REG - abrdn PLC - Q3 2024 AUMA & Flows Trading Update
24/10/2024 07:00
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RNS Number : 3807J abrdn PLC 24 October 2024
24 October 2024
abrdn plc
Q3 2024: AUMA and flows trading update
abrdn plc is today providing an update on its Q3 assets under management and
administration (AUMA) and net flows.
Key highlights
- AUMA up 2% YTD to £507bn, reflecting positive markets and interactive
investor net inflows
- Strong organic growth YTD in interactive investor: customers up 6% to
430k and AUMA up 13%
- Outflows in Investments driven by equities and Insurance Partners;
performance transformation ongoing
- Actions being taken to address continued outflows in Adviser, with clear
focus on service
- Transformation programme remains on track
AUMA and flows (unaudited)
AUMA Net flows
30 Sep 24 30 Jun 24 31 Dec 23 Q3 2024 YTD Q3 2023 YTD Q3 2024 Q3 2023
£bn £bn £bn £bn £bn £bn £bn
Institutional & Retail Wealth 209.0 210.7 211.2 (2.0) (12.1) (2.4) (5.4)
Insurance Partners 159.2 158.6 155.5 (2.5) (1.4) (1.1) (1.6)
Investments 368.2 369.3 366.7 (4.5) (13.5) (3.5) (7.0)
Adviser 75.1 75.0 73.5 (3.0) (1.1) (1.0) (0.5)
interactive investor 74.5 72.9 66.0 4.3 2.4 1.2 0.6
Eliminations (11.1) (11.3) (11.3) 0.9 0.3 0.2 0.2
Total 506.7 505.9 494.9 (2.3) (11.9) (3.1) (6.7)
Investments: AUM benefiting from positive markets with strong quarter for real
assets; equity outflows reflect sectoral trends
- Investments AUM increased marginally YTD to £368bn, with positive
market movements offset by net outflows and the sale of the private equity
business. Net outflows YTD were lower at £4.5bn (9M 2023: net outflows of
£13.5bn). Excluding the sale of private equity, AUM was up 2% YTD.
- AUM in Institutional & Retail Wealth in the quarter was broadly
stable, with positive market movements offset by net outflows of £2.4bn. Net
outflows were driven by equities, which continue to be affected by challenging
conditions for flows across Asia and emerging markets, as well as switches to
passive and quantitative strategies.
- We continued to attract net inflows in the quarter across liquidity
(£0.3bn) and quantitative strategies (£0.4bn). Outflows of £0.8bn in fixed
income in the quarter were largely driven by a single mandate redemption.
Looking ahead, our positioning, performance and pipeline in fixed income
remain strong, with a significant mandate win in the quarter not reflected in
reported flows.
- Our real assets business attracted net inflows in the quarter of
£1.0bn. This included the launch of a £0.4bn European concession
infrastructure fund and the extension of our residential real estate
capabilities to the Japanese market with a £0.6bn mandate for an existing
client.
- Insurance Partners AUM was up slightly in the quarter and by 2% YTD. Net
outflows were £1.1bn in the quarter, principally reflecting run-off in the
heritage business.
Adviser: Taking action across the board to improve net flows, with improved
service focus
- AUMA up 2% YTD to £75.1bn with stronger markets offsetting net
outflows.
- Q3 2024 net outflows of £1.0bn remained elevated, despite a modest
uptick in new business following the re-pricing announced in May.
- As set out at half year, actions are in train to address net outflows,
including further investment in technology, strategic re-pricing, proposition
upgrades and strengthening the Adviser leadership team. Service remains at the
heart of our proposition, so we are redoubling our efforts in this regard and
adding resource to deliver a better experience for our clients.
- The full benefits of these actions will take some time to realise, but
our priority remains to return to net inflows as soon as possible.
interactive investor (ii): Sustained strong organic customer and AUMA growth
- Consistent organic customer growth in Q3, with total customers of 430k,
up 6% YTD and up 2% in the quarter. Within this, SIPP customers grew to 76k,
up 22% YTD and up 5% in the quarter.
- AUMA up 13% YTD to £74.5bn, driven by continued strong growth in net
inflows and positive markets.
- Net inflows in the quarter of £1.2bn, up from £0.6bn in Q3 2023, with
net inflows of £4.3bn YTD already 48% higher than the whole of 2023.
