0TMBS544NMO7GLCE7H90-2024-12-31-T01


		Annual report 2024		1


STRATEGIC REPORT


Highlights

Adjusted operating profit £255m 2023: £249m

IFRS profit/(loss) before tax £251m 2023: £(6)m

Full year dividend per share 14.6p 2023: 14.6p

Investment performance1 (% of AUM performing)
1 year 77% 2023: 55%	3 years 60% 2023: 51%

Net flows (excluding liquidity) £6.1bn outflow 2023: £13.9bn outflow

MSCI ESG rating AA 2023: AA

Contents


Strategic report
At a glance	2
Our strategic priorities	4
Chairman’s statement	12
Chief Executive Officer’s review	16
Our business model	20
Performance overview	22
Our businesses	24
Sustainability	42
Key performance indicators	64
Chief Financial Officer’s overview	66
Risk management	82
Governance
Board of Directors	88
Corporate governance statement	92
Audit Committee report	105
Risk and Capital Committee report	114
Nomination and Governance Committee report	118
Directors’ remuneration report	122
Directors’ report	142
Statement of Directors’ responsibilities	149
Financial information
Independent auditor’s report	152
Group financial statements	169
Company financial statements	270
Supplementary information	286
Other information
Sustainability - independent limited assurance report	300
Sustainability reporting criteria	302
Glossary	306
Shareholder information	310
Forward-looking statements	311
Contact us	IBC


	This symbol indicates further information is available within this document or on our corporate website.
	Download this report from: www.abrdn.com/ annualreport

1. The scope of the investment performance calculation has been extended to cover all funds that aim to track or outperform a benchmark, with

certain assets excluded where this measure of performance is not appropriate or expected. 2023 comparatives have been restated. Further

details about the calculation of investment performance and the change in scope are included in the Supplementary information section.


2	Annual report 2024


At a glance

We are a Wealth

& Investments group


UK savings and wealth platforms		Specialist asset management

interactive investor (ii)	Adviser	Investments

As the UK’s second-largest direct-

to-consumer investment platform

by AUA and number one by net

flows1, ii offers a self-directed

investing and trading platform that

enables individuals in the UK to plan,

save and invest in the way that

works for them.

Our clients:

Individuals that are:

– Lower confidence investors

– Self-directed investors

– Active/expert investors

Adjusted operating profit

£116m (2023: £114m)

AUMA

£77.5bn (2023: £66.0bn)

Cost/income ratio

58% (2023: 60%)

Our Adviser business, the UK’s

second-largest advised platform by

AUA2, provides financial planning

solutions and technology for UK

financial advisers which enables

them to create value for their

businesses and their clients.

Our clients:

– Financial advisers

Adjusted operating profit

£126m (2023: £118m)

AUMA

£75.2bn (2023: £73.5bn)

Cost/income ratio

47% (2023: 47%)

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.

Our clients:

– Insurance companies

– Sovereign wealth funds

– Independent wealth managers

– Individuals

– Pension funds

– Platforms

– Banks

– Family offices

Adjusted operating profit

£61m (2023: £50m)

AUM

£369.7bn (2023: £366.7bn)

Cost/income ratio

92% (2023: 94%)


	Read more about our three businesses on pages 24 to 41. Overall performance summary is included on page 76.

1. Source: Fundscape, Direct Matters Q4 2024 report.

2. Source: Fundscape, The Platform Report Q3 2024. Excludes Curtis Banks AUA.


			Annual report 2024	3


STRATEGIC REPORT

Well-positioned for market

growth opportunities

We connect investors to the expertise, tools, and solutions they need to

grow and manage their wealth with confidence.

Across our businesses, we focus on providing leading platforms, specialist

investments, and long-term value — unlocking opportunities and

outcomes that matter.

Market

opportunities

Business

Size of

opportunity

Where we

can win

Intergenerational

wealth transfer

òòò

UK: Transfer of c.

£5.5tn expected over

the next 25 years1

Dynamic retirement

solutions

Increasing personal

responsibility for

savings

òòò

UK: 35% of adults

(19.1m) hold

investments, up 6 ppts

from 20182

Direct and advised

investing

Growing savings &

advice gap

òòò

UK: ‘Savings and

advice gap’ of over 20

million people3

Affordable, tailored

guidance and

execution. Increasing

advisers’ capacity.

Managed solutions

More complex client

needs & outcomes

òòò

11% p.a. growth of

public market active

specialties4

Customised services

and products. Higher

value specialist active

strategies

Growing Private

Markets demand with

increasing accessibility

òòò

10% p.a. growth5

Existing scale, new

products and growth

in new channels

Ongoing energy

transition

òòò

11% p.a. growth in

investment in low-

carbon energy

transition6

Real Assets and

sustainability


ò	interactive investor (ii)		ò	Adviser		ò	Investments

Note: All opportunities are global unless otherwise stated.

Source: 1 Kings Court Trust. 2 Platforum. 3 Boring Money and Yorkshire Building Society. 4 Broadridge. 5 BCG. 6 Bloomberg.


4	Annual report 2024


Our strategic priorities

Our strategic priorities

A clear roadmap focusing on three key strategic priorities

to drive improved performance

Transform performance

– Drive sustainable, profitable growth.

– Deliver a significant uplift in efficiency and profitability

in Investments.

– Improve net capital generation to support

shareholder returns.


	Read more on pages 6-7.

Improve client experience

– Win in UK wealth and with UK & international

investment clients through continued focus on

meeting customer needs.

– Maintain focus on improving investment performance.

– Continue to innovate and simplify.


	Read more on pages 8- 9.

Strengthen talent and culture

– Attract and retain the best people.

– Engage and motivate our colleagues.

– Streamline decision-making driven by the

new Group Operating Committee.


	Read more on pages 10- 11.


			Annual report 2024	5


STRATEGIC REPORT

Our strategic priorities will play a key role in delivering on our new targets:



	FY26		FY26
	Adjusted operating profit		Net capital generation
	>£300m		c.£300m


interactive investor	Adviser	Investments

Sustain efficient growth by building on our differentiated proposition and investing in the ii brand.	Return to net inflows by enhancing our proposition and delivering leading client service.	Step change in profitability by repositioning to areas of strength and opportunity, and driving improved efficiency.
FY26	FY26	FY26


Customer growth	Net promoter score2	Investment performance (3-years)
8% p.a.	>40	>70%


Cost/AUMA ratio1	Net inflows	Adjusted operating profit
<20bps	>£1bn	>£100m


	See page 70 for further details on the FY 2026 targets.

1. The cost/AUMA ratio is calculated as annualised adjusted operating expenses divided by monthly average AUMA.

2. Average NPS for FY 2026.


6	Annual report 2024


Our strategic priorities

Transform

performance

We are driving

transformation across

the Group to improve

efficiency and deliver

valued outcomes for

all of our stakeholders.


			Annual report 2024	7


STRATEGIC REPORT

Transforming to improve efficiency and

profitability

In January 2024, we announced our cost transformation

programme to deliver increased efficiency across the

Group. Over the financial year, we delivered annualised

cost savings of over £100m and aim to deliver at least

£150m of annualised cost savings by the end of 2025.

Our results show that we are already beginning to

deliver performance improvements, although we have

more work to do in Investments, which is the

programme’s main focus.

Each business has focused on transforming its

performance. In 2024, interactive investor delivered 8%

customer growth supported by growth in its market-

leading SIPP. While Adviser saw increased net outflows

compared to 2023, we have seen early signs of positive

momentum through the launch of new solutions, a

revised pricing model and improvements in service.

Investments has seen a significant improvement in its

net outflow position (+£15bn vs 2023) and delivered

£84m of annualised cost savings.

Strong track record of delivering cost efficiencies

Driving performance improvements

across our businesses

Investments has seen an improvement in profitability

and overall net flow position which the business can

build on. Further progress will be driven by focusing on

strengths, improvements in investment performance,

and enhancements to the operating model.

Adviser is seeking to deliver a step-change in

performance and improve client service to provide

a consistently excellent level of service to clients, which

will be critical to return the business to growth.

“We remain focused on executing

our transformation plan, which is

essential to driving sustainable

profitability across the Group.”

Ian Jenkins, Interim Chief Financial Officer

interactive investor’s customer numbers continue to

rise steadily. Our passion for serving our customers, our

focus on continuous improvement, and our desire to

grow market share have delivered impressive results,

which leaves the business well-placed for further

growth.

2025 focus

In 2025, we have appointed Richard Wilson as new

Group Chief Operating Officer who will drive long-term

benefits from our Transformation programme. Our

focus will be on further efforts to streamline the business,

e.g. Investment operating model enhancements,

technology and operational process efficiency

improvements and functional support model

enhancements. We will also focus on supporting future

growth. This includes investing in our people, talent and

culture; improving our use of technology and AI; and

enhancing our business controls.


8	Annual report 2024


Our strategic priorities

Improve

client experience

We put our clients at the

heart of everything we do.

We aim to provide an

exceptional client

experience by delivering

the outcomes they seek

and exceeding their

expectations.


			Annual report 2024	9


STRATEGIC REPORT

Progress in 2024

Understanding the needs of our clients is key to our

ability to deliver on their expectations both in terms of

required outcomes and our service proposition.

interactive investor

interactive investor has focused on expanding its

products and proposition to deliver a great experience

and outcomes for clients. In 2024, we launched our

first managed portfolio service (Managed ISA) for

less confident investors and ii Community, a social

platform for customers to discuss their investment

strategies and support each other’s decision-making.

We implemented a new platform and design for the

public website to create a modern, welcoming

experience for existing customers and prospects.

These enhancements supported a seven-point

improvement for the website’s Net Promoter Score

(NPS) score. We also enhanced in-app experience,

including cash transfers, account administration and

referral programmes.

Adviser

Improving client service is a priority for the business. In

2024, we saw an 18-point improvement in our NPS. This

was thanks to extensive improvements we made to our

platform and processes. Notably, we increased data

processing automation by ensuring only complete

requests are processed, improving overall turnaround

times. We increased the use of digital signatures and

smart forms with embedded validation and routing.

We also enhanced communication on service-level

expectations for consistent client understanding. While

we have made progress, we intend to build on this in

2025 through ongoing service improvements.

Investments

A priority for 2024 was to improve investment

performance to deliver better client outcomes. Through

the ongoing delivery of our extensive performance

improvement plan we are now starting to see a

difference in performance. Over one year, 77% of our

AUM performed (2023: 55%) and 60% performed over

three years (2023: 51%). We also sought to clarify our

brand identity by defining ourselves as a specialist asset

manager that focuses on areas of strength and growth,

e.g. Credit, Specialist Equities and Real Assets. Alongside

these improvements, the business delivered a range of

client service enhancements. For example, we

upgraded our investment reporting proposition to

deliver gains in efficiency and lead times; and we

improved clients’ digital experiences through

improvements to our in-house client portal.

“Improving client experience is

fundamental to our success each

year. While we are proud of the

service we provide, we know there

is more to do. We are focused on

continuously improving our ability

to meet and exceed clients’

expectations.”

Jason Windsor, Chief Executive Officer


interactive investor +40		Net Promoter Score average for the website for 2024 reflecting good customer experience.

Adviser +34		Net Promoter Score average for 2024. An 18-point improvement from 2023.

Investments 7.6		Our “Voice of the Client” score remained stable at 7.6/10, reflecting an ongoing commitment to client service.

2025 focus

We will continue improving client experience across

each business. Below, we highlight examples of our

focus areas in 2025.

interactive investor

– Expand our solutions for lower-confidence investors

through a Managed SIPP product, launch a trading

solution (ii 360) for more advanced users and rollout

of ii advice - a digital advice solution.

Adviser

– Embed new client service team to drive forward

service proposition and improve service timings.

– Maintain investment in the platform to automate

and improve processes, integrating further with third

parties across the advice ecosystem to increase

adviser capacity.

Investments

– Drive investment performance improvements

by investing in the right people, processes and

technology.


10	Annual report 2024


Our strategic priorities

Strengthen

talent and culture

A strong culture with

high-quality, engaged

talent is fundamental to

our long-term success.

We continue to invest in

our people to help build

the foundations for

sustainable growth.


			Annual report 2024	11


STRATEGIC REPORT

Our cultural commitments

We have four commitments that serve as the

foundation of our culture: we put the client first, we are

empowered, we are ambitious and we are transparent.

We engage colleagues around these commitments to

ensure they are embedded in our organisational

structure, processes and decision-making.

Progress in 2024

In 2024, we launched a new career framework to give all

employees a clear understanding of their roles and

career levels, and to enable them to plan their future

careers. We also cascaded detailed scorecards through

each business, with ultimate accountability at the

executive level, mapping back to individual objectives

and goals to ensure people feel more connected to the

Group’s success.

We also embedded new talent and leadership across

the organisation with changes and hires, including a new

Group CEO in Jason Windsor, additional Group COO

responsibilities for Richard Wilson, new leadership of

Investments in Xavier Meyer, a new CTO in Investments,

and a number of leadership changes in our Adviser

business. In February 2025, we also announced the

appointment of Siobhan Boylan as Chief Financial

Officer (CFO), subject to regulatory approval.

While we still have room for further improvement, our

employee sentiment has continued to increase, with

engagement scores now at 57% (2023: 54%).

Meanwhile, our talent development remained strong

with average learning hours increasing on average by

four hours per person. Through diversity, equity and

inclusion work, we continue to oversee and drive

progress allowing all our talent to thrive. Read more on

pages 49-52).

“I am proud of the strides we are

making to develop our talent and

culture. We remain focused on

establishing an even more engaged

business as part of our mission to

deliver great outcomes for clients

and customers.”

Tracey Hahn – Chief People Officer

2024 outcomes

57%

Employee engagement score (2023: 54%)

40%

Female representation at senior leadership

(2023: 34%)

2025 focus

In 2025, we are aiming for continued improvements in

our talent and culture processes, targeting an improved

employee engagement score of 60%.

Each business is fully focused on developing strong,

motivated teams and ensuring clear career progression

and growth opportunities are available for our people.

A business with consistent standards supporting all colleagues


Our talent and culture priorities	Examples of our progress	Target outcomes
Embed best-in-class leadership	– Refreshed Group leadership team. – Strengthened Adviser leadership team.	– Confidence in our leaders. – Aligned focus on clients.
Improve our operating model	– New, smaller Group Operating Committee, driving pace of decisions. – Broadened Executive Leadership Team with greater client expertise.	– Increased speed of execution. – Greater proximity to business.
Invest in our people	– New career framework launched. – Extra four learning hours per person.	– Attract and retain the best people. – Better performing teams.
Evolve our culture	– Improved colleague engagement score of 57% (2023: 54%). – Scorecards to track execution.	– Robust performance management. – Increased innovation and efficiency.


12	Annual report 2024


Chairman’s statement

Strong foundations for growth

Sir Douglas Flint

Chair


			Annual report 2024	13


STRATEGIC REPORT

2024 marked a further year of

transition, during which good

progress was made in returning

abrdn to a position from which it can

grow sustainably and deliver the

profitability required by our

shareholders and offer the career

opportunities and recognition our

colleagues seek.

Our transition is based upon building

profitability in all three of our Wealth

and Investment businesses, each of

which has good potential for growth,

with each at a different stage of

development. The Board’s principal

accountability is to ensure the

disciplined allocation of capital to

where it can deliver the best long-

term outcomes for all stakeholders

and to release or redeploy capital

where it underperforms its required

returns; the Board takes this

accountability extremely seriously.

Performance in 2024

We entered the year with an

ambitious plan to invest to simplify

our profile and address an

uncompetitive cost/income ratio.

I am pleased to report we surpassed

the cost reduction targets we

announced at the beginning of 2024.

Most of this was achieved within the

operations, technology and

functional areas within the

Investments business and we are on

track to meet the £150m cost

improvement target we set by the

end of this year. We continued to

rationalise non-core activities,

including disposing of our European-

based private equity business and

majority disposal of Focus Business

Solutions, a software product and

services business and expect to take

further steps to simplify our business.

But resumption of profit growth

cannot be achieved through cost

reduction alone, although that is

essential both to fund the reshaping

of our businesses, where that is

needed, and to support growth in

our fast-growing segments.

Our leading D2C platform business,

interactive investor (ii), delivered

excellent results and is our main

engine of growth opportunity, fully

justifying the confidence we had in

its business model on acquisition in

2022. We committed additional

funding to build its brand recognition

and expand its customer numbers

organically. That investment was

rewarded with ii close to doubling

its net inflows in the year, attracting

the largest share of net flow in its

market with excellent penetration

of SIPP accounts.

Our Adviser platform business

remained our most profitable

business yet suffered a further year

of disappointing net outflows which

we are taking steps to reverse.

During the year we refreshed the

leadership of the business, added

resource to improve customer

experience and adjusted our pricing

to improve our competitive

positioning, all with the objective of

returning to net positive flows as

soon as possible.

Our Investments business made

progress in 2024 with net outflows

considerably lower and profits

ahead of the prior year. We

achieved this first by committing to

and executing successfully a cost

reduction programme that targeted

areas where we were out of line with

best-in-class peers and where fully

costed service delivery was no

longer covered by projected

revenues. Considerable attention

was directed to reshaping the

Investments business without

impacting client interface and

service, with most of the cost

reduction achieved in 2024 targeted

in support and operations areas. We

simplified the leadership structure to

streamline decision making and

implemented process improvement

plans across the entirety of the

Investments business.

The business mix we have today

reflects the significant repositioning of

the company over the last six years to

a modern and digitally-focused

Wealth & Investments group.

Jason Windsor in his Chief Executive

Officer’s review will amplify the key

elements of performance in 2024,

clarify the strategic priorities of each

of our businesses and introduce the

new name of the Company

approved by the Board, aberdeen

group plc.

Investment environment

and trends

For all of our businesses, the

investment environment is

important as it impacts the risk

appetite and allocation decisions of

our clients and customers. Market

conditions in 2024 were mixed.

Investor appetite fuelled

continuation of the long period of

concentration of asset allocation

towards the vibrant US economy

and within it the largest US

technology related companies while

interest in Asia and emerging

markets was muted. China’s slower

than hoped for economic recovery

post-pandemic cast a shadow over

investor appetite for Asian exposure

which was detrimental to us given

our long heritage of investing in that

region. Pressure on traditional asset

manager revenues reflected further

growth in the market share of

passive strategies versus active. In

the UK, flows out of equity products

also reflected continuing

decumulation from UK defined

benefit pension schemes, now in

run-off, that were historically the

bedrock of asset gathering for UK-

based asset managers.

These trends are leading to shifts in

the focus and shape of traditional

asset management businesses.

Notably, as concerns have grown

over the sustainability of the valuation

levels to which public equity markets

in the US have reached, interest in

gaining greater access to private

market assets has expanded

markedly. In European public markets,

we are now seeing emerging

consolidation among the largest asset

managers to address their cost and

distribution challenges, a trend that

we and market commentators

expect to continue.


14	Annual report 2024


Chairman’s statement continued

Board matters

Most significantly, during 2024, we

completed an orderly succession in

the leadership of the firm. Stephen

Bird handed over the reins to Jason

Windsor in May last year, with Jason

being appointed as CEO in

September of that year, following a

thorough, externally supported,

process. I am pleased to report that

Jason has made a strong start as

CEO, impressing both clients and

colleagues with his commitment to

prioritising service delivery focused

on enabling our clients to meet their

investment objectives. Once again, I

would like to place on record our

thanks to Stephen for his leadership

as CEO through what was a very

turbulent period.

In other Board changes we

welcomed Katie Bickerstaffe and

Vivek Ahuja to the Board with effect

from 1 October last year. Katie

brings considerable retail and

consumer experience as well as

proficiency in delivering business

transformation and digital business

change programs. Her career

included spells at Unilever, Pepsico,

Dyson and Marks & Spencer from

where she retired in July last year as

co-CEO. Vivek has over thirty years’

experience in international financial

services notably with Standard

Chartered plc where he was Deputy

CFO and in his non-executive

career, Vivek chaired the risk

committee at NatWest Markets.

These appointments followed the

departure of Catherine Bradley from

the abrdn plc Board at last year’s

AGM to concentrate her service to

the Group as Chair of ii. In December

we announced that, as a

consequence of her appointment as

Chief Financial Officer and an

Executive Director of HSBC Holdings

plc, Pam Kaur will not seek re-election

at the forthcoming AGM. We are

disappointed to lose Pam’s input but

are delighted by her appointment to

such an important role.

Finally, we were delighted to

announce on 28 February that

Siobhan Boylan will be joining the

Company as Chief Financial Officer

and an Executive Director, subject to

regulatory approval. Siobhan is

expected to join the Company in the

summer.

Siobhan is an accomplished CFO

who brings over thirty years’

experience and significant

knowledge from across the financial

services sector. She is currently CFO

of Coutts & Co, the private banking

arm of the NatWest Group, and will

step down from her role as an

independent non-executive director

of Jupiter Fund Management prior

to joining the Company.

Prior to Coutts & Co, Siobhan was

CFO of wealth manager Brewin

Dolphin , CFO of the asset

management subsidiary of Legal &

General, LGIM, and held various

senior finance roles at Aviva plc.

The appointment of Siobhan

completes the line-up of the

Executive Leadership Team

assembled by Jason to build on the

solid foundations for growth he

describes in his report.

Once these changes take place, the

Board will comprise two executive

directors, seven non-executive

directors and the Chairman.

With a Board refresh also

completed last year, it is now an

appropriate time to commence the

search for my own successor as

Chair and Jonathan Asquith as

Senior Independent Director will lead

this process, starting immediately. I

will be working closely with Jonathan

and Jason to ensure a smooth

handover when the time comes.

Finally, the Board is recommending

a final dividend of 7.3p per share

taking the total for the year to 14.6p

per share, identical to the prior year.

The proposed final dividend will be

put to shareholders at the upcoming

AGM. The full-year dividend was

92% covered by net capital

generation in the year.

Looking forward

As we entered 2025, two words

dominated commentators’

perspectives on the year ahead –

‘uncertainty and disruption’. We

have already seen the first major

surprise given the market turmoil

following the launch of the Chinese

AI App ‘DeepSeek’ in late January.

More broadly we are entering a

period where globalisation and

multilateralism are being challenged

as never before, where

protectionism and nationalism are

being advanced under many guises

– supply chain resilience, security of

supply, national security

considerations, and attempts to

address persistent economic

imbalances through tariffs. On top of

this, the geopolitical and fiscal

challenges brought about by a

lower growth global economy, the

pause in appreciation of living

standards in much of the world,

unplanned migration, demographic

ageing and its impact on health and

social care systems, climate change

preparation and continuing major

military conflicts – all have to be

taken into account when designing

investment strategies to protect and

grow the savings entrusted to us.

Our research-based experience

and skill in constructing portfolios to

meet investment goals through

active management gives us the

agility to respond to changing

economic circumstances and risk

preferences. We do this through

accessing selectively the wide range

of asset classes we manage, which

places us in an excellent position to

meet the requirements of both our

institutional and retail wealth clients.

This latter customer segment is

increasingly important to us,

especially as around the world

greater emphasis is being given to

placing responsibility on the

individual to plan and save for

lifetime events and in particular

retirement. We welcome steps

being taken in the UK to build a retail

investment culture through

simplifying the regulation around


			Annual report 2024	15


STRATEGIC REPORT

advisory services and introducing

the concept of ‘targeted support’ to

facilitate broader access to

investment services through helping

consumers to make informed

decisions. We also welcome the

greater regulatory emphasis now

being permitted on ‘value’ versus

‘cost’ when assessing suitability of

investment products. This follows on

from the encouragement now being

given to our regulators to accept

that a higher tolerance of risk in

investment outcomes is necessary

to enhance returns over the long

term and thereby attract

investment to asset classes such as

infrastructure that will create the

future we aspire to build for future

generations. If we had an ask to

facilitate further encouragement to

the creation of an equity culture, we

would join others in noting that the

stamp duty tax on share purchases

in the UK is higher than in many other

countries, many of whom indeed do

not have such a levy, and that this

acts as a disincentive to investment

in UK listed versus overseas shares.

In a globalised investment world

competing for capital this is a

significant disadvantage.

All major economies today seek

growth to fund the fiscal and

societal challenges facing them; and

sustainable growth requires

investment to build the

infrastructure, the skill base and the

innovation that will deliver such

growth. We have a major

responsibility to harness the

investing skills within our Investments

business to allocate capital to make

this a reality and to facilitate access

to such investment products as

widely as possible through our

distribution channels in a cost

effective and risk transparent way.

The coming year will offer both

opportunities and challenges for all

the reasons noted above but we

now have a sound base from which

to grow and are well down the road

of redesigning our businesses to be

even more relevant to the customer

segments we serve. We owe our

colleagues a huge debt of gratitude

for all their efforts to build this

position and we look forward to

updating shareholders on progress

as the year develops.

Sir Douglas Flint

Chair

Photo credit: Kimmo Iso-Tuisku

abrdn core infrastructure

investments in district heating,

Finland and biomethane

platform, Italy


16	Annual report 2024


Chief Executive Officer’s review

Growing in Wealth,

Repositioning Investments

Jason Windsor

Chief Executive Officer


			Annual report 2024	17


STRATEGIC REPORT

I was delighted to be appointed as

CEO of the Group in September, and

stepped into this role with a sense of

determination and optimism about

the challenges and opportunities

ahead.

Since taking the role, the depth of

talent, and the commitment to our

clients and customers, has shone

through. We are working hard to

deliver better outcomes for all of our

stakeholders, and I would like to

thank our clients, colleagues and

shareholders for their support.

In 2024, we reported adjusted

operating profit of £255m (2023:

£249m), with all three businesses

contributing higher profits than last

year. This was driven by cost

discipline, better markets and a

strong performance by interactive

investor.

The reasons for my optimism are

clear. First, the performance in 2024

has strengthened our foundations

with significant headroom for

growth. As we move through 2025

and beyond, we are well positioned

as a Wealth & Investments group

with two leading businesses in the

fast-growing UK Wealth sector,

alongside a specialist asset

management business that is

repositioning its focus on its

strengths and where it sees

opportunities to drive growth

globally. This is underpinned by a

commitment to continuous

improvements in efficiency,

technology and talent.

We intend to deliver through a

relentless focus on execution, with

clarified accountabilities measured

by extended KPIs. Across the Group,

we are already driving improvement

by removing distractions, simplifying

the business, eliminating

unnecessary drags on profitability,

and focusing management time on

the right areas.

Our strategic priorities and

FY 2026 targets

As part of our strategy update, each

of our businesses has set a clear

strategic objective:

– interactive investor: Sustain

efficient growth by building on our

differentiated proposition and

investing in the ii brand.

– Adviser: Return to net inflows by

enhancing our proposition and

delivering leading client service.

– Investments: Step change in

profitability by repositioning to

areas of strength and opportunity,

and driving improved efficiency.

Our three Group priorities that I set

out at Half year remain unchanged.

We are focused on transforming

performance, improving the client

experience and strengthening talent

and culture.

Alongside, we continue to simplify the

business, focusing on where we have

competitive advantage. We made

progress in 2024 with a number of

non-core divestments, and we have

commenced a review of strategic

options for our Finimize business.

We are also announcing new Group

targets for FY 2026, building on the

momentum achieved in 2024:

– Adjusted operating profit to

increase to at least £300m in FY

2026; an increase of at least 18%

from 2024. This is expected to

reflect a significant uplift in

contribution from interactive

investor along with growth in

Investments, partly offset by the

impact of the previously

announced repricing in Adviser.

– Net capital generation is expected

to increase to c.£300m in FY 2026,

an increase of c.26% from 2024.

Better performing businesses and a

simplified Group will support

reinvestment into growth areas,

improve capital generation and

support our dividend policy.

Combined with the further

strengthening of our capital position

through the deployment of our

pension surplus, this presents what I

believe is a compelling route to

creating greater value for the Group.

New corporate name

This is a Group to be proud of, with a

promising future. We will deliver by

looking forward with confidence

and removing distractions. To that

end, we are changing our name to

aberdeen group plc. This is a

pragmatic decision marking a new

phase for the organisation, as we

focus on delivering for our

customers, people and

shareholders.

We do not intend to make any

changes to our subsidiary legal

entity names or the names of our

underlying funds (including the

CUSIPs or ISINs) at this time, and our

LSE ticker will remain ABDN. We will

now start to use ‘aberdeen’ as the

principal trading identity for our

Investments and Adviser businesses.

New senior leadership team

Delivering on our ambitions will take

real determination. In November, I

reshaped the senior executive team,

including setting up a streamlined

Group Operating Committee to

improve the pace of decision-

making, and an extended, more

commercial, Executive Leadership

Team. By putting the right talent in

the right roles, we are now well

placed to accelerate progress

against our strategic priorities.

As our new Chief Operating Officer,

Richard Wilson is tasked with driving

the organisation harder, improving

operational efficiency along with

sustaining the impressive growth in

interactive investor. The first focus of

our new CEO of Investments, Xavier

Meyer, is our clients - bringing them

better experience, service and

product performance.

On 28 February, we announced the

appointment of Siobhan Boylan as

CFO, subject to regulatory approval.

Siobhan’s skillset and experience is

highly relevant and complementary

to the rest of the leadership team

and I know she will make a

significant impact when she joins this

summer.

Overview of 2024

performance

Cost discipline, better markets and a

strong performance by interactive

investor enabled us to improve

adjusted operating profit to £255m

(2023: £249m), with all three

businesses reporting higher profits

than last year.

It is important to make clear,

however, this is well below the level

of profitability we aspire to, and we

see much more potential across the

Group.


18	Annual report 2024


Chief Executive Officer’s review continued

Overall we reported a

transformationally higher IFRS profit

before tax of £251m (2023: loss

£6m) which includes higher adjusted

operating profit, the gain on sale of

the European-headquartered

Private Equity business of £92m and

lower restructuring and corporate

transaction expenses of £100m

(2023: £152m).

AUMA is up 3% on last year to

£511.4bn with total Group outflows

of £1.1bn, representing a substantial

improvement on 2023 when

outflows were £17.6bn. As well as

strong customer and AUMA growth

in interactive investor, this was

supported by market conditions,

which more than offset the impact

of the sale of our European-

headquartered Private Equity

business.

The transformation programme we

launched in January 2024 has

surpassed the year one targets we

set out, delivering £70m of in-year

cost savings and over £100m of

savings on an annualised basis. We

remain on track to deliver a

reduction in run-rate costs of at

least £150m by the end of 2025, with

a commitment to continually seek

further efficiencies.

interactive investor

Strong performance with excellent

foundations for sustained growth.

interactive investor has undoubtedly

delivered the strongest

performance across the Group this

year. A focus on organic growth saw

total customer numbers increase by

8% to 439k. This helped to deliver net

inflows totalling £5.7bn compared to

£2.9bn in 2023, making it number

one in the UK for D2C flows across

the year, and contributed to a 17%

increase in AUMA to £77.5bn.

Trading and FX revenues also rose

sharply, with retail trades up by almost

30%. Around a quarter of all UK retail

share trading and a third of UK retail

international trading last year were

transacted through interactive

investor.

Adjusted operating profit in

interactive investor was £116m

(2023: £114m), an increase on last

year despite the sale of the

discretionary fund management

business and the transfer of MPS to

Adviser.

A number of key actions contributed

to interactive investor’s growth in

2024. Greater investment in the ii

brand and marketing delivered

improved customer awareness. This

was supported by strong structural

growth across the D2C market,

which we expect to continue.

Growth has also been driven by a

series of proposition enhancements.

In 2024, we launched a new

Managed ISA and introduced ii

Community, which offers a social

platform for users to connect with,

and learn from, other investors. With

a Managed SIPP (designed with

aberdeen Investments), ii advice (a

digital advice service) and ii360 (an

advanced trading platform), all

expected to launch in 2025, we look

to further broaden our customer

appeal.

By leveraging our excellent

technology base and disruptive

pricing model to deepen and widen

customer engagement, we are well

placed to enjoy the compound

effects of gaining a growing share of

a growing market.

Adviser

Actions being taken to achieve client

service leadership, reverse outflows

and return to growth.

Adjusted operating profit in Adviser

was up 7% to £126m (2023: £118m).

Markets also helped support a small

rise in AUMA to £75.2bn (2023: £73.5bn).

While the increase in profit is welcome,

the picture on flows was

disappointing with elevated

redemptions leading to net outflows of

£3.9bn (2023: outflows £2.1bn).

Adviser remains at number two in the

UK market by AUA, and serves over

50% of the UK’s IFAs. Returning to

growth is our key priority and a range

of actions has already been put in

place to achieve this.

We made an important shift on

pricing, becoming more competitive

as we seek to take advantage of a

structurally growing market. We

also made important

enhancements to our proposition,

with the launch of our Money Market

MPS option in February 2024,

followed by our cash savings

solution on the Wrap platform in

July.

Adviser has also strengthened its

sales and distribution capabilities. A

new Chief Distribution Officer has

been appointed, one of several

senior appointments to strengthen

the Adviser leadership team.

We have acknowledged that

aspects of our client service have

not been as strong as they should

and we have undertaken a range of

measures to address this. This work

has resulted in much shorter delivery

times in critical areas like sign-ups

and transfers. Our customer

feedback scores have improved

over the year, and we expect to

make further progress in 2025.

Adviser holds an enviable position in

an attractive market and, through

these actions, we are focused on re-

establishing a leadership position in

the market, with a growing and

profitable business.

Investments

Significant growth in net flows, with

cost discipline and markets offsetting

changes in asset mix.

2024 brought more favourable

market conditions than experienced in

recent years, helping Investments

AUM to rise slightly from £366.7bn to

£369.7bn, despite the sale of the

European-headquartered Private

Equity business and other corporate

actions (£(6.6)bn).

Net outflows reduced significantly

from £19.0bn in 2023 to £4.0bn, with

Institutional & Retail Wealth flows

improving by over £18bn to an overall

net inflow of £0.3bn, reflecting a

material reduction in redemptions

and a 31% improvement in gross

flows excluding liquidity to £25.5bn.

While outflows in equities remained a

sectoral challenge, this was offset by

good momentum in our alternatives,

quantitative and liquidity strategies.

Insurance Partners net outflows

increased to £4.3bn (2023: outflows

£1.1bn) principally relating to run-off in

the heritage business.

The ongoing trend toward passive

strategies continues to put pressure

on margins. In this environment, cost

discipline has been critical, and we

have delivered a reduction in adjusted

operating expenses in Investments of


			Annual report 2024	19


STRATEGIC REPORT

11%, helping to deliver an increase in

adjusted operating profit to £61m

(2023: £50m).

Investment performance is improving,

with the overall percentage of AUM

performing over three years at 60%

(2023: 51%), with even stronger

performance over one year at 77%

(2023: 55%). Further work remains on

equities performance, largely due to

the weighting of our business toward

emerging markets and Asia. Our

programme of improvements is

beginning to gain traction, with

performance in multi-asset and

equities showing welcome increases

over the one-year period.

Momentum is shifting in Investments,

and there is potential to unlock

substantial profitable growth over

time. With the changes to the

executive team and a sharper

strategic focus, we are now better

placed to realise the potential of our

Investments business.

As we move ahead, we will preserve

and optimise our offering in core

areas, while repositioning

Investments to focus on the specific

capabilities where we have

competitive advantage and clear

market opportunities, namely real

assets, credit and specialist equities.

We also expect to build scale in

important areas of the business (e.g.

Insurance, Closed End Funds and

Institutional Solutions), and expand

further in Private Markets and

Wholesale, where we see attractive

growth opportunities. At the same

time, we will redouble efforts to

achieve greater efficiency, with

automation of more processes, to

drive better results.

Capital allocation and

dividend

Our commitment to disciplined capital

management was maintained in

2024, finishing the year with indicative

CET1 of £1.5bn (2023: £1.5bn), and

coverage of 139% (2023: 139%). Part

of delivering better performance lies in

simplifying the business, and the non-

core divestments we made through

the year delivered an overall gain on

disposals of £100m, which supported

our transformation.

Adjusted capital generation of

£307m (2023: £299m) covered our

dividend 1.2x. Net capital generation

was £238m (2023: £178m), up by a

significant 34%.

As we have previously highlighted,

the Group’s defined benefit pension

plan has been successfully

managed over the years, resulting in

a significant surplus. We have now

reached agreement with the

Trustee to use part of the surplus to

fund the cost of providing defined

contribution benefits to current

employees. We expect this to deliver

a significant annual boost to capital

generation of c.£35m starting from

July 2025 (we expect no impact on

adjusted operating profit). This

agreement enables the Group to

unlock value from the plan, while

largely maintaining the surplus and

retaining optionality.

We understand the importance of

the dividend to our shareholders.

The Board’s intention is to pay a total

annual dividend of 14.6p per share

until it is covered at least 1.5x by

adjusted capital generation. Our

commitment to growing capital

generation to support the dividend is

evidenced by our new target of

c.£300m net capital generation in

2026, an increase of c.26% on 2024.

Sustainability

As an organisation of over 4,000

people, with clients and customers

across the globe, we have a

responsibility to make a positive

impact on the communities we live

and work in. With this in mind, we

have refined our sustainability

strategy in 2024, with a focus on

ensuring transparency,

accountability and clarity of

purpose. Our approach is now

based around three pillars:

environmental transition, inclusive

growth and responsible business.

As an investor, we have been

factoring sustainability into our

approach for many years. As well as

considering ESG as part of our

standard investment processes, we

offer a broad range of sustainability

focused products, informed by deep

research and expertise.

Our commitment to inclusion saw

our gender pay gap further reduce

this year, and we have also

published ethnicity pay gap data for

the first time. Going into 2025, we

plan to develop our inclusive growth

pillar further with a strategy focused

on the ‘lifelong ladder’ of saving and

investment. Financial education and

employability are at the heart of this

strategy as we believe these are

issues on which we and our partners

can have the greatest impact.

Looking ahead

Across our markets there are

compelling long-term structural

growth drivers which we are well

placed to leverage - changing

demographics, generational wealth

transfers, and the growing need for

people to secure their own financial

futures – and these drivers are likely

to continue for several years to

come.

Our ambition is to be the UK’s

leading Wealth & Investments

group, with fast growing direct and

advised wealth platforms and a

specialist asset manager that

operates worldwide with strength in

areas of market growth, all driven by

excellent client service, technology

and talent.

We have substantial headroom for

growth in each of our businesses. In

parallel, we are simplifying our

business, focusing on where we

have competitive advantage.

Success will demand a relentless

focus on execution. I am confident

we have the right team to meet this

challenge. We are setting out clear

plans for all three businesses,

together with ambitious 2026

targets which will enable us to

provide evidence of our progress, as

we transform the Group to achieve

its full potential.

Jason Windsor

Chief Executive Officer


20	Annual report 2024


Our business model

A Wealth & Investments group with

strong foundations for growth

Positioned for success through market cycles

Driven by our purpose to enable our clients to be better investors, we have

strengthened our business through effective capital management and

investment to create strong foundations for growth.

Our strengths and

resources

UK’s second-largest direct-to-

consumer investment platform

by AUMA and number one by

net flows.

UK’s second-largest advised

platform by AUA, powered by

innovative technology.

Specialist asset manager

providing investment solutions to

meet complex needs.

Global distribution and client

base.

Strong balance sheet to drive

shareholder value and client

confidence.

