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.