Outlook: Transformation programme remains on track
- Guidance for FY 2024 adjusted operating expenses remains below £1,075m,
with our transformation programme delivering cost savings alongside investment
in our people, tech & AI enablement, and process and control enhancements.
- On track to deliver c.£60m of cost savings in FY 2024 and at least
£150m annualised by the end of FY 2025.
- Continuing to explore options in relation to the Group's defined benefit
pension scheme, with update to be provided at our Full year 2024 results.
Commenting, Jason Windsor, CEO abrdn plc, said:
"Today's update shows strong performance in parts of our group; however, it
also underlines the importance of delivering on the priorities I set out at
the half year. I'm pleased with the continued growth in interactive investor;
meanwhile, there are challenges to overcome in Adviser, where we aim to return
to being the platform of choice for clients. In Investments, we need to do
more to capitalise on our strengths and improve performance and flows,
particularly in equities.
"We have strong, scale positions in attractive markets, and each of our
businesses has headroom to grow. Our priorities remain to transform
performance, improve the client experience, and strengthen our talent and
culture.
"We have plans in place to address our challenges and our transformation
programme is on track. While there remains much to do, I am confident that we
have great talent and we can make further progress towards profitable and
sustainable long-term growth, benefiting our shareholders, clients, and
colleagues."
All figures to the end of 30 September 2024. All figures in this announcement
are unaudited, and subject to revision.
Management will be hosting a call for analysts and investors at 8:30am (BST)
on Thursday, 24 October 2024. To access a webcast of the conference call,
please go to the following link:
https://brrmedia.news/ABDN_Q3_24 (https://brrmedia.news/ABDN_Q3_24)
Enquiries:
Institutional equity investors and analysts
Duncan Heath +44 (0) 207 1562 495 / (0)788 4109 285
Media
Duncan Young +44 (0) 792 0868 865
Iain Dey (Teneo) +44 (0) 797 6295 906
LEI: OTMBS544NMO7GLCE7H90
Appendix 1
Analysis of AUMA
Opening Gross inflows Redemptions Net flows Market Corporate Closing
AUMA at
and other movements
actions(1)
AUMA at
1 Jul 2024
30 Sep 2024
3 months ended 30 September 2024 £bn £bn £bn £bn £bn £bn £bn
Institutional & Retail Wealth 210.7 8.7 (11.1) (2.4) 0.3 0.4 209.0
Insurance Partners 158.6 3.3 (4.4) (1.1) 1.7 - 159.2
Investments 369.3 12.0 (15.5) (3.5) 2.0 0.4 368.2
Adviser(2) 75.0 1.6 (2.6) (1.0) 1.1 - 75.1
interactive investor(3) 72.9 3.1 (1.9) 1.2 0.4 - 74.5
Eliminations (11.3) (0.6) 0.8 0.2 - - (11.1)
Total AUMA 505.9 16.1 (19.2) (3.1) 3.5 0.4 506.7
Opening Gross inflows Redemptions Net flows Market Corporate Closing
AUMA at
and other movements
actions(1)
AUMA at
1 Jan 2024
30 Sep 2024
9 months ended 30 September 2024 £bn £bn £bn £bn £bn £bn £bn
Institutional & Retail Wealth 211.2 27.2 (29.2) (2.0) 6.4 (6.6) 209.0
Insurance Partners 155.5 16.1 (18.6) (2.5) 6.2 - 159.2
Investments 366.7 43.3 (47.8) (4.5) 12.6 (6.6) 368.2
Adviser(2) 73.5 4.7 (7.7) (3.0) 4.6 - 75.1
interactive investor(3) 66.0 10.2 (5.9) 4.3 4.2 - 74.5
Eliminations (11.3) (1.7) 2.6 0.9 (0.7) - (11.1)
Total AUMA 494.9 56.5 (58.8) (2.3) 20.7 (6.6) 506.7
1. Corporate actions relate to the disposal of our European-headquartered
Private Equity business in April 2024 (£7.0bn) and the acquisition of
closed-end funds from First Trust in July 2024 (£0.3bn) and September 2024
(£0.1bn).
2. Includes Platform AUA as at 30 September 2024 of £72.3bn (1 July 2024:
£72.3bn, 1 January 2024: £70.9bn).
