Aberdeen Group (ABDN) Q1 2025 TU earnings summary

Executive summary

• AUMA at Q1 end was £500.1bn, down from £511.4bn at year-end, as strong inflows at interactive investor were offset by market declines and net outflows in Investments and Adviser.

• interactive investor achieved 9% year-on-year customer growth to 450k, including 29% growth in SIPP customers to 88k, and record engagement and trading volumes.

• Adviser net outflows improved to £0.6bn, the lowest since Q3 2023, reflecting better service, platform enhancements, and repricing.

• Investments segment saw £6.4bn net outflows, mainly due to a £4.2bn low-margin mandate redemption, but April's £6bn quant mandate win turned year-to-date flows positive.

• The group remains focused on becoming the UK's leading wealth business and is progressing toward strategic objectives despite market uncertainty.

Financial highlights

• interactive investor achieved net inflows of £1.6bn, with AUMA just under £78bn and daily trades up 19% year-over-year.

• Adviser AUMA was just under £74bn, down 2% from year-end, with net outflows of £0.6bn.

• Investments AUM fell 3% to just under £360bn, with £6.4bn net outflows, mostly from a £4.2bn mandate redemption.

• Fixed income saw net inflows of £1.5bn, while equities continued to experience elevated outflows.

• Gross inflows in Institutional & Retail Wealth reached £8.9bn, the highest in over two years and 30% higher than Q4 2024.

Outlook and guidance

• Group AUMA is slightly up compared to March, with continued momentum in interactive investor and positive net flows in Investments year-to-date.

• The group targets at least £150m in annualized cost savings by year-end and £100m adjusted operating profit in Investments by 2026.

• Adviser aims for at least £1bn net inflows next year, with ongoing improvements in service and platform functionality.

• Fee margin in Investments expected to trend toward 20bps by year-end, reflecting a shift toward lower-margin assets.

• Committed to FY 2026 targets: adjusted operating profit above £300m and net capital generation of ~£300m.