Positioned to benefit

from key themes

shaping our markets

1. Long-term structural growth

in UK savings and wealth,

driven by:

– Increased personal

responsibility for savings

– Ongoing wealth transfer

– Reducing the savings and

advice gap

2. Ongoing energy transition:

– Real assets growth

– Infrastructure spending

3. Digital innovation

– Transforming investment

platforms and asset

allocations to support more

complex client needs and

outcomes.


An efficient, diversified model

Strengthened, simplified business – Strategic focus – Robust governance – Effective capital management

Driving investment in long-term growth – People – Product – Technology

Structured around three businesses
ò	interactive investor
ò	Adviser
ò	Investments

Delivered through strong operational processes

Controlled processes

Our control environment helps us manage risk effectively, provide

business security and maintain operational resilience.

Efficient operations

We are enhancing our operations for agility, speed and efficiency,

supported by technology which aims to deliver the best possible

experience.


			Annual report 2024	21


STRATEGIC REPORT

Creating long-term value

Diversified business and a strong balance sheet

support long-term value creation

Investment in long-term growth

Payment of dividends to shareholders

How we make money

We earn revenue mainly from:

– Asset management and platform

fees based on AUMA.

– Subscription and trading fees.

– Interest margins on cash balances.


	Value shared with stakeholders

	Clients We focus on delivering outcomes that truly matter to our clients. We draw on our expertise and insight with the aim of delivering long-term investment performance. Investment performance
	77% One-year	60% Three-year

	Colleagues We aim to attract and develop the best people for leadership roles, and to offer clear pathways for career advancement. 57% Employee engagement score

	Society We have important responsibilities to society and the environment. Through sustainable investment we increase the positive impact we can have through our operations. AA MSCI ESG rating

	Shareholders We aim to create sustainable shareholder value over the long term. 14.6p Full year dividend


	Read more on Chief Financial Officer’s overview on pages 66 to 81.			Read more on Stakeholder engagement on pages 59 to 61.


22	Annual report 2024


Performance overview

Delivering improved financial

performance in 2024

Cost discipline, better markets and a strong performance by ii have

ensured improved profitability in the year. However, profitability remains

well below the level that we aspire to, and we see much more potential

across the Group.

Financial performance summary

Adjusted net operating revenue1

£1,321m

reduced by 6% to £1,321m (2023: £1,398m) reflecting

the impact of net outflows and the expected lower

margins in Investments as well as the net impact of

corporate actions.

Adjusted operating expenses

£1,066m

reduced by 7% to £1,066m (2023: £1,149m) driven by

the continued progress on delivering cost savings.

1. The measure of segmental revenue has been renamed from net operating revenue to adjusted net operating revenue. See Note 3(c) for a

reconciliation of these revenue measures.

Adjusted operating profit

£255m

increased by 2% to £255m (2023: £249m) reflecting

higher profitability in Investments, Adviser and

interactive investor, partly offset by higher central

Group corporate costs.

IFRS profit before tax

£251m

of £251m (2023: loss £6m) includes the gain on sale of

our European-headquartered Private Equity business

and lower restructuring and corporate transaction

expenses of £100m (2023: £152m).

Net outflows

£1.1bn

improved to £1.1bn ( 2023: £17.6bn), primarily

reflecting strong Investments gross inflows in

quantitatives, liquidity and real assets. ii net inflows

were strong at £5.7bn (2023: £2.9bn).


			Annual report 2024	23


STRATEGIC REPORT

Our capital resources provide strength to allow for investment to grow the

business and to be more efficient.

Capital performance summary

Common Equity Tier 1 (CET1)

£1,465m

was stable at £1,465m (2023: £1,466m) including the

benefit from adjusted capital generation in the year

and the disposal of the European-headquartered

Private Equity business. This was offset by the payment

of dividends, and restructuring expenses.

Cash and liquid resources

£1.7bn

remained robust at £1.7bn (2023: £1.8bn). These

resources are high quality and mainly invested in cash,

money market instruments and short-term debt

securities.

Value of listed stake in Phoenix

£0.5bn

of £0.5bn (2023: £0.6bn) is excluded from the CET1

capital position.

Full year dividend per share

14.6p

was maintained at 14.6p (2023: 14.6p), with a dividend

coverage on an adjusted capital generation basis of

1.18 times (2023: 1.12 times). It remains the Board’s

current intention to pay a total annual dividend of 14.6p

until it is covered at least 1.5 times by adjusted capital

generation.


	Read more about our financial and capital performance in the Chief Financial Officer’s overview section of this report.


24	Annual report 2024


Our businesses

Richard Wilson

CEO, interactive investor

20%

self-directed retail investment

platform market share of AUA1

439,000

total customers2

growth in total customers2

29%

growth in SIPP customers2

£77.5bn

AUMA

It was another impressive year for ii

as we delivered strong year-on-

year performance ahead of

expectations to support our

sustained, organic growth.

We welcomed 32,000 net new

customers and continued to see

strong growth in the number of

customers who choose to hold an ii

SIPP. This contributed to around

£6bn net AUA inflows — 31% of UK

market inflows3 — and incremental

growth across most market share

metrics.

Trading activity was 29% above

1. Source: Compeer XO Quarterly Benchmarking report, as at 30 September 2024.

2. Excludes our financial planning business.

3. Source: Fundscape, Direct Matters Q4 2024 report, as at 31 December 2024.

2023 levels. This was supported by

increased international trading,

which exceeded the previous

record set in 2021 and benefited

from our multicurrency global

markets offering.

In 2024, we continued to enhance

our customer proposition through

several major initiatives.

Firstly, we launched our new

Managed ISA targeting new and

inexperienced investors who lack

the confidence to manage their own

investments but recognise its

importance in achieving financial

security.

We also launched ii Community, a

new, innovative social trading

platform that enables people to

discuss stocks, compare their

portfolios and get inspiration from

other investors, while offering data-

driven insights.

Additionally, we launched our new

public website, providing improved

underlying technology and a better

user experience to continue

supporting our growth.

Our roadmap for 2025 will bring

another wave of new features,

including our Managed SIPP; our

digital advice service, ii advice; and

our advanced trading platform,

ii360.

Our results in 2024 reflect the

successful combination of our fixed-

fee subscription model; wide-

ranging investment choices; and

reliable, continuously improving

customer experience that we

provide.

As we continue to innovate, we

believe we can help more people

take direct control of their financial

future, regardless of how confident

they are in managing their

investments.


			Annual report 2024	25


STRATEGIC REPORT

Our strategic overview

We are driving strong, organic growth by broadening our proposition and

attracting new customer segments.

Who we are


Our ambition	Be the UK’s leading personal wealth platform with best-in-class propositions

Key capabilities and offerings	Flexible D2C investment platform	Simple investment solutions	Operating excellence & embedded risk culture

Who we serve	Lower confidence investors	Self-directed investors	Active/expert investors

Strategic areas of focus	Broaden and deepen proposition	Drive further customer engagement	Increase automation and efficiency


Building a leading position in the UK savings and wealth market		£4.6tn UK Savings and Wealth Market1
		£366bn D2C Platforms2
		£77.5bn interactive investor


AUMA		Adjusted operating profit
2023 £66.0bn	2024 £77.5bn	2023 £114m	2024 £116m

1. Source: The Investment Association, Investment Management in the UK 2023-2024. Figures as at 31 December 2023 and inclusive of retail and

institutional markets.

2. Source: Fundscape, Direct Matters Q4 2024 report, as at 31 December 2024.


26	Annual report 2024


Our businesses continued

Sustained organic growth

Our progress in 2024

Following several years characterised by M&A activity,

our focus at ii since 2022 has been on organic growth. In

2024, we welcomed 32k net new customers to the

platform, representing an increase of 8%, which brought

our total number of customers to 439k (2023: 407k).

Net inflows were strong in each quarter, totalling £6.1bn

across the year for the ii direct platform, compared to

£3.3bn in 2023. This contributed to AUMA increasing by

19% to £73.8bn for the ii direct platform, up from £61.7bn

at the end of 2023.

To promote our organic growth strategy, we increased

our brand activity, launching our ‘Say hi to ii’ TV

advertisements in Q4 2023, supported by a broader

content campaign across multiple marketing channels.

Between Q4 2023 and Q4 2024, this helped our

prompted brand awareness to increase from 13% to

25%, according to Boxclever data . Although this score

remains behind our closest peers’, we hope to close the

brand awareness gap by 2026.

Market-leading

We are the UK’s leading flat-fee retail investing platform

by AUA,1 and we continued to grow our self-directed

AUA market share from 19.2% to 19.8% between the

end of Q3 2023 and Q3 2024 (the most recent figures

available). Compeer benchmark reporting showed that

we also grew our share in the UK cash-market trading,

non-UK trading and SIPP markets, with the number of

customer SIPPs increasing by 29% to 80.6k.

Our market-leading proposition was also recognised

through numerous awards. For the third year running,

we were named Recommended Provider of Self

Invested Personal Pensions (SIPPs) by Which! We also

won the Association of Investment Companies (AIC)

Shareholder Engagement Award for the fourth

successive year. We also received six awards from

Boring Money, including Best Buy ISA, Best Buy Pension

and Best for Low-cost Pension.

Continuous proposition enhancements

Our growth has continued to be supported by the

successful delivery of enhancements to our service

offering and proposition, supported by an extraordinary

service team. During 2024, we launched several

products and services, including our new Managed ISA;

ii Community, a new, innovative social trading platform;

and our new public website, alongside improvements to

our website research and content.

ii Community was deployed in October 2024. By the

1. Platforum data, as at 31 March 2024.

year-end, it had attracted 12.1k users who posted a

total of 19.8k interactions. Through joining the

community, investors who feel more confident in

managing their own money (‘self-directed’ investors)

can generate ideas and share learning with others by

discussing individual stocks and comparing their

portfolios. Community members can also access

performance data and portfolio breakdowns to

compare their investments to other users’.

Attracting new customer segments

Due to our flat-fee, subscription-based pricing model,

our core customer base has historically been self-

directed investors. To attract new customer segments,

our more recent proposition enhancements have been

designed to attract a broader range of investors,

including those with a lower level of confidence in

investing. Our Managed ISA, ii Community and lower,

essential-investor price points, which we introduced in

2023, are all designed to encourage less experienced

investors, including younger customers, to start building

their investment portfolios.

In 2025, we intend to launch our new Managed SIPP,

which aims to help inexperienced investors save for their

financial futures through private pensions. In the first half

of the year, we also plan to introduce our advanced

trading application, ii360, to attract more sophisticated

investors. ii360 is designed to give users access to a

wider range of instruments, including derivatives and

stock lending, as well as enhanced market data through

a state-of-the-art market trading experience.

Revenue growth

Our overall business revenues grew to £278m in 2024.

Adjusting 2023 revenues for the sale of our discretionary

fund business and transfer of MPS to Adviser in the same

financial year, this represents an underlying growth of

£19m, or 7%.

Trading and FX revenues increased by 15% and 70%

respectively over the year. Daily average retail trades

increased to 20.1k compared to 15.7k in 2023 – a year-

on-year increase of 28%. Within this, non-UK equity

trades grew by 64% to 4.3k, helping to drive the uplift in

FX transactions. Trading activity was driven by

increased volatility, partly due to political and economic

uncertainties in 2024.

Subscription fees, gross of marketing incentives,

increased to £60m (2023: £58m) reflecting strong

organic customer growth. Customer incentive costs

increased by £4m to £8m, including cashback and free

period offers, which have helped drive customer growth.

Treasury income increased slightly in 2024 to £138m

(2023: £134m). Our net treasury margin was 229bps,

down slightly from 236bps in 2023. We expect our

margin to remain in the region of 200-220bps in 2025 if

the Bank of England steadily reduces the UK’s base

interest rate as expected at the time of writing.


			Annual report 2024	27


STRATEGIC REPORT



	Opportunities for growth Market growth: – Structural market growth – UK savers taking increased personal responsibility for their finances. – ISA market AUA growth of 10% p.a. over seven years to Q3 20241. – SIPP market AUA growth of 12% p.a. over seven years to Q3 20241. How we’re increasing market share: – Clear 2024-2025 product roadmap – Managed ISA and SIPP, new website, ii Community and ii360. – Targeted offerings to retain and attract customers in each segment – lower-confidence, self-directed and active/expert investors. – Improved research offering in 2024. – Continued review of our subscription-based pricing plans.

Growth through accessing adjacent customer segments

We test and learn new services to broaden our proposition with a subscription core by carefully

leveraging the ii operating model and technology capabilities:

– Simplified experiences for less confident investors.

– All propositions follow a subscription model, with bolt-on fees for added-value services such as advice and ii360.

– Position financial planning on top of service offering.


	ii advice (digital advice service)

Managed SIPP (“help me do it” SIPP)		ii 360 (advanced trading platform)

Lower confidence investors	Self-directed Investors		Active/expert investors

	Meeting broader customer needs


New segment	Covered segment	New product/service

1. Source: Compeer XO Quarterly Benchmarking report data, as at 30 September 2024.


28	Annual report 2024


Our businesses continued

Our strategy in action

Improve client experience

ii is expanding its product

range through the launch

of a new Managed ISA and

Managed SIPP. These

provide less confident

investors with a simple, low-

cost way to save for their

financial futures, while

enabling us to continue

attracting new customer

segments.

£4.99

flat, monthly fee for accounts with <£50,000

£11.99

flat, monthly fee for accounts with >£50,000

simple, low-cost portfolios available


			Annual report 2024	29


STRATEGIC REPORT

“Our Managed ISA and SIPP make investing simple. By offering

customers a seamless experience, we hope those who are less

familiar with investing will trust us to manage their savings for years to

come, while those who grow more confident in making their own

investment choices can eventually utilise the full ii platform.”

John Tumilty, COO, interactive investor

Giving people the confidence to invest

More and more people in the UK are taking responsibility

for their own financial futures. However, for

inexperienced investors, the process can seem

daunting. With the launch of our Managed ISA in 2024

and Managed SIPP in 2025, we’re making it easier for

those who would otherwise lack the confidence to invest

to build their nest eggs through a simple, managed

portfolio.

Providing a safe home for customers’

investments

In 2025, we will celebrate 30 years of customers trusting

ii with their investments. Our operating excellence and

people’s’ confidence in our business model is

demonstrated by our Trustpilot score of 4.7.

Underpinning our growth and success is a strong, risk-

based culture with our customers’ goals and

requirements at the forefront of what we do every day.

Making investing affordable

Our Managed ISA is available at a flat-fee – £4.99 per

month for those with less than £50,000 and £11.99 for

those with £50,000 or more. These fees are highly

competitive compared to our nearest rivals.

Offering a simple and differentiated

choice

Our customers don’t need to spend their time

researching investments – they are simply matched to

one of 10 portfolios according to their risk profile and

sustainability preferences.

Our short questionnaire helps the customer identify

which of the five risk levels is most suitable for them.

They can then choose whether to invest in a low-cost

indexed solution or a sustainability solution.

The process takes just a few minutes, making it a

smooth customer experience.

Leveraging abrdn’s capabilities

Our portfolios have exposure to funds managed by

abrdn Investments, which means our customers can

benefit from the Group’s wider capabilities through the

highly diversified, cost-efficient investment portfolios we

offer.


30	Annual report 2024


Our businesses continued

Adviser

Noel Butwell

CEO, Adviser

£75.2bn

AUMA1

11%

AUA market share2

>50%

we have relationships with over

half the UK’s IFAs

401,000

total end customers

average service net promoter score

(2023: 16)

+63%

third-party IFA net inflows into abrdn

MPS

1. Includes Platform AUA of £72.4bn.

2. Source: Fundscape Q3 2024. Market share

excludes Curtis Banks for consistency with

historical reporting.

In 2024, we continued to focus

heavily on improving our client

service proposition and technology

platform to drive progress across

the business, while investing in our

people to create what I believe is the

strongest leadership team in the

adviser platform market.

Among the most important changes

we made with a view to returning

the business to growth were the

major pricing changes we

introduced to abrdn Wrap. This new

pricing structure materially

improves the platform’s

competitiveness, which puts us in a

stronger position to attract and

retain client assets.

Our investment in enhancing our

service proposition has also begun

to pay off. We significantly improved

our back-office pick-up times and

speed to answering client calls in

2024, while bolstering our client

service team through further hires.

We are committed to further

investment in our service proposition

in 2025 to deliver market-leading

client experiences. We are focused

on further improving service and

delivering deeper integration to

increase adviser efficiency and

thereby allow more customers to

benefit from high-quality financial

advice.

We remain well-positioned to

capitalise on structural growth in the

UK advice market as we continue to

pursue market share growth and

address the widening advice gap

among retail customers.


			Annual report 2024	31


STRATEGIC REPORT

Our strategic overview

We are realising value from our major investment programme with a view

to returning to net inflows.

Who we are


Our ambition	To become the UK’s leading provider of fully integrated adviser business solutions

Key capabilities and offerings	Wealth management platform	Wrappers and investment solutions	End-to-end advisory support

Who we serve	Existing customers, targeting increased wrappers per customer	Existing clients, targeting increased primary partnerships	New clients through advocacy

Strategic areas of focus	Improve client service to create capacity for clients	Enhance products and proposition	Continue to improve platform


Structurally growing market with significant intergenerational wealth transfer and advice gap		£4.6tn UK Savings and Wealth Market1
		£697bn Adviser Platforms2
		£75bn abrdn Adviser3


AUMA		Adjusted operating profit
2023 £73.5bn	2024 £75.2bn	2023 £118m	2024 £126m

1. Source: The Investment Association, Investment Management in the UK 2023-2024. Figures as at 31 December 2023 and inclusive of retail and

institutional markets.

2. Source: Fundscape Q4 Press Release, January 2025, AUMA as at 31 December 2024.

3. abrdn Adviser AUMA as at 31 December 2024. Includes Platform AUA of £72.4bn.


32	Annual report 2024


Our businesses continued

Focused on building momentum

Our progress in 2024

The adviser platform market continued to face

challenges in 2024. Net market inflows of £13.4bn (2023:

£8.3bn) represented a year-on-year increase, but these

flows were still materially below those in prior years1.

Within our Adviser business, we experienced net

outflows of £3.9bn during the financial year compared

to £2.1bn in 2023. Our AUMA rose slightly from £73.5bn

to £75.2bn driven by positive market movements.

Revenue grew by £13m to £237m, supported by the

annualisation of our revised SIPP distribution agreement

with Phoenix, which took effect in July 2023. However,

our total customer numbers fell from 420k to 401k, again

reflecting the net flow position.

During the year, we made major changes with a view to

building positive momentum within the business, which

included enhancing our client service and proposition,

improving our competitive position through strategic

repricing and investing in our people. These initiatives

have already begun to yield results in terms of client

satisfaction and service scores, the user experience on

our technology platform and our new business pipeline.

By the end of the financial year, there were also some

early signs of progress in flows, with net outflows

reducing in both Q3 and Q4. We remain committed to

returning to consistent net inflows through our strategic

focus areas as outlined below.

Improved client service to create

capacity for clients

Building on our significant technology investment in

2023, we delivered major improvements to client service

in 2024. Notably, we reduced the steps involved in

several key processes to enhance speed and accuracy.

By the end of the year we had reduced sign-up and

transfer-in process lead times by up to five days,

introduced smart forms to capture client data

accurately first time, deployed AI to client-facing

mailboxes to filter requests more efficiently, and

established new roles to support clients transferring

from third-party platforms. We also refreshed our

segmentation model to ensure our service model better

supports our clients’ needs.

These changes yielded results: in the second half of

2024, our average speed-to-answer was consistently

under one minute, while our customer satisfaction score

(CSAT) and service net promoter score (NPS) steadily

climbed throughout the year, achieving averages of

91% and 34 respectively. The latter marked a significant

improvement on 2023’s average NPS of 16.

Enhanced products and proposition

We also introduced several new investment options

during the year to enhance our client offering. In

February, we launched our Money Market Managed

Portfolio Service (MPS) in response to client demand to

provide a low-risk, MPS alternative to cash products.

The portfolio will be available across all tax wrappers to

allow advisers to access these solutions alongside their

existing investment propositions. Given the ongoing

uncertainty in investment markets and some investors’

increased propensity to hold cash, we believe the

product is likely to continue to attract flows.

In July, we launched our integrated cash solutions on

Wrap. Cash solutions are fully embedded into existing

platform processes, which makes it simple to invest and

withdraw client money. Not only does this create

significant efficiencies for advisers, it also leads to better

client outcomes by increasing opportunities for portfolio

diversification and enabling money to be transferred

more quickly between cash and investment products. A

wide range of competitive cash accounts is available to

ensure customers have access to deals that are among

the most competitive on the market.

In December, we launched our ESG Hub analytics tool

on Wrap to enable advisers to hold more informed

conversations with their clients about their portfolios’

ESG characteristics. The tool enables advisers to record

their clients’ ESG preferences and manage their

portfolios accordingly, including the ability to assess ESG

data at stock and portfolio levels. It can also generate

tailored ESG reporting in a client-friendly PDF format.

Information is sourced from leading ESG data providers

and the feature is available at no additional cost.

Continue to improve platform and pricing

One of our most significant developments in 2024 was to

simplify Wrap’s pricing structure. Key changes included

lowering fees and reducing the number of pricing tiers.

Combined, these changes mean our platform provides

a highly competitive price offering that we believe

leaves us well-placed to attract and retain client assets.

The changes were made possible by the technology

1. Fundscape Q4 Press Release, January 2025, AUMA as at

31 December 2024.

upgrades we have implemented in recent years, with

the creation of servicing efficiencies allowing us to pass

these savings on to our clients. Lower fees were made

available to new customers in 2024, while the new fee

structure to existing customers was delivered in

February 2025.


			Annual report 2024	33


STRATEGIC REPORT

Significant investment in people

During the year, we made key organisational changes

and appointments to ensure that we have the right

structure and leadership in place to drive improvements

in our client service and proposition to return the

business to growth.

We announced three senior hires to build what we

believe is among the strongest leadership teams within

the adviser platform market. In October, Verona Kenny

joined in the newly created role of Chief Distribution

Officer (CDO). A senior leader in the platform industry

over many years, Verona will shape the vision for and

lead our sales strategy, with executive responsibility for

managing client relationships across our strategic

partnerships and regional accounts.

Following Verona’s appointment, we strengthened our

sales team by establishing a strategic relationships

team, which is responsible for building lasting

relationships with the largest regional firms,

consolidators and networks. We also combined our

sales and marketing teams to sharpen our take-to-

market focus and further invested in our people by

launching a structured, 22-week training programme

available to all sales team members.

In November, Derek Smith joined in another newly

created role, Chief Product & Technology Officer. Under

his leadership, our product and technology teams have

been combined, with Derek responsible for executing

our technology strategy and ensuring the continuous

enhancement and scalability of our offering.



	Product strategy Our product strategy is focused on empowering clients by transforming their experience with seamless integration, exceptional service and innovative solutions, which drive efficiency, personalisation and high-value advice: – We plan to launch the new abrdn SIPP, which includes enhanced cash management, illustrations and digitalisation of key processes. – We’re developing deeper integration with advisers’ customer relationship management systems and wider technology suites so that we can create a highly integrated advice ecosystem. – We will continue to work with financial advice firms to optimise their service journeys with zero- and one-touch service, providing fast, accurate and personalised processes and contents to support their business.

We are also recruiting product, engineering and data

professionals to help us create market-leading digital

products, services and experiences to support our

clients’ growth.

Most recently, in January 2025, Louise Williams joined as

the business’s new Chief Financial Officer. Louise brings

extensive experience as a senior executive driving

transformation and robust financial governance, and

her role will be key to ensuring we deploy capital

efficiently and achieve our business’s growth ambitions.



	Opportunities for growth Market opportunity: – UK has a large economy with an ageing population undergoing a £5.5tn intergenerational wealth transfer over the next 25 years1. – Platform market AUMA is expected to grow at 13% p.a. to 20292. – The UK has a savings and advice gap of over 20m people3. The advice industry will need to increase capacity and efficiency to help reduce this gap. How are we positioned for growth? Our strategic growth plan comprises four key pillars: – Price: We now offer even more competitive platform fees, and we’re leveraging our cost efficiencies to pass on savings to clients. – Product: We are investing in our proposition with a clear focus on increasing integration and digitalisation and optimising core processes. We expect this to enhance our ability to create innovative solutions that drive efficiencies for clients and improve service experience. – People: We have invested in our leadership team, service and sales team to deliver for our clients. – Service: We are continuing to improve our service to help clients focus on serving their end customers. We are re-engineering client journeys to make things faster and simpler. We are offering new approaches to meet clients’ needs however they interact with us. We have also bolstered our client services team with new hires to give even more support to advisers. 1. Source: Kings Court Trust. 2. Source: Fundscape Q4 Press Release, January 2025. AUMA as at 31 December 2024. 3. Source: Boring Money and Yorkshire Building Society.


34	Annual report 2024


Our businesses continued

Our strategy in action

Strengthen talent and culture

Adviser invested in its

people through senior hires

and organisational

changes in 2024. Our three

new leadership team

members highlight how

they are looking to build

talent and culture within the

business to drive our return

to growth.

new senior leadership hires

new types of role created to further

enhance our service

point increase to 61% in Pulse employee

engagement score from May to November


			Annual report 2024	35


STRATEGIC REPORT

“By adding three new senior hires , I believe we have created the best

leadership team in the market. Combined with wider changes across

the business, we are building a culture focused on delivering success

and empowering people so that they can thrive.”

Noel Butwell, CEO, Adviser

Strengthening our leadership team




	Name: Verona Kenny Role: Chief Distribution Officer Profile: A senior leader in the platform industry with many years of experience, Verona joined abrdn Adviser from 7IM, where she was Managing Director, Intermediary. Joined: October 2024

How does talent and culture

translate to our client

experience?

“Clients can always recognise if a

business has a client-focused

organisational culture. Culture

comes from the top down but

also, critically, it must go across

the business. It influences every

client interaction, not only in our

distribution function, but through

everyone in the business. That’s

why we, as a leadership team,

are focused on creating a clear

sense of purpose and engaging

people in our strategy across the

entire business. We have a

hugely talented and committed

team of people, and everyone

will play an important role in

delivering for our clients.”




	Name: Derek Smith Role: Chief Product & Technology Officer Profile: A leader in creating innovative digital solutions, Derek joined the business from Morningstar Wealth, where he was Chief Technology Officer. He previously served in head of engineering roles at Virgin Money and Lloyds Banking Group. Joined: November 2024

How will talent and culture

initiatives drive our

technology and product

solutions?

“Investing in the talent and culture

of our teams empowers us to

foster innovation and agility,

equipping them with the skills

necessary to create cutting-

edge product and technology

solutions. By cultivating a culture

of accountability and

empowerment, we enable our

teams to deliver seamless,

integrated experiences for

advisers, ultimately driving

business success and market

leadership.”




	Name: Louise Williams Role: Chief Financial Officer Profile: A senior executive with a focus on change, transformation and robust financial governance, Louise’s career spans decades in asset and wealth management, including at Quilter and BNY. Joined: January 2025

How important is talent and

culture to Adviser’s

success?

“We have a clear focus on

creating alignment, both across

the Group and within the Adviser

business. That talent and culture

is one of the Group’s three

strategic priorities speaks

volumes. I’ve been extremely

encouraged to see the strength

of the business’s foundations,

particularly in terms of the depth

of our talent. Now that we have

the right structure and a new

leadership team in place, we’re

well-positioned to make that

happen and to move forward

together.”


36	Annual report 2024


Our businesses continued

Investments

Xavier Meyer

CEO, Investments

net sales among UK fund managers

in passive fixed income1

£25.5bn

I&RW2 ex-liquidity gross inflows

(+31% vs 2023)

£84m

annualised cost savings achieved

Investment performance

1 year

77%

(2023: 55%)3

3 years

60%

(2023: 51%)3

5 years

71%

(2023: 58%)3

1. Broadridge data, as at 31 December 2024.

2. Institutional & Retail Wealth.

3. The scope of the investment performance

calculation has been extended to cover all

funds that aim to track or outperform a

benchmark, with certain assets excluded

where this measure of performance is not

appropriate or expected. 2023

comparative has been restated.

In 2024, we made significant

progress in our Investments

business’s turnaround and

implemented key changes to our

leadership team and organisational

structure to position ourselves for a

stronger, more competitive future.

Against a challenging industry

backdrop, our fundamentals have

improved. We delivered a material

increase in our investment

performance and net flows,

combined with reduced costs that

reflect our efforts to modernise our

operating environment.

While these are notable

achievements, we recognise that

we still need to do more to live up to

the standards of excellence that

both we and our clients expect.

In my new role as CEO, my focus is

to put strengthened performance,

stability and improved client service

at the heart of everything we do.

As a specialist asset manager, we

aim to deliver reliable, outcome-

oriented solutions by leveraging our

many strengths and differentiators.

There are many pockets of growth

opportunities available for an active

asset manager. We are reinforcing

our business and channelling

resources into our core areas of

expertise - Public and Private Credit,

Specialist Equities, and Real Assets.

At the same time, we are continuing

to capitalise on our unique client

solutions, especially for Insurers,

Closed-End Funds and Wealth

Platforms.

I am humbled to lead a business with

such a strong heritage, filled with

extremely talented people, at such a

critical inflexion point in our journey.

I am confident that, by sharpening

our strategic focus and continuing

to transform our costs and

processes, we can successfully

deliver sustainable growth for

our business and clients.


			Annual report 2024	37


STRATEGIC REPORT

Our strategic overview

We are pursuing a return to growth in focus areas, while improving

efficiency.

Who we are


Our ambition	As a specialist asset manager, we aim to help clients achieve their target investment outcomes by identifying investment opportunities to benefit from trends today and beyond

Key capabilities and offerings	Specialist strategies	Wealth and institutional solutions

Who we serve	Institutional clients with bespoke needs	Private investors globally


Strategic focus		Focus on areas of expertise		Drive better investment performance		Enhance our operating model


We are a specialist asset manager with £369.7bn in AUM. We focus on areas where we have both the strength and scale to capitalise on the key themes shaping the market, through either public markets or alternative asset classes.


AUM		Adjusted operating profit
2023 £366.7bn	2024 £369.7bn	2023 £50m	2024 £61m


38	Annual report 2024


Our businesses continued

Significant progress despite a challenging

Our progress in 2024

environment

Although the active management industry continued to

face challenges in 2024, there was a marked

improvement over the previous year, both in terms of

flows and investment performance. In 2023, global

active mutual funds had experienced net outflows of

£569bn, the second worst year on record. While 2024

was still subdued, industry net outflows of £197bn1

indicated that reduced inflation fears had gradually

tempted investors back into the market.

Nevertheless, market behaviour still suggested a safety-

first approach. Government bond yields remained

sensitive to headwinds, with US Treasuries reversing their

previous gains between September and the end of the

year as the Federal Reserve signalled a slower pace of

rate cuts. Within risk assets, performance was largely

concentrated in proven winners, notably the US S&P 500

stock market index and, more specifically, its

Magnificent 7 constituents.

Our Investments business’s performance echoed this

backdrop, with improvements in flows and investment

performance. Overall, net outflows were £4.0bn in 2024;

however, this represented a positive swing of £15bn

compared to 2023. Encouragingly, net flows from

institutional, retail and wealth clients improved by £18.2bn

to a net inflow of £0.3bn as we benefited from our

increased strategic focus on providing solutions in areas

experiencing greater client demand.

We also improved investment performance in 2024,

advancing our strategic aim to provide clients with valued

outcomes. Over one year, 77% of our AUM delivered

returns in line with or above their benchmarks in 2024

(2023: 55%2), while three-year and five-year performance

were also stronger at 60% (2023: 51%2) and 71% (2023:

58%2). This was in no small part due to enhancements we

made to our organisational and investment processes

during the year.

Improved investment performance

Our fixed income and multi-asset strategies performed

better than last year over one-, three- and five-year

periods, while alternatives, liquidity and quantitative

index solutions (‘quants’) delivered strong returns,

having also done so in 2023. Equities improved over one

year, but still lagged over three and five, while real assets

performance was mixed.

Over 90% of our AUM in alternatives, liquidity and quants

1. Broadridge data, as at 31 December 2024.

2. The scope of the investment performance calculation has been extended to cover all funds that aim to track or outperform a benchmark,

with certain assets excluded where this measure of performance is not appropriate or expected. 2023 comparative has been restated.

3. Manager Versus Machine; AJ Bell, Morningstar; December 2024. Data as at 30 November 2024.

delivered returns in line with or above their benchmarks

across one-, three- and five-year periods. Our

alternatives and fund-of-hedge-fund strategies were

among those that delivered exceptional relative returns.

In Quants, the Enhanced Index range continued to

outperform, with the multifactor approach delivering

well across all regions. The index strategies also

continued to track well within expected ranges.

Fixed income performance remained strong, with 83%

of AUM performing over one year (2023: 81%), 90% over

three years (2023: 75%) and 93% over five years (2023:

84%). Credit, emerging markets (EM) and US municipal

bonds remained particularly strong.

Multi-asset saw the strongest improvement versus 2023,

with the benefits of our process enhancement

programme materialising. One-year performance

stood at 85% of AUM (2023: 12%), which fed through to

three- and five-year performance of 36% (2023: 15%)

and 71% (2023: 22%) respectively. Our Diversified Assets

funds performed well versus their peers, as did the

majority of our MyFolio range’s AUM. Elsewhere,

improvements in tactical asset allocation benefited

some of our larger balanced mandates.

Within real assets, one-, three- and five-year

performance stood at 30% (2023: 30%), 46% (2023:

56%) and 56% (2023: 45%) respectively. The majority of

these strategies seek to outperform long-term inflation-

linked or absolute return benchmarks, which has proven

a headwind to relative performance over more recent

periods. However, we saw encouraging performance in

direct real estate in 2024, where more than half of our

AUM outperformed real estate market indices over

one-, three- and five-year periods, reflecting stronger

UK and Living performance.

It was another challenging year for the industry in

equities, with only 31% of actively managed funds

outperforming in 20243. Notably, rate-cutting and

election cycles, geopolitical risks and the Magnificent 7’s

concentrated outperformance presented challenges

for stock pickers.

Our equities performance was similarly impacted by

these factors. In developed markets, the Magnificent 7’s

outperformance remained a headwind for our active

strategies, particularly those with a yield focus. Our AUM

bias towards Asia and EM also held back overall equities

performance. More positively, our European income, EM

income, India and Tekla strategies continued to perform

well. Our small cap fund range also recovered during

the year, benefiting from some of the improvements we

delivered to our investment processes.

Reduced outflows through strategic focus

At an AUM level, our asset class mix increasingly reflects our

efforts to sharpen our investment specialisms, optimise our

geographic footprint, drive growth through our strategic

partnerships and provide client-centric solutions.


			Annual report 2024	39


STRATEGIC REPORT

We are one of the largest providers of closed-end funds

globally, while our quants business is building scale

through our relationships with Phoenix and other clients.

We continue to believe in the long-term potential of Asia

and EM, despite near-term headwinds.

Within Institutional & Retail Wealth, asset classes with

positive net flows in 2024 included liquidity solutions at

£5.0bn (£8.7bn higher than in 2023) and quants with

£3.6bn (£2.5bn higher than in 2023). Real asset flows

were also slightly positive at £0.8bn (£1.1bn higher than

in 2023), while fixed income flows were flat (£4.0bn

higher than in 2023). According to Broadridge, we were

the number one fund manager in the UK for passive

fixed income net sales in 2024.

Unfortunately, we continued to experience challenges in

equities, with net outflows of £7.9bn (£0.7bn larger than

in 2023) driven mainly by Asia and EM outflows of £3.1bn

and £2.5bn respectively. Meanwhile, multi-asset net

outflows improved by £1.7bn to £1.5bn.

Modernising our business to improve

efficiency and outcomes

In 2024, we increased efforts to transform and

modernise our business to improve our client offering.

Overall, we delivered £84m in annual cost savings, which

means we are on track to deliver on our cost

transformation by 2025.

Our continued investment in technology, AI and data

enhancements has helped us to eliminate non-core and

repetitive processes, freeing colleagues to focus on

servicing clients. We strengthened over 250 processes in

2024, including centralising research processes and

simplifying investment frameworks, alongside launching

our performance cockpit, bringing benefits across the

investment floor.

We also continued to improve client engagement

through our new abrdn Gather conference, Asia

Sustainability Week and Insurance Roundtables.



	Transforming our business 2024 highlights: – On track to achieve 2024 cost transformation targets. – 250 processes simplified. – Fund rationalisation nearly complete, with process for ongoing review established. – Unlocked savings and value in our service model by building relationships and renegotiating contracts. – Ongoing optimisation of tech and data stack. – Upgraded and scalable systems and tools. – High impact marketing and distribution.



	2025 priorities: – Focus on our strengths and growth opportunities - Credit, Specialist Equities and Real Assets. – Improve investment performance by investing in the right people, processes and technology. – Enhance our operating model with our partners to improve agility and scale efficiently. – Complete cost transformation.



	Opportunities for growth We have identified four industry mega trends to which we are aligning our business: 1. Democratisation of finance and digital innovation – Governments shifting responsibility for savings and investment to individuals. – Investors require broader range of asset classes, including private assets. – Digital innovation transforming investment platforms and asset allocations. – We are: promoting our best performing credit products; enhancing our managed wealth and MPS solutions, including enhanced indexing; expanding our alternatives offering; and embedding trends in specialist equities, including small- and mid-caps. 2. Ageing populations and improving health – Structural growth in pension assets. – Increased expenditure to support longer, healthier lives. – We are: serving investors with asset allocation, income, and liability matching solutions; increasing our real assets capabilities; and building our thematics expertise. 3. Growth of Asia and EM – Regional GDP expected to continue outgrowing Western economies. – We are: providing access to Asia and EM with our strong existing footprint and capabilities. 4. Ongoing energy transition – Real assets growth driven by energy transition. – Investments growth driven by infrastructure spending, public transport electrification, waste management and digital fibre networks. – We are: serving the growing demand for alternatives, real assets and sustainability through significantly expanded capabilities.


40	Annual report 2024


Our businesses continued

Our strategy in action

Transform performance

abrdn Core Infrastructure is

funding the essential

upgrade of UK railway

rolling stock. Our

investments continue to

generate stable, long-term

cashflows for clients, while

strengthening our ability to

capture future sustainable

growth opportunities.

>10%

of UK passenger rolling stock funded

by our investments

>£2.4bn

investments in UK rolling stock led by abrdn

East Anglia fleet ranked top-performing

rail investment globally in GRESB 2024

Sector Leaders assessment

Photograph credit: Greater Anglia


			Annual report 2024	41


STRATEGIC REPORT

“Our successful 10-year partnership with Rock Rail exemplifies our

strategy of identifying and unlocking incremental value in core

infrastructure assets. The delivery of four rolling stock fleets has

expanded our presence in the transport sector and enhanced our

reputation as a strategic, long-term partner in infrastructure

investment, which the UK government has identified as priority for

economic growth.”

