Resilience from diversification
Annual report and accounts 2022
abrdn plc
abrdn.com
At abrdn, we are reshaping our business to serve a wider range of clients to plan, save and invest for the future.
By diversifying our business, we are positioning ourselves for growth in a changing investment landscape.
This annual report and accounts 2022 for abrdn plc, and the strategic report and financial highlights 2022 are published on our website at www.abrdn.com/annualreport
Access to the website is available outside the UK, where comparable information may be different.
Certain measures such as adjusted operating profit, adjusted profit before tax, adjusted capital generation and cost/income ratio, are not defined under International Financial Reporting Standards (IFRS) and are therefore termed alternative performance measures (APMs).
APMs should be read together with the Group's 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. The revenue APM included within adjusted operating profit has been renamed from fee based revenue to net operating revenue. Further details on APMs are included in Supplementary information.
See Supplementary information for details on assets under management and administration (AUMA), net flows and the investment performance calculation. The calculation of investment performance has been revised to use a closing AUM weighting basis. 2021 comparatives have been restated. Net flows in the Highlights page excludes liquidity flows as they are volatile and lower margin. It also excludes Lloyds Banking Group (LBG) tranche withdrawals relating to the settlement of arbitration with LBG.
STRATEGIC REPORT
Adjusted operating | IFRS (loss)/profit before | Full year dividend per |
profit | tax | share |
£263m | (£615m) | 14.6p |
2021: £323m | 2021: £1,115m | 2021: 14.6p |
Investment performance | Net flows | MSCI ESG Rating |
(% of AUM above benchmark | (Excl. liquidity and LBG) | |
over three years) | £10.3bn | AAA |
65% | ||
outflow | ||
2021: 78% | 2021: £3.2bn outflow | 2021: AA |
Contents
1. Strategic report | Financial information | ||
Our business at a glance | 2 | 6. Independent auditor's report | 140 |
Chairman's statement | 4 | 7. Group financial statements | 156 |
Chief Executive Officer's review | 7 | 8. Company financial statements | 265 |
Our business model and strategy | 10 | 9. Supplementary information | 279 |
Performance overview | 14 | ||
Our vectors | 16 | Other information | |
Sustainability | 28 | 10. Glossary | 292 |
Key performance indicators | 48 | 11. Shareholder information | 296 |
Chief Financial Officer's overview | 50 | 12. Forward-looking statements | 297 |
Risk management | 64 | 13. Contact us | IBC |
Governance | |||
2. Board of Directors | 70 | ||
3. Corporate governance statement | 74 | ||
3.1 Audit Committee report | 86 | ||
3.2 Risk and Capital Committee report | 95 | This symbol indicates further information | |
3.3 Nomination and Governance | |||
is available within this document or on our | |||
Committee report | 99 | ||
corporate website. | |||
3.4 Directors' remuneration report | 103 | ||
4. Directors' report | 131 | Download this report from: | |
5. Statement of Directors' responsibilities | 137 | www.abrdn.com/annualreport |
Annual report 2022
abrdn.com
1
At a glance
Resilience
from diversification
Our clients' worlds are changing, and so are we
Global investments
UK savings and wealth
platforms
Investments
- | Insurance companies | - | Pension funds |
- | Sovereign wealth funds | - | Platforms |
- | Independent wealth | - | Banks |
managers | - | Family offices |
Adviser
- Financial advisers
- Discretionary fund managers
Personal
- Individuals
As industry trends and client behaviours have evolved, so have we. We have focused on diversifying the earnings profile of our business - moving away from a reliance on the market-driven revenues of a traditional asset manager and, through the earnings potential of our Adviser and Personal vectors, positioning ourselves to leverage opportunities in areas that are being driven by attractive structural factors.
Investments
Adjusted operating profit
£114m
Adviser | Personal |
Adjusted | Adjusted |
operating profit | operating profit |
£86m | £72m |
Note: Adjusted operating profit in 2022 is £263m, including a loss of £9m from Corporate/strategic which is excluded from the diagram above.
2
abrdn.com
Annual report 2022
Our strategy is
to deliver client-led growth
Our four strategic priorities are
STRATEGIC REPORT
Asia
Sustainability | Alternatives |
Our three businesses are
Investments
Our capabilities in our
Investments business are built on the strength of our insight
- generated from wide- ranging research, worldwide investment expertise and local market knowledge.
UK savings and wealth
AUM | Cost/income | ||||||
£376bn | ratio | ||||||
89% | |||||||
Adviser | Personal | ||||||
Powered by the UK's second | |||||||
Our Adviser business provides | |||||||
largest direct-to-consumer | |||||||
financial planning solutions and | |||||||
investment platform, our | |||||||
technology for UK financial | |||||||
Personal business enables | |||||||
advisers, enabling them to | |||||||
individuals in the UK to plan, | |||||||
create value for their | |||||||
save and invest in the way | |||||||
businesses and their clients. | |||||||
that works for them. | |||||||
AUA | Cost/income | AUMA | Cost/income | ||||
£69bn | ratio | £67bn | ratio | ||||
54% | 64% |
Our purpose is
to enable our clients to
be better investors
Annual report 2022 | abrdn.com | 3 |
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Disclaimer
abrdn plc published this content on 28 February 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 February 2023 07:24:09 UTC.