Aberdeen Group (ABDN) Q3 2024 TU earnings summary

Executive summary

• Assets under management and administration (AUMA) rose 2% year-to-date to £507bn, driven by positive market movements and strong net inflows at Interactive Investor.

• Interactive Investor delivered 6% customer growth YTD to 430,000, with AUMA up 13% and net inflows of £4.3bn, 48% higher than all of 2023.

• Adviser and Investments segments experienced net outflows, with Adviser seeing £1bn outflows in Q3 and actions underway to improve service and leadership.

• Transformation program is progressing, with cost-saving targets on track and a focus on profitability, technology, and sustainable growth.

• Sale of European-headquartered Private Equity business in April 2024 reduced AUM by £7.0bn.

Financial highlights

• Total AUMA at 30 Sep 2024 was £506.7bn, up from £494.9bn at 31 Dec 2023.

• Net outflows YTD were £2.3bn, a significant improvement from £11.9bn outflows YTD in Q3 2023.

• Excluding the sale of the private equity business, AUM increased 2% YTD to £368bn, with positive market movements offsetting net outflows of £4.5bn.

• Adviser AUM at £75bn, unchanged since half year, with positive markets offset by £1bn outflows.

• Acquisition of closed-end funds from First Trust in July and September 2024 added £0.4bn to AUM.

Outlook and guidance

• Transformation program on track to deliver £60m of cost savings in 2024 and at least £150m annualized by end of 2025.

• Group costs expected to be below £1,075m for the year.

• Exploring options for the Group's defined benefit pension scheme, with an update expected at FY 2024 results.

• Fee margin guidance unchanged; expected to be below 22bps in H2, down from 22bps in H1.

• Interest margin expected to remain above 2% into next year, with no major change anticipated.