Dominic Helmsley, Head of Infrastructure, abrdn


Strategic partnership to transform UK railways Over the past 10 years, abrdn has led over £2.4bn in investments to upgrade four fleets across the UK’s railway network, accounting for over 10% of passenger rolling stock. These investments have been made in partnership with Rock Rail, a specialist railway infrastructure developer, through two of our flagship direct core/core-plus infrastructure funds.		Stable, long-term cashflows These infrastructure assets offer a robust return profile, which includes stable cash yields from the outset and downside protection against end-customer demand risk. The investment case is compelling – rolling stock provides long-term, stable cash flows while enhancing mobility, reliability, safety, and passenger experience.

Driving our sustainability commitments Investing in the UK’s rolling stock offers our clients valuable exposure to essential infrastructure, which is pivotal to decarbonising the transport sector. In 2024, the Rock Rail East Anglia and Rock Rail Moorgate fleets were named as global Sector Leaders for rail by GRESB, achieving scores of 100/100.		Capitalising on structural growth We believe this is one of the most exciting periods for infrastructure investing in recent history, as governments in both developed and developing economies look towards the asset class to stimulate growth and adapt to long-term, structural trends. We are well-positioned to capitalise on these opportunities, thanks to our extensive capabilities in both infrastructure debt and equity, which will support abrdn’s strategic growth in the real assets sector.


42	Annual report 2024


Sustainability – Strategy

Sustainability strategy

Taking a three-pillar approach to risks and opportunities


Inclusive growth Social mobility Inclusion	Responsible business Compliant Commercial	Environmental transition Climate Nature

Our sustainability ambition is to enable inclusive growth and a

credible environmental transition for our clients , people and

tomorrow’s generation. We believe this is responsible business.

We aim to consider sustainability when determining our

corporate strategy and commercial initiatives. Our

disclosure is aligned to recognised guidance frameworks

and considers the interests of our various stakeholders.

We support our clients and customers to manage the long-

term risks and opportunities associated with the

environmental transition and inclusive growth. We analyse

sustainability opportunities to ensure a balance between

short-term costs and long-term benefits. Our strategy is

not static and will be iterative in response to the changing

landscape: macro-economic, regulatory and scientific.

Our strategy is supported by measurable metrics, with

progress evaluated and verified:



	Jason Windsor, CEO
	“Building a sustainable business helps us to achieve our purpose: to enable our clients to be better investors. Sustainability is not only about managing risks, but also capturing opportunities. It supports our strategic priorities to transform performance, improve our client experience and strengthen talent and culture. Strong corporate citizenship is an important foundation of our business. Our sustainability strategy focuses on the areas where we can make the greatest material impact and aligns to long-term value creation.”

Highlights


Gender		Ethnicity
40%Δ female representation at senior leadership		7%Δ ethnic minority representation at UK senior leadership

6ppts increase in female representation in our global senior leadership population (CEO-1 and 2) to 40%		On track for our 2027 target for UK senior leadership ethnic minority representation

r2024 data with this symbol is subject to Independent Limited

Assurance in accordance with ISAE(UK)3000 and ISAE3410 by KPMG.

See page 300 for more detail.


Social mobility		Environmental transition
£2.2m total charitable contribution		74% reduction in operational emissions versus 2018 baseline

including donations to charities and in-kind giving		45% reduction of in-scope public markets1 portfolio carbon intensity versus 2019 baseline

1. Includes a subset of in-scope assets across equities, fixed income,

and active quantitative strategies. See page 57 for more detail.


			Annual report 2024	43


STRATEGIC REPORT

Sustainability progress

In 2024, building on our strong foundations as shown below, we focused on discovery, aligning goals, and

establishing and embedding a strategy that can adapt with the dynamic sustainability landscape. In 2025, we will

continue to progress against all three of our sustainability strategy pillars, with a strong focus on maintaining and

maturing our approach to inclusive growth. We also aim to deliver meaningful impact on the environmental

transition by setting new medium-term targets on climate and further maturing our approach to nature.


Pre 2020		2020		2021		2022		2023



		An accredited UK Living Wage employer since 2014
		Operational emissions baseline (2018)
		Entered Bloomberg Gender Equality Index, and Equileap top 200 companies for gender (2019)
		Six employee inclusion networks, three regional networks comprising 2,000+ colleagues (2019)
		Portfolio emissions intensity baseline (2019)
		Published climate change approach document for Investments (2019)

2024

2025



		Launch of new Senior Leadership (UK) ethnicity target
		Scottish Diversity Awards – Diversity campaign of the year
		Completed two-year engagement programme with our top 20 largest financed emitters
		74% reduction in operational emissions versus baseline
		45% reduction for in- scope public market portfolio carbon intensity versus baseline
		34% reduction for in- scope real estate portfolio carbon intensity versus baseline
		Adviser launch ESG Hub
		ii named ‘Shareholder Engagement Champion’



		One of the first companies to be accredited as a Living Hours employer
		First annual diversity, equity and inclusion (DEI) client report
		Published our first TCFD-aligned report
		First reported portfolio emissions intensity for equities and fixed income
		Launch of our carbon foot-printing tools for investment desks

2030



		Target date for 50% reduction in operational emissions versus 2018 baseline



		Published ‘Human Rights - Our approach for investors’
		First year climate scenario analysis research published
		Published our first real estate net zero investment framework
		First roll-out of carbon metrics reporting for clients
		Published our first Stewardship Report



		Announced a three- year partnership with UNESCO via abrdn Charitable Foundation (aCF)
		Strengthened accountability by increasing DEI metrics in executive scorecards
		Strengthened accountability by increasing climate metrics in executive scorecards
		Launch of engagement strategy focused on highest financed emitters
		Published ‘Preserving Natural Capital - Our approach for investors’
		ii ACE40 list launch



		Partnered with The Alan Turing Institute (via aCF)
		Became a Disability Confident Employer
		100 Women in Finance EMEA Industry DEI award
		Year 2 of engagement with our top suppliers on their approach to net zero targets
		Net Zero award from Scottish Financial Enterprise for our research identifying climate transition leaders
		ESG fixed income fund of the year award from Environmental Finance
		ii wins AIC Shareholder engagement award, supporting retail investors to engage with their investments
		Group Double Materiality Assessment performed



		Target date for 50% reduction of in- scope portfolio carbon intensity versus 2019 baseline


	Key
	Inclusive growth
	Environmental transition
	Responsible business

2040



		Target date for operational net zero


44	Annual report 2024


Sustainability – Governance

Sustainability governance

Oversight and management of identified risks and opportunities

Roles and accountabilities

Our framework

We use a governance framework aligned to the UK

Corporate Governance Code’s (2018) principles. Our

Board oversees the implementation of the Group’s

business model and the activities of our three businesses:

ii, Adviser and Investments. This includes oversight of

material sustainability matters relating to our business

model and strategy.

Board and its Committees

Our Board approves the Group sustainability strategy, with

the Audit Committee providing oversight of sustainability

reporting, and the Nomination and Governance

Committee providing oversight of our Talent agenda,

including DEI.

Executive Directors

The Board delegates responsibility for sustainability

matters to the Chief Executive Officer who, alongside

our Chief Financial Officer, is incentivised through our

Executive Remuneration Policy to achieve sustained

performance against our public sustainability targets.

Executive Leadership Team

Our sustainability ambition, plan and actions are led by

our Executive Leadership Team (ELT) and progress is

measured through the ELT scorecard.

Executive Sustainability Committee

In 2024, the Committee – comprising executive

representatives from our businesses and corporate

functions – met to discuss and provide

recommendations to the Chief Executive Officer on

sustainability matters. In 2025, we have elevated

sustainability to become a standing item at ELT

meetings to ensure strategy input from the full executive

team. The Committee has been repurposed into a

Group Sustainability Strategy Forum.

Embedded sustainability expertise

Our Group General Counsel, Group Head of

Sustainability, and corporate sustainability team lead

the management and delivery of our sustainability plans

and actions. Our Investments business has a central

sustainable investing team, led by our Chief Sustainable

Investment Officer, as well as dedicated asset class

specialists. Our Chief People Officer, Colleague

Experience Director and colleague experience team

manage the Group’s culture plans and actions.

Colleague networks

Our Colleague Council, established in 2024, brings

together all aspects of our colleague voice. Our

colleague networks support colleagues to play a role in

shaping our culture. Our ELT provides sponsorship for

the Colleague council and each network.

Our people

Our global Code of Conduct describes the principles

and standards to which we hold ourselves. We ask all of

our colleagues to consider these principles in every

decision and action they take.


Board of Directors

Board Committees		Audit
		Remuneration
		Nomination and Governance
		Risk and Capital


CEO	Group Operating Committee	ELT
Executive Sustainability Committee
Thematic Working Groups (convened as required)
Group Sustainability


ii	Adviser	Investments



	Climate change governance Oversight of risks and opportunities Oversight of climate-related risks and opportunities is integrated in our sustainability governance structure. In 2024, the Board and its Committees were regularly informed about climate-related issues. They also reviewed our sustainability strategy, including a focus on the environmental transition. Our Audit Committee provided ongoing oversight of non-financial disclosure requirements. Integration with Enterprise Risk Management Climate-related risk is integrated within our Enterprise Risk Management Framework, which is subject to Board oversight. Climate change is considered among our principal risks and uncertainties, specifically within our ‘Sustainability’ principal risk. We consider climate risk to be material and acknowledge its relationship with financial, regulatory and legal risk, but note that it is also a standalone risk. Management of risks and opportunities Our Chief Executive Officer delegates authority from the Board to our ELT. We have established several different forums and working groups to manage the integration of sustainability, including climate change, across the business. These groups ensure the implementation of our strategy and actions to mitigate risks and identify opportunities, and are key in identifying matters to be escalated through our governance structure.


	Read more in our Sustainability and TCFD report 2024.


			Annual report 2024	45


STRATEGIC REPORT

Inclusive growth

We believe that everyone – our clients, customers, people and

communities – should have the ability and confidence to achieve financial

security. By bringing diverse perspectives and ways of thinking into our

workplace, we are well-positioned to support our clients and customers

who face increasingly complex financial challenges.

Social mobility

We are committed to building a business that supports

social mobility and financial well-being for our clients,

people, communities and tomorrow’s generation. We

believe we can achieve our ambition through supporting

financial education, community impact, fair work and

ensuring our offerings are accessible to all.


	For more on social mobility, see pages 46-48.

Inclusion

We are committed to creating a more inclusive

organisation that attracts brilliant talent, where all our

people can thrive, where they belong, and can learn,

develop and do their best work.


	For more on inclusion, see pages 49-52.

£2.2m

Total charitable contribution including donations to

charities and in-kind giving (2023: £2.1m)

3,301 hours

Our colleagues recorded 3,301 hours of volunteering

time, a 2% increase versus 2023 (2023: 3,248 hours)

31%

Proportion of minority ethnic representation in recruited

graduate positions (UK) (2023: 19%)

+6ppts senior female

representation

Female representation in our global senior leader

population (CEO-1 and 2) increased by 6ppts to 40%Δ

(2023: 34%).

r2024 data with this symbol is subject to Independent Limited

Assurance in accordance with ISAE(UK)3000 and ISAE3410 by KPMG.

See page 300.



	Kristina Church Group Head of Sustainability
	“We are dedicated to helping our clients and customers secure their financial futures through effective planning, saving, and investing. By championing inclusive growth, we aim to break down barriers and create equal opportunities, supporting our stakeholders to achieve their potential. We do this through our partnerships with leading charities, attracting brilliant talent, creating a diverse supply chain, and through the products and services we provide to our clients.”


46	Annual report 2024


Sustainability - Inclusive growth continued

Social mobility – accessible offerings and fair work

Supporting our customers, clients and colleagues to achieve financial

security

Accessible offerings

We believe that investment platforms can be a powerful

force for good, when they put customer interests at the

heart of their pricing. ii’s flat-fee structure differentiates it

from many other investment platforms and can make

its services more cost-effective and accessible to a

broader range of investors.

In the latest iteration of ii’s Great British Retirement

Survey 2023, we found there is a self-employment crisis

- three quarters (76%) of the self-employed are paying

nothing into a state pension, and 38% don’t have a

pension at all. This highlights the urgent need in the

market for more accessible and cost-effective

retirement products.

Our Pension Essentials, launched in 2023, is an entry-

level plan for UK savers, aimed at bringing self-invested

pensions to the mass market. As higher living costs

continue to challenge peoples’ ability to save for a

comfortable retirement, this product is an example of

how investment platforms can make pensions more

accessible to a broader range of investors.

Adviser

Support for customers in vulnerable

circumstances

We support advisers to achieve the best outcomes for

their clients, which includes additional support for

customers in vulnerable circumstances.

The FCA identifies four key drivers of vulnerability: health,

life events, resilience, and capability. Through our Client

Engagement Hub, we aim to provide support and tools

for clients with vulnerabilities and aim to make

processes as accessible and effortless as possible.

We have a team of specialists who are trained to

provide additional help when a vulnerability is identified.

Our accessibility services also support additional needs.

We can translate certain documents into braille, or large

print, and we can accept calls from registered sign

language interpreters, or through RelayUK, which

enables users to type to talk.

Through our proactive focus on training, technology and

collaboration, our goal is to provide best-in-class

support for our customers and clients who find

themselves in vulnerable circumstances.

Fair work

Living Wage and Living Hours

We have been an accredited UK Living Wage employer

since 2014. In 2020, we were one of the first companies

to be accredited as a Living Hours employer. We ensure

all our UK colleagues (over 80% of our global workforce)

are paid above, or in line with, the UK Living Wage and

that all colleagues are paid above the minimum wage in

their country of work. In the UK, we extend this

commitment to third-party suppliers working on our

premises and our Global-Third Party Code of Conduct

details our linked expectations for any global third-

parties that we work with.

Also overseen by the UK Living Wage Foundation, the

Living Hours accreditation provides greater security for

workers. Living Hours are intended to help combat

insecure work across the UK.



	Case study Living Wage advocacy We continue to play a leading role in advocating for the Living Wage through our participation in three working groups of the Living Wage Foundation, in support of both the Living Wage and Living Hours. In 2024, we joined a working group with a leading sustainability ratings agency to support discussions aimed at raising awareness of, and expanding engagement with, the Living Wage accreditation scheme through their networks.


			Annual report 2024	47


STRATEGIC REPORT

Social mobility – supporting financial education

Powerful charitable partnerships

Across the UK, we are directly supporting organisations

championing financial education and inclusion through

the abrdn Charitable Foundation, a registered charity in

Scotland (SC042597). We have committed to multi-

year partnerships with MyBnk and WorkingRite, which

are delivering financial education and employability

programmes designed to address systemic barriers and

to support financial inclusion for young people. We see

this as integral to our inclusive growth sustainability

approach, as our contributions empower tomorrow’s

generation to secure their financial futures.

£1.1m

Donated to charities aligned to breaking down barriers

to employment and financial wellness

(2023: £0.7m)



	Case study The Savings Ladder In 2024, we launched our ‘Savings Ladder’ campaign to get Britain investing. Our campaign highlights the growing need for the nation to embrace a ‘savings ladder’ culture where saving, investing and pensions become a bigger part of how people view their finances. We have measured this through the development of a ‘Propensity to Save and Invest’ score, with our first ‘Index’, published in July 2024, finding that the UK’s average is 45/100. This is further supported by our research, with 44% of poll respondents classified as having poor financial literacy, based on answers to questions developed by the Global Financial Literacy Excellence Centre. This translates to millions of people potentially heading for a less financially comfortable retirement, which we believe must be remedied by policy interventions to support financial education. Our open letter to the UK Government set out our concerns and urged action to boost financial literacy.


	To read our open letter, visit www.abrdn.com/ annualreport

Delivered with MyBnk


3,869 participants and 231 programmes delivered	62% improvement in financial mindsets and attitudes



	Kirsty Brownlie Senior Social Impact and Partnerships Manager
	“Many young people continue to face systemic barriers to achieving financial security. Acknowledging and addressing these challenges is essential if we want tomorrow’s generation to fulfil their potential. Better financial education is vital if we are to encourage a culture of investing for the long- term, with our research suggesting that poor financial literacy is hampering people’s long- term financial health.”

Our Savings Ladder Index results

Highlighting the need for urgent action to support

financial education in the UK


45/100 propensity to save and invest	44% of respondents with poor financial literacy


48	Annual report 2024


Sustainability - Inclusive growth continued

Social mobility – community impact

Giving strategy

We connect people to opportunities, their communities

and the natural world. We do this through employee

engagement and building partnerships through our

charitable giving strategy, governed through the abrdn

Charitable Foundation. Our charitable giving is

strategically aligned under two main themes: People,

focused on breaking down barriers to education,

employment and financial wellness; and Planet,

protecting nature and addressing the impacts of

climate change.

Colleague initiatives

We actively support our colleagues’ passion for

contributing to causes and organisations close to their

hearts. We do this through contributing to colleague

giving for both regular contributions through payroll in

the UK and one-time fundraising efforts globally. We

encourage colleagues across the globe to engage with

their communities by offering three days of paid leave

annually for volunteering, applicable during and beyond

regular working hours. This approach highlights our

commitment to community engagement, allowing us

and our colleagues to make a meaningful impact.

£86k

Payroll giving1: We match colleague giving through our

Give As You Earn scheme, up to a total of £100 per

month. This totalled £86k in 2024 (2023: £103k).

Colleagues donated £174k voluntarily via payroll giving

in 2024 (2023: £191k).

£29k

Fundraise Plus1: We match colleague fundraising

through our Fundraise Plus scheme, up to a total of £200

per person, per annum. This totalled £29k in 2024 (2023:

£53k). Colleagues fundraised and donated £121k

voluntarily in 2024 (2023: £195k).

1. Funding since 2023 has reduced as a result of lower headcount

through transformation.



	Spotlight on: abrdn Innovation Fund The abrdn Charitable Foundation launched its inaugural Innovation Fund, aimed at advancing social mobility, combating climate change, and protecting nature. We invited applications from across the globe from charities and other non-profit entities that propose compelling solutions to social and environmental challenges. The Fund is aimed at supporting them to explore groundbreaking ideas with the potential to significantly benefit global communities, delivering a lasting impact. Our 2024 Innovation Projects include: – Digital Career Mentoring with Drive Forward, a UK charity that enables care-experienced young people to achieve their full potential through sustainable and fulfilling employment. – 24/7 Digital Library with Institut Louis Germain, a French charity that breaks down barriers to education, enabling the pathway to academic success and ambition.



	Our 2024 Community Champion We celebrate extraordinary colleagues and teams for the amazing things they do inside and outside of work. Our 2024 Community Champion, Peter Tulloch, volunteers for Blood Bikes, delivering vital blood to those who need it across Scotland. Peter volunteers for an average of 20 hours per month and can drive up to 300 miles in a six-hour shift. We are proud of all our colleagues who give up their time to support their communities.


			Annual report 2024	49


STRATEGIC REPORT

Diversity, equity and inclusion (DEI)

Caring about our people is the right thing to do for our business and our

clients. We have a strategy and a framework in place to support all our

colleagues at abrdn.

Resetting our strategy and priorities

Our purpose is to enable clients to be better investors.

That means all of us, whoever we are, need to support

our clients, whoever they are, to achieve their

investment goals.

In 2024, we reset our strategy and redefined our

ambitions to be clear about what matters to our people

and our clients. We have built a framework and an

ambitious plan to support the building of diverse teams

who have a blend of skills, experience and backgrounds.

This will help us meet our ambition to attract brilliant

talent, coupled with a culture where all our people can

thrive. We believe this will help create better business

outcomes, both today and in the future.

We have developed a new ambition, clear priorities and

an action plan for 2025:



	Tracey Hahn Chief People Officer
	“We have made positive progress in 2024, and I’m pleased to see a shift in how people feel about working here. Supporting and developing our talent, and building the right culture to enable our people to thrive, is right at the heart of our strategic priorities. I am really proud of the role all our colleagues play in working together to deliver the best outcomes for our customers and clients.”


Our ambition

We are committed to building a business that attracts brilliant talent and where all our people can thrive; where they belong, and can learn, develop and do their best work.
Our 2024-2025 priorities

Gender – Supporting and growing our Balance network. – Mentoring and sponsorship. – Continued actions to close the UK gender pay gap. – Establishing communities of support.	Ethnicity – Supporting and growing our Unity Network. – Publishing the UK Ethnicity pay gap. – Working with our new partner for ethnicity.	Business/Regional – Locally defined and owned, based on data, demographics, and cultural or regional nuances.


2024-2025 actions to drive change across the agenda

Revitalise our networks and communities	Focusing on talent and career actions/ progression	Inclusive & high performing leadership skills for all leaders	Activate sponsorship and mentoring	Embed in the end-to- end colleague experience


What we have delivered

Catalyst event, ‘Diversifest’, for reset of our ambition attended by one in three colleagues	Increase of diversity data disclosure to 76% for race/ethnicity	Actions across all five areas of 2024 reset: Client RFPs; data; partnerships; networks; priorities	12 real-life colleague stories shared via award- winning internal campaign, ‘What you see and the real me’


	Read more in our Sustainability and TCFD report 2024.


50	Annual report 2024


Sustainability - Inclusive growth continued

DEI – gender and ethnic representation

Making progress

Building an inclusive business is underpinned by having

the right data, setting ambitious but appropriate targets

and reporting on our progress for transparency and

accountability.

We set our Gender targets in 2016, and met these initial

ambitions in 2020.

Our targets and related actions clearly align to our two

core priorities of Gender and Ethnicity. We are taking

meaningful actions in both the short and medium term

to drive sustainable change within our business, for all

our colleagues.

In 2024, we introduced a new target for 6% of UK senior

leadership representation to identify as minority ethnic

by 2027. Already we have seen strong progress and

momentum, and are on track for this target. This has

been in addition to our increased disclosure among

colleagues for race and ethnicity data.

We are pleased to report that we are on-track for our

Board gender target, as well as our senior leadership

targets. We remain committed through our plans and

through our focus on gender as a priority.

Our gender and ethnic representation targets


Target group	Gender target	2024 status	Ethnicity	2024 status
abrdn plc Board	40% women	40% women Δ	Maintain commitment to the UK Parker review recommendation (1 or more members)	Two Directors identifying as minority ethnic Δ (100% disclosure rate)
Senior leadership1 (CEO-1 and 2)	40% women (global)	40% women Δ (global)	Target: 6% UK senior leadership identifying as minority ethnic by 2027	7% UK senior leadership identifying as minority ethnic Δ (82% disclosure rate)
Global workforce2	50% gender balance (+/- 3% tolerance)	43% women Δ

Statement of consistency with the FCA Listing Rules

As of 31 December 2024, 40% of the abrdn plc Board were women, with two Directors identifying as from a minority

ethnic background. Diversity characteristics are self-reported by Board members and all colleagues. No senior

positions on the Board, as defined by UKLR 16.3.29, were held by women as at 31 December 2024. No changes to the

Board have occurred since then. The Board continues to support its Diversity Statement. Further detail on pages

99-100.


Board and executive management gender representation	Number of Board members	Percentage of the Board	Number of senior positions on the Board3	Number in executive management4	Percentage of executive management
Women	4	40%	—	4	27%
Men	6	60%	3	11	73%
Board and executive management ethnic representation	Number of Board members	Percentage of the Board	Number of senior positions on the Board	Number in executive management	Percentage of executive management
White British or other White (including minority- white groups)	8	80%	3	12	80%
Asian/Asian British	2	20%	—	1	7%
Not specified/prefer not to say5	—	—	—	2	13%
Subsidiary Director gender representation6		Number of Subsidiary Directors in 2024	Percentage of Subsidiary Directors in 2024	Number of Subsidiary Directors in 2023	Percentage of Subsidiary Directors in 2023
Women		12 (of 27)	44%	14 (of 30)	47%
Men		15 (of 27)	56%	16 (of 30)	53%

Δ 2024 data subject to Independent Limited Assurance in accordance with ISAE(UK)3000 and ISAE3410 by KPMG. Assurance statement and

abrdn’s detailed reporting criteria included in the Other information section (page 298) of this report.

1. Senior leadership relates to leaders one and two levels below the CEO and includes the Company Secretary, but excludes administration roles and

individuals on garden leave.

2. Global workforce of 4,396 (2023: 4,742) including 1,898 (2023: 2,049) women. 24 colleagues without gender data on our people system are

excluded from the headcount data (2023: 63).

3. Current senior positions on the abrdn plc Board are Chief Executive Officer, Senior Independent Director, and Chair.

4. Executive management team includes direct reports to the CEO (“CEO-1”) and excludes administration roles.

5. Includes one individual based in a country where we do not collect diversity data.

6. Directors of the Company’s direct subsidiaries as listed in Note 44(a) of the Group financial statements and not otherwise classified above.


			Annual report 2024	51


STRATEGIC REPORT

DEI – UK pay gap disclosures

Our UK gender and ethnicity pay gaps

Our UK gender pay and bonus gaps


UK gender pay and bonus gaps	2024	2023
Mean pay gap	24.2%	24.8%
Median pay gap	18.0%	18.8%
Mean bonus gap	50.2%	55.3%
Median bonus gap	34.6%	34.6%

What is the gender pay gap

The difference between the average pay of men and

women in a company regardless of the job they do. It is

not the same as equal pay. The Equal Pay Act in the UK

legally requires that colleagues working for the same

employer must get equal pay for doing ‘equal work’ (the

same, similar, equivalent or of equal value).

What do our results show

The data shows that progress is possible. Where we are

taking action, we are seeing some evidence of change.

This gives us confidence that we are moving in the right

direction, but we acknowledge that progress is too slow

and we need to do more to drive meaningful change.

This is one data point that informs our actions and plans

at abrdn.

Actions we are taking


1	Representation targets	Delivering our senior leadership targets will have the greatest impact on the UK gender pay gap.
2	Industry collaboration	Supporting the Diversity Project’s goal for firms to reduce their UK gender pay gap by one-third from 2019 levels.
3	Accountability	With oversight from our Nomination and Governance Committee, our ambition is led by our ELT and includes tracking of progress against culture-related metrics.
4	Career framework	Providing greater transparency of the skills and expectations of people at each career level within our job families.
5	Keeping gender as a priority across our Talent and Culture agenda	Our progressive plan has been in place since 2017 and we continue to shape and refine our actions based on our data, colleague voices and by working with our Balance network.

Our UK ethnicity pay gap


UK ethnicity pay gaps	2024
Mean pay gap	12.4%
Median pay gap	15.7%

What is the ethnicity pay gap

The ethnicity pay gap is the difference between the

average pay of people of different ethnicities within the

same company, based on self-disclosure of their race/

ethnicity data, regardless of the job they do. Our UK pay

gap shows that, on average, people who identify as

Black, Asian or Minority Ethnic earn 12% less than people

who identified themselves as White.

What do our results show

This is the first time we are publishing our UK ethnicity

pay gap, which we hope indicates our commitment to

action and sustainable change. The data represents a

baseline from which we can track the impact our

actions are having. Ethnicity is a core focus of our

strategy and we recognise that there is a long way to go

to create a truly equitable world of work - across the

financial services industry and at abrdn. We are

committed to playing our part in making progress.

Actions we are taking


1	Representation targets	We have set targets specifically at UK senior leadership level that will have the greatest impact on the UK ethnicity pay gap.
2	Career framework	Providing greater transparency of the skills and expectations of people at each career level within our job families.
3	Data collection and accuracy	We are focused on data disclosure and gathering the right insight from our people.
4	Making ethnicity a priority	Based on our increased data disclosure and insight, and close engagement with our Unity network, we are driving more targeted actions.


	View or download our standalone UK pay gap report at www.abrdn.com/diversity-and- inclusion


52	Annual report 2024


Sustainability - Inclusive growth continued

Colleague engagement

Building momentum and launching a new colleague council

2024 engagement results

While acknowledging that there is room for

improvement, we are pleased to see an increase in

colleague engagement to 57% (2023: 54%). Our all-

colleague survey achieved its highest ever participation

rate of 83% (2023: 79%), reflecting our efforts to

encourage a culture of feedback from our colleagues,

with over 7,000 comments received during the year.

Reflecting a healthy culture

Pride and advocacy are growing, despite challenging

market conditions. Our underlying culture is healthy, with

colleagues reporting strong client focus, challenging

and interesting work, growing belief in leadership and

strong collaborative team relationships.

Taking action

The introduction of our new career framework has

contributed to improvements in colleague perception of

career development at abrdn. In 2024, 81% of our

colleagues had a mid-year career conversation with

their leader to discuss the new career framework, future

career aspirations and development opportunities.

Focus and work in this area continues to be a priority.

Day-to-day experiences are positive and leaders at all

levels have strong and trusted relationships with their

teams. 87% of colleagues say their manager cares

about their wellbeing; 81% feel included by the people

they work with; and 74% say their perspectives are

valued, reflecting an emerging strength and opportunity

in our leaders.


Colleague engagement score 57% (2023: 54%) “I know how my work contributes to delivering abrdn’s strategy” 78% (2023: 68%)	“I can voice a contrary opinion without fear of negative consequences” 67% (2023: 53%) “I believe there are good career opportunities for me here” 44% (2023: 36%)

Colleague council

Newly formed in 2024, this global group represents our

colleague population, bringing together all aspects of

colleague voice. More than 100 colleagues put

themselves forward, from which 30 colleagues were

appointed, including representation from each business

area, every region and each of our colleague networks.

Advice and input will be sought from this group to help

create the best outcomes for our people. Meeting for

the first time in September 2024, our colleague council

has already completed its first mission, resulting in four

new questions in our annual engagement survey and a

fresh, myth-busting approach to communications.

In 2025, our colleague council will work with leaders and

their teams, taking action and empowering others to

continue to improve our colleague experience.



	Noel Butwell CEO, Adviser
	“We are on a mission so that everyone feels seen, heard and valued and so that nothing gets in the way of people doing their best work. I was humbled by the number and quality of applications for our colleague council. This group is already shaping our culture, and I look forward to continuing to work closely with them, driving forward improvements together.”


			Annual report 2024	53


STRATEGIC REPORT

Environmental transition

Managing risks and realising opportunities

In the second half of 2024, the Board discussed our Group

sustainability strategy, which included environmental

transition as a strategic area of focus. The directors

recognise the importance of managing the risks and

opportunities linked to climate change, nature and the

wider environmental transition. The Board also supports our

business to reflect this strategic focus in a way that best

serves our customers and clients.

Under our environmental transition pillar, we consider

the impact of, and our impact on, the environmental

transition across the Group, with a focus on climate and

nature.

We continue to actively manage our transition planning

and have developed a Climate Transition Plan internally.

This plan is evolving as frameworks and data mature.

We hope to be in a position to publish our plan externally

in the near future.

Identifying and assessing environmental

risks and opportunities

Our Corporate Sustainability team works closely with

our businesses to identify and manage sustainability

risks and opportunities, which are then discussed and

disseminated in a process managed by our Risk team, in

line with our Enterprise Risk Management Framework

(ERMF).

Periodically, we conduct Group environmental risk

assessments using our ERMF risk impact matrix to

ensure a cohesive view of environment-related risks and

opportunities for the business.

Residual risk assessment is determined based on a

number of factors, including: the likelihood of the risk

materialising; the timeframe of onset; the scale of the

potential impact of each identified risk; the controls we

have to mitigate impact; and business continuity plans

aligned to each risk, all of which help determine

vulnerability. The assessment considers inherent risk and

the quality of controls to determine a residual risk score

of low, medium, high or very high, depending on the

impact and likelihood attributed to the risk.


	Read more in our Sustainability and TCFD report 2024.

The output of this assessment is shown overleaf, with our

most recent assessment being conducted in November

2024. Our view remains that the Group is predominantly

exposed to climate transition risk (see page 54) and

opportunity (see below), as markets, policies and

regulations evolve. This is most significant to our

Investments business as it has the potential to impact

the financial performance of our investments. Adviser

and ii do not face the same level of exposure, due to

them being platform businesses.

Identifying opportunities

Across our Group, we aim to support clients in meeting

their own sustainability ambitions. This means

supporting our clients to meet their own sustainable

investment goals and navigating the financial

implications of the environmental transition on their

investments. We also identify climate- and nature-

related opportunities at both a Group and business level.

At our Climate Risk Workshop in 2023, subject matter

experts identified two over-arching opportunities, which

remain unchanged in 2024. These are the opportunities

from developing decarbonising investment products

and services across our three businesses, and reducing

operational costs by using more efficient buildings,

technology and transport. The development of specific

products is individual to each business. See page 56 for

our operational approach to decarbonisation.

Investments’ approach

We continue to experience strong demand for

sustainable investing opportunities. As such,

sustainability and, in particular, climate change remains

a long-term strategic focus for our Investments

business. We provide investment solutions, capabilities

and insights to enable our clients to meet their

sustainability and financial objectives.

ii and Adviser’s approach

Our ii and Adviser businesses provide information,

insight, and access to a range of sustainable investment

solutions.

It is important to be clear that climate- and nature-

related considerations are not integral to every

investment, or strategic decision, nor are tools without

limitations. We aim to improve our capabilities each

year, as new data becomes available, and the needs of

our clients evolve.


54	Annual report 2024


Sustainability - Environmental transition continued

Environmental risks and opportunities

Identified environment-re lated risks – climate and nature

The table below illustrates our risk assessment of abrdn’s environment-related risks. With input from the first line and

Corporate Sustainability, we consider applicability and expected likelihood across our business. This is an illustrative view,

which is expected to evolve over time.


Identified environmental transition risks		Potential financial impact to abrdn	Mitigation strategies	Applicability to business areas	Time horizon	Residual risk
Policy and legal	Evolving regulatory and reporting landscape, with regional variants	Costs to gather, analyse, and publish data	Reporting tools and efficient processes	Group	0-5 yrs	Medium
Policy and legal		Costs of inadvertent non- compliance	Horizon scanning and engagement supported by governance frameworks	Group	0-5 yrs	High
Market	Changing client/customer preferences	Reduced revenue from decreased demand for products and services	Market research to inform commercial decisions. Thought leadership and client engagement	Investments	0-10 yrs	Medium
	Changing client/customer preferences	Potential for missed opportunities due to lack of products and services	Product development to meet this demand	Group	0-10 yrs	Medium
	Lack of clarity regarding the pace, direction, and evolution of public policy	Market uncertainties and associated impacts on returns	We have multiple ways to assess potential impacts including on- desk analysts, insights from the central investment team and our Global Macro Research team	Group	0-10 yrs	Medium
	Environmental events impact the financial markets	Volatility reducing revenue and impacting financial performance	Investment research to understand and quantify the potential impact on returns and build more resilient portfolios	Investments	0-10 yrs	Medium/ High
	Environmental events impact the financial markets	Reactive policies leading to potential market instability	Horizon scanning and, where applicable, proactive advocacy with policy makers	Group	0-10 yrs	Medium/ High
Reputational	Increased stakeholder concern or negative sentiment	Reduced revenue from decreased demand for products and services	Enhanced reporting and transparency, and implementation of controls to mitigate marketing risks	Group	0-5 yrs	High
Reputational	Increased stakeholder concern or negative sentiment	Costs associated with potential litigation due to investment decisions	Proactive engagement with stakeholders to ensure clear understanding of regulatory landscape	Investments	0-5 yrs	High
Identified environmental acute and chronic physical risks
Acute physical	Increased severity of extreme weather events and location- specific loss of ecosystem services	Costs related to damage to operational infrastructure, technology, and disruption to power networks. Supply chain disruption and increasing resource constraints	Infrastructure insurance, a business continuity process, remote working technology, distributed infrastructure with backup power, and climate sensitivity analysis for office locations	Group	0-10 yrs	Medium
		Costs and operational impact of non-office- based disruption to colleagues/third-parties	Business continuity and remote working support, provision of staff support platforms, and requirement for third-party services to provide resilience plans	Group	0-10 yrs	Medium
		Costs of physical damage to investment assets, including real estate	Physical climate risks are assessed, mitigated and managed as part of due diligence for new investments and on an ongoing basis as part of asset management	Investments	0-10 yrs	Low/ Medium


			Annual report 2024	55


STRATEGIC REPORT

Climate scenario analysis - Investments

Understanding climate-related risks and opportunities

Beliefs driving our analysis

As investors, we must understand and quantify the

effect of climate-related risks on potential returns of the

companies and markets in which we invest on behalf of

clients, and how the underlying assets are addressing

their exposure to climate-related risks. We believe that

this will enable us to build more resilient portfolios and

generate better long-term returns for our clients.

Our bespoke approach

We take a bespoke approach with the aim to integrate

climate scenario analysis with our investment processes

and provide solutions for our clients:


	We reflect more realistic regional and sectoral characteristics than standard approaches.
	We assign probabilities to our scenarios to create a ‘most likely’ future pathway.
	We design our baseline to reflect what is currently priced into the market.
	We are not restricted by the technological assumptions of a single energy-systems model.
	We consider the impact of company transition strategies and assess their credibility.

Insights and conclusions

Generally, global climate policy ambition continues to

increase, but with delayed implementation, which is a

feature of a ‘disorderly ’ energy transition and will create

nuanced consequences for investors.

We continue to believe that the most pronounced

impacts for investors will be sector- and stock-specific,

with valuation impairments for aggregate global

equities being limited (-0.5%) under our Probability-

weighted scenario, which projects a global temperature

rise of 2.2°C (2023: 2.3°C). The chart below plots the

dispersion of asset uplifts and impairments under this

scenario. Our framework generates forecasts on over

22,000 equity assets and 55,000 corporate bonds. This

analysis can be applied as a top-down tool to support

our clients, with flexibility to meet specific client needs, in

conjunction with other forms of analysis.

Our suite of 16 scenarios allows us to consider the

impact of a range of climate futures from Paris-aligned

scenarios of well-below 2°C to a 'hot-house world', with

projected temperature rises ranging from 1.3°C to 3.8°C

by 2100. But our bespoke scenarios allow us to provide

enhanced insight in the more probable middle-ground.

Resilience of abrdn as a firm

The financial sector faces limited direct exposure to

climate-related risks, with an average equity valuation

impairment of 0.5% under our Probability-weighted

scenario. However, climate-related risk has the potential to

be material indirectly, due to portfolio-level exposures, and

other risk types explored on page 54. It is therefore critical

that we understand and quantify climate-related portfolio

risks, to better enable the objectives of our clients, as the

owners of the assets we manage. We consider our direct

exposure to climate-related risks to be low. Further

information on the resilience of the Group can be found in

our Viability statement on page 80.



	Our conclusion is that climate risk and opportunity is both a sector- and stock-specific phenomenon This suggests that actionable insights can be found by looking across and within sectors and implies that actively managed investment strategies can tilt portfolios towards climate transition ‘winners’ and away from climate ‘losers’. Insights can be refined using our climate ‘building blocks’, with both top-down and bottom-up analysis. See more on page 50 of our Sustainability and TCFD report 2024.
	Probability-weighted mean scenario. Circles show the sector mean; diamonds represent the 25th and 75th percentile; triangles represent the 10th and 90th percentile.


56	Annual report 2024


Sustainability - Environmental transition continued

Operational emissions disclosure

Delivering against our interim emissions reduction objective

Progress in 2024

Our operational emissions intensity is comparatively

small compared with the intensity of the investments we

manage on behalf of our clients. We aim to lead by

example and believe that our actions must mirror our

expectations as investors.

In 2024, we remained on track to meet our interim

objective of a 50% reduction in reported operational

emissions by 20251. We report a 74% reduction versus

our 2018 base year. This reduction continues to be

driven largely by a fall in our business travel since 2018

and office consolidation.

