero is the target of completely negating the amount of greenhouse gases produced by human activity, to be achieved by reducing emissions to the lowest possible amount and offsetting (see carbon offsetting) only the remainder as a last resort.

Operational emissions

Operational emissions are the greenhouse gas emissions related to the operations of our business. They are categorised into three groups or 'scopes' in alignment with the Greenhouse Gas Protocol Corporate Accounting and Reporting Standard. Scope 1 covers direct emissions from owned or controlled sources. Scope 2 covers indirect emissions from the generation of purchased electricity, steam, heating and cooling consumed by the reporting company. Scope 3 includes all other indirect emissions that occur in a company's value chain. At abrdn we report on Scope 1 and Scope 2 emissions, and a selection of Scope 3 categories, where deemed material, which includes our working from home emissions.

Own Funds Requirement

Under IFPR, the Own Funds Requirement is the higher of the permanent minimum capital requirement, the fixed overheads requirements, and the K-factor requirement. The K-factor requirement is the sum of: Risk-to-Client, Risk-to-Market, and Risk-to-Firm K-factors.

Own Funds Threshold Requirement

Under IFPR, the Own Funds Threshold Requirement is the higher of Own funds required on an ongoing basis and Own funds required on a wind-down basis. The firm identifies and measures risks of harm and determines the degree to which systems and controls alone mitigate those risks of harm (or risks of disorderly wind-down). Any additional own funds needed, over and above the Own funds requirement, to cover this identified residual risk is held under the Own Funds Threshold Requirement.

Paris alignment

'Paris alignment' refers to the alignment of public and private financial flows with the objectives of the Paris Agreement on climate change. Article 2.1c of the Paris Agreement defines this alignment as "making finance flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development". Alignment in this way will help to scale up the financial flows needed to strengthen the global response to the threat of climate change.

Phoenix or Phoenix Group

Phoenix Group Holdings plc or Phoenix Group Holdings plc and its subsidiaries.

Significant listed investments

At 31 December 2024, Phoenix is the only significant listed investment. Our remaining stakes in HDFC Asset Management and HDFC Life were sold during H1 2023. Fair value movements and dividend income relating to these investments are treated as adjusting items for the purpose of determining the Group's adjusted profit.

Subordinated liabilities

Subordinated liabilities are debts of a company which, in the event of liquidation, rank below its other debts but above share capital. The 5.25% Fixed Rate Reset Perpetual Subordinated Contingent Convertible Notes issued by the Company in December 2021 are classified as other equity as no contractual obligation to deliver cash exists.

Weighted Average Carbon Intensity (WACI)

Is calculated by summing the product of each portfolio holdings carbon intensity, typically carbon intensity by revenue (tCO₂/$m Revenue) and the corresponding holdings' weight in the portfolio after adjusting for non-eligible assets. WACI can be calculated at different levels of aggregation across holdings, portfolio and asset classes.

Shareholder information

Registered office

1 George Street

Edinburgh

EH2 2LL

Scotland

Company registration number: SC286832

Secretary: Iain Jones

Registrar: Equiniti

Auditors: KPMG LLP

Solicitors: Slaughter and May

Brokers: JP Morgan Cazenove, Goldman Sachs

Shareholder services

 

We offer a wide range of shareholder services. For more information, please:

-      Contact our registrar, Equiniti, who manage this service for us. Their full details can be found on the inside back cover.

-      Visit our share portal at www.abrdnshares.com

 

For shareholder services call: +44 (0)371 384 2464*

*         Calls are monitored/recorded to meet regulatory obligations and for training and quality purposes. Call charges will vary.

 

A Dividend Reinvestment Plan (DRIP) is provided by Equiniti Financial Services Limited. The DRIP enables the Company's shareholders to elect to have their cash dividend payments used to purchase the Company's shares. More information can be found at www.abrdnshares.com

Sign up for Ecommunications

Signing up means:

-      You'll receive an email when documents like the annual report and accounts, Half year results and AGM guide are available on our website.

-      Voting instructions for the Annual General Meeting will be sent to you electronically.

 

Set up a share portal account

Having a share portal account means you can:

-      Manage your account at a time that suits you.

-      Download your documents when you need them.

 

To find out how to sign up, visit www.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 [email protected] 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

Financial calendar

Full year results 2024	4 March
Ex-dividend date for 2024 final dividend	27 March
Record date for 2024 final dividend	28 March
Last date for DRIP elections for 2024 final dividend	23 April
Annual General Meeting - Edinburgh	8 May
Dividend payment date for 2024 final dividend	13 May
Half year results 2025	30 July
Ex-dividend date for 2025 interim dividend	14 August
Record date for 2025 interim dividend	15 August
Last date for DRIP elections for 2025 interim dividend	3 September
Dividend payment date for 2025 interim dividend	23 September

Analysis of registered shareholdings at 31 December 2024

Range of shares	Number of holders	% of total holders	Number of shares	% of total shares
1-1,000	53,491	65.77	20,846,069	1.13
1,001-5,000	23,548	28.96	49,439,323	2.69
5,001-10,000	2,636	3.24	17,959,369	0.97
10,001-100,000	1,350	1.66	29,560,951	1.61
#100,001+	304	0.37	1,722,936,917	93.60
Total	81,329	100.00	1,840,742,629	100.00

 

*         These figures include the Company-sponsored nominee - the abrdn Share Account - which had 834,638 participants holding 613,561,526 shares.

 

Forward-looking statements

This document may contain certain 'forward-looking statements' with respect to the financial condition, performance, results, strategies, targets (including ESG 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 of the abrdn Group about future events, and are therefore subject to known and unknown 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', 'continues', '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: UK domestic and global political, economic and business conditions; 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; experience in particular with regard to mortality and morbidity trends, lapse rates and policy renewal rates; 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) and the continued development and enhancement of said technology systems (including the utilisation of artificial intelligence (AI)); natural or man-made catastrophic events; the impact of pandemics; climate change and a transition to a low-carbon economy (including the risk that the Group may not achieve its relevant ESG 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 and the impact of changes in capital, solvency or accounting standards, ESG disclosure and reporting requirements, and tax and other legislation and regulations (including changes to the regulatory capital requirements) that the Group is subject to 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.

Neither the Company, nor any of its associates, directors, officers or advisers, provides any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements in this document will actually occur. Persons receiving this document should not place reliance on forward-looking statements. All forward-looking statements contained in this document are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Each forward-looking statement speaks only as at the date of the particular statement. 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.

Notes

Contact us

Got a shareholder question? Contact our shareholder services team.

UK and overseas

visit	www.abrdnshares.com
email	[email protected]
phone	44(0)371 384 2464*
mail	abrdn Shareholder Services Aspect House Spencer Road Lancing, West Sussex BN99 6DA, United Kingdom

 

*         Calls are monitored/recorded to meet regulatory obligations and for training and quality purposes. Call charges will vary.

 

Extensive information, including many answers to frequently asked questions, can also be found online at www.abrdnshares.com

 

Designed by Black Sun Global (Strategic report) and abrdn plc (rest of Annual report and accounts).

Published by Adare SEC (Nottingham) Limited.

Please remember that the value of shares can go down as well as up and you may not get back the full amount invested or any income from it. All figures and share price information have been calculated as at 31 December 2024 (unless otherwise indicated).

This document has been published by abrdn plc for information only. It is based on our understanding as at March 2025 and does not provide financial or legal advice.

abrdn plc is registered in Scotland (SC286832) at 1 George Street, Edinburgh EH2 2LL.

www.abrdn.com © 2025 abrdn, images reproduced under licence. All rights reserved.

 

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