3. Includes financial planning business AUA as at 30 September 2024 of
£3.9bn (1 July 2024: £4.1bn, 1 January 2024: £4.3bn).
Quarterly AUMA
30 Sep 24 30 Jun 24 31 Mar 24 31 Dec 23 30 Sep 23
12 months ended 30 September 2024 £bn £bn £bn £bn £bn
Institutional & Retail Wealth 209.0 210.7 215.1 211.2 214.2
Insurance Partners 159.2 158.6 159.2 155.5 145.9
Investments 368.2 369.3 374.3 366.7 360.1
Adviser 75.1 75.0 75.2 73.5 70.9
interactive investor 74.5 72.9 69.6 66.0 62.1
Eliminations (11.1) (11.3) (11.4) (11.3) (10.8)
Total AUMA 506.7 505.9 507.7 494.9 482.3
Quarterly net flows
3 months to 3 months to 3 months to 3 months to 3 months to
30 Sep 24
30 Jun 24
31 Mar 24
31 Dec 23
30 Sep 23
15 months ended 30 September 2024 £bn £bn £bn £bn £bn
Institutional & Retail Wealth (2.4) (0.3) 0.7 (5.8) (5.4)
Insurance Partners (1.1) (0.9) (0.5) 0.3 (1.6)
Investments (3.5) (1.2) 0.2 (5.5) (7.0)
Adviser (1.0) (1.1) (0.9) (1.0) (0.5)
interactive investor 1.2 1.9 1.2 0.5 0.6
Eliminations 0.2 0.4 0.3 0.3 0.2
Total net flows (3.1) - 0.8 (5.7) (6.7)
Institutional & Retail Wealth AUM
Detailed asset class split
Opening Gross inflows Redemptions Net flows Market Corporate actions(1) Closing
AUM at
and other movements
AUM at
1 Jul 2024
30 Sep 2024
3 months ended 30 September 2024 £bn £bn £bn £bn £bn £bn £bn
Developed markets equities 11.8 0.2 (0.9) (0.7) 0.1 - 11.2
Emerging markets equities 10.6 0.5 (1.6) (1.1) 0.1 - 9.6
Asia Pacific equities 15.4 0.3 (0.8) (0.5) 0.7 - 15.6
Global equities 8.5 0.2 (0.3) (0.1) 0.2 - 8.6
Total equities 46.3 1.2 (3.6) (2.4) 1.1 - 45.0
Developed markets credit 22.1 0.5 (1.0) (0.5) 0.3 0.4 22.3
Developed markets rates 3.0 0.1 (0.2) (0.1) - - 2.9
Emerging markets fixed income 10.1 0.5 (0.7) (0.2) (0.1) - 9.8
Total fixed income 35.2 1.1 (1.9) (0.8) 0.2 0.4 35.0
Absolute return(2) - - - - - - -
Diversified growth/income 0.9 - - - 0.1 - 1.0
MyFolio 16.4 0.3 (0.6) (0.3) 0.3 - 16.4
Other multi-asset(2) 7.7 0.1 (0.2) (0.1) - - 7.6
Total multi-asset 25.0 0.4 (0.8) (0.4) 0.4 - 25.0
Total private equity - - - - - - -
UK real estate 15.5 - (0.4) (0.4) - - 15.1
European real estate 13.1 - - - (0.3) - 12.8
Global real estate 1.0 0.8 (0.1) 0.7 - - 1.7
Real estate multi-manager 1.4 0.2 - 0.2 (0.2) - 1.4
Infrastructure equity 6.0 0.5 - 0.5 (0.1) - 6.4
Total real assets 37.0 1.5 (0.5) 1.0 (0.6) - 37.4
Total alternative investment solutions (including private credit) 27.0 0.3 (0.8) (0.5) (1.4) - 25.1
Total quantitative 19.9 1.7 (1.3) 0.4 0.8 - 21.1
Total excluding liquidity 190.4 6.2 (8.9) (2.7) 0.5 0.4 188.6
Total liquidity 20.3 2.5 (2.2) 0.3 (0.2) - 20.4
Total 210.7 8.7 (11.1) (2.4) 0.3 0.4 209.0
1. Corporate actions in the three months ended 30 September 2024 relate to
the acquisition of closed-end funds from First Trust in July (£0.3bn) and
September (£0.1bn).