Actions and initiatives from 2024

Each year, we take action to refine our processes,

engage colleagues and deliver meaningful impacts. In

2024, we carried out net zero audits for some of our

major offices. We engaged with relevant stakeholders

required to deliver the energy efficiency initiatives

identified in these audits, and this process will continue in

2025. This forms part of our work to address our material

operational impacts, such as energy use in our offices.

We also remain committed to addressing broader

environmental impacts, as sources of emissions

considered to be less material can still intersect climate

and nature, or may present an opportunity for

engagement with colleagues.

Operational climate targets1


Target	Scope	Progress
Operational net zero by 2040	Beginning with absolute emissions reductions, we are targeting net zero operational emissions across Scopes 1, 2, and material Scope 3 categories.	74% reduction since 2018
50% reduction by 2025 versus a 2018 baseline	Absolute reduction in reported Scope 1, 2, and 3 emissions. This does not include some Scope 3 categories for which data remains unavailable.	74% reduction since 2018

Reported operational emissions and energy consumption


Operational emissions in metric tonnes of CO₂ (tCO₂e)		2024	2023	2018
Scope 1Δ2		692	739	2,667
Scope 2 (location based)Δ3		1,469	1,821	7,069
Total Scope 1 and 2 (location based)		2,161	2,560	9,736
Scope 2 (market based)		426	558	4,376
Scope 3 - Fuel- and energy-related activities (transmission and distribution losses)		168	135	451
Scope 3 - Waste from UK operations		3	7	–
Scope 3 - Business travel		4,974	6,012	22,031
Scope 3 - Employees working from home		1,035	1,205	–
Total Scope 3 operational emissions Δ4		6,180	7,359	22,482
Total Scope 1, 2 and 3 operational emissions		8,341	9,919	32,218
Total energy consumption in kilowatt-hours (kWh ‘000s)
UK energy consumption		8,841	10,746	26,658
Global energy consumption		2,017	1,812	8,451
Total energy consumption Δ		10,858	12,558	35,109
Operational emissions intensity in metric tonnes of CO₂ (tCO₂e)
Scope 1 and 2 emissions intensity per full-time employee equivalent (FTE)5		0.49	0.54	1.57
Reported emissions by location in metric tonnes of CO₂ (tCO₂e)
Scope 1	UK	676	702	2,629
Scope 1	Global (ex. UK)	16	37	38
Scope 2 (location based)	UK	1,064	1,275	4,181
Scope 2 (location based)	Global (ex. UK)	405	546	2,888

Δ 2024 data subject to Independent Limited Assurance in accordance with ISAE(UK)3000 and ISAE3410 by KPMG. Assurance statement and

detailed reporting criteria included in the Other information section of this report.

1. Operational net zero and interim reduction targets are based on reported Scope 1, 2, and 3 absolute emissions (tCO2e) reductions.

2. Scope 1 emissions include natural gas, fluorinated gas, company-owned vehicles, and stationary fuel.

3. Scope 2 emissions include purchased electricity and district heating.

4. Scope 3 reported emissions do not include some emission categories deemed to be material but where data is currently unavailable. Refer to

page 303.

5. Emissions intensity reporting based on FTE as of 31 December 2024 of 4,409 (2023: 4,719 and 2018: 6,192). In 2024, we improved our FTE coverage

to include contingent workers.


			Annual report 2024	57


STRATEGIC REPORT

Portfolio decarbonisation - Investments

Targeting a 50% reduction in the carbon intensity of in-scope assets by

2030, versus a 2019 baseline, within our Investments business

Public markets: progress to date

This is our third year of reporting against our target, with

a 45% reduction in the carbon intensity of in-scope

public market assets versus our 2019 baseline in (2023:

41%). In-scope assets include specific funds and

mandates within equities, fixed income and active

quantitative strategies, with demonstrable

decarbonisation achieved across each of the asset

classes. We continue to note momentum in an increase

in client mandated decarbonisation in segregated

accounts, which has continued to act as an enabler to

achieving our target, along with client inflows into low-

carbon quantitative strategies over the last four years.

Real-world decarbonisation

There remain significant challenges to overcome to

achieve real-world decarbonisation, including

favourable policy environments, data availability, and

client demand. Reductions in portfolio carbon intensity

may not be attributable to real-world impact due to the

limitations of portfolio carbon metrics.

Our strategy is focused on having the best possible

climate building blocks and frameworks to enable our

clients to integrate climate change considerations into

their investments.

The combination of our top-down climate scenario

analysis and bottom-up portfolio alignment and

credibility framework help support our forward-looking

evaluation of emissions and climate-related risks and

opportunities. These frameworks are also deeply

integrated into our active ownership approach to

enhance our considerations of climate risks and

opportunities.

Real estate: progress to date

Between 2019 and 2023, we note a 34% reduction in

Scope 1 and 2 carbon intensity by floor area. This can be

attributed to the ongoing decarbonisation of UK and EU

energy grids, and the continued evolution of the in-

scope portfolio towards assets with a lower Scope 1 and

2 carbon intensity. This included an increased allocation

towards industrial assets, which typically have a lower

Scope 1 and 2 carbon intensity compared with other

asset types (e.g. offices).

Our analysis of the 2023 calendar year has considered

74% of direct real estate AUM (4% of abrdn AUMA at 31

December 2023). Of the 74% of direct real estate AUM

considered, 27% has associated Scope 1 and/or Scope

2 carbon emissions. The remaining in-scope assets with

no associated Scope 1 and/or 2 carbon emissions are

those that have no landlord energy procurement (i.e. all

energy is procured by the tenant, and therefore all

emissions are Scope 3 emissions that fall outside of the

scope of the 50% reduction target). While no Scope 3

emissions are disclosed for the purposes of reporting

against the above target, it should be noted that we

collect extensive Scope 3 emissions data for our real

estate investments, which is typically disclosed at the

product-level.

Transition pathways for direct real

estate

We continue to implement our decarbonisation

framework to support the decarbonisation of our real

estate assets and the delivery of our carbon targets and

financial objectives. This helps us to understand

transition pathways for our assets, and importantly the

associated cost.

Public market decarbonisation

(29% AUMA)

WACI: tCO₂e/$m Revenue (Scope 1 and 2)

45% reduction

(2023: 41% reduction)

‘19

‘23

‘24

Weighted average carbon intensity (WACI) is our method of tracking

public market decarbonisation, in line with the original

recommendations of the TCFD. In-scope assets include equities, fixed

income, and active quantitative strategies.

Real estate decarbonisation

(4% AUMA)

Carbon intensity: kgCO₂e/m2 (Scope 1 and 2)

34% reduction

(2022: 25% reduction)

‘19

‘22

‘23

Emissions for in-scope direct real estate are divided by floor area and,

along with AUMA, are reported for the 2023 financial year. There is a

significant lag to the collection of data from individual assets, preventing

reporting to 31 December 2024.


58	Annual report 2024


Sustainability - Environmental transition continued

Active ownership and solutions

Catalysing sustainable change through engagement

Active ownership and ESG considerations are a driver of

our investment process, investment activity, client

journey and corporate influence. Through engagement

with the companies in which we invest, and by

exercising votes on behalf of our clients, we seek to

improve the financial resilience and performance of our

clients’ investments. Where we believe change is

needed, we endeavour to catalyse this through our

stewardship capabilities.

Our approach to stewardship

We seek to integrate and appraise environmental, social

and governance factors in our investment process. Our

aim is to generate the best long-term outcomes for our

clients, proportionate to the risk preference they have

accepted, and we will actively take steps as stewards

and owners to protect and enhance the value of our

clients’ assets. We use the UN Global Compact’s four

areas of focus in assessing how companies are

performing in this area. Specifically, we expect

companies to be able to demonstrate how they

manage their exposures across environmental, labour

and employment, human rights and business ethics.

Exercising voting and ownership rights

In 2023, we updated our voting policy to reflect our

intention to use indicators within the Carbon Disclosure

Project (CDP) to identify companies which are not

fulfilling their climate commitments. We publicly

announced our focus on voting action at the AGMs of

companies which we defined as climate laggards. We

defined a climate laggard to be a company which

responded ‘No’ or did not respond to the question on

board level oversight of climate related issues in its most

recent CDP questionnaire. In 2024, we took voting action

at the AGMs of 15 companies.

For more information on our approach to stewardship

and voting with regards to voting on DEI - please refer to

our Sustainability and TCFD report.


	Read more in our Sustainability and TCFD report 2024.



	Looking forward: Nature and Biodiversity The risks and opportunities associated with the use of natural capital (the world’s natural resources, which underpin our economy and society) are becoming increasingly financially material. The Taskforce for Nature-related Financial Disclosure (TNFD) was established to develop and deliver a risk management and disclosure framework. We believe this framework is likely to become the default standard for companies to promote disclosure of nature-based risks. abrdn is supportive of TNFD and we will encourage companies to focus on its disclosure and reporting on natural capital as we believe better disclosure can help support abrdn’s analysis of nature- related financially material risks and opportunities.



	Engagement with our top 20 largest financed emitters In 2022, for our public market investments, we launched a two-year engagement plan with our top 20 largest financed emitters. This enables meaningful engagement over time and reflects our objective to work with our investee companies to support real-world decarbonisation. We have identified decarbonisation trends in the hardest to abate sectors, such as mining and oil and gas producers. Through our engagement programme, we have also managed to identify those companies we believe are likely to be transition leaders. Our two year engagement plan has now concluded and, in 2025, we will review progress against our decarbonisation milestones. Should we not see sufficient progress against these milestones, we may take voting action and/ or consider reducing our financial exposure, if we believe a lack of progress represents a clear financial risk to our clients.


			Annual report 2024	59


STRATEGIC REPORT

Responsible business

We work with all our stakeholders to support inclusive growth and a

credible environmental transition. This is our view of responsible business.



Investments Insurance companies; sovereign wealth funds; independent wealth managers; individuals; pension funds; platforms; banks; family offices
interactive investor Individuals	Our purpose is to enable our clients to be better investors	Adviser Financial advisers
interactive investor Individuals		Adviser Financial advisers



	Section 172 (1) statement The Board recognises the requirements of reporting against matters set out in section 172 (1) (a) to (f) of the Companies Act. The illustration on this page and information on pages 60 to 61 identifies key stakeholders and summarises actions and engagement activities undertaken during 2024, in support of the success of the company and for the benefit of members as a whole. Further information is also provided on pages 92 to 96 of the Corporate governance statement.


60	Annual report 2024


Sustainability - Responsible business continued

Stakeholder engagement

We strive to engage with our stakeholders to understand their views and

take them into account in our long-term decision-making

Examples of stakeholder engagement during 2024


Clients	How do we engage? – Across our business, we regularly engage with clients via direct meetings, perception studies, and attendance at industry conferences. Such engagements help us understand our clients’ needs and strategies, including their sustainability objectives.	Related outcomes – Launched a new Managed ISA product in ii to encourage low-confidence investors. See pages 24-29. – Reduced sign-up and transfer-in process lead times; improved call answer times at Adviser. See pages 30-35. – Undertook a range of investment performance improvement programmes, which has supported returns across asset classes. See pages 36-41.
	What did we learn? – Listening to feedback is critical, with indicators, such as consistent ‘Excellent’ ratings from ii customers on Trustpilot, illustrating this in practice. – Across Adviser, we know our clients value service. We measure customer satisfaction (averaging 91 in 2024) to help us continuously improve the service we provide. – Our Investments business has a diverse client base. Independent client survey feedback highlights strong client service and account management.
Shareholders	How do we engage? – Our Annual General Meeting (AGM) offers shareholders the opportunity to interact directly with our Chair and Board. – In 2024, we began providing the market with quarterly trading updates, responding to investor appetite for more frequent communication. – During 2024, we also carried out a comprehensive programme of one-to-one meetings, conferences and roadshows in the US, as well as the UK, with domestic and international investors.	Related outcomes – We aim to provide regular information to shareholders on our trading performance. The introduction of quarterly trading updates has supported this outcome, with the more regular communication viewed as helpful in investor feedback. – The business aims to encourage an all-employee share ownership. Learn more on page 133.
	What did we learn? – Feedback on our results announcements and quarterly trading updates allows us to better understand the views of our shareholders and the market. The introduction of quarterly trading updates has enabled us to obtain this information more regularly. – Feedback from our programme of investor meetings reflects a broad range of investor interests. Learn more on page 93.
Suppliers	How do we engage? – All suppliers providing services within the scope of our third-party risk management framework are engaged through due diligence assessment and ongoing monitoring. – Strategic supplier relationships have dedicated relationship managers to support greater oversight and engagement. – ESG topics are included within our oversight reviews.	Related outcomes – In 2024, we continued to advance our approach to managing sustainability risks presented by suppliers, using established processes to identify and address weaknesses in supplier performance. The information gathered enables abrdn to continuously improve its approach to supplier sustainability and associated outcomes.
	What did we learn? – Through due diligence and ongoing monitoring, we are able to assess suppliers against our third party expectations, as outlined in our Global Third-Party Code of Conduct. – Many of our suppliers align with our expectations and, in many cases, demonstrate an established understanding of sustainability risks. However, where suppliers do not align, we aim to establish stronger controls to support them and monitor their performance.
Regulators	How do we engage? – abrdn retains membership of various industry groups and forums, which supports the development of a collective sector view. – We proactively respond to government, parliament and regulatory consultations and inquiries relevant to our businesses and stakeholders.	Related outcomes – In 2024, we engaged with our regulator on implementation of fund labelling as part of the Sustainability Disclosure Requirements. – We published extensive consumer research highlighting the need for action to improve financial literacy among UK adults.
	What did we learn? – We are supportive of greater interoperability in global sustainability disclosure standards. – We are also strong believers in client-first outcomes and support the implementation of requirements such as Consumer Duty.


			Annual report 2024	61


STRATEGIC REPORT

Stakeholder engagement

Examples of stakeholder engagement during 2024 continued


Communities	How do we engage? – We conduct research and publish insights relating to topics such as financial inclusion, savings and retirement, and the low carbon transition. – The abrdn Charitable Foundation directs our community impact strategy, with a focus on tomorrow’s generation. – Our colleagues volunteer and fundraise for a variety of charitable causes. We provide three paid volunteering days to abrdn colleagues to enable this.	Related outcomes – £2.2m contributed to charitable causes in 2024 (2023: £2.1m). – 3,301 hours spent volunteering by colleagues during 2024 (2023: 3,248). – We have committed to multi-year partnerships with MyBnk and WorkingRite, which are delivering financial education and employability programmes designed to address systemic barriers and to support financial inclusion for young people.
	What did we learn? – Insights, such as our ‘Savings Ladder’ research suggest that 23 million people in the UK have poor financial literacy and that those with good financial literacy are more likely to have a pension. – Our colleagues have primarily chosen to volunteer for social welfare charities, supporting those in need or facing hardship, or environmental charities.
Colleagues	How do we engage? – Our annual colleague engagement survey (page 52). – Pulse surveys throughout the year, checking in with colleagues. – Reinvigorated regular townhalls and informal coffee sessions to provide candid Q&A opportunities with our ELT. – Our new colleague council brought together all aspects of colleague voice, including representation from each colleague network, region and area of the business.	Related outcomes – In clarifying our ambition and re-setting our networks, colleagues recognised a refreshed ambition and focus. 81% feel included by the people they work with. – Refined approach to stating our desired culture and measuring our progress towards that, through our new Culture Dashboard. – Introduction of our new Career Framework, supporting colleagues’ personal development, connecting back to highlight learning and development opportunities.
	What did we learn? – Engagement is steadily improving, with notable positive shifts in pride and advocacy. – Focused leadership engagement activity, and visible, approachable, leadership style have driven increased scores in motivation and confidence. – Colleagues’ scores show strength in client focus, interesting work, and strong collaborative team relationships. – Our Board Employee Engagement programme includes a number of opportunities throughout the year for employees to engage with our designated NED for employee engagement.

Inside abrdn's Board Employee Engagement: a year in review

By Hannah Grove, Designated non-executive Director for Board Employee Engagement (BEE)

2024: a year of engagement

The following are some example activities from the BEE

programme in 2024:

– 14 discussion sessions were held with groups across

various levels, businesses and geographies, including the

Future Leaders cohort, female talent groups, the newly

formed Colleague Council and colleagues in America,

Europe, Asia and the UK.

– Six ‘Meet the NEDs’ sessions took place including events

with colleagues in London, Edinburgh and Philadelphia, as

well as a specific session held by our subsidiary Adviser

board directors for Adviser colleagues in Edinburgh.

– Six Employee Network engagements, including a

roundtable discussion with our US network chairs in

Philadelphia.

More detail in relation to the programme can be found on

page 93.

Looking ahead to 2025

We will stay close to colleagues and maintain high

board visibility, continuing to leverage the BEE

programme to support progress and improve

engagement, which will ultimately deliver

better performance.



	Feedback from colleagues
	“These are excellent sessions – insightful, candid and with a group of Non Execs who are, without exception, very approachable.” “These are just brilliantly relaxed and engaged sessions. There’s honest sharing and supportive conversation and I’m always grateful for the opportunity to meet the NEDs in person. I strongly recommend any other team member take advantage of these sessions at the next occasion.”


62	Annual report 2024


Sustainability - Responsible business continued

Non-financial disclosure

Non-financial and sustainability information statement



	Statement of the extent of consistency with FCA UKLR 6.6.6(8)R for TCFD disclosure The disclosure in this report, with additional information in our Sustainability and TCFD report, is designed to be consistent with the 11 recommendations of the TCFD framework, except for disclosure of certain Scope 3 emissions categories, including complete disclosure of financed emissions.

Limitations and exclusions

Data availability and maturity remains a challenge and has

bearing on the completeness of the information we can

report. While our disclosure remains consistent with prior

periods, we acknowledge that our reporting may evolve in

future periods. Our view is that sufficient climate-related

data is available to better enable our investment processes

and to manage our objectives as a responsible business.

This also allows us to track our progress against targets,

outlined on pages 56 and 57. Full details of our limitations

and exclusions relating to operational emissions disclosures

is summarised within our Sustainability Reporting criteria in

the Other Information of this document (page 302).

Summary of non-financial disclosure

The information on this page and page 63 summarises

where we have made required disclosures under the

Companies Act 414CA and 414CB in this report in

addition to the information required under the FCA UKLR

6.6.6(8)R. Additional information is also provided in our

standalone Sustainability and TCFD report, and other

disclosure documents, which we believe adds value for

our stakeholders and reflects common market practice.


Recommended TCFD-aligned disclosure		Page(s)
Governance	Describe the Board’s oversight of climate- related risks and opportunities.	44
Governance	Describe management’s role in assessing and managing climate-related risks and opportunities	44
Strategy	Describe the climate-related risks and opportunities the organisation has identified over the short, medium, and long-term	53-54
	Describe the impact of climate-related risks and opportunities on the organisation’s businesses, strategy, and financial planning.	53-54, 55
	Describe the resilience of the organisation’s strategy, taking into consideration different climate related scenarios, including a 2°C or lower scenario.	55
Risk management	Describe the organisation’s processes for identifying and assessing climate-related risks	53
	Describe the organisation’s process for managing climate-related risks	53-54
	Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organisation’s overall risk management	53
Metrics and targets	Disclose the metrics used by the organisation to assess climate-related risks and opportunities in line with its strategy and risk management process.	56-57
	Disclose Scope 1, Scope 2, and if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks	56-57
	Describe the targets used by the organisation to manage climate-related risks and opportunities and performance against targets	56-57


Climate and environment
Our focus	Our continued focus is on managing our climate- related risks and opportunities, which is presently the most significant environmental matter for our business. Our sustainability strategy, discussed by the Board in H2 2024, includes a focus on environmental transition, as we look to now place strategic emphasis on matters beyond climate, both as investors and in our business.
Policies and due diligence	Operational environment policy Listed company voting principles Sustainability and TCFD report
Policy outcomes	Climate targets applicable to our operations and investments Active engagement approaches and climate tools to support our investment processes
Related risks	Disclosure on page 54
Risk management	Sustainability professionals and governance structure Tools in place to support climate-related risk management
Non-financial KPIs	Greenhouse Gas emissions metrics Climate-related voting and engagement


			Annual report 2024	63


STRATEGIC REPORT

Non-financial information

Non-financial and sustainability information statement


	Employees	Social matters	Human rights	Anti-corruption and anti-bribery
Our focus	Our objective is to build a business that attracts brilliant talent; and where all our people can thrive; where they belong, and can learn, develop and do their best work.	Our sustainability strategy, reviewed by the Board in H2 2024, includes a focus on inclusive growth. This is a strategic objective as we look to enable financial inclusion and education via our products and services, external partnerships, and industry campaign initiatives.	Our approach to human rights is to work across our operations, investments, and supply chain to support safe and secure work, and mitigate related risks. This is a focus for our active engagement approach, and we increasingly provide transparency on our supply chain activities.	Our business is conducted fairly, honestly, and with integrity. We do not take part in acts of corruption, or pay or receive bribes, whether directly or indirectly. We have clear expectations outlined in our global code of conduct, and policies and procedures embedded across abrdn.
Policies and due diligence	Global diversity, Equity and Inclusion policy Global code of conduct	Client and customer policy Charitable giving strategy	Global code of conduct Third-party code of conduct Modern slavery statement Privacy and data protection Human rights statement	Anti-Financial Crime policy Anti-Bribery and Anti- Corruption standards Global code of conduct
Policy outcomes	Annual colleague engagement survey Inclusive recruitment and development programmes Launch of our colleague council	Industry campaigns on financial education Charitable partnerships with MyBnk, and WorkingRite	Human rights and labour are focus areas for active ownership Increased transparency on our supply chain	Applicable controls embedded within operating procedures
Related risks	Noted amongst principal risks and uncertainties	Lack of financial inclusion for our key stakeholders	Unsafe and insecure work in our value chain Lack of data protection and security Risks to vulnerable customers	Noted amongst principal risks and uncertainties
Risk management	Listening to and responding to colleague feedback Developing our career proposition Strategic focus on talent and culture	Inclusive growth is a strategic sustainability focus area	Investment tools and processes Supplier risk assessments Data protection procedures	Required training for all colleagues Controls to prevent and detect instances of bribery and corruption
Non-financial KPIs	Employee engagement score Diversity, equity, and inclusion targets	Client and customer satisfaction Impact reporting from charity partnerships	Third-party risk assessments Data incidents and breachers Related voting engagement activities	Completion rates of staff training Gifts and entertainment incidents and breachers
Reference	Pages 49-52	Pages 45-48	Page 60	Page 83


64	Annual report 2024


Our key performance indicators

Our key performance indicators


Adjusted net operating revenue1
£1,321m

This measure is a component of adjusted operating profit and

includes revenue we generate from asset management

charges, platform charges and other transactional/advice

charges and treasury income.


Adjusted diluted earnings per share
15.0p

This measure shows on a per share basis our profitability and

capital efficiency, calculated using adjusted profit after tax.


Adjusted capital generation
£307m

This measure aims to show how adjusted profit contributes to

regulatory capital.


Full year dividend per share
14.6p

The total annual dividend (interim and final) is an important

part of the returns that we deliver to shareholders and is

assessed each year in line with our stated policy to hold at

14.6p until it is covered at least 1.5 times by adjusted capital

generation.


Adjusted operating profit
£255m

Adjusted operating profit is our key alternative performance

measure and is how our results are measured and reported

internally.


IFRS profit/(loss) before tax
£251m

IFRS profit/loss before tax is the measure of profitability set out

in our financial statements. As well as adjusted profit, it

includes adjusting items such as restructuring expenses and

profit on disposal of subsidiaries.


Net capital generation
£238m

This measure shows Adjusted capital generation less

Restructuring and corporate transaction expenses (net of

tax).



		Alternative performance measures We assess our performance using a variety of performance measures including APMs such as adjusted operating profit, adjusted profit before tax, adjusted capital generation and net capital generation. APMs should be read together with the Group’s IFRS financial statements. Further details of all our APMs are included in Supplementary information.

1. The measure of segmental revenue has been renamed from net operating revenue to adjusted net operating revenue. See Note 3(c) for a

reconciliation of these revenue measures.


			Annual report 2024	65


STRATEGIC REPORT


Investment performance1 (Percentage of AUM performing over three years)
60%

This measures our performance in generating investment

return against benchmark/target. Calculations for investment

performance are made gross of fees except where the stated

comparator is net of fees.


Employee engagement survey
57%

This measure is important in gauging the engagement and

motivation of our people in their roles. It also enables our

managers at all levels to take local action in response to what

their teams are telling them.

Other indicators

AUMA

£511.4bn

Net flows — Total

£(1.1)bn

IFRS diluted earnings per share

13.0p

Gross inflows

£78.3bn

Net flows

(excluding liquidity, and LBG tranche withdrawals in 2022)

£(6.1)bn

1. The scope of the investment performance calculation has been extended to cover all funds that aim to track or outperform a benchmark, with

certain assets excluded where this measure of performance is not appropriate or expected. 2022 and 2023 comparative have been restated.


66	Annual report 2024


Chief Financial Officer’s overview

Transforming our business

to deliver sustainable

profitable growth

Ian Jenkins

Interim Chief Financial Officer


			Annual report 2024	67


STRATEGIC REPORT

“2024 was a year of significant progress, underpinned by consistent delivery

and execution. I am pleased by the success of the first year of our cost

transformation programme and the benefits this is already delivering.

Looking ahead, I am confident we can build on this progress and complete

the transformation plans we have in place, in turn helping us to unlock the

significant potential in the Group. Supported by our strong balance sheet

and diversified three-business model, we have strong foundations for

sustainable and profitable growth.”

>£100m

Annualised cost savings delivered

£255m

Adjusted operating profit

£251m

IFRS profit before tax

£238m

Net capital generation

£1,465m

Common Equity Tier 1

Overview

We have delivered an increase in

adjusted operating profit, both at

Group level and across all three of

our Wealth & Investment businesses.

Notably, this included our

Investments business, despite the

geopolitical and structural

challenges which impacted the

sector as a whole, and disposals

which impacted both our

Investments business and ii.

During the year, we also made

significant progress in improving our

efficiency which remains a priority

for the Group. The associated

savings achieved in the year,

coupled with the clear strengths of

our diversified business model, have

enabled us to deliver improved

financial performance.

At the start of 2024, we announced

our transformation programme with

the target of achieving at least

£150m of annualised cost savings by

the end of 2025. I am pleased to

reaffirm my confidence in this

target, and to highlight some of the

key benefits delivered by the

programme during 2024. With

improved financial discipline now

embedded in each of the

businesses, we are seeing benefits

across the Group.

The programme has delivered

£106m of annualised savings in

2024, with £70m reflected in our

financial performance for the year.

This exceeded our initial

expectations and has driven a 7%

reduction in our adjusted

operating expenses to £1,066m

(2023: £1,149m).

Our transformation is not only about

removing cost, but also about

strategically investing in technology,

processes and our people. Amongst

other improvements, we have

rationalised our fund range for our

clients focusing on fewer, scalable

products and removing small and

unprofitable funds.

The clear progress we have made in

transforming our cost base,

particularly in Investments, has

created a leaner, more efficient

business with a clear path to

profitable growth.

Our balance sheet remains strong.

This has been crucial in enabling us

to fund our transformation

programme and invest in the

business while continuing to support

our dividend. Throughout 2024, we

have continued to simplify our

business, including through disposals

which generated gains on sale of

£100m. These included the sale of

our Virgin Money joint venture and

our European-headquartered

Private Equity business in April,

threesixty in July and the partial sale

of Focus Business Solutions in

December.

In summary, I am confident that the

actions we have taken in 2024 are

creating stronger foundations to

deliver better outcomes for our

clients, colleagues and shareholders.


68	Annual report 2024


Chief Financial Officer’s overview continued

Profit

Adjusted operating profit was up 2%

to £255m (2023: £249m). This

included a 2% increase in ii to £116m

(2023: £114m), a 7% increase in

Adviser to £126m (2023: £118m)

and a 22% increase in Investments

to £61m (2023: £ 50m).

IFRS profit before tax was £251m, a

significant improvement (2023: loss

£6m). This comprised adjusted

operating profit of £255m, adjusted

net financing costs and investment

return of £99m (2023: £81m), and an

overall loss from adjusting items of

£103m (2023: loss of £ 336m).

Adjusting items in 2024 included

restructuring and corporate

transaction expenses of £100m

(2023: £152m), primarily relating to

our transformation programme.

Adjusting items benefited from a

£100m profit on disposal of

subsidiaries and interests in joint

ventures (2023: £79m), principally

relating to the sale of our European-

headquartered Private Equity

business in April 2024. Adjusting

items also included a loss of £27m

on the fair value of significant listed

investments (2023: loss of £178m),

reflecting the 5% reduction in the

Phoenix share price in 2024. Our

share of profit in the HASL joint

venture increased to £26m

(2023: £3m) including investment-

related gains due to favourable

investment market conditions.

Adjusted net operating

revenue

Adjusted net operating revenue was

6% lower at £1,321m (2023:

£1,398m). This included the impact

of net outflows and changes to asset

mix in Investments, and a net

reduction from corporate actions in

Investments and ii.

At ii, adjusted net operating revenue

was 3% lower at £278m (2023:

£287m), or 7% (£19m) higher

adjusting for the sale of abrdn

Capital, which included the MPS

business that transferred to Adviser

in May 2023.

The improvement in underlying

revenue in ii was driven by strong

organic customer growth, increased

trading activity, and stronger

treasury income. Trading revenue

increased 46% to £70m (2023:

£48m) reflecting higher trading and

FX activity. Subscription revenue,

gross of marketing incentives, of

£60m (2023: £58m) reflected

continued strong organic customer

growth. Treasury income increased

3% to £138m, reflecting continued

growth in average cash balances as

well as the continued high interest

rate environment. Fee income

reduced to £25m (2023: £57m)

primarily as a result of the sale of

abrdn Capital and the associated

transfer of MPS to Adviser.

In our Adviser business, adjusted net

operating revenue was up 6% to

£237m (2023: £224m). This was

primarily due to the full 12-month

benefit from the revised Wrap SIPP

distribution agreement as well as

higher treasury income. Total

Adviser revenue in 2024 comprised

£169m of platform charges

(2023: £169m), £33m of treasury

income (2023: £31m) and £37m of

other income (2023: £26m).

In Investments, adjusted net

operating revenue was 9% lower at

£797m (2023: £878m), driven by a

continuation of trends seen in recent

years. These included changes to

asset mix, with net outflows from

higher margin asset classes, mainly

equities, partially offset by strong

inflows into lower margin asset

classes such as quantitative

strategies and liquidity. Across our

Institutional & Retail Wealth business

AUM amounted to £210.5bn at 31

December 2024 (2023: £211.2bn)

with the small reduction driven by

the sale of our European-

headquartered Private Equity

business. Excluding this sale and

other corporate actions, AUM

increased by 3% in the year, driven

by positive market movements and

net inflows. Total net flows across

our I&RW business improved by over

£18bn, with a small net inflow of

£0.3bn in 2024 compared to an

outflow of £17.9bn in 2023.

Our relationship with Phoenix is

significant to our Investments

business, with Insurance Partners

AUM up 2% to £159.2bn. Underlying

this trend, positive market

movements more than offset net

outflows of £4.3bn principally

relating to run-off in the heritage

business.

Adjusted operating

expenses

Adjusted operating expenses

decreased by 7% to £1,066m

(2023: £1,149m).

This principally reflected

transformation savings of £70m,

which exceeded the original £60m

cost reduction target for 2024 given

at the time the transformation

programme was announced.

The impact of the transformation

programme is most evident in our

Investments business with adjusted

operating expenses reducing by

11% to £736m (2023: £828m). These

cost savings were driven by lower

staff costs, including the net benefit

from corporate transactions, lower

outsourcing and professional fees,

project and change spend and


			Annual report 2024	69


STRATEGIC REPORT

property costs. These reductions

were partially offset by the impact

of staff cost inflation.

At ii, operating expenses reduced

6% to £162m (2023: £173m),

primarily reflecting the sale of abrdn

Capital. Excluding the impact of this

sale, expenses increased by £14m

or 9%. This was driven by increased

investment in the ii brand, marketing,

product development and our

people to support continued organic

growth.

In Adviser, adjusted operating

expenses increased 5% to £111m

(2023: £106m) reflecting continued

investment in our proposition.

Expenses in 2024 benefited from a

temporary third-party outsourcing

discount of £17m.

The 2024 in-year savings result in

annualised run-rate savings from

our transformation programme of

over £100m. This gives us

confidence in achieving the

programme’s overall target of

delivering total annualised run rate

savings of at least £150m by the end

of 2025. However, the programme

we have put in place is cost-led

rather than cost-only, and we will

continue to strategically invest in the

business to deliver sustainable and

profitable growth, as well as better

outcomes for our clients and

colleagues.

Capital

We maintain a strong capital

position. This provides us with

resilience during periods of

economic uncertainty and volatility,

such as those seen in the last few

years of heightened geopolitical risk

and elevated inflation.

In 2024, we remained disciplined in

our capital allocation, delivering

continued returns to our

shareholders via dividends while

strategically investing in our

businesses to support sustainable

profitable growth.

We have continued to simplify our

business through the sale of non-

core businesses, with disposals

generating a total of £74m of capital

in 2024. In April, we completed the

sale of our European-

headquartered Private Equity

business for £92m and, in December

completed the sale of 80% of Focus

Business Solutions via a

management buyout. This follows

significant simplification in 2023,

which included the further disposals

of our listed Indian stakes, and our US

Private Equity and Venture Capital

business. In September 2024, we

also completed the acquisition of

closed-end funds from First Trust

Advisors to build further on our

capabilities in the CEF market where

we have significant scale.

We intend to maintain our

disciplined approach to capital:

– We are committed to delivering

on the actions outlined in our

transformation programme

including at least £150m of Group

annualised cost savings by the end

of 2025. Associated

implementation costs in 2024

were £73m with total

implementation costs expected to

be around £150m by the time the

programme concludes. As in 2024,

CET1 surplus capital will be

deployed to fund the restructuring

in 2025.

– We will continue to invest in our

business in a disciplined way, with

a high bar used to assess organic

growth investments and a highly

selective approach to inorganic

opportunities.

– It remains the Board’s intention to

pay a total annual dividend of

14.6p (with interim and final

dividends of 7.3p per share), until it

is covered at least 1.5 times by

adjusted capital generation

(currently covered 1.18 times).

– Over the short term, the dividend

will largely be supported by

adjusted capital generation and

our surplus capital.

Outlook

As reflected in our 2024 results, we

have improved the efficiency of the

Group, making significant advances

toward right-sizing our cost base,

particularly in the Investments

business. Each of our businesses are

at different stages of their

development and none has yet

achieved its full potential. However,

we are pleased with the progress

we have made. Profitability has

increased in all of our core

businesses, and we are confident in

our growth plans for each.

Looking forward, we expect interest

rates to reduce in 2025. While the

pace of that reduction remains

uncertain, falling rates in the UK are

expected to lead to a gradual

reduction of the cash margins

earned in ii and Adviser.

Nevertheless, we expect growth in

treasury income in ii helped by

continued growth in cash balances.

Revenue in ii is also expected to

benefit from increased customer

activity including further use of the

platform’s global trading and FX

capabilities.

Other factors expected to impact

revenue in 2025 include the

previously announced Adviser

platform repricing to improve its

competitive positioning. We also

expect the impact of changes in

asset mix in 2024 and ongoing

market dynamics to result in a slight

reduction in revenue margins in

Investments in 2025.

Against this backdrop, we expect to

make further progress in driving

efficiency improvements and right-

sizing our cost base, principally

through our transformation

programme.

Our balance sheet and capital

generation benefit from our stake in

Phoenix and the surplus in our

defined benefit staff pension plan.


70	Annual report 2024


Chief Financial Officer’s overview continued

We have reached agreement with

the Trustee of the defined benefit

pension plan to utilise part of the

existing surplus to fund the cost of

providing defined contribution

benefits to current employees. This

is expected to result in an annual

benefit of c.£35m to net capital

generation from July 2025 with an

annual review of other options

including an insurance buyout. This

agreement enables the Group to

unlock value from the plan, while

largely maintaining the surplus and

retaining optionality. See Note 31 for

further details.

Looking beyond 2025, we continue

to see long-term structural growth in

the UK savings and wealth industry,

which we are well-positioned to

capture. In addition, while market

conditions are expected to remain

challenging for active asset

managers generally, we see a

number of areas of attractive

opportunities that our Investments

business is well-placed to serve.

New targets

We are announcing a number of FY

2026 targets, which reflect the

increasing momentum in the Group.

This includes ambitious targets for

adjusted operating profit of at least

£300m and net capital generation of

c.£300m, reflecting our confidence

in the Group’s potential for profit

growth and sustainability of the

dividend. The Group targets are

underpinned by ambitions for each

of our three Wealth & Investments

businesses:

– At interactive investor, we will

focus on sustaining organic

growth, with customer numbers

continuing to increase by 8% per

year, in line with this year’s

impressive rate. As this growth is

delivered, we expect key

measures of efficiency to improve,

reflecting the scalability of the

business. We are therefore

targeting a cost/AUMA ratio of less

than 20bps in FY 2026.

– We aim to deliver over £1bn of net

inflows at Adviser in FY 2026 while

maintaining a Net Promoter Score

of over +40, reflecting our focus on

delivering leading client service.

– Finally, we are targeting a step

change in profitability in

Investments, aiming for adjusted

operating profit of over £100m for

FY 2026, supported by investment

performance of over 70% on a 3-

year basis.

We believe none of our businesses is

yet operating at its full potential,

despite 2024 having been a year of

progress and positive realignment.

By continuing this momentum

through 2025 and delivering on our

2026 targets, I am confident we can

deliver improved outcomes for our

clients, colleagues and shareholders.


			Annual report 2024	71


STRATEGIC REPORT

Results summary


	2024	2023
Analysis of profit	£m	£m
Adjusted net operating revenue1	1,321	1,398
Adjusted operating expenses	(1,066)	(1,149)
Adjusted operating profit	255	249
Adjusted net financing costs and investment return	99	81
Adjusted profit before tax	354	330
Adjusting items including results of associates and joint ventures	(103)	(336)
IFRS profit/(loss) before tax	251	(6)
Tax (expense)/credit	(3)	18
IFRS profit for the year	248	12

The IFRS profit before tax was £251m (2023: loss £6m) including adjusted operating profit of £255m (2023: £249m)

and Adjusted net financing costs and investment return of £99m (2023: £81m). Adjusting items were £(103)m

(2023: £(336)m) including:

– Restructuring and corporate transaction expenses of £100m (2023: £152m), including costs relating to our

transformation programme.

– Losses of £27m (2023: losses of £178m) from the change in fair value of significant listed investments as a result of

the decrease in the share price of Phoenix in 2024. 2023 included losses resulting from the reductions in the share

prices of HDFC Asset Management, HDFC Life and Phoenix.

– Profit on disposal of subsidiaries and interests in joint ventures of £100m (2023: £79m).

Adjusted operating profit was £6m higher than 2023. Lower revenue in Investments was partly offset by growth in

revenue in both ii (excluding the impact of the sale of abrdn Capital) and Adviser. Lower expenses were primarily

due to the benefit of significant cost reduction activity in Investments. Our cost transformation programme has

delivered a £70m benefit of lower adjusted operating expenses in 2024, with an annualised benefit of over £100m.

