Aberdeen experiences £5.2bn in withdrawals due to market volatility impact
Aberdeen, formerly known as abrdn, is in the midst of a strategic makeover to combat hefty net outflows and boost profitability. Here are some vital aspects of their current game plan:
1. Operational overhaul and cost reductions:Focusing on cutting operational costs to save over £150 million annually by 2025, through streamlining processes managed by a Group COO overseeing long-term transformation.
2. Expansion in wealth management and platform services:- Adviser segment: Improved service quality, platform functionality, and repricing have drastically reduced net outflows to £600 million in Q1 2025, as opposed to previous quarters.- Interactive Investor (ii): Rolling out services such as Managed SIPP, ii Advice, and ii 360 to attract retail investors.- Quantitative strategies: Successfully secured a £6 billion mandate in April 2025, aiming for £100 million adjusted operating profit from Investments by the end of 2026.
3. Financial targets:- FY2026 Objectives: - Adjusted operating profit above £300 million - Net capital generation of approximately £300 million[4]- Adviser inflows: Targeting £1 billion net inflows in FY2026, through platform enhancements and service recovery.
The firm is prioritizing enhancing client experiences, investing in talent, and blending active and passive investment strategies, such as MPS portfolios relying on Moody’s Analytics analytics[4][5]. The current Assets Under Management (AUM) stand at £500.1 billion, with a focus on risk-managed returns across the MyFolio and MPS ranges[1][5].
- Aberdeen, in its strategic makeover, is aiming to achieve an adjusted operating profit above £300 million and net capital generation of approximately £300 million by FY2026.
- To enhance client experiences, Aberdeen is investing in talent and blending active and passive investment strategies, highlighting their use of MPS portfolios relying on Moody’s Analytics analytics.
- The firm's operational overhaul includes cutting operational costs to save over £150 million annually by 2025, with a focus on streamlining processes managed by a Group COO overseeing long-term transformation.
- In their wealth management and platform services expansion, Aberdeen has secured a £6 billion mandate in April 2025, aiming for £100 million adjusted operating profit from Investments by the end of 2026.
- Aberdeen's business strategy also includes reducing net outflows in their adviser segment through improved service quality, platform functionality, and repricing, resulting in £600 million net outflows in Q1 2025, compared to previous quarters.