2. Other multi-asset includes opening AUM of £3.3bn, flows of nil, market
and other movements of £0.1bn and closing AUM of £3.4bn relating to assets
previously classified as Absolute return.
Opening Gross inflows Redemptions Net flows Market Corporate actions(1) Closing
AUM at
and other movements
AUM at
1 Jan 2024
30 Sep 2024
9 months ended 30 September 2024 £bn £bn £bn £bn £bn £bn £bn
Developed markets equities 11.8 0.8 (2.1) (1.3) 0.7 - 11.2
Emerging markets equities 11.1 1.0 (3.1) (2.1) 0.6 - 9.6
Asia Pacific equities 16.3 1.5 (4.0) (2.5) 1.8 - 15.6
Global equities 8.5 0.9 (1.4) (0.5) 0.6 - 8.6
Total equities 47.7 4.2 (10.6) (6.4) 3.7 - 45.0
Developed markets credit 21.4 3.4 (2.7) 0.7 (0.2) 0.4 22.3
Developed markets rates 3.3 0.3 (0.6) (0.3) (0.1) - 2.9
Emerging markets fixed income 9.8 1.4 (1.4) - - - 9.8
Total fixed income 34.5 5.1 (4.7) 0.4 (0.3) 0.4 35.0
Absolute return(2) - - - - - - -
Diversified growth/income 0.2 - - - 0.8 - 1.0
MyFolio 16.2 1.0 (2.0) (1.0) 1.2 - 16.4
Other multi-asset(2) 8.7 0.7 (0.9) (0.2) (0.9) - 7.6
Total multi-asset 25.1 1.7 (2.9) (1.2) 1.1 - 25.0
Total private equity 7.2 - - - (0.2) (7.0) -
UK real estate 15.9 0.3 (1.3) (1.0) 0.2 - 15.1
European real estate 13.6 0.2 - 0.2 (1.0) - 12.8
Global real estate 1.2 0.8 (0.2) 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 0.6 (0.1) 0.5 (0.2) - 6.4
Total real assets 38.3 2.1 (1.7) 0.4 (1.3) - 37.4
Total alternative investment solutions (including private credit) 24.0 1.0 (1.4) (0.4) 1.5 - 25.1
Total quantitative 17.1 4.7 (2.2) 2.5 1.5 - 21.1
Total excluding liquidity 193.9 18.8 (23.5) (4.7) 6.0 (6.6) 188.6
Total liquidity 17.3 8.4 (5.7) 2.7 0.4 - 20.4
Total 211.2 27.2 (29.2) (2.0) 6.4 (6.6) 209.0
1. Corporate actions in the nine months ended 30 September 2024 relate to
the disposal of our European-headquartered Private Equity business in April
(£7.0bn) and the acquisition of closed-end funds from First Trust in July
(£0.3bn) and September (£0.1bn).
2. 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.
Forward-looking statements
This announcement contains statements that are or may be "forward-looking
statements". All statements other than statements of historical facts included
in this announcement may be forward-looking statements, including statements
that relate to the abrdn Group's future prospects, developments and
strategies. Often, but not always, forward-looking statements can be
identified by the use of forward-looking words such as "plans", "expects", "is
expected", "believes", "targets", "aims", "anticipates", "projects", "would",
"could", "should", "may", "might", "envisages", "estimates", "intends",
"underway", or the negative of those, or by the use of references to
assumptions, budgets, strategies, prospects and schedules.
Although the abrdn Group believes that the expectations reflected in such
forward-looking statements are reasonable as at the date of this announcement,
it can give no assurance that such expectations will prove to be correct.
By their nature, 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 abrdn Group's
control.
Neither abrdn plc, its affiliates nor any of its associates or 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 announcement will actually occur. Recipients of this
announcement should not place any reliance on these forward-looking statements
and all forward-looking statements contained in this announcement are
expressly qualified in their entirety by the cautionary statements contained
or referred to in this section. Except as required by law or regulation,
neither abrdn plc nor its affiliates assume any obligation to update or revise
these forward-looking statements, whether as a result of new information,
future events or otherwise. Past performance is not an indicator of future
results and the results of abrdn plc and its affiliates in this document may
not be indicative of, and are not an estimate, forecast or projection of,
abrdn plc's or its affiliates' future results.
Please see abrdn plc's most recent Annual report and accounts for further
detail of the risks, uncertainties and other factors relevant to its business
and securities.
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