We remain on track to deliver annualised cost savings of at least £150m by the end of 2025. The implementation

costs were £73m in 2024, £61m included in restructuring expenses and a £12m loss on disposal of subsidiaries.

Adjusted net operating revenue

Adjusted net operating revenue decreased by 6%

reflecting:

– Impact of net outflows and changes to asset mix

resulting in lower Investments margin.

– Other margin changes including the benefit in Adviser

from the revised distribution arrangement with

Phoenix, higher trading and FX activity in ii, and higher

total treasury income of £171m (2023: £165m).

– £31m benefit of favourable market movements.

– £(41)m net impact from corporate actions mainly

reflecting the sales of the US and European-

headquartered Private Equity businesses and the

discretionary fund management business, partly

offset by the acquisition of the healthcare fund

management capabilities of Tekla.

Adjusted operating expenses


	2024	2023
	£m	£m
Staff costs excluding variable compensation	460	511
Variable compensation	88	75
Staff and other related costs2	548	586
Non-staff costs	518	563
Adjusted operating expenses	1,066	1,149

Adjusted operating expenses reduced by 7% reflecting:

– 10% reduction in staff costs (excluding variable

compensation), with the benefit of fewer FTEs (8%)

reflecting our cost transformation programme and

net result of corporate transactions, partly offset by

salary increases and increased investment, especially

in ii, to drive growth.

– Higher variable compensation reflecting business

performance.

– 8% reduction in non-staff costs, with cost savings

partly offset by the impact of inflation.

1. The measure of segmental revenue has been renamed from net

operating revenue to adjusted net operating revenue. See Note 3(c)

for a reconciliation of these revenue measures.

2. See Supplementary information for a reconciliation to IFRS staff and

other employee related costs.


72	Annual report 2024


Chief Financial Officer’s overview continued



interactive investor1
Adjusted operating profit	Adjusted net operating revenue	Cost/income ratio	Net flows
£116m	£278m	58%	£5.7bn


	2024	2023
Adjusted net operating revenue	£278m	£287m
Adjusted operating expenses	£(162)m	£(173)m
Adjusted operating profit	£116m	£114m
Cost/income ratio	58%	60%
AUMA2	£77.5bn	£66.0bn
Gross inflows	£13.7bn	£10.2bn
Redemptions	£(8.0)bn	£(7.3)bn
Net flows	£5.7bn	£2.9bn

Adjusted operating profit

– Profit increased by £2m to £116m, including the

benefit of lower losses in the financial planning

business and higher trading income. This was partly

offset by investment to drive organic growth, and the

impact of the sale of abrdn Capital in 2023.

Adjusted net operating revenue

– Revenue of £278m, was £9m lower than in 2023,

reflecting the sale of abrdn Capital which (including

MPS revenue which transferred to Adviser)

contributed £28m to revenue in 2023.

– Excluding abrdn Capital, revenue increased by £19m

or 7% and continued to benefit from diversified

revenue streams.

– Subscription revenue, gross of marketing incentives, of

£60m (2023: £58m) reflected continued strong

organic customer growth.

– Trading revenues of £70m reflected higher trading

and FX activity, driven by increased volatility and

higher non-UK equity trading.

– Treasury income increased to £138m, benefiting from

sustained high interest rates since 2023 and the

growth in cash balances.

– The average cash margin in 2024 was 229bps

(2023: 236bps) and is expected to be in the region of

200-220bps in 2025.

– Fee income reduced to £25m primarily reflecting the

sale of abrdn Capital and transfer of MPS in 2023.


	2024	2023
Adjusted net operating revenue	£m	£m
Subscription/account fees3	52	54
Trading transactions	70	48
Treasury income	138	134
Fee income	25	57
Less: Cost of sales	(7)	(6)
Adjusted net operating revenue	278	287
Adjusted net operating revenue (excluding abrdn Capital)	278	259

Adjusted operating expenses

– Lower adjusted operating expenses of £162m mainly

reflect the sale of abrdn Capital.

– Excluding abrdn Capital, expenses increased by £14m

or 9%, reflecting higher advertising as we increase

awareness of the ii brand and product/proposition

development to support ii’s organic growth. In

addition, record high SIPP transfer-in volumes were

supported by an uplift in operational resource which

also provides future capacity.

AUMA

– AUMA increased to £77.5bn (2023: £66.0bn) benefiting

from stronger markets and growth in net flows.

– Average customer cash balances as a percentage of

average AUA were 8.7%4 (2023: 9.8%4).

– Total customers increased by 8% to 439k4

(2023: 407k4) due to organic growth. Our strategy to

increase SIPP market penetration continues, with the

number of customers holding a SIPP account up by

29% to 80.6k4 (2023: 62.4k4).

Gross and net flows

– Net inflows remained strongly positive, increasing to

£5.7bn (2023: £2.9bn) due to growth from new

customers and existing customers choosing more of

our products, including our SIPP.

– Within this, the ii direct platform generated net inflows

of £6.1bn offset by £0.4bn net outflows in the financial

planning business.

1. See Supplementary information for additional operational metrics.

2. Includes financial planning business AUA of £3.7bn (2023: £4.3bn).

3. Net of £(8)m (2023: £(4)m) of marketing incentives.

4. Excludes our financial planning business.


			Annual report 2024	73


STRATEGIC REPORT



Adviser
Adjusted operating profit	Adjusted net operating revenue	Adjusted net operating revenue yield	Net flows
£126m	£237m	31.2bps	£(3.9)bn


	2024	2023
Adjusted net operating revenue	£237m	£224m
Adjusted operating expenses	£(111)m	£(106)m
Adjusted operating profit	£126m	£118m
Cost/income ratio	47%	47%
Adjusted net operating revenue yield1	31.2bps	30.6bps
AUMA2	£75.2bn	£73.5bn
Gross inflows	£6.5bn	£5.8bn
Redemptions	£(10.4)bn	£(7.9)bn
Net flows	£(3.9)bn	£(2.1)bn

Adjusted operating profit

– Profit growth of 7% to £126m (2023: £118m).

– Cost/income ratio remained stable at 47%, benefiting

from higher revenue, which was partly offset by higher

expenses driven by investment in our proposition .

– Expenses continued to benefit from a temporary

third-party outsourcing discount of £17m

( 2023: £16m).

Adjusted net operating revenue

– Revenue increased by 6% to £237m mainly reflecting

the full 12 month benefit of a revised distribution

arrangement, agreed in H2 2023, for services provided

to Phoenix in respect of the Wrap SIPP.

– Platform charges remained stable at £169m.

– Treasury income on client balances increased to

£33m, benefiting from higher interest rates offset by

an increase in cash interest paid to clients.

– The average margin earned on client cash balances

during 2024 was 263bps (2023: c228bps). The

indicative Adviser average cash margin for FY 2025 is

expected to be lower reflecting the impact of

expected Bank of England rate cuts.

– Other revenue increased by £11m mainly reflecting

the 12 month benefit of the revised distribution

arrangement with Phoenix of £12m (2024: £27m,

2023: £15m).


	2024	2023
Adjusted net operating revenue	£m	£m
Platform charges	169	169
Treasury income	33	31
Other revenue	37	26
Less: Cost of sales	(2)	(2)
Adjusted net operating revenue	237	224

1. Adjusted net operating revenue yield excludes revenue of £4m

(2023: £7m) for which there are no attributable assets.

2. Includes Platform AUA of £72.4bn (2023: £70.9bn) and MPS AUMA of

£2.8bn (2023: £2.6bn).

Adjusted net operating revenue yield

– Increased to 31.2bps due to the higher revenue as

outlined under adjusted net operating revenue.

– We expect to see a reduction in revenue yield of

2-3bps in 2025 reflecting the previously announced

repricing which will be applied to existing back book

before the end of Q1 2025.

AUMA

– AUMA increased slightly to £75.2bn driven by positive

market movements offset by net outflows.

– Average AUMA of £74.7bn was 6% higher than 2023.

– Average customer cash balances as a percentage of

average AUMA (excluding bonds and Wrap SIPP)

were 2.4% (2023: 2.5%).

Gross and net flows

– Net outflows of £3.9bn (2023: £2.1bn) reflected higher

redemptions in 2024.

– Higher gross inflows included the full 12 months

benefit of the MPS business.

– Elevated outflows are driven by higher customer

actions such as transfers out, drawdown of tax free

cash and continued IFA consolidation in the market.

– We have taken actions to address these challenges in

2024 including improvements to our service

proposition, delivery of a strategic reprice for new

clients which will be extended to the back book in Q1

2025, improving our competitive position in the market

and investing in our senior leadership team and

distribution capabilities.


74	Annual report 2024


Chief Financial Officer’s overview continued



Investments
Adjusted operating profit	Adjusted net operating revenue	Adjusted net operating revenue yield	Net flows
£61m	£797m	21.3bps	£(4.0)bn


	Total		Institutional & Retail Wealth		Insurance Partners
	2024	2023	2024	2023	2024	2023
Adjusted net operating revenue1	£797m	£878m
Adjusted operating expenses	£(736)m	£(828)m
Adjusted operating profit	£61m	£50m
Cost/income ratio	92%	94%
Adjusted net operating revenue yield	21.3bps	23.5bps	30.8bps	32.6bps	8.7bps	10.0bps
AUM	£369.7bn	£366.7bn	£210.5bn	£211.2bn	£159.2bn	£155.5bn
Gross inflows	£60.5bn	£50.3bn	£36.7bn	£28.1bn	£23.8bn	£22.2bn
Redemptions	£(64.5)bn	£(69.3)bn	£(36.4)bn	£(46.0)bn	£(28.1)bn	£(23.3)bn
Net flows	£(4.0)bn	£(19.0)bn	£0.3bn	£(17.9)bn	£(4.3)bn	£(1.1)bn
Net flows excluding liquidity2	£(9.0)bn	£(15.3)bn	£(4.7)bn	£(14.2)bn	£(4.3)bn	£(1.1)bn

Adjusted operating profit

– Profit increased by 22% or £11m to £61m reflecting

the benefit of operational leverage, with lower

revenue more than offset by lower expenses.

Adjusted net operating revenue

– 9% lower than 2023 largely due to net outflows,

particularly in equities and changes to the asset mix.

– £(11)m net impact of corporate actions.

– Performance fees of £12m (2023: £14m) were earned

mainly from fixed income, alternatives, active equities

and real assets.

Adjusted operating expenses

– Adjusted operating expenses reduced by £92m (11%)

to £736m (2023: £828m) including £13m benefit

resulting from the disposal of our US Private Equity

Venture Capital business in H2 2023 and our

European-headquartered Private Equity business in

April 2024.

– Adjusted operating expenses also benefited from

lower staff costs, outsourcing and professional fees,

project and change spend and property costs, as well

as a reduced allocation of central Group costs.

Institutional & Retail Wealth

Adjusted net operating revenue

– 10% lower at £654m (2023: £724m) primarily due to

net outflows particularly from higher margin asset

classes, consistent with the risk-off environment seen

across the market and the net impact of corporate

actions.

– 4% reduction in average AUM to £210.5bn

(2023: £220.0bn). Equities and multi-asset average

AUM down 7% and 6% respectively.

Adjusted net operating revenue yield

– 1.8bps lower at 30.8bps largely due to changes in

asset mix including the decrease in private equity

average AUM resulting from the disposal of our US

Private Equity Venture Capital business in H2 2023 and

our European-headquartered Private Equity business

in April 2024 offset in part by the benefit arising from

the acquisition of the fund management capabilities

of Tekla Capital Management in H2 2023 and the

acquisition of First Trust closed end funds in H2 2024.

Gross inflows

– Excluding liquidity, £6.0bn (31%) higher at £25.5bn

(2023: £19.5bn) driven by improvement across most

asset classes including quantitatives and real assets.

This reflects continued demand for these asset

classes and the strength of our offering.

Net flows

– Net inflows of £0.3bn (2023: outflows £17.9bn)

included the benefit of liquidity inflows in the period.

Excluding liquidity, net outflows were £9.5bn lower

than 2023 at £4.7bn benefiting from both higher gross

inflows and lower redemptions.

– Excluding liquidity, net outflows improved to (2)% of

opening AUM compared with (7)% in 2023.

– Redemptions (excluding liquidity) were £3.5bn lower

than 2023 at £30.2bn (2023: £33.7bn) due to lower

fixed income and multi-asset redemptions.

1. Includes performance fees of £12m (2023: £14m).

2. Institutional & Retail Wealth liquidity net flows excluded.


			Annual report 2024	75


STRATEGIC REPORT

Insurance Partners

Adjusted net operating revenue

– 7% lower in 2024 at £143m (2023: £154m), reflecting

the impact of asset mix and lower pricing offset by a

7% increase in average AUM to £158.0bn.

Adjusted net operating revenue yield

– Adjusted net operating revenue yield decreased to

8.7bps (2023: 10.0bps) due to a shift in asset mix from

active to passive strategies. This, together with related

pricing changes, is expected to result in a further

reduction in revenue yields.

Gross inflows

– £1.6bn higher than 2023 at £23.8bn (2023: £22.2bn)

including the benefit from higher activity in our client’s

defined contribution pension business.

Net flows

– Net outflows reflect outflows from heritage business in

run-off, largely being offset by inflows from growing

workplace pensions.

– Net outflows of £4.3bn in 2024 (2023: £1.1bn outflow),

representing (2.8)% of opening AUM compared with

(0.8)% in 2023.

Investment performance


% of AUM performing1	1 year		3 years		5 years
	2024	2023 restated	2024	2023 restated	2024	2023 restated
Equities	32	27	15	17	25	48
Fixed income	83	81	90	75	93	84
Multi-asset	85	12	36	15	71	22
Real assets	30	30	46	56	56	45
Alternatives	94	98	100	98	100	98
Quantitative	98	100	90	100	96	95
Liquidity	100	100	100	95	100	97
Total	77	55	60	51	71	58

The investment performance measure now includes our large and growing index tracking alternatives and

quantitative AUM, where we continue to deliver well on expected outcomes for clients.

Investment performance on a one-, three- and five-year basis has improved, exceeding 70% on both a one- and

five-year basis. Performance has improved to 60% on a three-year basis, up from 51% in 2023. Strong investment

returns and performance have continued within alternatives, fixed income, liquidity and quantitative strategies.

Equities performance remained challenged, including the impact of our AUM bias towards Asia and emerging

markets.

See page 38 for further details on our investment performance.

1. The scope of the investment performance calculation has been extended to cover all funds that aim to track or outperform a benchmark, with

certain assets excluded where this measure of performance is not appropriate or expected. 2023 comparatives have been restated. As at 31

December 2024, 80% (31 December 2023 restated: 75%) of AUM is covered by this metric. Further details about the calculation of investment

performance and the change in scope are included in the Supplementary information section.


76	Annual report 2024


Chief Financial Officer’s overview continued



Overall performance
Adjusted operating profit	IFRS profit before tax	Net capital generation	Net flows
£255m	£251m	£238m	£(1.1)bn


	Adjusted operating profit		AUMA		Net flows
	2024	2023	2024	2023	2024	2023
Segmental summary	£m	£m	£bn	£bn	£bn	£bn
ii	116	114	77.5	66.0	5.7	2.9
Adviser	126	118	75.2	73.5	(3.9)	(2.1)
Investments1	61	50	369.7	366.7	(9.0)	(15.3)
Other2	(48)	(33)	—	—	—	—
Eliminations			(11.0)	(11.3)	1.1	0.6
Total	255	249	511.4	494.9	(6.1)	(13.9)
Liquidity net flows					5.0	(3.7)
Total net flows (including liquidity)					(1.1)	(17.6)

The adjusted operating loss in Other increased to £48m (2023: £33m) primarily reflecting higher retained corporate

costs.

Assets under management and administration

AUMA increased by 3% to £511.4bn (2023: £494.9bn):

– Total net outflows of £1.1bn includes liquidity net inflows of £5.0bn. Excluding liquidity, net outflows were £6.1bn,

with outflows in Investments and Adviser partly offset by positive flows in ii of £5.7bn.

– Market and other movements of £24.2bn, mainly reflecting positive movements in Investments, driven by stronger

markets primarily within quantitatives, alternative investment solutions, equities and multi-asset partly offset by

real estate.

– Net impact of corporate actions of £(6.6)bn following the disposal of our European-headquartered Private Equity

business in April 2024, partly offset by the acquisition of closed-end funds from First Trust Advisors in July 2024 and

September 2024.

Results summary


	2024	2023
Analysis of profit	£m	£m
Adjusted net operating revenue	1,321	1,398
Adjusted operating expenses	(1,066)	(1,149)
Adjusted operating profit	255	249
Adjusted net financing costs and investment return	99	81
Adjusted profit before tax	354	330
Adjusting items including results of associates and joint ventures	(103)	(336)
IFRS profit/(loss) before tax	251	(6)
Tax (expense)/credit	(3)	18
IFRS profit for the year	248	12

Adjusted net financing costs and investment return

Adjusted net financing costs and investment return resulted in a gain of £99m (2023: gain £81m):

– Investment gains, including from seed capital and co-investment fund holdings of £19m (2023: losses £3m).

– Net finance income of £58m (2023: £50m) reflecting a higher rate of interest on cash and liquid assets.

– Lower net interest credit relating to the staff pension schemes of £22m (2023: £34m) reflecting a lower opening

pension surplus and costs relating to de-risking the pension scheme.

1. Investments net flows exclude Institutional & Retail Wealth liquidity.

2. Adjusted operating loss consists of adjusted net operating revenue £9m (2023: £9m) and adjusted operating expenses £57m (2023: £42m).

Adjusted operating expenses in 2024 includes the impact of increased retained central Group costs.


			Annual report 2024	77


STRATEGIC REPORT

Adjusting items


	2024	2023
	£m	£m
Restructuring and corporate transaction expenses	(100)	(152)
Amortisation and impairment of intangible assets acquired in business combinations and through the purchase of customer contracts	(129)	(189)
Profit on disposal of subsidiaries and other operations	89	79
Profit on disposal of interests in joint ventures	11	—
Change in fair value of significant listed investments	(27)	(178)
Dividends from significant listed investments	56	64
Share of profit or loss from associates and joint ventures	24	1
Reversal of impairment of interests in joint ventures	—	2
Other	(27)	37
Total adjusting items including results of associates and joint ventures	(103)	(336)

Restructuring and corporate transaction expenses were

£100m (2023: £152m). Restructuring costs of £88m

(2023: £121m) mainly related to our transformation

programme including related severance expenses, as

well as separate platform transformation expenses.

Corporate transaction costs of £12m (2023: £31m)

primarily related to prior period transactions.

Amortisation and impairment of intangible assets acquired

in business combinations and through the purchase of

customer contracts reduced to £129m (2023: £189m),

mainly due to the lower goodwill impairments of £5m

(2023: £62m). The impairment of goodwill in 2024

relates to Finimize and includes the impact of higher

anticipated losses. Further details are provided in Note

13.

Profit on disposal of interests in subsidiaries and other

operations primarily relates to the sale of our European-

headquartered Private Equity business. The 2023 profit

relates to the sales of our discretionary fund

management business and our US Private Equity and

Venture Capital business. See Note 1 for further details.

Profit on disposal of interest in joint ventures relates to the

sale of our shareholding in Virgin Money UTM that

completed on 2 April 2024. See Note 14 for further

details.

Change in fair value of significant listed investments of

£(27)m from market movements is detailed below:


	2024	2023
	£m	£m
Phoenix	(27)	(77)
HDFC Asset Management	—	(96)
HDFC Life	—	(5)
Change in fair value of significant listed investments	(27)	(178)

The final HDFC Life and HDFC Asset Management

stakes were sold on 31 May 2023 and 20 June 2023

respectively.

Dividends from significant listed investments of £56m

relates to our shareholding in Phoenix (2023: Phoenix

£54m and HDFC Asset Management £10m).

Share of profit or loss from associates and joint ventures

increased to a profit of £24m (2023: £1m). HASL profit

increased to £26m (2023: £3m) including investment-

related gains due to favourable investment market

conditions.

Other includes a £15m expense relating to the release of

a prepayment for the Group’s purchase of Phoenix’s

trustee investment plan and a £16m expense relating to

an adjustment to revenue recognised in prior periods.

Other adjusting items in 2024 also includes a £11m gain

for net fair value movements in contingent

consideration. See Note 11 for further details of other

adjusting items.


	See pages 184 and 198 for further details on adjusted operating profit and reconciliation of adjusted operating profit to IFRS profit. Further details on adjusting items are included in the Supplementary information section.

Tax policy

We have important responsibilities in paying and

collecting taxes in the countries in which we operate.

Our tax strategy is therefore, guided by a commitment

to high ethical, legal and professional standards and

being open and transparent about what we are doing to

meet those standards.

Tax expense

The total IFRS tax expense attributable to the profit for

the period is £3m (2023: credit £18m), including a tax

credit attributable to adjusting items of £67m

(2023: credit £68m), which results in an effective tax rate

of 1% (2023: 300%). The difference to the UK

Corporation Tax rate of 25% is mainly driven by:

– Realised gains on disposal of subsidiaries and interests

in joint ventures not being subject to tax.

– Dividend income and fair value movements from our

investments in Phoenix not being subject to tax.

– Profits arising in joint ventures included on a net of tax

basis.

– Prior year adjustments reflecting the non taxable

release of accounting provisions.


78	Annual report 2024


Chief Financial Officer’s overview continued

The tax expense attributable to adjusted profit is £70m

(2023: £50m), an effective tax rate of 20% (2023: 15%).

This is lower than the 25% UK rate primarily due to

pension scheme surplus movements included on a net

of tax basis and the effect of lower tax rates, and the use

of deferred tax assets on overseas profits.

Total tax contribution

Total tax contribution is a measure of all the taxes abrdn

pays to and collects on behalf of governments in the

territories in which we operate. Our total tax contribution

was £362m (2023 £449m). Of the total, £135m

( 2023: £201m) was borne by abrdn whilst £227m

(2023: £248m) represents tax collected by abrdn on

behalf of the tax authorities. Taxes borne mainly consist

of corporation tax, employer’s national insurance

contributions and irrecoverable VAT. The taxes

collected figure is mainly comprised of pay-as-you-

earn deductions from employee payroll payments,

employees’ national insurance contributions, VAT

collected and income tax collected on behalf of HMRC

on platform pensions business.

The reduction in our total tax contribution includes a

reduction in our ongoing VAT liability following the sales

of our discretionary fund management and European

Private Equity businesses, the impact of headcount

reduction on payroll taxes and the effect of taxes paid

on the disposal of our final stake in HDFC AMC in 2023.


	You can read our tax report on our website www.abrdn.com/annualreport

‘22

‘23

‘24

Earnings per share

– Adjusted diluted earnings per share increased to 15.0p

(2023: 13.9p) due to the higher adjusted profit after

tax and the benefit from share buybacks in 2023.

– Diluted earnings per share was 13.0p (2023: 0.1p)

reflecting the factors above, and also the benefit of

profit on disposal of subsidiaries and interests in joint

ventures.

Dividends

The Board has recommended a final dividend for 2024

of 7.3p (2023: 7.3p) per share, resulting in a total dividend

for the year of 14.6p (2023: 14.6p).

The final dividend is subject to shareholder approval and

will be paid on 13 May 2025 to shareholders on the

dividend payment is expected to be £130m.

External dividends are funded from the cumulative

dividend income that abrdn plc receives from its

subsidiaries and other investments (see below for details

of cash and distributable reserves). The need to hold

appropriate regulatory capital is the primary restriction

on the Group’s ability to pay dividends. Further

information on the principal risks and uncertainties that

may affect the business and therefore dividends is

provided in the Risk management section.

The adjusted capital generation trend and related

dividend coverage is shown below:


‘22	0.88x
‘23	1.12x
‘24	1.18x

Liquidity and capital

Cash and liquid resources and distributable

reserves

Cash and liquid resources remained robust at £1.7bn at

31 December 2024 (2023: £1.8bn). These resources are

high quality and mainly invested in cash, money market

instruments and short-term debt securities. Cash and

liquid resources held in abrdn plc were £0.4bn

(2023: £0.4bn).

Further information on cash and liquid resources, and a

reconciliation to IFRS cash and cash equivalents, are

provided in Supplementary information.

At 31 December 2024 abrdn plc had £2.9bn (2023:

£3.1bn) of distributable reserves.

IFRS net cash flows

– Net cash inflows from operating activities were £213m

(2023: £221m) which includes outflows from

restructuring and corporate transaction expenses, net

of tax, of £53m (2023: £78m).

– Net cash inflows from investing activities were £258m

(2023: £542m) and primarily reflected the maturity of

cash invested in money market instruments which

were not classified as cash equivalents, and the net

proceeds from the Group’s disposal of its European-

headquartered Private Equity business.

– Net cash outflows from financing activities were

£342m (2023: £711m) with the decrease mainly due

to outflows for the share buyback in 2023.

The cash inflows and outflows described above resulted

in closing cash and cash equivalents of £1,335m as at

31 December 2024 (2023: £1,210m).


			Annual report 2024	79


STRATEGIC REPORT

IFPR CET1 own funds

The indicative CET1 own funds at 31 December 2024 were £1,465m (2023: £1,466m).

Key movements in CET1 own funds and respective coverage are shown in the table below.


	2024		2023
Analysis of movements in CET1 own funds and respective coverage	£m	%	£m	%
Opening CET1 own funds	1,466	139	1,301	123
Sources of capital
Adjusted capital generation	307	30	299	28
HDFC Life and HDFC Asset Management1 sales	—	—	576	55
Disposals2	74	7	137	13
Uses of capital
Restructuring and corporate transaction expenses (net of tax)	(69)	(7)	(121)	(12)
Dividends	(260)	(25)	(267)	(25)
Share buyback	—	—	(302)	(29)
Acquisitions3	(20)	(2)	(152)	(14)
Other	(33)	(3)	(5)	—
Total	1,465	139	1,466	139

The full value of the Group’s significant listed investment in Phoenix, and the IAS19 staff defined benefit pension

scheme surplus are excluded from the capital position under IFPR.

A summary of our CET1 capital coverage is shown in the table below.


	2024	2023
CET1 capital coverage	£m	£m
CET1 own funds	1,465	1,466
Total own funds threshold requirement	(1,054)	(1,054)
CET1 capital coverage	139%	139%


	Note 42 of the Group financial statements includes a reconciliation between IFRS equity and surplus regulatory capital and details of our capital management policies.

Capital generation

Adjusted capital generation, which shows how adjusted

profit contributes to regulatory capital, increased by 3%

to £307m. Net capital generation increased by £60m to

£238m and included the benefit of lower restructuring

costs.


	2024	2023
	£m	£m
Adjusted profit after tax	284	280
Less net interest credit relating to the staff pension schemes	(22)	(34)
Less interest paid on other equity	(11)	(11)
Add dividends received from associates, joint ventures and significant listed investments	56	64
Adjusted capital generation	307	299
Less restructuring and corporate transaction expenses (net of tax)	(69)	(121)
Net capital generation	238	178

IFRS net assets

IFRS net assets attributable to equity holders was stable

at £4.8bn (2023: £4.9bn) reflecting the IFRS profit before

tax offset by dividends paid in the period:

– Intangible assets decreased to £1.5bn (2023: £1.6bn)

primarily due to regular amortisation. Further details

are provided in Note 13.

– The principal defined benefit staff pension scheme,

which is closed to future accrual, continues to have a

significant surplus of £0.8bn (2023: £0.7bn). We have

reached agreement with the trustee of the defined

benefit pension plan to utilise part of the existing

surplus to fund the cost of providing defined

contribution benefits to current employees. This is

expected to result in an annual benefit of c.£35m to

net capital generation from July 2025 with an annual

review of other options including an insurance buyout.

This agreement enables the Group to unlock value

from the plan, while largely maintaining the surplus

and retaining optionality. See Note 31 for further

details.

– Financial investments reduced slightly to £1.8bn

(2023: £2.0bn). At 31 December 2024, financial

investments included £530m (2023: £557m) in relation

to our stake in Phoenix.

1. Capital benefit of HDFC Asset Management sales reflects the pre-tax proceeds.

2. European-headquartered Private Equity business, Virgin Money UTM, threesixty business with related intangibles and partial disposal of Focus

Business Solutions. Discretionary fund management with related intangibles and US Private Equity businesses in 2023.

3. First Trust funds in 2024 and Tekla and Macquarie funds in 2023.


80	Annual report 2024


Chief Financial Officer’s overview continued

Viability statement

Longer-term prospects

The Directors have determined that three years is an

appropriate period over which to assess the Group’s

prospects. In addition to aligning with our business

planning horizon, this reflects the timescale over which

changes to major regulations and the external

landscape affecting our business typically take place.

The Group’s prospects are primarily assessed through

the strategic and business planning process. These

prospects have been enhanced as a result of actions

taken to simplify the business.

The assessment reflects (i) the Group’s focus on its

strategic priorities as set out on pages 4 to 11 and how

this is expected to drive client-led growth in abrdn’s

three businesses and (ii) progress made in

implementing the transformation programme

announced in January 2024.

In forming their assessment of the Group’s longer-term

prospects, the Directors have also taken into account:

– The Group’s capital position as set out on page 79.

– The Group’s substantial holdings of cash and liquid

resources as well as holdings in listed equity

investments, as set out on page 79.

– The Group’s principal and emerging risks as set out on

pages 82 to 85.



	Assessment of prospects The Directors consider the Group’s focus on its strategic priorities will deliver growth while allowing the Group to maintain its regulatory capital position and the dividend policy described on page 67.

Viability

The Directors consider that three years is an

appropriate period for assessing viability as this is in line

with the horizon used for our business planning and

stress testing and scenario analysis processes.

In considering the viability statement, the Directors

completed a robust assessment of the principal and

emerging risks facing the Group in order to understand

potential vulnerabilities for the business. In addition to

this, the Directors assessed the Group’s viability taking

into account:

– Output from the Group’s business planning process.

– Results from the Group’s stress testing and scenario

analysis programme.

– Results from the Group’s exploration of reverse stress

tests.

– Work performed in connection with the UK’s FCA and

PRA rules on operational resilience.

The business planning process includes the projection of

profitability, regulatory capital and liquidity over a three-

year period, based on a number of assumptions. This

includes assumptions regarding the economic outlook

which reflects various factors, such as the changing

market conditions following the significant geopolitical

and economic developments in recent years.

The Group has no debt maturing over the next three

years and based on business planning projections, there

is no expectation that the Group will need to draw down

on its £400m revolving credit facility described on page

144.

The Group’s stress testing and scenario analysis

programme develops financial projections over a three-

year horizon in response to a range of severe but

plausible stresses to the business plan to understand the

Group’s financial resilience. This includes exploring (i)

the impacts of market-wide stresses, (ii) stresses that

are specific to abrdn, and (iii) stresses that combine

both these elements. Whilst all of the Group’s principal

risks could potentially impact on the Group’s financial

resilience, our combined stress testing scenarios

focused on those risks expected to have the most

significant impact:

– Financial risk was considered through stresses to

market levels, flows, margins, and expenses. Whilst a

range of economic scenarios was explored, the most

onerous combined scenario included (i) net outflows

of £112bn relative to the business plan and (ii) a

market shock with an impact that might be expected

around 1-in-20 years. This included: equity markets

falling approximately 24% in Q1 2025 before

recovering from Q3 2025 to the end of 2027; the UK

Base rate was assumed to fall to 0.1% by Q1 2026

where it remains. Cost inflation was assumed to drive

variable costs 5% higher.

– Operational risks were considered by including an

assumed £50m operational loss in the combined

scenario. This was assumed to represent the impact

of a severe failure in Q1 2025 relating to one of the

Group’s important business services identified as part

of the Group’s operational resilience planning activity.

The combined scenario also assumed that future

operational changes planned under the Group’s

transformation activity fail to deliver cost savings with

£20m of additional costs incurred in stabilising

changes previously implemented.


			Annual report 2024	81


STRATEGIC REPORT

All the scenarios explored resulted in the Group

experiencing reduced profitability and, in some cases,

losses over the planning horizon. Projections of capital

and liquid resources fell as a result of these losses.

For the most onerous combined scenario, the strength

of the Group’s financial position meant the Group was

able to maintain sufficient capital and liquid resources to

remain above its regulatory requirements.

In the event that the Group was to experience more

severe stresses than those explored under the stress

testing and scenario analysis programme, the Group

has a range of management actions it would be able to

take, including a number of sizeable management

actions wholly within the Group’s control. These include

drawing down on the Group’s revolving credit facility,

reducing discretionary expenditure, and taking dividend

management actions.

The results of the stress testing and scenario analysis

also support the view that Group is resilient to adverse

climate change over the planning horizon. The stresses

to market levels and flows explored in the most onerous

combined scenario are deemed to capture the possible

market and client-led responses to adverse climate

change over this period. Any costs that would be

incurred in responding to adverse climate change are

considered to be covered by the additional costs

included in the most onerous combined scenario.

Reverse stress testing involves exploring the quantitative

and/or qualitative impacts of extreme scenarios which

could threaten the viability of our business model. The

Group has explored a number of these scenarios over

recent years including:

– Failure of Citigroup as a material outsourcer restricts

the operating ability of the Investments business.

– Malware infects abrdn systems and propagates

rapidly across abrdn networks leading to a loss of

clients/customers.

– A single business is subject to multiple cyber-attacks

causing repeated disruption to operations and the loss

of clients/customers.

– Loss of critical staff due to either severe illness/injury

or death due to pandemic or building disaster results

in abrdn being unable to operate.

– Failure of a key payment mechanism relied upon by

the business results in abrdn being unable to provide

services required by clients/customers.

– A ransomware attack on the abrdn Group leading to a

loss of clients/customers is followed a few months

later by a cyber-attack on FNZ impacting their ability

to undertake processing for the Adviser business.

The previous exploration of these scenarios concluded

they had a low likelihood of occurrence and accordingly

were not considered a threat to the Group’s viability.

Work undertaken this year has confirmed there is no

change in this assessment which is supported by the

diversification of revenues arising from the Group’s

three businesses and the strength of the Group’s control

environment which is regularly reviewed and assessed.

Operational resilience is the ability of firms to respond to

and recover from operational disruptions, protecting

both clients/customers and market integrity. Without

operational resilience, there is a risk that firms are

unable to service their clients and customers for

prolonged periods, potentially threatening the firm’s

viability.

To support the Group’s operational resilience and align

with UK regulatory expectations the Group annually

reviews and approves important business services,

impact tolerance thresholds, and operational resilience

self-assessments. The Group also takes necessary

measures to comply with operational resilience

regulations in overseas jurisdictions, such as Singapore

and Ireland.

By the end of March 2025 the FCA/PRA require in-scope

firms to have performed mapping and testing so they

can remain, and operate consistently, within the impact

tolerances firms have set for their important business

services. The Group has undertaken several key

initiatives to enhance readiness for this deadline and

improve our overall resilience. This included performing

increased scenario testing and improving technology

and business processes.

The Group is committed to continuously improving its

operational resilience and defences against risks. This

ensures compliance with regulatory expectations and

helps reduce the risk of non-viability.



	Assessment of viability The Directors confirm that they have a reasonable expectation that abrdn plc will be able to continue in operation and meet its liabilities as they fall due over the next three years.


82	Annual report 2024


Risk management

Managing risk for better outcomes

Our approach to risk management

A strong risk and compliance culture underpins our

commitment to put clients and customers first and

safeguard the interests of our shareholders. Our Board

has ultimate responsibility for risk management and

oversees the effectiveness of our Enterprise Risk

Management Framework (ERMF).

ERMF

The ERMF underpins risk management throughout our

business. We operate ‘three lines of defence’ with

defined roles and responsibilities. We continually evolve

our framework to meet the changing needs of the

company and to make sure it keeps pace with industry

best practice. In 2024, improvements to the framework

included:

– Delivering a new approach to Risk and Control Self

Assessments, focused on key business outcomes and

executive accountability.

– Implementing an enhanced risk appetite monitoring

process.

– Simplification of abrdn’s risk taxonomy, adopting a

single version taxonomy across the Group.

– Delivering improved risk reporting through the

adoption of consistent risk dashboards.

– Improved accessibility of the ERMF and its supporting

materials.

Business risk environment

Business planning assumptions are more prone to

external market developments than before.

The global political and economic environment is in flux.

Political elections in the US has brought about a period of

greater policy uncertainty in the area of global trade,

strategic competition with China, developments in

conflicts in Europe and the Middle East, and sovereign

debt management. Both energy costs and cross-border

trade costs could be adversely impacted leading to

upward pressure on inflation and stalling central banks’

plans to further ease their target interest rates. This

increases the range of potential outcomes across all

asset classes.

Increased levels of sovereign indebtedness (measured

by G7 debt/GDP levels) could be the source of

disruption to fixed income and currency markets in the

coming months or years.

Increasing equity market value concentration in a small

number of technology stocks (the so-called

‘Magnificent Seven’ phenomenon) poses challenges for

both passive and active asset management which could

manifest as increased market volatility at some stage.

Developments in technology and continued competitive

pressure mean that investment firms must continue to

transform their operating models in order to preserve

margins and/or build capital to reinvest for the future.

Operational resilience is a key focus as the risks from

cyber, technology and third-parties continue to evolve.

We continue to build our capabilities and develop our

mitigation plans to deal with areas of vulnerability in

order to minimise (and if necessary, mitigate) the risk of

disruption to our clients and customers.

Global regulators have extensive policy and supervisory

agendas which need to be addressed. We are working

diligently and steadfastly to meet our regulators’

expectations, especially in the areas of consumer duty,

operational resilience and anti-financial crime.

Evolving and emerging risks

We are vigilant to risks that could crystallise over

different horizons and impact our strategy, operations

and our clients. These risks vary in nature as they cover

geopolitical, economic, societal, technological, legal,

regulatory and environmental themes. We distil internal

and external research to consider how risks could

emerge and evolve.

Some notable risks (and opportunities) for our business

include adoption of modern technologies, uncertainty

driven by geo-politics, unprecedented market shifts,

evolving cyber threats and climate change.

Sustainability risks

We have a responsibility to shareholders, clients,

customers and all stakeholders to assess, report on,

manage and mitigate our sustainability risks. As an

investment firm, we need to consider the impact of our

corporate activities while making investments in line with

client mandates. We continue to deepen our

understanding of these risks for the benefit of all

stakeholders and use these insights to advocate for

positive policy change.

As a global investment firm, we are also mindful of the

different and changing political and regulatory

perspectives on operating and investing with

sustainability considerations in mind.


			Annual report 2024	83


STRATEGIC REPORT

Principal risks and uncertainties

We categorise our risks across nine principal risk categories which have both internal and external drivers. This

reduction from previous years, where we reported on 12 principal risks, ensures we remain focused on our key

exposures and supports our corporate priority of simplifying the way we think about and manage our business.

Within our ERMF, we have developed more detailed taxonomy risks under these principal risk categories. This allows

us to systematically monitor the risk profile of our business.

Principal and emerging risks are subject to active oversight and robust assessment by the Board. The principal risks

are described in the following table.


Risk to our business		How we manage this risk
1 Strategic risk
– These are risks that could prevent us from achieving our strategic aims and successfully delivering our business plans. – These could include failing to meet client expectations, poor strategic decision-making or failure to adapt. – A key external risk which could impact on the achievement of the strategy relates to geopolitical and macroeconomic developments.		We continue to simplify our business model by transforming our operating model and the diversification of the revenue base. This includes the disposal of non- core activities. Informed by our analysis of the key market segments in which we operate, we explore specific acquisition possibilities with a view to strengthening our capabilities. We maintain focus on geopolitical and macroeconomic developments to understand and manage implications.
2 Financial risk
– This is the risk of having insufficient financial resources, suffering losses from adverse markets or the failure or default of counterparties. It is impacted by our flows experience, global market conditions and the fees we charge on investment mandates, platforms and wealth management services.		Our business planning is focused on generating sustainable capital growth. Risks to that plan are informed by projections of our financial resources under a range of stress scenarios that help us calibrate buffers that ensure financial resilience at Group and subsidiary level. Our Group Capital and Dividend Policy ensures that we optimise our holding of financial resources across the Group having regard, inter alia, for regulatory requirements that apply at Group and subsidiary level.
3 Conduct risk
– With a mission ‘to help our clients and customers to be better investors’, our business is focused on meeting our clients’ expectations for good investment performance and service delivery. There is a risk that we fail to achieve this through our operational activities or through the implementation of our change programmes.		Our Group is organised to ensure clear focus on our clients and customers in interactive investor, Adviser and Investments. This translates into our client-first culture and the focus of our operational and change plans. Our ERMF supports the management of conduct risk with clear expectations around conduct goals and responsibilities. We have a clear Global Code of Conduct and have implemented the FCA’s Consumer Duty.


84	Annual report 2024


Risk management continued


Risk to our business		How we manage this risk
4 Regulatory and legal risk
– High volumes of regulatory change can create interpretation and implementation risks. – Divergences between different regulators can create operational complexities. – Compliance failures can lead to poor customer and client outcomes, sanctions, reputation damage and income loss. – As we engage with a wide number of external parties, we have to be vigilant to the risk that these parties are connected with criminal behaviour, or subject to sanctions by national or global authorities.		Our relationships with regulators are based on trust and transparency while our compliance and legal teams support senior managers across our business. Our three lines of defence model supports the embedding of compliance expectations across the business and oversight with these expectations. We have established compliance advisory, monitoring and testing activity across the Group. We actively monitor developments and engage with our regulators and industry groups so that we respond effectively to new regulatory policy initiatives.
5 Process execution
– This is the risk that processes, systems or external events could produce operational errors that impact client, customer or shareholder outcomes. – We are vigilant to the risk that our Transformation programme and other change initiatives could adversely impact our key business outcomes.		We instil a culture of ‘getting things right first time’ so as to minimise the cost of ‘failure demand’. We have established processes for reporting and managing incidents, risk events and issues. We monitor underlying causes of error to identify areas for action, promoting a culture of accountability and continuously improving how we address issues. We dealt with incidents using established incident management processes. We have established processes for managing change including the implementation of our Transformation programme so that risks are assessed and managed.
6 People
– Our people are our greatest asset and the engagement and stability of our workforce is critical to the delivery of our key business outcomes. – Attrition in key teams can be disruptive and costly.		Through our ongoing management activities and periodic staff surveys, we maintain a close focus on employee engagement, morale and attrition levels. We look to ensure that abrdn provides competitive compensation and benefits in the labour markets where we have operations. We use targeted approaches to support retention and recruitment for our key business functions.


			Annual report 2024	85


STRATEGIC REPORT


Risk to our business		How we manage this risk
7 Technology security and resilience
– There is a risk that our technology may fail to keep pace with business needs. – With the increasing sophistication of external threat actors, there is also the significant risk of unauthorised access of our systems and cyber- attack. – Our third-party suppliers also present risks to our technology estate. – These risks are relevant to a wide range of potential threats to the business including internal failure, external intrusion, supplier failure and weather events.		We have an ongoing programme to invest in and enhance our IT infrastructure controls. We benchmark our IT systems environment to identify areas for improvement and further investment. We maintain heightened vigilance for cyber intrusion, with dedicated teams monitoring and managing cyber security risks. We carry out regular testing on penetration and crisis management. Mindful of internal (business) changes and the evolution of the external threat landscape, we continue to strengthen our operational resilience and cyber defences. Crisis management and contingency planning processes are regularly reviewed and tested. We will implement changes related to the UK Operational Resilience Regulations (in March 2025) and the EU Digital Operational Resilience Act (in January 2025).
8 Third party
– We rely on third parties to deliver key business activities and services and are exposed to a variety of delivery, operational, regulatory and reputational risks as a result.		Our Third Party Risk Management framework is well established. We have clear processes for the oversight, monitoring and management of third party relationships, especially our strategic suppliers.
9 Sustainability
– Sustainability risk covers, but is not limited to, environmental, social and governance risks, which can lead to material impacts by and for our business, clients, customers, suppliers and communities. – Disclosure-based regulatory frameworks are currently not interoperable globally, which increases the risk of non-compliance across our jurisdictions. – We seek external assurance and guidance to ensure we are avoiding any risk of greenwashing throughout our communications, disclosures and reports. – The politicisation of the sustainability agenda can add complexity to our business operations.		We have a sustainability strategy in place to ensure we are transitioning as a business. We measure and manage our most material corporate environmental impacts including our carbon footprint. We have well established investment processes to ensure that we run investment portfolios in line with our client mandates. We carefully monitor the content of our corporate and client disclosures. We engage with policymakers, clients, customers, suppliers, our people and our communities to ensure we understand their expectations, gather data and continue to stay compliant and consistent in our approach.

The cover to page 85 constitute the Strategic report which was approved by the Board and signed on its behalf by:

Jason Windsor

Chief Executive Officer

abrdn plc

(SC286832)

3 March 2025


86	Annual report 2024

Governance


			Annual report 2024	87


	GOVERNANCE


Contents
Board of Directors	88
Corporate governance statement	92
1. Audit Committee report	105
2. Risk and Capital Committee report	114
3. Nomination and Governance Committee report	118
4. Directors’ remuneration report	122
Directors’ report	142
Statement of Directors’ responsibilities	149


88	Annual report 2024


Board of Directors

Board of Directors

Our business is overseen by our Board of Directors. Biographical details

(and shareholdings) of the Directors as at 3 March 2025 are listed below.


Sir Douglas Flint CBE – Chair

Appointed to the Board November 2018	Age 69
Nationality British	Shares 200,000
Board committees:	NC

Experience and competencies

Sir Douglas draws on his extensive

board experience to shape a

collaborative approach, which

facilitates open and constructive

boardroom discussion. He guides the

board’s review of performance and

shaping of abrdn’s strategy and

promotes its stewardship

responsibilities, including active

engagement with key stakeholders.

He has considerable global

experience, including in Asia, and he

remains actively involved in

international, financial and

governance matters.

Previously, Sir Douglas spent over two

decades at HSBC, serving as the

banking group’s chairman for seven

years and as group finance director 15

years. Prior to this, he was a partner at

KPMG. He was also previously a non-

executive director at BP from

2005-2011 and a member of the

Mayor of Shanghai and Mayor of

Beijing’s Advisory Boards.

Sir Douglas received his CBE in 2006

and knighthood in 2018 recognising his

services to the finance industry.

External appointments

– Chairman of IP Group plc.

– Chairman of the Royal Marsden

Hospital and Charity.

– International Advisory Panel of the

Monetary Authority of Singapore.


Jason Windsor – Chief Executive Officer

Appointed to the Board October 2023	Age 52
Nationality British	Shares 357,635

Experience and competencies

Jason was appointed as abrdn’s Chief

Executive Officer in September 2024,

having joined as Chief Financial Officer

(CFO) in October 2023. With over 30

years of industry experience, Jason

brings a strong track record of

leadership in finance, asset

management, mergers and

acquisitions and strategic planning.

He previously served as CFO of UK

housebuilder Persimmon and in

several leadership roles at Aviva,

including as the group’s CFO, CFO of

Aviva UK, Chief Capital & Investments

Officer and as a director on the board

of Aviva Investors.

Jason previously spent 15 years at

Morgan Stanley in London and

Singapore, latterly as a managing

director within its investment banking

division, where he advised UK and

international banks, insurers and asset

managers on mergers and

acquisitions, capital raising and

strategy.

External appointments

– Governor of Felsted School, Essex.


Vivek Ahuja – Non-Executive Director

Appointed to the Board October 2024	Age 58
Nationality Singaporean	Shares Nil
Board committees:	A	NC	RC

Experience and competencies

Vivek is a global business leader with

over 30 years of senior management

experience in international financial

services and private equity. He offers

considerable expertise in strategy,

business transformation, risk

management and corporate

governance.

Prior to joining abrdn’s board, Vivek

held several prominent executive

roles. Most recently, he was Chief

Executive Officer (CEO) of private

equity firm Terra Firma, having initially

joined as Group Chief Financial Officer

(CFO) and Chief Operating Officer

(COO). Previously, he spent 17 years

at Standard Chartered, working in

senior global finance roles, latterly as

Deputy Group CFO.

Vivek also brings a wealth of strategic

and financial expertise to multisector

businesses through his non-executive

and advisory experience. From 2018 to

January 2025, he was a non-executive

director and Chair of the Risk

Committee at NatWest Markets.

He is a Fellow of the Institute of

Chartered Accountants in England &

Wales (ICAEW).

External appointments

– Senior Independent Director and

Chair of the Audit & Risk Committee

at PZ Cussons plc.

– Independent Member of Council at

King's College, London.

– Non-Executive Director of the Royal

Free London NHS Foundation Trust.

– Non-Executive Director of Ebury

Partners Limited.


			Annual report 2024	89


	GOVERNANCE


Key to Board committees	R	Remuneration Committee	NC	Nomination and Governance Committee

	RC	Risk and Capital Committee		Committee Chair

	A	Audit Committee


Jonathan Asquith – Non-Executive Director and Senior Independent Director

Appointed to the Board September 2019	Age 68
Nationality British	Shares 205,864
Board committees:	R	NC

Experience and competencies

Jonathan has considerable

experience as a non-executive

director within the investment

management and wealth industry,

which enables him to provide crucial

insights to abrdn through his board

membership and committee roles.

He was a board member at 3i Group

plc for almost 10 years, stepping down

as Deputy Chair in 2020. His other

previous non-executive roles have

included Chair of Citigroup Global

Markets Limited, Citibank International

Limited, Dexion Capital plc and AXA

Investment Managers. He was also a

director at Tilney, Ashmore Group plc

and AXA UK plc.

In his executive career, Jonathan spent

18 years at Morgan Grenfell. After

serving as Group Finance Director, he

became Deutsche Morgan Grenfell’s

CFO and, later, Chief Operating

Officer. From 2002 to 2008, he was a

director of Schroders plc, serving as

CFO and, subsequently, Executive Vice

Chairman.

External appointments

– Non-Executive Director of CiCap

Limited and its regulated subsidiary

Coller Capital Limited.

– Non-Executive Director of

B-FLEXION Group Holdings SA and

subsidiaries, including Capital Four

Holding A/S and Twelve Securis

Holding AG.


Katie Bickerstaffe – Non-Executive Director

Appointed to the Board October 2024	Age 57
Nationality British	Shares 30,195
Board committees:	R

Experience and competencies

Katie is a highly regarded retail and

consumer business leader, bringing

strong perspectives on digital business

models and transformation

programmes to the abrdn board.

During her executive career, Katie held

numerous leadership positions,

including as Co-Chief Executive

Officer (CEO) of multinational food,

clothing and homewares retailer, M&S;

Executive Chair and CEO Designate at

energy provider SSE; and CEO, UK &

Ireland at Dixons Carphone.

She also served in managing director

roles at the Somerfield Stores group

and was Dyson Appliances’ group HR

director. Previously, she held various

roles at PepsiCo and Unilever.

External appointments

– Chair of the Remuneration

Committee of Barratt Redrow plc.

– Senior Independent Director of

Diploma plc.

– Senior Independent Director of

England and Wales Cricket Board.

– Non-Executive Director of Royal

Marsden NHS Foundation Trust.


John Devine – Non-Executive Director

Appointed to the Board July 2016	Age 66
Nationality British	Shares 52,913
Board committees:	RC	A	NC

Experience and competencies

John provides the board with

extensive insights into financial

reporting and risk management,

which he gained through his

successful career in investment

banking and capital markets and then,

latterly, in asset management;

international experience in the US and

Asia; and background in finance,

operations and technology – all of

which are of great importance to

abrdn’s strategy.

From 2008 to 2010, John was Chief

Operating Officer of Threadneedle

Asset Management Limited.

Previously, he held several senior

executive positions at Merrill Lynch

in London, New York, Tokyo and

Hong Kong.

He is a Fellow of the Chartered

Institute of Public Finance and

Accounting.

External appointments

– Non-Executive Chair of Credit Suisse

International and Credit Suisse

Securities (Europe) Limited.

– Non-Executive Director of Citco

Custody Limited and Citco Custody

(UK) Limited.


90	Annual report 2024


Board of Directors continued


Hannah Grove – Non-Executive Director

Appointed to the Board September 2021	Age 61
Nationality American and British	Shares 33,000
Board committees:	NC	R

Experience and competencies

Hannah provides expertise in leading

brand, communications, client

experience and digital marketing

strategies, including those for major

acquisitions, which she combines with

deep knowledge of regulatory and

governance matters.

She has received significant industry

recognition as a diversity and equity

champion and is our designated non-

executive director for board employee

engagement. She is also a non-

executive director on the boards of

Standard Life Savings Limited and

Elevate Portfolio Services Limited,

wholly owned subsidiaries of abrdn.

Before joining the abrdn board,

Hannah enjoyed a 22-year career at

State Street (NYSE:STT), including 12

years as Chief Marketing Officer. She

was a member of the management

committee, business conduct and risk

committee, and conduct standards

committee, as well as the board of its

China legal entity. Previously, Hannah

was a marketing director at the Money

Matters Institute.

External appointments

– Member of the advisory board at

Irrational Capital.

– Member of the board of advisors at

Reboot.

– Vice Chair of the Boston Public

Library Fund.


Pam Kaur – Non-Executive Director

Appointed to the Board June 2022	Age 61
Nationality British	Shares Nil
Board committees:	A	RC

Experience and competencies

Pam has more than 20 years’

experience of leadership roles in

business, risk, compliance and internal

audit at several of the world’s largest

and most complex financial institutions

during periods of significant change

and public scrutiny. She has brought

considerable expertise in leading the

development and implementation of

compliance, audit and risk frameworks

and adapting these to changing

regulatory expectations.

Her career has spanned roles at Ernst

& Young, Citigroup, Lloyds TSB, Royal

Bank of Scotland, Deutsche Bank and

HSBC. Between 2019 and 2022, she

served as a non-executive director on

the board of Centrica. Pam is a fellow

of the Institute of Chartered

Accountants of England and Wales.

Following her appointment as Group

Chief Financial Officer (CFO) at HSBC,

Pam will not seek re-election to

abrdn’s board at the company’s

annual general meeting.

External appointments

– Group Chief Financial Officer (CFO)

and Executive Director at HSBC.

– Director at Hong Kong Shanghai

Banking Corporation.


Michael O’Brien – Non-Executive Director

Appointed to the Board June 2022	Age 61
Nationality Irish	Shares 173,780
Board committees:	A	RC

Experience and competencies

Mike brings extensive asset

management experience to the abrdn

board. Throughout his career, he has

had a key focus on innovation and

technology-driven change to support

better client outcomes. A qualified

actuary, he has been responsible for

developing and leading global

investment solutions, distribution and

relationship management strategies.

His executive career spanned senior

roles across the industry. At JP Morgan

Asset Management, he was Co-Head,

Global Investment Solutions and,

previously, Chief Executive Officer

(CEO) of the firm’s EMEA business.

Prior to this, he was Head of

Institutional Business for EMEA at

Blackrock/Barclays Global Investors

and an investment and risk consultant

at Towers Watson. He also previously

served on the board of the UK NAPF

and was a member of the UK NAPF

Defined Benefit Council.

Mike is a Chartered Financial Analyst

and a Fellow of the Institute of

Actuaries.

External appointments

– Non-Executive Director of Carne

Global Financial Services Limited.

– Senior adviser to Osmosis

Investment Management.

– Investment adviser to the British

Coal Pension Funds.


			Annual report 2024	91


	GOVERNANCE


Key to Board committees	R	Remuneration Committee	NC	Nomination and Governance Committee

	RC	Risk and Capital Committee		Committee Chair

	A	Audit Committee


Cathleen Raffaeli – Non-Executive Director

Appointed to the Board August 2018	Age 68
Nationality American	Shares 9,315
Board committees:	R	RC

Experience and competencies

Cathi has strong experience in the

financial technology, wealth

management and banking sectors

with a background in the platforms

sector, as well as international board

experience. She brings these insights

as non-executive chair of the boards

of Standard Life Savings Limited and

Elevate Portfolio Services Limited,

wholly owned subsidiaries of abrdn.

Her role provides a direct link between

the board and the platform businesses

that help us connect with clients.

Previously, Cathi was a lead director of

E*Trade Financial Corporation, non-

executive director of Kapitall Holdings,

LLC and President and Chief Executive

Officer of ProAct Technologies

Corporation. She was also a non-

executive director of Federal Home

Loan Bank of New York, where she

was a member of the executive

committee, and Vice Chair of both the

technology committee and

compensation and human resources

committee.

External appointments

– Managing Partner of Hamilton White

Group.

– Managing Partner of Soho Venture

Partners.

– Director and member of the Audit

Committee and Human Resources

Committee of RE/MAX Holdings Inc.


92	Annual report 2024


Corporate governance statement

Corporate governance statement

The Corporate governance statement and the

Directors’ remuneration report, together with the cross

references to the relevant other sections of the Annual

report and accounts, explain the main aspects of the

Company’s corporate governance framework and seek

to give a greater understanding as to how the Company

has applied the principles and reported against the

provisions of the UK Corporate Governance Code 2018

(the Code).

Statement of application of and

compliance with the Code

For the year ended 31 December 2024, the Board has

carefully considered the principles and provisions of the

Code (available at www.frc.org.uk) and has concluded

that its activities during the year and the disclosures

made within the Annual report and accounts comply

with the requirements of the Code. The statement also

explains the relevant compliance with the FCA’s

Disclosure Guidance and Transparency Rules

Sourcebook. The table on page 148 sets out where to

find each of the disclosures required in the Directors’

report in respect of all of the information required by UK

Listing Rule (UKLR) 6.6.1 R, and our statement on Board

diversity is on page 99.

(i) Board leadership and company purpose

Purpose and Business model

The Board ratifies the Company’s purpose set out on the

inside front cover, and oversees implementation of the

Group’s business model, which it has approved, and

which is set out on pages 20 and 21. Pages 2 to 85 show

how the development of the business model in 2024

supports the protection and generation of shareholder

value over the long term, as well as underpinning our

strategy for growth. Significant developments in 2024

included the announcement of the transformation

programme in January, targeting an annualised cost

reduction of at least £150m by the end of 2025 and the

introduction of the Group Operating Committee (GOC)

in November. The Board’s consideration of current and

future risks to the success of the Group is set out on

pages 82 to 85, complemented by the report of the Risk

and Capital Committee on pages 114 to 117.

Oversight of culture

The Board and the Nomination and Governance

Committee play a key role in overseeing how the

management of the Group assesses and monitors the

Group’s culture. Through engagement surveys and the

Board Employee Engagement programme, the Board

acquires a clear view on the culture evident within the

Group’s businesses and how successfully expected

behaviour is being embedded across the group in ways

that will contribute to our success. The Board notes the

improvement in the engagement scores over the

course of the year.

The Board holds management to account for a range of

engagement and diversity, equity and inclusion

outcomes, which are seen as important indicators of

culture, and which form a key part of the executive

scorecard.

The Board and the Executive Leadership Team (ELT)

have defined a set of Commitments – Client first,

Empowered, Ambitious and Transparent - which

embody our cultural commitments at abrdn and are

designed to create the best working environment for

our colleagues, so contributing to better customer

experience and outcomes. Our culture is defined by

these commitments and the behaviours which underpin

them, which are set out on page 11.

Stakeholder engagement

The Annual report and accounts explains how the

Directors have complied with their duty to have regard

to the matters set out in section 172 (1) (a)-(f) of the

Companies Act 2006. These matters include

responsibilities with regard to the interests of customers,

employees, suppliers, the community and the

environment, all within the context of promoting the

success of the Company. The table on pages 95 and 96

sets out the Board’s focus on its key relationships and

shows how the relevant stakeholder engagement is

reported up to the Board or Board Committees.


			Annual report 2024	93


	GOVERNANCE

Engaging with investors

The Group’s Investor Relations and Secretariat teams

support the direct investor engagement activities of the

Chair, Senior Independent Director (SID), CEO, CFO and,

as relevant, Board Committee chairs. During 2024, we

carried out a comprehensive programme of meetings

with domestic and international investors, via a range of

one-on-one, group, conference and reporting related

engagements. Investors had broad interests including

financial performance, the new CEO’s initial

observations and key priorities, progress on our

transformation programme, synergies between the

three businesses, market trends, investment

performance, capital allocation, the relationship with

Phoenix, and corporate governance. The Chair, SID,

CEO and CFO bring relevant feedback from this

engagement to the attention of the Board.

The Board ensures its outreach activities encompass the

interests of the Company’s circa one million individual

shareholders. Given the nature of this large retail

shareholder base, it is impractical to communicate with

all shareholders using the same direct engagement

model followed for institutional investors. Shareholders

are encouraged to receive their communications

electronically and around 400,000 shareholders receive

all communications this way. The Company actively

promotes self service via the share portal, and more

than 215,000 shareholders have signed up to this

service. Shareholders have the option to hold their

shares in the abrdn Share Account where shares are

held electronically and around 91% of individual

shareholders hold their shares in this way.

To give all shareholders easy access to the Company’s

announcements, all information reported via the London

Stock Exchange’s regulatory news service is published

on the Company’s website. The CEO and CFO continue

to host formal presentations to support both the full year

and half year financial results with the related transcript

and webcast available from the Investors’ section of the

Company’s website. In 2024, the Company published an

H2 2023 trading statement in January, a Q1 2024

update in April, a 2024 Half Year results announcement

in August and a Q3 2024 update in October. In 2025, the

Company published a Q4 2024 update in January.

The 2024 Annual General Meeting (AGM) was held in

Edinburgh on 24 April 2024. The meeting was arranged

as a ‘hybrid’ meeting. This allowed shareholders to

participate in the meeting remotely, as well as in person.

For those participating remotely, questions could be

submitted during the meeting via a ‘chat box’. The Chair

and CEO presentations addressed the main themes of

the questions which had been submitted at and prior to

the meeting. 43.6% of the shares in issue were voted. All

resolutions were passed.

Our 2025 AGM will be held on 8 May 2025 in Edinburgh.

The AGM Guide 2025 will be published online at

www.abrdn.com in advance of this year’s meeting. The

voting results, including the number of votes withheld,

will be published on the website at www.abrdn.com after

the meeting.

Engaging with employees

Hannah Grove continued as our designated non-

executive Director for board employee engagement

(BEE) for a third year. abrdn's BEE programme is

designed to ensure that employees’ perspectives and

sentiments are heard and understood by the Board to

help inform decision-making, and to support colleagues’

understanding about the role of the plc Board. The

programme also ensures that colleagues have direct

access to our Non-Executive Directors (NEDs). A

summary of activity can also be found on page 61.

Given the amount of change in 2024, both specific to

abrdn and across the industry at large, it was important

to ensure that the programme reached as many

colleagues as possible and created opportunities for

engagement, discussion and feedback throughout the

year. A key design element was not to curate

attendance at BEE sessions to ensure that the

programme reached a true and fair representation of

employees, and not just those who might have been

more positively inclined or engaged to begin with. As a

result, the programme comprised three pillars: (i)

Discussion Sessions, forums for groups of between

10-15 colleagues from across businesses and

geographies for informal sessions so that they could

share views, provide feedback and ask questions; (ii)

Meet the NEDs sessions, where team members could

interact directly with the broader plc Board, ask

questions and hear views and lived experiences on

topics ranging from the broader investment industry

and macro environments to specifics around abrdn’s

strategy, and lastly; (iii) reporting and measurement,

including regular quarterly thematic updates to the

Board, abrdn’s ELT and abrdn’s Chief People Officer to

ensure that key talent/people strategies were aligned

and any issues or gaps could be addressed or

considered within the framework of abrdn’s overall

strategy and policies and procedures. abrdn employees

are another important stakeholder group in terms of

communication and here we provided a mid-year

update of activity and themes in addition to ad-hoc

communications coinciding with specific BEE activity.

The efficacy of the programme was measured through

anecdotal feedback and post event surveys where we

gauge overall satisfaction as well as gather insights on

ways to improve or evolve the programme.

In 2024, BEE activity spanned abrdn locations across the

UK, US, Europe and APAC, with sessions and events

delivered in a combination of in-person, virtual and

hybrid formats.


94	Annual report 2024


Corporate governance statement continued

The BEE programme received positive and constructive

feedback from colleagues that participated in the

programme. The main themes heard were largely

around Change – understanding the impact of

transformation; Compensation – a desire for greater

clarity and focus; and Career Development – more

structure around advancement and management and

leadership skills. There was also a lot of interest in

abrdn’s commitment to Diversity and Inclusion and

strengthening network engagement and participation.

Importantly for each theme, tangible action ensued

from abrdn’s leadership team spanning greater focus

on clarifying the approach to compensation and

pathways to improvement, to the launch of abrdn’s new

Career Framework providing structure and clarity

around professional growth and opportunity, to the

relaunch of abrdn’s diversity strategy with strong ELT

engagement and involvement. Heightened focus was

also applied to communication around change with

regular reporting on transformation progress including

investments made back into the business and people.

The BEE programme places a strong focus on talent.

The members of abrdn’s Future Leaders programme

and the abrdn Leadership Group (aLG) take part in

Discussion Sessions aimed to gauge the efficacy and

progress of these leadership programmes and cohorts.

Formal mentoring continued between all members of

the plc Board and abrdn’s ELT as well as its Executive

Talent pipeline. The connectivity between the BEE

programme and wider talent initiatives at abrdn allows

the Board to have more follow up data points which are

then considered by the business and the Board.

In 2025, the BEE programme will continue its core

objectives, gathering feedback and demonstrating

actionable outcomes, and focusing on staying close to

colleagues and maintaining high Board visibility. The

Board have seen how this and the significant investment

from the CEO and leadership team in prioritising people

and culture is starting to make a difference in terms of

engagement and confidence, as evidenced by the most

recent employee engagement scores. These improved

scores are not yet at the desired level therefore it’s very

important that positive momentum is maintained which

means leveraging the BEE programme where possible

to support progress which ultimately will deliver better

overall performance.


			Annual report 2024	95


	GOVERNANCE

Summary of Stakeholder engagement activities

In line with their obligations under s.172 of the Companies Act 2006, the Directors consider their responsibilities to

stakeholders in their discussions and decision-making. The table below illustrates direct and indirect Board

engagement with various stakeholders. More details of stakeholder engagement activities can be found on pages

60 and 61.


Key stakeholders		Direct Board engagement	Indirect Board engagement	Outcomes
Clients		– The CEO meets with key clients as required and reports to the Board on such meetings. – The CEO takes part in key client pitches to hear directly from clients on their requirements. – The Chair meets with peers and key clients at conferences and industry membership and advisory boards where he represents the Group. – Board members feed into Board discussions any feedback received directly from clients.	– The CEOs of Adviser, ii and Investments (the Business CEOs) report at Board meetings on key client engagement, support programmes and client strategies. – Market share data and competitor activity are reported to the Board. – Results of client perceptions survey/customer sentiment index are reported.	– Engagement supported the development of the key client management process, and our client solutions and sustainability approaches. – The businesses position the business around client needs with performance accountability measured on that basis. – Investment processes are driven by understanding client needs and designing appropriate solutions taking into account client risk appetite and sophistication.
Our colleagues		– ‘Meet the NEDs’ BEE sessions for a diverse mix of staff at all levels allows direct feedback in informal settings. – Employee engagement NED in place and active with the colleague-led networks as well as with employees through their representatives. The BEE NED reports regularly to the CEO and the Board. – Each year, the Board mentors emerging talent. – CEO and CFO run ‘Town Hall’ sessions following quarterly, half-yearly and annual trading announcements.	– The Chief People Officer (CPO) reports to the Nomination and Governance Committee meeting on key hires and employee issues including development needs to support succession planning. – The CPO produces reporting for the Board drawing out key factors influencing staff turnover, morale and engagement. – Viewpoints and employee surveys collect aggregate, regional and functional trend data which is reported to the Board.	– Engagement feedback recognised in Board discussions. – Board involvement in shaping the desired culture and targets, to tracking progress against engagement feedback, are key inputs to talent and development programmes and the design of reward philosophy.
Community	Business partners/ supply chain	– CEO oversees key strategic relationships and meets with his opposite numbers as required. – Executive Director (ED) direct meetings with core suppliers. – The Risk and Capital Committee reviews the dependency on critical suppliers and how they are managed. – The Audit Committee leads an assessment of external audit performance and service provision. – The Board receives detailed papers supporting the outsourcing of technology and business services.	– The Board receives reports on first line key supplier relationships and their role in transition and transformation activities. – Supplier due diligence surveys are undertaken. – Tendering process includes smaller size firms. – Access and audit rights in place with key suppliers. – Modern slavery compliance process in place. – Procurement/payment principles and policies in place. – Certain key suppliers regularly discussed at Audit Committee, Risk and Capital Committee and Board. – Oversight of key outsourcing arrangements reported to the Board.	– The development of our business through our relationships with partners is a critical element of the Board’s strategy. – Transformation discussions have included a focus on the quality, service provision, availability and costs of relevant suppliers. – The overriding guidelines for business partnerships have been established as working for both parties and creating efficient operations. – The Board sought executive assurance on the operation and working practice of key suppliers.


96	Annual report 2024


Corporate governance statement continued


Key stakeholders		Direct Board engagement	Indirect Board engagement	Outcomes
Community (continued)	Communities	– Board members present at relevant events and conferences. – Chair/CEO/CFO represent the Group on public policy and industry organisations. – Board is kept up to date with the activities of the abrdn Financial Fairness Trust and the abrdn Charitable Foundation.	– Stewardship/sustainability teams report regularly to the Board and Committees. – Feedback on annual Stewardship and Sustainability and TCFD reports. – Review of charitable giving strategy. – Sustainability presentations to the Board.	– Considered as input to the Group’s charitable giving programmes. – Engagement with our communities helps bring our purpose to life.
Community (continued)	Regulators/ policymakers/ governments	– Regular engagement by CEO, CFO, Chair and Committee Chairs. – FCA has access to the Board. – ‘Dear Board/CEO’ letters issued from regulators. – Relevant engagement with regulators in overseas territories.	– CFO and Chief Risk Officer (CRO) update the Board regularly. – Board hears reports on the results of active participation through industry groups.	– Relevant Board decisions recognise regulatory impact and environment.
Shareholders	Shareholders	– Results presentations with EDs and Board attendance at the AGM and Q&A. – Chair, CEO, SID and CFO meetings with investors. – Chair, Committee Chairs, SID and BEE NED round table with governance commentators. – Remuneration Committee Chair meetings with institutional investors. – Chair/CEO direct shareholder correspondence.	– Regular updates from the EDs/ Investor Relations Director/ Chair/Chair of Remuneration Committee summarising the output from their programmes of engagement. – Analyst/Investor reports distributed to the Board. – As relevant, feedback from corporate brokers. – Dedicated mailbox and shareholder call centre team.	– There has been continued dialogue with shareholders on remuneration matters including in the period leading up to the 2024 AGM.

Details are included below of two examples of principal decisions made by the Board in 2024 and how the interests

of our stakeholders were considered during the Board’s decision-making process.

Transformation programme

In January 2024, the Board approved the announcement of a transformation programme

targeting an annualised cost reduction of at least £150m by the end of 2025. The

programme was designed to restore the core Investments business to an acceptable level

of profitability and allow for incremental reinvestment into growth areas. The

announcement marked a further step on the Company’s journey to align its resources and

capabilities to meet client needs and reinforce areas of strength across the Group.

In approving the announcement of the programme, the Board considered the need to

remove management layers, increase spans of control, generate further efficiency in

outsourcing and technology areas, as well as reduce overheads in Group functions and

support services. The Board also considered the Company’s key stakeholder groups and

that whilst the programme was expected to result in the reduction of approximately 500

roles, the bulk of the savings would be generated from non-staff costs. The Board further

noted that following the announcement of the programme, focus would remain on

delivering excellent service and strongly competitive investment performance to all clients,

supported by the Group's strong risk management and control environment.

In relation to potential key outcomes of the programme, the Board noted that a

streamlined operations and management structure will enable the Group to deploy its

resources more efficiently and improve management accountability. The increased

profitability will enable incremental investment in the capabilities to deliver excellent

customer outcomes. Further information regarding the benefits and outcomes of the

Transformation programme can be found at page 7.


			Annual report 2024	97


	GOVERNANCE

Appointment of CEO

In May 2024, the Company announced the launch of a CEO succession plan, following the

strategic repositioning of the Company to a specialist asset manager, and a digitally-

focused wealth manager. Jason Windsor was announced as Interim Group CEO, while a

formal and thorough search process supported by an external search firm was

conducted.

In line with the Group’s long term succession planning process, the Board considered a

number of internal and external candidates for the role and identified detailed suitability

criteria that it was looking for in the next CEO. The Board’s considerations included the

importance of the CEO to all of the Company’s key stakeholder groups, the Group’s

strategy and in leading the day-to-day running of the Group.

The Board met on a number of occasions to consider the shortlist of internal and external

candidates and in September announced Jason Windsor as Group CEO. Jason was the

unanimous choice of the Board to lead the Company in its next phase and brings

significant expertise and knowledge of the Group’s industry. Following Jason’s

appointment in September, there has been a focus on strengthening leadership and

enhancing the operating model with the result that the Executive Leadership Team has

been broadened with greater client expertise and a new Group Operating Committee

(GOC) has been introduced to improve the pace of decision-making. The Board looks

forward to continuing to work with Jason, with a focus on the delivery of the Company’s

strategic objectives in 2025.

Speaking up

The workforce has the means to raise concerns in

confidence and anonymously, and these means are

well communicated. The Audit Committee’s oversight of

the whistleblowing policy and the Audit Committee

Chair’s role to report to the Board on whistleblowing

matters is covered in the Audit Committee report on

page 106.

Outside appointments and conflicts of

interest

The Board’s policy encourages executive Directors to

take up one external non-executive director role, as the

Directors consider this can bring an additional

perspective to the Director’s contribution. Jason Windsor

is a Governor of Felsted School and a Director of Felsted

School Trustees Limited.

Any proposed additional appointments of the non-

executive Directors are firstly discussed with the Chair

and then reported to the Nomination and Governance

Committee prior to being considered for approval. The

Senior Independent Director takes that role in relation to

the Chair’s outside appointments. The register of the

Board’s collective outside appointments is reviewed

annually by the Board. Directors’ principal outside

appointments are included in their biographies on pages

88 to 91. These appointments form part of the Chair’s

annual performance review of individual non-executive

Directors’ contribution and time commitment, and

similarly that of the Senior Independent Director of the

Chair.

The Directors continued to review and authorise Board

members’ actual and potential conflicts of interest on a

regular and ad hoc basis in line with the authority

granted to them in the Company’s Articles. As part of

the process to approve the appointment of a new

Director, the Board considers and, where appropriate,

authorises their potential or actual conflicts. The Board

also considers whether any new outside appointment of

any current Director creates a potential or actual

conflict before, where appropriate, authorising it. All

appointments are approved in accordance with the

relevant Group policies. At the start of every Board and

Committee meeting, Directors are requested to declare

any actual or potential conflict of interest and in the

event a declaration is made, conflicted Directors can be

excluded from receiving information, taking part in

discussions, and making decisions that relate to the

potential or actual conflict.


98	Annual report 2024


Corporate governance statement continued

(ii) Division of responsibilities

The Group operates the following governance framework.

Governance framework


Board The Board’s role is to organise and direct the affairs of the Company and the Group in accordance with the Company’s constitution, all relevant laws, regulations, corporate governance, and stewardship standards. The Board’s role and responsibilities, collectively and for individual Directors, are set out in the Board Charter. The Board Charter also identifies matters that are specifically reserved for decision by the Board. During 2024, the Board’s key activities included approving, overseeing and challenging:
– The updated strategy and the 2025 to 2027 business plan to implement the strategy. – Capital adequacy and allocation decisions. – Oversight of culture, our standards and ethical behaviours. – Dividend policy including the decision framework governing the sustainability of the dividend. – Financial reporting. – Risk management, including the Enterprise Risk Management (ERM) framework, risk strategy, risk appetite limits and internal controls and in particular how these apply in a blended working environment with colleagues working from home.		– Significant corporate transactions. – Succession planning, in particular in the appointment of Jason Windsor as CEO. – The performance of each of the business areas. – The sustainability strategy and approach across the Group, both as a corporate and as an asset manager. – Significant external communications. – The work of the Board Committees. – Appointments to the Board and to Board Committees. – Matters escalated from subsidiary boards to the Board for approval.
The Board regularly reviews reports from the CEO and from the CFO on progress against approved strategies and the business plan, as well as updates on financial market and global economic conditions. There are also regular presentations from the Business CEOs and business functional leaders.

Chair – Leads the Board and ensures that its principles and processes are maintained. – Promotes high standards of corporate governance. – Together with the Company Secretary, sets agendas for meetings of the Board. – Ensures Board members receive accurate, timely and quality information on the Group and its activities. – Encourages open debate and constructive discussion and decision-making. – Leads the performance assessments and identification of training needs for the Board and individual Directors. – Speaks on behalf of the Board and represents the Board to shareholders and other stakeholders.	CEO The CEO operates within authorities delegated by the Board to: – Develop strategic plans and structures for presentation to the Board. – Make and implement operational decisions. – Lead the GOC/ELT in the day-to-day running of the Group. – Report to the Board with relevant and timely information. – Develop appropriate capital, corporate, management and succession structures to support the Group’s objectives. – Together with the Chair, represent the Group to external stakeholders, including shareholders, customers, suppliers, regulatory and governmental authorities, and the local and wider communities.		Senior Independent Director (SID) The SID is available to talk with our shareholders about any concerns that they may not have been able to resolve through the channels of the Chair, the CEO or CFO, or where a shareholder was to consider these channels as inappropriate. The SID leads the annual review of the performance of the Chair.

			Non-executive Directors (NEDs) The role of our NEDs is to participate fully in the Board’s decision-making work including advising, supporting and challenging management as appropriate.


Nomination and Governance Committee (N&G) – Board and Committee composition and appointments. – Succession planning. – Governance framework. – Culture, Diversity, Equity & Inclusion (DEI).	Audit Committee (AC) – Financial reporting. – Internal audit. – External audit. – Whistleblowing. – Regulatory financial reporting. – Non-financial reporting (sustainability).	Remuneration Committee (RC) – Development and implementation of remuneration philosophy and policy. – Incentive design and setting of executive Director targets. – Employee benefit structures.	Risk and Capital Committee (RCC) – Risk management framework. – Compliance reporting. – Risk appetites and tolerances. – Transactional risk assessments. – Capital adequacy. – Anti-financial crime.

Group Operating Committee (GOC) The GOC is responsible to the CEO for the development of corporate objectives and strategy, oversight of commercial operations, finalisation of the annual budget and business plan, proposals for inorganic strategic activity, commercial aspects of people-related matters and to support the effective operation and cohesion of the ELT. Membership of the GOC includes the CEO, CFO, Group General Counsel, Chief Operating Officer & CEO of interactive investor, Chief People Officer, CEO of Investments and CEO of Adviser.

Executive leadership team (ELT) The ELT is responsible to the CEO for the execution of corporate objectives and strategy, competitive analysis, sharing client insights, ensuring communication and alignment across senior leadership, oversight of annual budget and business plan proposals, review of performance against targets and plan, idea generation, oversight and delivery of people-related matters, oversight of sustainability and oversight of risk and controls. Membership of the ELT includes the members of the GOC and the Chief Strategy and Business Development Officer, Chief Risk Officer, Chief Internal Audit Officer, Chief Investment Officer, Investments Chief Client Officer, Investments Chief Product & Marketing Officer, interactive investor Chief Operating Officer and Adviser Chief Distribution Officer.

Businesses Business CEOs support the CEO to deliver growth across the business: – ii. – Adviser. – Investments.	Talent The Chief People Officer (CPO) supports the CEO in developing talent management and succession planning and culture initiatives.	Efficient Operations Strategy, Technology, Legal and Finance ELT members, including the CFO, support the CEO by overseeing global functions and the delivery of functional priorities.	Control The Chief Risk Officer (CRO) supports the ELT and the CEO in their first line management of risk. The Chief Internal Audit Officer attends ELT controls meetings.


			Annual report 2024	99


	GOVERNANCE

The framework is formally documented in the Board

Charter which also sets out the Board’s relationship with

the boards of the key subsidiaries in the Group. In

particular, it specifies the matters which these

subsidiaries refer to the Board or to a Committee of the

Board for approval or consultation.


	You can find the Board Charter on our website www.abrdn.com

Board balance and director independence

The Directors believe that at least half of the Board

should be made up of independent non-executive

Directors. As at 3 March 2025, the Board comprises the

Chair, eight independent non-executive Directors and

one executive Director. The Board is made up of six men

(60%) and four women (40%) (2023: men 60%, women

40%). Catherine Bradley stepped down from the Board

on 24 April 2024 and Stephen Bird stepped down on 24

May 2024. As noted in her biography on page 90,

following her appointment as Group CFO at HSBC, Pam

Kaur will not seek re-election to abrdn’s Board at the

Company’s Annual General Meeting in May. Katie

Bickerstaffe and Vivek Ahuja were appointed to the

Board on 1 October 2024 and will stand for election at

the Company’s AGM on 8 May 2025.

The Chair was independent on his appointment in

December 2018. The Board carries out a formal review

of the independence of non-executive Directors

annually. The review considers relevant issues including

the number and nature of their other appointments, any

other positions they hold within the Group, any potential

conflicts of interest they have identified and their length

of service. Their individual circumstances are also

assessed against independence criteria, including those

in the Code. The Nomination and Governance

Committee, on behalf of the Board, conducts a

particularly rigorous review for any non-executive

director whose term exceeds six years. In addition to the

above, this review includes any feedback from the

Board effectiveness review, ongoing overall

contribution, and the output from individual annual

performance discussions with each NED conducted by

the Chair. Cathi Raffaeli and the Chair have both served

more than six years and no issues or considerations

were raised through this assessment. John Devine’s term

will reach nine years in July 2025 and it is proposed that

John is re-appointed for a further term (to expire at the

end of the 2026 AGM) in order to facilitate an orderly

transition of his role as Risk Committee Chair. Following a

recommendation from the Nomination and

Governance Committee, the Board concluded that

John continued to be independent in character and

judgement and that there were no relationships that

were likely to affect or could appear to affect his

judgement. The Board also considered that John

continues to make high quality contributions to Board

and Committee meetings, providing effective and

constructive challenge to management and

demonstrating objective and independent judgement.

The Board therefore concluded that it was in the best

interests of the Company for John to remain on the

Board to facilitate the orderly transition of Risk

Committee Chair responsibilities and that John was

considered to be independent. Following the review, the

Board has concluded that all the non-executive

Directors are independent and consequently, the Board

continues to comprise a majority of independent non-

executive Directors. Jonathan Asquith served as Senior

Independent Director throughout 2024. In this role, he is

available to provide a sounding board to the Chair and

serve as an intermediary for the other Directors and the

shareholders. He also led the process to review the

Chair’s performance. The roles of the Chair and the

CEO are separate and are summarised on page 98.

Each has clearly defined responsibilities, which are

described in the Board Charter. The Directors have

access to the governance advice of the Company

Secretary whose appointment and removal is a matter

reserved to the Board.


	You can find out more about our Directors in their biographies on pages 88 to 91.

(iii) Board composition, succession,

diversity and evaluation

The Board’s policy is to appoint and retain non-

executive Directors who bring relevant expertise as well

as a wide perspective to the Group and its decision-

making framework. The Board continues to support its

Board Diversity statement, which also applies to the

Remuneration, Audit and Nomination and Governance

Committees and states that the Board:

– Recognises that diversity can bring insights and

behaviours that make a valuable contribution to its

effectiveness and the Group’s performance.

– Supports the CEO’s commitment to achieve and

maintain a diverse workforce and an inclusive

workplace.

– Believes in equity and supports the principle that the

best person should always be appointed to the role

with due regard given to the benefits of a full range of

diversity characteristics, when undertaking a search

for candidates, whether executive or non-executive.

– Is committed to maintaining the diverse composition

that is appropriate to its needs.

– Has a zero-tolerance approach to unfair treatment or

discrimination of any kind, both throughout the Group

and in relation to clients, individuals and 3rd parties,

associated with the Group.

– Supports and has oversight of the Group’s DEI

framework.


100	Annual report 2024


Corporate governance statement continued

Board Diversity

Gender


ò	Male: 6
ò	Female: 4

Nationality


ò	British: 6
ò	American: 1
ò	American and British: 1
ò	Singaporean: 1
ò	Irish: 1

Diversity activities and progress to meet our targets are

covered in the People – Diversity, equity & inclusion

section of the Strategic report on page 49. The ELT’s

diversity policy is covered in the Diversity, equity and

inclusion section of the Directors’ report on page 146.

Board changes during the period are covered above

and in the Directors’ report on page 144.

Ethnicity


ò	White: 8
ò	Asian: 2

In accordance with UKLR 6.6.6(9), as at 31 December

2024:

– At least 40% of the individuals on the board of

directors are women.

– At least one individual on the board of directors is from

a minority ethnic background.

During 2024, we applied our policy on diversity when

searching for a successor to Stephen Bird, with Jason

Windsor ultimately appointed, as CEO. Consequently,

we do not currently meet the requirement under UKLR

6.6.6(9)(a)(ii) to have a woman represented in the

identified Board leadership positions (Chair, Senior

Independent Director, CEO or CFO).

The Board supports the principle that the person best

qualified, in the particular circumstances of the role,

should always be appointed to the role with due regard

given to the benefits of a full range of diversity

characteristics. This principle applies to the search for

and appointment of all candidates, both executive and

non-executive.

Board appointment process, terms of service and

role

Board appointments are overseen by the Nomination

and Governance Committee and more information can

be found on page 119.

Each non-executive Director is appointed for a three-

year fixed term and shareholders vote on whether to

elect/re-elect them at every AGM. Once a three-year

term has ended, a non-executive Director can continue

for a maximum of two further terms, if the Board is

satisfied with the non-executive Director’s performance,

independence and ongoing time commitment. Taking

account of their appointment dates the current average

length of service of the non-executive Directors is four

years. For any non-executive Directors who have

already served two three-year terms, the Nomination

and Governance Committee considers any factors

which have the potential to impact their independence

or time commitment prior to making any

recommendation to the Board. Cathi Raffaeli, Hannah

Grove and Sir Douglas Flint came to the end of a three-

year term during 2024.

External search consultants may be used to support

Board appointments. The Group has used the services

of MWM Consulting to support senior management

searches. MWM Consulting has no other connection to

the Group or the Directors.

Time commitment

The letter of appointment confirms that the amount of

time each non-executive Director is expected to

commit to each year, once they have met all of the

approval and induction requirements, is a minimum of

35 days.

When appointing a non-executive Director, the

Nomination and Governance Committee carefully

considers time commitments, investor guidelines and

voting policies and their application on current

directorships. The Committee also reviews in detail the

planned changes to a non-executive Director’s portfolio

and overall capacity, including the balance of listed and

non-listed non-executive Director roles. This is also

reviewed by the Chair as part of a formal sequence of

bilateral conversations with each Board member during

the Company’s annual Board Effectiveness process. This

covers: time commitment and the impact of any

anticipated changes to external appointments over the

next 12 months; conflicts of interest and; any training

requirements that would support the Board member in

their role during the year. The Company supports plc

Directors taking active roles on the main Group

subsidiary boards. Cathi Raffaeli chairs the Standard Life


			Annual report 2024	101


	GOVERNANCE

Savings Limited and Elevate Portfolio Services Limited

boards, and Hannah Grove also sits on these boards.

Time commitment for their roles on these group boards

are also considered as part of the annual evaluation

process.

Having carefully reviewed various inputs, including those

outlined above and each non-executive Director’s

contribution and capacity in 2024, the Nomination and

Governance Committee concluded that all non-

executive Directors continue to have sufficient time to

dedicate to their role as independent non-executive

Directors of abrdn plc.

The service agreements/letters of appointment for

Directors are available to shareholders to view on

request from the Company Secretary at the Company’s

registered address (which can be found in the

Shareholder information section) and will be accessible

for the 2025 AGM. Non-executive Directors are required

to confirm that they can allocate sufficient time to carry

out their duties and responsibilities effectively. As set out

in their letters of appointment, Non-executive Directors

are also required to advise, support and challenge

across a number of areas including, but not limited to,

strategy, performance, risk and remuneration.

Director election and re-election

At the 2025 AGM, all of the Directors will retire and stand

for election or re-election. As well as in the Board of

Directors section, the AGM Guide 2025 includes

background information about the Directors, including

the reasons why the Chair, following the Directors’

annual reviews, believes that their individual skills and

contribution support their election or re-election.


	Details of Directors’ outside appointments can be found in their biographies on pages 88 to 91.

Advice

Directors may sometimes need external professional

advice to carry out their responsibilities. The Board’s

policy is to allow them to seek this where appropriate

and at the Group’s expense. Directors also have access

to the advice and services of the Company Secretary.

With the exception of professional advice obtained by

the Remuneration Committee, as detailed in page 141,

no independent professional advice was sought in 2024.

Board effectiveness

Review process

An externally facilitated review was last undertaken in

2022, and the 2024 effectiveness review, which

considered all aspects of the Board’s effectiveness, was

conducted internally, on behalf of the Board, by the

Chair and supported by the Company Secretary. A

questionnaire was issued to each Board member, which

allowed individual feedback on a confidential basis. As

part of the review process, the questionnaire is also

supplemented by a year-end 1:1 discussion with the

Chair, providing Directors with the opportunity to raise

any matters directly with the Chair.

The tone of the 2024 review was positive and concluded

that the Board and its Committees continued to operate

effectively during 2024, with no material issues or

concerns raised and priorities for the coming year

clarified. Progress was noted on matters identified in the

2023 review and it was noted that the Board is effective

in monitoring culture and behaviour throughout the

Group, understands principal risks and assesses risk

management assurance processes well and acts

collegiately and collaboratively, with Board members

having trust in the voice and opinions of others. The

Chair again hosted a conference in September 2024

bringing together non-executive directors from the

Group’s subsidiary companies and EMEA-based fund

boards. The main areas arising from the 2024 review on

which the Board looked to see continued improvement

in 2025, both in respect of its own effectiveness and that

of its Committees, were in relation to improving the

insights within and brevity of materials presented. The

report also acknowledged that given the criticality of

human talent and technology to future sustainable

success, succession planning would remain a core focus

for the Board, as would technology development given

its impact on the future of asset and wealth

management.

As in prior years, the report noted the strong levels of

Board engagement and participation, both in formal

meetings and other Board initiatives, such as the BEE

programme. The report also recognised positively

Board dynamics, the effectiveness of Board

Committees and the breadth of knowledge and

experience of Board members. Maintaining these

attributes was seen as essential to the Company’s

successful navigation of current macro-economic

challenges and the delivery of its desired strategic

outcomes.

Chair

The review of Sir Douglas’s performance as Chair is led

by the SID, Jonathan Asquith, supported by the

Company Secretary. It is based on feedback given in

returned questionnaires specifically regarding the

Chair’s performance and discussions between the SID

and the other non-executive Directors. The feedback is

summarised into a report which is considered by the

Directors in a meeting led by Jonathan Asquith and

without Sir Douglas being present. It was noted that the

Chair’s industry experience, style and development of

the Board continued to be of significant benefit to the

Group. As with the main Board evaluation, the continued

focus on delivery for shareholders and other

stakeholders is a key priority and the important role that

the Chair plays in supporting the execution of the

Group’s strategy was recognised. As part of the process,

Jonathan Asquith meets with Sir Douglas to pass on

feedback from the review directly and his final report is

made available to all non-executive Directors.

Directors

An important part of the annual effectiveness review

process is the individual evaluation of each member of


102	Annual report 2024


Corporate governance statement continued

the Board. This process is undertaken personally by the

Chair and this year was conducted through year-end

bilateral discussions with each Board member to a

specific agenda. These discussions ran alongside the

broader effectiveness process and fed into Nomination

and Governance Committee’s consideration of director

re-election and ongoing succession planning. In addition

to discussing individual performance, consideration was

also given to Non-Executive Directors’ time commitment

and capacity, conflicts of interest, any individual training

and development needs and broader Company

engagement opportunities.

Director induction and development

The Chair, supported by the Company Secretary, is

responsible for arranging a comprehensive preparation

and induction programme for all new Directors. The

programme takes their background, knowledge and

experience into account. If relevant, Directors are

required to complete the FCA’s approval process before

they are appointed and Directors self-certify annually

that they remain competent to carry out this aspect of

their role. These processes continue to adapt to meet

evolving best practice in respect of the Senior Managers

and Certification Regime.

The formal preparation and Induction programme

includes:

– Meetings with the executive Directors and the

members of the GOC and the ELT.

– Focused technical meetings with internal experts on

specific areas including the three businesses,

regulatory reporting, sustainability, conduct risk, risk

and capital management, and financial reporting.

– Visits to business areas to meet our people and gain a

better insight into the operation of the business and its

culture.

– Meetings with the external auditors and contact with

the FCA supervisory teams.

– Meetings with the Company Secretary on the Group’s

corporate governance framework and the role of the

Board and its Committees.

– Meetings with the Chief Risk Officer on the risk

management framework as well as meetings on their

individual responsibilities as holders of a Senior

Management Function role.

Background information is also provided including:

– Key Board materials and information, stakeholder and

shareholder communications and financial reports.

– The Group’s organisational structure, strategy,

business activities and operational plans.

– The Group’s key performance indicators, financial and

operational measures and industry terminology.

The induction programme provides the background

knowledge new Directors need to perform to a high

level as soon as possible after joining the Board and its

Committees and to support them as they build their

knowledge and strengthen their performance further.

When Directors are appointed to the Board, they make

a commitment to broaden their understanding of the

Group’s business. The Secretariat, Finance, Risk and

Reward teams monitor relevant external governance

and risk management, financial and regulatory

developments and keep the ongoing Board training and

information programme up to date. Specific Board and

Committee awareness and deep-dive sessions took

place on:

– Macro trends.

– Cyber resilience.

– Corporate reform.

– abrdn’s Internal Capital and Risk Assessment.

– Operational resilience self-assessment.

– Transformation.

– Sustainability.

– Technology.

– FCA Consumer Duty.

– Vulnerable Customers.

– Investments business.

– Equities.

(iv) Audit, risk and internal control

The Directors retain the responsibility to state that they

consider the Annual report and accounts, taken as a

whole, is fair, balanced and understandable, presents an

assessment of the Company’s position and prospects

and presents the necessary information for

shareholders to assess the business and strategy. They

also recognise their responsibility to establish

procedures to manage risk and oversee the internal

control framework. The Directors’ responsibilities

statement is on page 149. The reports from the Audit

Committee and the Risk and Capital Committee Chairs

show how the Committees have supported the Board in

meeting these responsibilities.

The Board’s view of its principal and emerging risks and

how they are being managed is contained in the Risk

management section of the Strategic report on pages

82 to 85.

Annual review of internal control

The Directors have overall responsibility for the

governance structures and systems of the Group, which

includes the ERM framework and system of internal

control, and for the ongoing review of their

effectiveness. The framework is designed to manage,

rather than eliminate, risk and can only provide

reasonable, not absolute, assurance against material

misstatement or loss. The framework covers all of the

risks as set out in the Risk management section of the

Strategic report.


			Annual report 2024	103


	GOVERNANCE

In line with the requirements of the Code, the Board has

reviewed the effectiveness of the system of internal

control. The Audit Committee undertook the review on

behalf of the Board and reported the results of its review

to the Board. The system was in place throughout the

year and up to the date of approval of the Annual report

and accounts 2024.

The review of abrdn’s risk management and internal

control systems was carried out drawing on inputs

across the three lines of defence taking into account the

operation of each component of the Enterprise Risk

Management Framework.

The business continues to make control improvements

to meet increasing regulatory expectations, particularly,

in the areas of operational resilience and third-party

oversight. 2024 has seen the business continue to

strengthen controls within its operating model through

better definition of accountability and processes.

Technology advances and the implementation of

actions around the Consumer Duty and Operational

Resilience regulations continue to drive further

improvements in the control environment. The Finance

function operates a set of defined processes which

operate over all aspects of financial reporting, which

includes the senior review and approval of financial

results, controlled processes for the preparation of the

IFRS consolidation, and the monitoring of external policy

developments to ensure these are adequately

addressed. These processes include the operation of a

Technical Review Committee and the Financial

Reporting Executive Review Group to provide senior

review, challenge and approval of relevant disclosures,

accounting policies, and changes required to comply

with external developments.

The Board’s going concern statement is on page 148

and the Board’s viability statement is on page 80.

(v) Remuneration

The Directors’ remuneration report (DRR) on pages 122

to 141 sets out the work of the Remuneration

Committee and its activities during the year, the levels of

Directors’ remuneration and the shareholder approved

remuneration policy. The Company’s approach to

investing in and rewarding its workforce is set out on

page 136 of the DRR. The Board believes that its

remuneration policies and practices are designed to

support the Company’s strategy and long-term

sustainable success. More information about the policies

and practices can be found in the DRR.

Other information

You can find details of the following, as required by FCA

Disclosure and Transparency Rule 7.2.6, in the Directors’

report and in the Directors’ remuneration report:

Share capital

– Significant direct or indirect holdings of the Company’s

securities.

– Confirmation that there are no securities carrying

special rights with regard to control of the Company.

– Confirmation that there are no restrictions on voting

rights in normal circumstances.

– How the Articles can be amended.

– The powers of the Directors, including when they can

issue or buy back shares.

Directors

– How the Company appoints and replaces Directors.

– Directors’ interests in shares.

Board meetings and meeting attendance

The Board and its Committees meet regularly,

operating to an agreed timetable. Meetings are usually

held in Edinburgh or London. During the year, the Board

held specific sessions to consider the Group’s strategy

and business planning. The Chair and the non-executive

Directors also met during the year, formally at each

Board meeting, and informally, without the executive

Directors present and where matters including

executive performance and succession and Board

effectiveness were discussed. The Board scheduled nine

formal meetings and a focused strategy meeting in

2024.

Directors are required to attend all meetings of the

Board and the Committees they serve on, and to devote

enough time to the Company to perform their duties.

Board and Committee papers are distributed before

meetings other than, by exception, urgent papers which

may need to be tabled at the meeting. If Directors are

not able to attend a meeting because of conflicts in their

schedules, they receive all the relevant papers and have

the opportunity to submit their comments in advance to

the Chair or to the Company Secretary. If necessary,

they can follow up with the Chair of the meeting.

Recognising that some Directors may have existing

commitments they cannot change at very short notice,

the Board has established the Standing Committee as a

formal procedure for holding unscheduled meetings.

The Standing Committee meets when, exceptionally,

decisions on matters specifically reserved for the Board

need to be taken urgently. All Directors are invited to

attend Standing Committee meetings. The Standing

Committee met once during 2024.

The Company Chair is not a member of the Audit, Risk

and Capital, or Remuneration Committees. He is invited

to attend meetings of all Committees, by invitation, in

order to keep abreast of their discussions and routinely

does so. The table below reflects the composition of the

Board and Board Committees during 2024 and records

the number of meetings and members’ attendance.


104	Annual report 2024


Corporate governance statement continued


	Board	Audit Committee	Nomination and Governance Committee	Remuneration Committee	Risk and Capital Committee
Chair
Sir Douglas Flint	10/10	–	3/3	–	–
Executive Directors
Jason Windsor	10/10	-	-	-	-
Non-executive Directors
Jonathan Asquith	10/10	–	3/3	8/8	–
John Devine	10/10	5/6	3/3	-	6/6
Hannah Grove	10/10	-	3/3	8/8	-
Pam Kaur	10/10	6/6	–	–	6/6
Cathleen Raffaeli	10/10	–	–	8/8	6/6
Vivek Ahuja (appointed on 1 October 2024)	2/2	2/2	-	-	-
Katie Bickerstaffe (appointed on 1 October 2024)	2/2	-	-	2/2	-
Mike O’Brien	10/10	6/6	–	–	5/6
Former members
Stephen Bird (stood down 24 May 2024)	4/4	-	–	–	–
Catherine Bradley (stood down 24 April 2024)	4/4	2/2	1/1	3/3	–

Tenure as at March 2025


ò	0-3 years: 5
ò	3-5 years: 1
ò	5+ years: 4

Board Committees


abrdn plc Board

Audit Committee	Remuneration Committee	Nomination and Governance Committee	Risk and Capital Committee

The Board has established Committees that oversee,

consider and make recommendations to the Board on

important issues of policy and governance. At each

Board meeting, the Committee chairs provide reports of

the key issues considered at recent Committee

meetings, and minutes of Committee meetings are

circulated to the appropriate Board members. This

includes reporting from the Chair of the Audit

Committee on any whistleblowing incidents which have

been escalated to them. The Committees operate

within specific terms of reference approved by the

Board and kept under review by each Committee.


	These terms of reference are published within the Board Charter on our website at www.abrdn.com

Executive and Non-executive mix


ò	Non-executive: 9
ò	Executive: 1

All Board Committees are authorised to engage the

services of external advisers at the Company’s expense,

whenever they consider this necessary. With the

exception of fees paid to external advisers of the

Remuneration Committee, as detailed on page 141, no

such expense was incurred during 2024.

Committee reports

This statement includes reports from the chairs of the

Audit Committee, the Risk and Capital Committee and

the Nomination and Governance Committee. The

report on the responsibilities and activities of the

Remuneration Committee can be found in the Directors’

remuneration report section.


	The Committee Chairs are happy to engage with you on their reports. Please contact them via questions@abrdnshares.com


			Annual report 2024	105


	GOVERNANCE

1. Audit Committee report

The Audit Committee assists the Board in discharging its

responsibilities for externa l financial and material non-

financial reporting, internal controls over financial

reporting and the relationship with the external auditors.

I am pleased to present my report as Chair of the Audit

Committee (the Committee).

Following Catherine Bradley’s announcement of her

intention not to stand for re-election at the 2024 AGM,

the Board requested that I take on the Chair role of the

Audit Committee on an interim basis until a suitable

replacement was identified. Vivek Ahuja has now been

appointed to this role from 1 January 2025.

While the Committee focuses its attention primarily on

the Company’s financial and non-financial control

framework, during 2024 it has also put specific

governance emphasis on:

– Oversight of the Group’s transformation programme,

designed to restore our core Investments business to

an acceptable level of profitability and allow for

incremental reinvestment into growth areas.

– Significant changes in senior personnel in the Finance

function.

– Oversight of the work required to support compliance

with the changes introduced in the 2024 UK Corporate

Governance Code.

– Oversight of the Group’s external audit tender

process.

The Committee also continued to focus on the quality of

financial reporting.

While ensuring we fulfil our delegated responsibilities on

behalf of the Board, the Audit Committee continues to

be a dynamic forum which benefits from a high degree

of transparency from management, enabling effective

discussion and decision making. This will remain

fundamental to the Committee’s effectiveness and its

oversight of the Company’s financial and non-financial

reporting and control environment during 2025.

The report is structured in four parts:

(1) Governance

(2) Report on the year

(3) Internal audit

(4) External audit

John Devine

Chair, Audit Committee

(i) Governance

Membership

All members of the Audit Committee are independent

non-executive Directors. For their names, the number of

meetings and committee member attendance during

2024, please see the table on page 104.

The Board believes Committee members have the

necessary range of financial, risk, control and

commercial expertise required to provide effective

challenge to management and have competence in

accounting and auditing as well as recent and relevant

financial experience. John Devine is a member of the

Chartered Institute of Public Finance and Accounting

and had previously chaired the Company’s Audit

Committee. Pam Kaur is a qualified chartered

accountant. Mike O’Brien is a fellow of the Institute and

Faculty of Actuaries. Vivek Ahuja, who took on the role of

Chair of the Committee on 1 January 2025, has

extensive experience in international financial services

and private equity. In his executive career, he was most

recently CEO of Terra Firma, a leading European Private

Equity firm and, prior to that, Deputy Group CFO at

Standard Chartered plc. He is a qualified chartered

accountant who brings broad commercial and

operational experience spanning finance, strategy,

business and cultural transformation, risk management

and corporate governance and is an experienced non-

executive Director. The Committee members are also

members of audit committees related to their other

non-executive Director roles.

Invitations to attend Committee meetings are extended

to the Chair, the Chief Executive Officer, the Chief

Financial Officer, the Group Financial Controller, the

Chief Internal Audit Officer and the Group Chief Risk

Officer, as well as the external auditors.


106	Annual report 2024


Corporate governance statement continued

The Audit Committee meets privately for part of its

meetings and also has regular private meetings

separately with the external auditors and the Chief

Internal Audit Officer. These meetings address the level

of co-operation and information exchange and provide

an opportunity for participants to raise any concerns

directly with the Committee.

Key responsibilities

The Audit Committee’s responsibilities are to oversee,

and report to the Board on:

– The appropriateness of the Group’s accounting and

accounting policies, including the going concern

presumption and viability statement.

– The findings of its reviews of the financial information

in the Group’s annual and half year financial reports.

– The clarity of the disclosures relating to accounting

judgements and estimates.

– Its view of the ‘fair, balanced and understandable’

reporting obligation.

– The findings of its review of certain Group prudential

external disclosures.

– Internal controls over financial reporting.

– Sustainability disclosures relating to financial and

quantitative information.

– Liaison with the Remuneration Committee on any

financial reporting matters related to the

achievement of targets and measures.

– Outcomes of investigations resulting from

whistleblowing.

– The appointment or dismissal of the Chief Internal

Audit Officer, the approved internal audit work

programme, key audit findings and the quality of

internal audit work.

– The skills of the external audit team and their

compliance with auditor independence requirements,

the approved audit plan, the quality of the firm’s

execution of the audit, and the agreed audit and non-

audit fees.

In carrying out its duties, the Committee is authorised by

the Board to obtain any information it needs from any

Director or employee of the Group. It is also authorised

to seek, at the expense of the Group, appropriate

external professional advice whenever it considers this

necessary. The Committee did not need to take any

independent advice during the year.

In accordance with the Senior Managers and

Certification Regime the Audit Committee Chair is

responsible for the oversight of the independence,

autonomy and effectiveness of our policies and

procedures on whistleblowing including the procedures

for the protection of employees who raise concerns

related to detrimental treatment. Throughout the year

the Audit Committee Chair met regularly with the Chief

Internal Auditor, the external audit partner, the Chief

Sustainability Officer - Investments and the Global Head

of Corporate Sustainability to discuss their work, findings

and current developments.

Committee effectiveness

The Committee reviews its remit and effectiveness each

year. Following the externally facilitated review in 2023,

the 2024 review was conducted internally, on behalf of

the Board, by the Company Secretary. The review

concluded that the Committee continued to operate

effectively during 2024 with no material issues or

concerns raised. More information about the process

involved, and its outcomes, can be found on page 101.

(ii) Report on the year

Audit agenda

As well as regular reporting, agenda items were aligned

to the annual financial cycle as set out below:


	What was discussed
	– Annual report and accounts 2023. – Strategic report and financial highlights 2023. – Financial reporting judgements. – Liaison with the Remuneration Committee on any financial reporting matters related to the achievement of targets and measures. – External auditor’s review of Full year results. – Whistleblowing. – Sustainability reporting. – Effectiveness of the Internal Audit function.
	– Internal audit findings. – Prudential and Regulatory reporting. – Initial financial reporting matters for Half year 2024. – Whistleblowing. – External auditor’s management letter, and audit strategy. – Transformation programme
	– Half year results 2024. – External auditors’ review of Half year results. – External auditors’ independence. – Internal audit findings. – Whistleblowing. – Material legal actions and open litigations
	– Initial financial reporting matters for Full year 2024, including pension scheme assumptions. – Non-audit services policy. – The internal audit plan and charter. – Internal audit findings. – Effectiveness of the external auditors and related non-audit services. – External audit tender. – Whistleblowing. – Sustainability reporting. – Risk management and internal control system annual review and future plans. – Transformation programme – Corporate and Audit Reform update.


			Annual report 2024	107


	GOVERNANCE

The indicative proportion of time spent on the business

of the Committee is illustrated below:


ò	Financial and Sustainability reporting
ò	Internal audit
ò	External audit
ò	Other matters (incl. whistleblowing, review of external developments and internal controls)
ò	External Audit tender

Detail of work

The focus of work in respect of 2024 is described below.

Financial and non-financial reporting

Our Annual report and accounts are prepared in

accordance with International Financial Reporting

Standards (IFRS). The Committee believes that some

Alternative Performance Measures (APMs), which are

also called non-GAAP measures, can add insight to the

IFRS reporting and help to give shareholders a fuller

understanding of the performance of the business. The

Committee considered the presentation of APMs and

related guidance as discussed further in the ‘Fair,

balanced and understandable’ section below.

The Committee reviewed the Group accounting policies

and confirmed they were appropriate to be used for the

2024 Group financial statements. This year there were

no new accounting standards which had a significant

impact on the Group accounting policies.

The Committee reviewed the basis of accounting and in

particular the appropriateness of adopting the going

concern basis of preparation of the financial

statements. In doing so, it considered the Group’s cash

flows resulting from its business activities and factors

likely to affect its future development, performance and

position together with related risks, as set out in more

detail in the Strategic report. The Committee

recommended the going concern statement to the

Board.

In addition, the Committee considered the form of the

viability statement and in particular whether the three-

year period remained appropriate, and concluded that

it did. This reflects both our internal planning cycle and

the timescale over which changes to major regulations

and the external landscape affecting our business

typically take place. In formulating the statement, the

Committee considered the result of stress testing and

reverse stress testing presented to the Risk and Capital

Committee. The Committee recommended the viability

statement to the Board.

During 2024, the Committee reviewed the Annual report

and accounts 2023 and the Half year results 2024. For

both periods it received written and/or oral reports from

the Chief Financial Officer, the interim Chief Financial

Officer, the Company Secretary, the Chief Internal Audit

Officer and the external auditors. The Committee used

these reports to aid its understanding of the composition

of the financial statements, to confirm that the specific

reporting standards and compliance requirements had

been met and to support the accounting judgements

and estimates. Following its reviews, the Committee was

able to recommend the approval of each of the reports

to the Board, being satisfied that the full and half year

financial statements complied with laws and regulations

and had been appropriately compiled.

The Committee recognises the importance of

sustainability reporting. During 2024 the Committee

discussed and reviewed the sustainability reporting

landscape and the related governance framework at a

number of meetings. In particular, as part of the review

of the Annual report and accounts, the Committee

reviewed content relating to the Task Force on Climate-

Related Financial Disclosures (TCFD). The Committee’s

review focused on ensuring metrics and outcomes were

appropriately explained and validated. KPMG in their

role as auditor have reviewed our TCFD disclosures as

part of their audit engagement. More information can

be found on page 112.


108	Annual report 2024


Corporate governance statement continued

Accounting estimates and judgements

The Audit Committee considered all estimates and judgements that Directors understood could be material to the

2024 financial statements. The Committee also focused on disclosure of these key accounting estimates and

judgements.


Significant accounting estimates, judgements and assumptions for the year ended 31 December 2024	How the Audit Committee addressed these significant accounting estimates and assumptions
Goodwill impairment reviews
Goodwill is required to be tested annually for impairment and the determination of recoverable amounts for this impairment assessment is a key area of estimation. The impairment assessment is performed by comparing the carrying amount of each cash-generating unit (CGU) with its recoverable amount, being the higher of its value in use (VIU) and fair value less costs of disposal (FVLCD). In 2024 an impairment of goodwill was recognised in relation to the Finimize CGU (impairment of £5m) within Other business operations and corporate costs and therefore the determination of the recoverable amount for this CGU was a key judgement which directly impacted the amount of the impairment. The impairment reflects higher anticipated losses in the period prior to which abrdn anticipates Finimize is likely to achieve profitability and the related Group support required in this period. Following this impairment, there is no remaining goodwill for Finimize. The recoverable amount for Finimize was determined based on FVLCD, with the primary approach being a revenue multiple valuation approach. Goodwill relating to the interactive investor and abrdn financial planning CGUs were also tested for impairment and the recoverable amounts, based on FVLCD, indicated that no impairments were required.	The Committee spent time reviewing and challenging recoverable amount assumptions at three meetings. For Finimize, the Committee noted that the business is inherently difficult to value as there are few directly comparable companies and therefore there are a range of reasonable valuations. The Committee discussed the valuation assessment with management and agreed that the recoverable amount was within the reasonable range. The Committee agreed with management’s view that the goodwill for the interactive investor and abrdn financial planning CGUs were not impaired. The Committee noted the inherent sensitivity of the recoverable amounts and supported the disclosure of appropriate sensitivities. Further details on goodwill impairment reviews are disclosed in Note 13 of the Group financial statements.
UK defined benefit pension plan
In compiling a set of financial statements, it is necessary to make some judgements and estimates about outcomes that are dependent on future events. This is particularly relevant to the defined benefit pension plan surplus which is inherently dependent on how long people live and future economic outcomes. For the principal UK defined benefit pension plan, the Committee reviewed the assumptions for mortality, discount rate and inflation.	The Committee considered the proposed assumptions taking into account market data and information from pension scheme advisors. Note 31 of the Group financial statements provides further details on the actuarial assumptions used, and sets out the impact of mortality, discount rate and inflation sensitivities. Note 31 also provides details on the accounting policy applied and accounting policy judgements relating to the Group’s assessment that it has an unconditional right to a refund of a surplus, and the treatment of tax relating to this surplus.
Tritax contingent consideration fair value
In 2021, the abrdn group purchased 60% of the membership interests in Tritax Management LLP. Subject to certain conditions, an additional contingent deferred earn-out is expected to be payable to acquire the remaining 40% of membership interests in Tritax should the selling partners choose to exercise put options in respect of each of the years ended 31 March 2024, 31 March 2025 and 31 March 2026. The amount payable is linked to the EBITDA of the Tritax business in the relevant period. abrdn has the right to purchase any outstanding interests at the end of 2026 through exercising a call option. The contingent consideration liability is required to be recognised at fair value, which is primarily dependant on future earnings projections.	The Committee analysed and discussed management’s assumptions underlying the fair value of the contingent consideration at 31 December 2024 and agreed that the fair value was within the reasonable range. The Committee reviewed and supported that disclosure of sensitivities to key assumptions should be provided given the inherent uncertainties in the valuation. See Note 36 of the Group financial statements for further details.


			Annual report 2024	109


	GOVERNANCE


Significant accounting estimates, judgements and assumptions for the year ended 31 December 2023	How the Audit Committee addressed these significant accounting estimates and assumptions
Investments in subsidiaries
In relation to the abrdn plc Company only accounts, an assessment is made at each reporting date as to whether there are any indicators of impairment in relation to investments in subsidiaries. At year end 2024 management noted that the Company’s net assets attributable to shareholders of £4.4bn (post impairments) continues to be higher than the Company’s market capitalisation of £2.6bn. Taking this into account along with the payment by abrdn Investment Holdings Limited (aIHL) and abrdn Holdings Limited (aHL) of dividends of £102m and £40m respectively to the Company in 2024 and the continued headwinds facing active asset managers, it was assessed that there were indicators of impairments in relation to aIHL and aHL, the Company’s asset management holding companies. Following the performance of valuation exercises, impairments of aIHL and aHL of £115m and £15m respectively have been recognised. Indicators of impairment were also identified in relation to abrdn Financial Planning Limited (aFPL). aFPL paid distributions in specie totalling £47m in 2024 following the sale of abrdn Financial Planning and Advice to another subsidiary of the Company. Following this the valuation of aFPL was £1 and an impairment of £45m has been recognised. No other indicators of impairment were identified on any material investment in subsidiaries including ii which, as noted above, is also fully supported by a valuation exercise performed for goodwill purposes.	The Committee discussed the investment in subsidiaries impairment assessment with management and noted that the judgements in relation to these assessments were materially the same as the judgements relating to the goodwill impairment reviews. The Committee supported the view that relevant disclosures were made in the Company only accounts including disclosure that appropriate consideration had been given to the Company net assets being higher than the abrdn market capitalisation. The Committee noted that the Company’s distributable profits were £2.9bn which continued to provide support for the dividend policy. Further details on the assessment of investments in subsidiaries are set out in Note A of the Company financial statements section.

Principal risks are disclosed in the Strategic report and recommended to the Board by the Risk and Capital

Committee. The Committee was satisfied that the estimates and quantified risk disclosures in the financial

statements were consistent with the Strategic report. The Committee concluded that appropriate judgements had

been applied in determining the estimates and that sufficient disclosure had been made to allow readers to

understand the uncertainties surrounding outcomes.


110	Annual report 2024


Corporate governance statement continued

Fair, balanced and understandable

The Committee supported management’s continued aim to compile the Annual report and accounts to be ‘fair,

balanced and understandable’.

abrdn’s principles

To create clarity on fair, balanced and understandable for abrdn, a set of principles is applied, as set out below:


Fair ‘We are being open and honest in the way we present our discussions and analysis, and are providing what we believe to be an accurate assessment of business and economic realities.’	– The narrative contained in the Annual report and accounts is honest, accurate and comprehensive. – The key messages in the narrative in the Strategic report and Governance sections of the Annual report and accounts reflect the financial reporting contained in the financial statements. – The Key Performance Indicators (KPIs) for the period are consistent with the key messages outlined in the Strategic report.
Balanced ‘We are fully disclosing our successes, the challenges we have faced in the period, and the challenges and opportunities we anticipate in the future; all with equal importance and at a level of detail that is appropriate for our stakeholders.’	– The Annual report and accounts presents both successes and challenges experienced during the year and, as appropriate, reflects those expected in the future. – The level of prominence we give to successes in the year versus challenges faced is appropriate. – The narrative and analysis contained in the Annual report and accounts effectively balances the information needs and interests of each of our key stakeholder groups.
Understandable ‘The language we use and the way we structure our report is helping us present our business and its performance clearly; in a way that someone with a reasonably informed knowledge of financial statements and our industry would understand.’	– The layout is clear and consistent and the language used is simple and easy to understand (industry specific terms are defined where appropriate). – There is a consistent tone across and good linkage between all sections in a manner that reflects a complete story and clear signposting to where additional information can be found.

Activities

An Internal Review Group (IRG) is in place which reviews

the Annual report and accounts specifically from a fair,

balanced and understandable perspective and provides

feedback to our financial reporting team on whether it

conforms to our standards. The members of the IRG are

independent of the financial reporting team and include

colleagues from Investor Relations, Sustainability

reporting, Risk, Internal Audit, Communications and

Strategy.

The key points discussed by the IRG covered:

– The overall balance and tone of reporting.

– The balance of messaging on net flows in the year.

– How adjustments between IFRS metrics and APMs

have been reported.

Fair, balanced and understandable guidance was

provided to relevant stakeholders involved in the Annual

report and accounts production process.

The Audit Committee, reviewed the messaging in the

Annual report and accounts, taking into account

material received and Board discussions during the

year.

Three drafts of the Annual report and accounts 2024

were reviewed by the Audit Committee at three

meetings. The Committee complemented its

knowledge with that of executive management and

Internal Audit.

The Annual report and accounts goes through an

extensive internal verification process of all content to

verify accuracy.

The Committee also reviewed the use and presentation

of APMs which complement the statutory IFRS results.

This review considered guidelines issued by the

European Securities and Markets Authority in 2016 and

the thematic reviews by the Financial Reporting Council

(FRC). A Supplementary information section is included

in the Annual report and accounts to explain the

rationale for using these metrics and to provide

reconciliations of these metrics to IFRS measures where

relevant. This section also provides increased

transparency over the calculation of reported financial

ratios.

Adjusted operating profit and adjusted profit before tax

are key profit APMs. The Committee considered

whether the allocation of items to adjusted operating

profit was in line with the defined accounting policies,

consistent with previous practice and appropriately

disclosed. Where there were judgemental areas, such

as in relation to certain interactive investor related costs,

the Committee specifically reviewed the proposed

treatments and ensured that the Annual report and

accounts provided appropriate disclosures.

The Audit Committee agreed to recommend to the

Board that the Annual report and accounts 2024, taken

as a whole, is fair, balanced and can be understood by

someone with a reasonably informed knowledge of

financial statements and our industry.


			Annual report 2024	111


	GOVERNANCE

Prudential reporting

The Committee also considered disclosures relating to

IFPR (Investment Firms Prudential Regime) results

included in the Strategic report and notes sections of the

Annual report and accounts and half year reporting,

together with related assurance over these disclosures.

Internal controls

As noted earlier, the Directors have overall responsibility

for abrdn’s internal controls and for ensuring their

ongoing effectiveness. This does not extend to

associates and joint ventures. Together with the Risk and

Capital Committee, the Committee provides comfort to

the Board of their ongoing effectiveness.

Internal Audit regularly reviews the effectiveness of

internal controls and reports to the Committee and the

Risk and Capital Committee.

The Finance function sets formal requirements for

financial reporting which apply to the Group as a whole,

defines the processes and detailed controls for the

consolidation process and reviews and challenges

reporting submissions. Further, the Finance function runs

a Technical Review Committee and is responsible for

monitoring external technical developments. The

Committee focuses on ensuring appropriate sign-offs

on financial results are provided, and a mechanism for

the escalation of issues from major regulated subsidiary

Boards is in place.

The Committee oversees and monitors controls over

financial and non-financial reporting, considering

reports from management on the control environment

and status of remediation activities where appropriate.

This directly supports the review and assessment of

reporting by the Committee.

In 2024 the Committee monitored control environment

developments supported by investments in technology.

Particular focus was also given to certain controls over

revenue and the control over journal entries in certain

components of the group, and associated actions. In H2

2024, the Committee discussed the impact of historic

billing issues reflected in financial results for the current

year reporting.

In 2025, the Committee will continue to oversee actions

taken to strengthen and enhance controls in these

areas, alongside the wider control environment. This is

with a view to enhancing the control environment,

supporting reduced reliance on substantive testing and

compensating controls in aspects of the audit.

Whistleblowing

Our people are trained via mandatory training modules

to detect the signs of possible fraudulent or improper

activity and how to report concerns either directly or via

our independent whistleblowing hotline. The Committee

Chair is the designated whistleblower’s champion and

the Committee receives regular updates on the

operation of the whistleblowing procedures (Speak Up)

from the Head of Conduct, Conflicts and Training. The

anonymised reports include a summary of the incidents

raised as whistleblowing, and information on

developments of the arrangements in place, to ensure

concerns can be raised in confidence about possible

malpractice, wrongdoing and other matters.

The Committee oversees the findings of investigations

and required follow-up action. If there is any allegation

against the Risk and Internal Audit functions, the

Committee directs the investigation. The Committee is

satisfied that the Group’s procedures are currently

operating effectively. The Committee Chair reports to

the Board on the updates the Committee receives.

(iii) Internal audit

The role and mandate of the Internal Audit function is set

out in its Charter, which is reviewed and approved by the

Committee annually. Whilst Internal Audit maintains a

relationship with the external auditors, in accordance

with relevant independence standards, the external

auditors do not place reliance on the work of Internal

Audit. The internal audit plan is reviewed and approved

by the Committee at least annually and is flexed during

the year to respond to internal and external

developments. The function’s coverage aligns to the

Group’s activities and footprint, taking account of local

internal audit requirements. Regular reporting is

provided to the Committee to illustrate plan progress,

any emerging risks or themes and the status of

implementation of recommendations.

The Committee assesses the independence and quality

assurance practices of the Internal Audit function and

agrees the effectiveness of the function, aligned to the

Group’s objectives on an annual basis. Independent

external reviews are also undertaken at regular

intervals. The most recent one was completed in H2

2021 by Deloitte who assessed the abrdn internal audit

function as having the highest overall rating with

conformance against all aspects of the Institute of

Internal Auditors’ International Professional Practices

Framework (IPPF) and the Internal Audit Financial

Services Code of Practice (the Standards). The

Committee’s own review of the function in 2024 was

positive and supports the continuous evolution and

enhancement of Internal Audit.

The Committee Chair meets the Chief Internal Audit

Officer periodically, without management being

present.


112	Annual report 2024


Corporate governance statement continued

(iv) External auditors

The appointment

The Committee has responsibility for making

recommendations to the Board on the reappointment

of the external auditors, determining their

independence from the Group and its management

and agreeing the scope and fee for the audit. Following

its review of KPMG’s performance, the Committee

concluded that there should be a resolution to

shareholders to recommend the reappointment of

KPMG at the 2025 AGM. The Committee confirms that

the recommendation to vote in favour of the

reappointment of KPMG is free from influence by a third

party and no contract to which the Company is party

restricts the members’ choice in respect of the external

auditor.

The Committee complies with the UK Corporate

Governance Code, the FRC Guidance on Audit

Committees with regard to the external audit tendering

timetable, the provisions of the EU Regulation on Audit

Reform, and the Competition and Markets Authority

Statutory Audit Services Order with regard to

mandatory auditor rotation and tendering. The

Committee also complied with the requirements of the

FRC’s Audit Committees and the External Audit:

Minimum Standard for the year ended 31 December

2024.

The audit was last subject to a tender during the first half

of 2016, and on 17 May 2016 the Company announced

its intention to appoint KPMG as its auditor for the year

ending 31 December 2017, replacing PwC who were

the Company’s previous auditors.

In March 2017, the proposed acquisition of Aberdeen

Asset Management PLC was announced. Consequently,

the Standard Life plc Audit Committee (now abrdn plc)

sought assurance that KPMG’s independence would not

be compromised as a result of their previous position as

external auditor of Aberdeen Asset Management PLC,

from its incorporation in 1983 until 30 September 2015.

While recognising that the KPMG tenure had ceased

nearly two years prior to the proposed acquisition, a

paper outlining the matters which had been considered

was brought to the Committee and, following review,

the Committee was satisfied that there were no

impacting issues.

KPMG’s independence has subsequently been regularly

reviewed by the Committee, which remains satisfied of

their independence. Further detail on this assessment is

set out below. The Committee considers KPMG’s tenure

for abrdn plc and its group of companies to run from the

completion of the 2016 tender exercise and their

appointment for year end in 2017.

The audit for the year ended 31 December 2024 is,

therefore, KPMG’s 8th year as auditor. The Senior

Statutory Auditor is Richard Faulkner. The Committee

has continued to follow the annual appointment process

and has concluded that a tender for the 2024 year end

was not required. This is currently considered to be in the

best interests of the Company taking into account the

results of the formal review of the effectiveness of the

KPMG audit discussed in this section. In October 2024,

the Committee approved holding an audit tender

process in 2025, effective for the 2027 year end. This is in

line with mandatory tender requirements, with the 2026

year end being KPMG’s 10th year as auditor.

Auditor independence

The Board has an established policy (the Policy) setting

out which non-audit services can be purchased from

the firm appointed as external auditors. The Committee

monitors the implementation of the Policy on behalf of

the Board. The aim of the Policy, which is reviewed

annually, is to support and safeguard the objectivity and

independence of the external auditors and to comply

with the revised FRC Ethical standards for auditors

(Ethical Standards). It does this by prohibiting the

auditors from carrying out certain types of non-audit

services, and by setting out which non-audit services are

permitted. It also ensures that where fees for approved

non-audit services are significant, they are subject to the

Committee Chair’s prior approval. KPMG has

implemented its own policy preventing the provision by

KPMG of most non-audit services to FTSE 350

companies which are audit clients. A 70% fee cap on

non-audit services to audit clients is in place.

The services prohibited by the Policy are as set out in the

FRC Revised Ethical Standard 2024.

The Policy permits non-audit services to be purchased,

following approval, when they are closely aligned to the

external audit service and when the external audit firm’s

skills and experience make it the most suitable supplier.

These include:

– Audit related services, such as regulatory reporting.

– Investment circular reporting accountant

engagements.

– Attesting to services not required by statute or

regulation.

– Other reports required by a regulator or assurance

services relating to regulatory returns.

– Sustainability and TCFD report audits/reviews.

– Fund merger assurance engagements, where the

engagement is with the manager and the external

auditor is also the auditor of the fund.

KPMG has reviewed its own independence in line with

these criteria and its own ethical guideline standards.

KPMG has confirmed to the Committee that following its

review it is satisfied that it has acted in accordance with

relevant regulatory and professional requirements and

that its objectivity is not impaired.

Having considered compliance with our Policy and the

fees paid to KPMG, the Committee is satisfied that

KPMG has remained independent.


			Annual report 2024	113


	GOVERNANCE

Audit and non-audit fees

The Group audit fee payable to KPMG in respect of 2024

was £7.5m (2023: £7.2m). In addition, £2.7m (2023:

£2.8m) was incurred on audit related assurance

services. Fees for audit related assurance services are

primarily in respect of client money reporting and the

half year review. The Committee is satisfied that the

audit fee is commensurate with permitting KPMG to

provide a quality audit and monitors regularly the level

of audit and non-audit fees. Non-audit work can only be

undertaken if the fees have been approved in advance

in accordance with the Policy for non-audit fees. Unless

fees are small (which we have defined as less than

£75,000), the approval of the Committee Chair is

required.

Non-audit fees amounted to £0.9m (2023: £1.0m), of

which £0.9m (2023: £1.0m) related to other assurance

services and £nil (2023: £nil) related to other non-audit

fee services. Other assurance services in 2024 primarily

related to control assurance reports, which are closely

associated with audit work. The external auditors were

considered the most suitable supplier for these services

taking into account the alignment of these services to

the work undertaken by external audit and the firm’s skill

sets. The Committee also monitors audit and non-audit

services provided to non-consolidated funds and were

satisfied fees for those services did not impact auditor

independence.

Further details of the fees paid to the external auditors

for audit and non-audit work carried out during the year

are set out in Note 7 of the Group financial statements.

The ratio of non-audit fees to audit and audit related

assurance fees is 9% (2023: 10%). The total of audit

related assurance fees (£2.7m) and non-audit fees

(£0.9m) is £3.6m, and the ratio of these audit related

assurance fees and non-audit fees to audit fees is 48%

(2023: 53%). As noted above the audit related

assurance fees are primarily fees in relation to required

regulatory reporting, where it is normal practice for the

work to be performed by the external auditor.

The Committee is satisfied that the non-audit fees do

not impair KPMG’s independence.

Audit quality and materiality

The Committee places great importance on the quality

of the external audit and carries out a formal annual

review of its effectiveness.

The Committee looks to the audit team’s objectivity,

professional scepticism, continuing professional

education and its relationship with management, all in

the context of regulatory requirements and professional

standards. Specifically:

– The Committee discussed the scope of the audit prior

to its commencement.

– The Committee reviewed the annual findings of the

Audit Quality Review team of the FRC in respect of

KPMG’s audits. The Committee was satisfied insofar as

the issues might be applicable to abrdn’s audit, that

KPMG had proper and adequate procedures in place

for our audit.

– The Committee approved a formal engagement with

the auditor and agreed its audit fee.

– The Committee Chair had regular meetings with the

lead audit partner to discuss Group developments.

– The Committee receives updates on KPMG’s work

and its findings and compliance with auditor

independence requirements.

– The Committee reviewed and discussed the audit

findings including audit differences prior to the

approval of the financial statements. See the

discussion on materiality in the following paragraphs

for more detail.

– The Committee also continued to monitor and discuss

relevant external matters in relation to KPMG as a firm.

The Committee discussed the accuracy of financial

reporting with KPMG both as regards accounting errors

that would be brought to the Committee’s attention and

as regards amounts that would need to be adjusted so

that the financial statements give a true and fair view.

Differences can arise for many reasons ranging from

deliberate errors (fraud etc.) to good estimates that

were made at a point in time that, with the benefit of

more time, could have been more accurately

measured. KPMG have set overall audit materiality at

£13.2m (2023: £13.7m) based on revenue (as set out in

the KPMG independent auditors’ report). This is within

the range in which audit opinions are conventionally

thought to be reliable. To manage the risk that

aggregate uncorrected differences become material,

the Committee supported that audit testing would be

performed to a lower materiality threshold for individual

reporting units. Furthermore, KPMG agreed to draw the

Committee’s attention to all identified uncorrected

misstatements greater than £0.7m (2023: £0.7m). The

aggregated net difference between the reported pre-

tax profit and the auditor’s judgement of pre-tax profit

was less than audit materiality. The gross differences

were attributable to various individual components of

the consolidated income statement and balance sheet.

No audit difference was material to any line item in

either the income statement or the balance sheet.

Accordingly, the Committee did not require any

adjustment to be made to the financial statements as a

result of the audit differences reported by the external

auditors.

KPMG has confirmed to the Committee that the audit

complies with their independent review procedures.


114	Annual report 2024


Corporate governance statement continued

2. Risk and Capital Committee report

I am pleased to present my report as Chair of the Risk

and Capital Committee (the Committee).

The Risk and Capital Committee supports the Board in

providing effective oversight and challenge of risk

management and the use of capital across the Group

so as to ensure that we meet the expectations of our

shareholders, regulators, and clients.

During 2024 the Committee maintained its client-first

focus in the management of risk and capital matters.

Particular emphasis was placed on client and conduct

risk, and operational and financial resilience. Throughout

2024, the Committee considered the financial and

strategic implications of the challenging market and

economic environment and the increased focus on

sustainability and geopolitical risks. The Committee

continued to review and challenge key activities

undertaken by the business and advise the Board on

these, including:

– Enhancement of the Enterprise Risk Management

Framework (ERMF).

– Delivery of the Group’s ICARA and capital and liquidity

objectives.

– Conduct risks across our three businesses, the

embedding of Consumer Duty and the continuing

support of vulnerable customers.

– Key project delivery updates from the transformation

activity.

– The strengthening of anti-financial crime and anti-

money laundering processes and controls across the

Group.

– Developments in the framework for managing

investment risk.

– Maturing our approach to managing cyber resilience

in line with the US National Institute of Standards and

Technology (NIST) framework.

– Ongoing simplification and diversification of the

business model.

– The Group’s exposure to emerging risks, including

client, sustainability and geopolitical risks and events.

Furthermore, the Committee has closely monitored

regulatory developments from across the world as

regulators have progressed their priorities, including

operational resilience, ESG and innovation in

technologies such as (AI).

Further details on these and other activities carried out

by the Committee during the year can be found in the

report that follows.

John Devine

Chair, Risk and Capital Committee

Membership

All members of the Risk and Capital Committee are

independent non-executive Directors. For their names,

the number of meetings and Committee member

attendance during 2024, please see the table on page

104.

The Committee meetings are attended by the Chief Risk

Officer. Others invited to attend on a regular basis

include the Chief Executive Officer, the Chief Financial

Officer, Group General Counsel, and the Chief Internal

Auditor, as well as the External Auditors.

Regular private meetings of the Committee’s members

were held during the year, providing an opportunity to

raise any issues or concerns with the Chair of the

Committee. The Committee’s members have also held

regular private meetings with the Chief Risk Officer and

with management and subject matter experts outside

of the Committee meetings, to support them in gaining

an in-depth understanding of specific topics.


			Annual report 2024	115


	GOVERNANCE

Key responsibilities

The Company’s purpose results in opportunities and

exposure to a range of risks and uncertainties.

Understanding and actively managing the sources and

scale of these opportunities and risks are key to fulfilling

this purpose.

The role of the Committee is to provide oversight and

advice to the Board, and where appropriate, the Board

of each relevant Group company on the following:

– The Group’s current risk strategy, material risk

exposures and their impact on the levels and

allocations of capital.

– The structure and implementation of the Group’s

ERMF and its ability to react to forward-looking issues

and the changing nature of risks.

– Changes to the risk appetite framework and

quantitative risk limits.

– Risk aspects of major investments, major product

developments and corporate transactions.

– Regulatory compliance across the Group.

– Specific deep dives, including asset classes and the

treatment of vulnerable customers.

Further detail on the work performed in each of these

areas is set out in the report below.

In addition, the Committee acts as the Board Risk

Committee for the Group’s two main UK investment

companies, abrdn Investment Management Limited

(aIML) and abrdn Investments Limited (aIL).

Accordingly, the CEO of these entities is also invited to

attend the Committee meetings.

In carrying out its duties, the Committee is authorised by

the Board to obtain any information it requires from any

Director or employee of the Group. It is also authorised

to seek, at the expense of the Group, appropriate

external professional advice whenever it considers this

necessary. The Committee did not need to take any

independent advice during the year.

The Committee’s work in 2024

Overview

The Committee operates a dynamic agenda and uses

each meeting to consider a range of recurring items as

well as other items that are more ad hoc and/or more

forward-looking in nature. An indicative breakdown as

to how the Committee spent its time is shown below:


ò	ERMF incl. risk policies and appetites
ò	Operational risks (incl. cyber risk)
ò	Conduct and Compliance risks
ò	Capital adequacy
ò	Other

The key recurring items which were considered by the

Committee are:

– The ‘Views on Risk’ report - this provides an

independent holistic assessment from the Chief Risk

Officer of the key risks and uncertainties faced by the

Group’s businesses and the ongoing monitoring

against risk appetites.

– Conduct risks in each of abrdn’s three main

businesses, with a focus on the embedding of the

Consumer Duty requirements.

– Ongoing activity to enhance and develop abrdn’s

ERMF, including the process for risk identification and

conformance with the ERMF and Policy Framework.

– Performance of the Group’s ICARA processes in

accordance with IFPR, including the firm’s stress and

scenario testing programme. The ICARA supports the

Committee in understanding changes to the risk

profile of the Group and the capital position over time.

Through these recurring activities the Committee was

able to challenge management’s assessment of risks

and oversee the key actions being taken to manage

these risks.


116	Annual report 2024


Corporate governance statement continued

In addition to reviewing these recurring items, the

Committee provided oversight of a broad range of

topics in 2024. This included consideration of:


	What was discussed
	– Advice provided to the Remuneration Committee regarding the delivery of performance relative to risk appetites. – Risk and Control Self Assessment (RCSA) reform and delivery. – Property fund management review, with focus on liquidity. – Findings from the abrdn Investment Management business Internal Controls Report. – Stress testing results from the ICARA process. – Oversight of risk appetite metrics. – Review of abrdn’s principal risks and risk disclosures for the Annual report and accounts.
	– Conduct risks for the ii business. – Cyber risks and operational resilience. – ESMA Liquidity Stress Testing framework. – Bank counterparty credit approach. – ICARA 2024 approach.
	– Conduct risks for the Adviser business. – Response to the CrowdStrike incident. – MLRO Annual report. – Seed Company Investment Process.
	– ICARA process and FCA supervisory review. – The remit of the Risk & Compliance function. – Investments business management of Risks & Issues, including Conduct. – ERMF Taxonomy. – Conflicts of Interest. – 2025 Monitoring & Oversight assurance plan.

After each meeting, the Committee Chair reports to the

Board, summarising the key points from the

Committee’s discussions and any specific

recommendations.

Risk exposures and risk strategy

abrdn’s risk appetite framework enables the

communication, understanding and control of the types

and levels of risk that the Board is willing to accept in its

pursuit of the strategy of the Group. This includes the

business plan objectives and the capital and liquidity it

requires.

The Committee has received regular reporting through

the ‘Views on Risk’ report on each of the Group’s nine

principal risks. The reporting has included risk

dashboards, commentary and management

information.

The Committee continued to monitor the risk appetite

measures and limits against the approved Board risk

appetites, revised in Q2, 2024. The Committee

considered changes to the risk profile in view of the

external environment and ongoing transformation of

the business.

Through reviewing the Views on Risk reporting, the

Committee supports the Board by monitoring risk

exposures and the resilience of the capital position

under current and stressed conditions. Key items that

the Committee discussed during the year in this context

included:

– The risks associated with the delivery of the business

plan.

– Components of the Group’s risk appetite framework.

– The process of completion of the abrdn ICARA and its

results.

– Improvements to anti-financial crime processes.

– Deepening the focus on conduct risks and embedding

Consumer Duty.

– The management of cyber risk and operational

resilience across the Group.

Results from regular stress testing and scenario analysis

has supported the Committee in understanding,

monitoring, and in managing the capital and liquidity risk

profile of the business under stressed conditions. These

results provided the Committee with a forward-looking

assessment of the Group’s financial resilience in

response to potentially significant adverse events

affecting key risk exposures. The material presented to

the Committee included combined stress scenarios

which looked at simultaneous stresses impacting on

economic conditions, flows and idiosyncratic factors

specific to the Group.

From reviewing the stress testing and scenario analysis

results, the Committee concluded that the Group was

financially resilient and there was no requirement for the

business to reduce its risk exposures.

The Committee reviewed the results of reverse stress

testing to explore extreme but plausible events which

have the potential to cause the business to become

unviable. This allowed the Committee to assess both the

risk of business failure and the ability of the Group to

prevent and mitigate this risk.

From reviewing the reverse stress testing results, the

Committee concluded that the risk of the Group having

to wind down due to these scenarios was remote. This

assessment was supported by the regular risk reporting

presented to the Committee, in particular the reporting

on cyber and third-party risks which are notable

potential causes of business failure, as well as regular

updates on the Group’s financial and operational

resilience.


			Annual report 2024	117


	GOVERNANCE

Enterprise Risk Management Framework

(ERMF)

During the year, the business continued to evolve the

ERMF which is used to identify, assess, control, and

monitor the Group’s risks. In particular, the Committee

reviewed and supported key enhancements to the

ERMF in respect of the risk appetite framework, the

RCSA process and the risk taxonomy.

The Committee has obtained assurance regarding the

operation of the ERMF through its review of regular

content within the Views on Risk reporting presented by

the Chief Risk Officers. In particular, the risk appetite

dashboard and supporting indicators help the

Committee to understand the Group’s risk profile

relative to its defined risk appetite. Additionally, an

annual review of the effectiveness of the ERMF was

undertaken which was discussed and supported by the

Committee.

Exceptions-based reporting is also provided to the

Committee, setting out any matters of significance in

respect of the results of Policy compliance reporting and

also the actions being taken in response to material risk

events. These two items further support the Committee

in performing its oversight of the ERMF.

Regulatory developments and compliance

The Committee reviews and assesses regulatory

compliance plans which detail the planned schedule of

monitoring activities to be performed by the Risk and

Compliance function to ensure there is appropriate

coverage. Regular updates on key findings from

regulatory compliance activity and progress against the

plans were reported to the Committee through the

Views on Risk report.

As a Committee we have closely monitored global

regulatory developments to understand and anticipate

potential implications for both the Group and the wider

financial services sector. In particular the Committee

paid close attention to geopolitical risks and resulting

operational implications. The Committee has also

closely followed regulatory developments and

implementation activity in relation to the new Consumer

Duty requirements, operational resilience, and new

sustainability regulations.

Governance arrangements

The Committee has continued to refer to the work of

those non-executive risk committees operating in

subsidiary companies to provide oversight and

challenge of risks within those subsidiaries. This has

included the risk committees in place for abrdn Life and

Pensions Limited, Standard Life Savings Limited and

Elevate Portfolio Services Limited.

The Committee receives updates from, and reviews the

minutes of, these committees in order to maintain

awareness and oversight of risks across the Group. In

addition to the Committee’s review of reporting from

the subsidiary risk committees, arrangements also exist

for the Committee’s Chair to attend these subsidiary risk

committees on request.

In its capacity since January 2022 as the board risk

committee for aIL and aIML; the Group’s two main UK

investment firms, the Committee has routinely

considered the implications of Group risk management

activities for these two companies and identified any

significant risk concerns to be brought to the attention of

the respective Boards, The Chair of the two investment

company Boards has a standing invitation to attend the

Risk and Capital Committee.

During the year, the Committee provided advice to the

Remuneration Committee regarding the delivery of

performance in the context of incentive packages. In

particular, the Committee considered whether

performance had been delivered in a manner that was

consistent with the Group’s strategy, risk appetite and

tolerances and its capital position. The provision of this

advice helped to ensure that the Group’s overall

remuneration practices are aligned to the business

strategy, objectives, culture, and long-term interests of

the Group and also that individual remuneration is

consistent with, and promotes, effective risk

management.

Committee effectiveness

The Committee reviews its remit and effectiveness each

year. The 2024 review was conducted internally, on

behalf of the Board, by the Company Secretary. The

review concluded that the Committee continued to

operate effectively during 2024, with no material issues

or concerns raised. More information about the process

involved, and its outcomes, can be found on page 101.


118	Annual report 2024


Corporate governance statement continued

3. Nomination and Governance

Committee report

I am pleased to present my report as Chair of the

Nomination and Governance Committee (the

Committee).

The Committee’s main priorities during the year have

been in managing succession in the leadership of the

firm and in ensuring that our policy frameworks

supporting talent development incentivises and rewards

the behaviours that we want to be hallmark of abrdn as

an employer, a business partner and as a counterparty.

We also took responsibility, on behalf of the Board, to

ensure that our stewardship responsibilities and

accountabilities were fully factored into our decision

making and were transparently disclosed.

Most significantly during 2024, we completed an orderly

succession in the leadership of the firm. Stephen Bird

handed over the reins to Jason Windsor in May last year,

with Jason being appointed as CEO in September of

that year, following a thorough, externally supported,

process. I am pleased to report that Jason has made a

strong start as CEO, impressing both clients and

colleagues with his commitment to prioritising service

delivery focused on enabling our clients to meet their

investment objectives. Once again, I would like to place

on record our thanks to Stephen for his leadership as

CEO through what was a very turbulent period.

In addition, the Committee focused on wider Board

succession, with Catherine Bradley stepping down in

April to concentrate her service to the Group as Chair of

interactive investor. Katie Bickerstaffe and Vivek Ahuja

were appointed to the Board in October; details of their

background and experience can be found on pages 88

and 89 and the Board approved further terms of

appointment for Cathi Raffaeli, Hannah Grove and

myself as we reached the end of our current terms.

As Jason began the work of shaping his executive team,

the Committee supported succession planning for the

executive, particularly in relation to the establishment of

the Group Operating Committee, the expanded

Executive Leadership Team, the transition from Rene

Buehlmann to Xavier Meyer as Investment business

CEO, and the expanded role of Richard Wilson as Group

Chief Operating Officer in addition to his position as CEO

of interactive investor.

We continued to oversee initiatives supporting

enhancement of performance management, talent,

leadership, diversity, equity and inclusion frameworks.

Monitoring progress on embedding the Company’s

values within our expectations of employee and

employer behaviours to reinforce our cultural

commitments, is an important standing agenda item.

This followed the expansion of the remit of the

Committee in 2022 to include oversight of culture,

recognising the contribution this would make as an

important enabler within the Company's transformation

programmes.

Governance Framework

We continued to review our governance framework

against the Code principles and provisions and

welcomed the revisions made to the Code in early 2024.

There were no material changes proposed to our

governance framework during 2024.

Board evaluation

Our 2024 Board review was conducted internally and I

am pleased to report that it concluded the Board was

operating effectively while helpfully highlighting areas

where further progress could be made. More

information about what the process involved, and its

outcomes, can be found on page 101.

Culture, Diversity, Equity and Inclusion

The Board has consistently supported the recruitment,

development and advancement of the best person for

the job, ensuring there is no systematic bias in our

processes. The Committee received regular updates

during the year on the work being done to implement

the Group’s culture, diversity, equity and inclusion (DEI)

programmes and improve our talent development and

performance measurement frameworks. In 2024, we

introduced a Colleague Council to bring together a

group of 30 colleagues representing all aspects of the

global abrdn population to help shape the best

outcomes across all matters that connect us as an

organisation.

The Committee monitored the development of a new

Career Framework, alongside our DEI discovery and

reset initiatives, which have continued to embed our

cultural commitments. The Board supported ongoing

engagements with colleagues through various informal

initiatives such as coffee sessions, as well as through the

established BEE program. These efforts have been

instrumental in fostering a more inclusive, diverse, and

engaged workplace environment.


			Annual report 2024	119


	GOVERNANCE

During 2024, the Group successfully implemented an

ambitious transformation programme. The Committee

received presentations to ensure that the impact of staff

reductions was not disproportionately borne by any

particular group of employees in terms of their diverse

characteristics.

There is more detail about this below and on page 125

onwards of the strategic report.

Talent and Leadership

The Committee received regular reports from teams

involved with Talent and Organisation Effectiveness,

reviewing and inputting guidance on their plans to

deliver effective leadership, talent and performance

management across the Group. During the year we

have spent particular time on the Career Framework.

Delivering for our clients by supporting our talented

colleagues to perform, grow, and progress is key; with

the Career Framework supporting that by providing

clarity for colleagues and allowing them to understand

how their development, their career, and their

performance will be supported and measured.

Alongside our early-, mid-, and senior- talent

development programmes and succession planning,

this has allowed us to better recognise and develop our

key talent.

Board composition

The Committee, on behalf of the Board, assesses the

balance of executive and non-executive Directors, and

the composition of the Board in terms of the skills,

experience, cognitive diversity and sufficiency of time

availability needed for the Company to be successful.

These factors are important to the Board when

reviewing overall composition and during the year were

reviewed by the Committee, are covered in my 1:1

discussions with Directors, all of which feed into the

Board effectiveness review.

In addition to the Board changes noted above, Pam

Kaur has advised that as a consequence of her

appointment as Chief Financial Officer and an Executive

Director of HSBC Holdings plc with effect from 1 January

2025, she will not seek re-election at the Company’s

Annual General Meeting on 8 May 2025 and will stand

down from the Board from that date. We shall miss her

wise guidance and wish her well in her new role.

There were no other Board or Committee composition

changes during the year.

Sir Douglas Flint

Chair and Chair of the Nomination and Governance

Committee

Membership

The members of the Committee are the Chair, the

Chairs of Board Committees and the NED responsible

for Employee Engagement. For their names, the number

of meetings and committee member attendance

during 2024, please see the table on page 104.

Jason Windsor, in his CEO role, is invited to Committee

meetings to discuss relevant topics, such as the roles

within and membership of the GOC, ELT, talent

development and management succession.

Key responsibilities

The Committee’s primary role is to support the

composition and effectiveness of the Board, and to

oversee the Group’s activities to strengthen its talent

pipeline. It also oversees ongoing development and

implementation of the Group’s governance framework

and its work to embed appropriate diversity and

inclusion policies.

The Committee’s key responsibilities are:

– Identifying and recommending Directors to be

appointed to the Board and the Board Committees

and ensuring relevant training is provided on

appointment and throughout their tenure.

– Reviewing and assisting in the development and

implementation of initiatives to embed the Board’s

desired outcomes for diversity, equity and inclusion

within the Group and to define, monitor and

performance manage the behaviours expected of all

employees that will be seen to represent the Group’s

culture.

– Reviewing Board diversity, skills and experience.

– Supporting the process and output of the Board’s

effectiveness review.

– Overseeing succession planning, and leadership and

talent management development throughout the

Group.

– Considering how the Group should comply with

current and upcoming corporate governance

requirements, guidance and best practice and

relevant directors’ duties.

The Committee reports regularly to the Board so that all

Directors can be involved in discussing these topics as

appropriate.


120	Annual report 2024


Corporate governance statement continued

The Committee’s work in 2024

An indicative breakdown as to how the Committee

spent its time is shown below:


	What was discussed
	– Reviewed compliance with the UK Corporate Governance Code for the 2023 ARA. – Reviewed the results of the Committee Effectiveness Review. – Reviewed progress on Talent and Leadership development activities. – Reviewed the Diversity, Equity and Inclusion Strategy and Board Diversity Statement. – Reviewed the recommendations to shareholders to re/elect Directors at the AGM. – Received an update on the 2023 year-end annual performance process. – Reviewed Board skills and succession planning.
	– Recommended the appointment of Jason Windsor as CEO and Katie Bickerstaffe and Vivek Ahuja as independent non-executive Directors. – Received an update on the progress of the Diversity, Equity and Inclusion Strategy and action plan. – Reviewed executive succession planning. – Received updates on the Group’s People and Talent strategies. – Reviewed the Group’s annual Stewardship Code Report.
	– Received an update on Diversity, Equity and Inclusion progress and input into the 2025 Plan. – Received an update on colleague engagement survey results. – Received the regular update on the activities of the abrdn Financial Fairness Trust. – Recommended to the Board changes to the Committee’s Terms of Reference. – Reviewed senior talent moves.

An indicative breakdown as to how the Committee

spent its time is shown below:


ò	Succession planning and talent development
ò	Board and committee appointments and composition
ò	Culture, diversity and inclusion
ò	Corporate governance

Board and committee appointments and

composition

The Committee keeps under constant review the skills,

experience and capabilities needed for particular Board

roles. This recognises the need to secure a pipeline of

potential successors to be able to chair the Board

Committees, and also the need to plan ahead to take

account of the length of time served on the Board by the

current independent non-executive Directors. In

addition, it also recognises the skills which the Board will

need as it moves forward to oversee the

implementation of the Group’s approved strategy and

takes account of the Group’s commitments to achieve

and maintain its published Board diversity targets.

Where Board augmentation is needed, an external

search consultant is then requested to prepare a list of

suitable candidates. From that, the Committee agrees a

shortlist. Following interviews with potential candidates,

the Committee makes recommendations to the Board

on any proposed appointment, subject always to the

satisfactory completion of all background checks and

regulatory notifications or approvals. Part of this includes

considering existing or planned external commitments

of candidates to assess their ability to meet the

necessary time commitment and whether there are

any conflicts of interest to address.

The Committee also oversees the process that

recommends continuation of appointments; members

of the Committee do not, however, take part in

discussions when their own performance – or continued

appointment – is being considered.

Following Catherine Bradley’s decision not to seek re-

election at the Company’s AGM in April, the Committee

requested that John Devine take on the role of Audit

Committee Chair on an interim basis. During the year

the Committee then considered the appointments of

Vivek Ahuja, as Audit Chair Designate (subject to

regulatory approval), and of Katie Bickerstaffe as a

member of the Remuneration Committee, and

recommended these appointments to the Board. Katie

and Vivek were appointed on 1 October, and Vivek took

on the role of Audit Committee Chair on 1 January 2025.

Succession planning and talent

management activities

The Committee regularly reviews succession planning

activities, including identifying key person and retention

risk, and talent development programmes across the

Group.

During 2024, in particular, the Committee discussed the

future leadership and talent needs of the Group and

how the current programmes could be revised to take

account of the skills and expertise required by the Board,

the GOC and the ELT. These programmes are designed

to recognise the changing shape of the Group, and also

to identify both the talent available within the Group and

the need/benefits of external recruitment. Diversity was

considered as a core part of these discussions, and


			Annual report 2024	121


	GOVERNANCE

progress was reviewed against our diversity goal to

achieve minimum 40% women on ELT succession plans.

The Talent and Change agenda is led by the CPO, in

conjunction with the CEO.

The Committee spent time during 2024 building on the

foundations built in 2023 and looking at the strategic

priorities of the talent team to:

– Bring the best possible people into the organisation

and continue to develop our colleagues.

– Enable people to be the best they can and

encouraging movement of talent across our

organisation.

– Create the best possible environment for our people

to thrive.

The Committee discussed the team’s progress to deliver

initiatives to support early careers, talent acquisition,

future talent, core capabilities and behaviours and

effective performance management. The Committee

discussed the inclusive design of the initiatives such as

early careers, talent acquisition and future talent and

considered the diversity of talent this achieved.

The Committee reviewed the effectiveness of its NED

mentoring programme which allows each NED to get to

know members of the next generation of talent through

individual meetings which take place over the course of

the year and evolve based on the needs of each

individual being mentored. Having received positive

feedback from both mentors and mentees, the

mentoring relationships were refreshed in 2024 to

continue the Board’s exposure to our top talent and the

programme will continue in 2025.

During the year, the Committee reviewed the

succession and contingency planning for our top

performing fund managers and the enterprise-wide

roles identified which are considered as critical to

delivering business results and revenue growth. The

identification of successors for these roles creates

opportunities for talent development as well as ensuring

better business continuity.

The Committee regards all of these initiatives as helpful

in supporting its oversight of the development of the

Company’s key talent. Continuing to focus on those

commercial roles and those that manage key client and

revenue generating relationships will remain an

important focus of the Committee.

Board evaluation

The Committee has a key role in supporting the Board

evaluation process. Details of the 2024 review are on

page 101.

Culture, Diversity, Equity and inclusion

The Committee and the Board spent time with both the

CEO and the Chief People Officer understanding the

evolving hardwiring of our cultural commitments (Client

first, Empowered, Ambitious, Transparent). During 2024

this moved beyond a phased programme of work and

into ‘Evolve and sustain’ where continued measurement,

evolution, and delivery of our cultural commitments is

sustained through BAU activity.

Over the course of 2024, the Committee oversaw and

received updates on key colleague engagement

activity, and shifting sentiment against a shifting internal

and external landscape. Measuring progress against

cultural ambitions through colleague sentiment via our

employee engagement online platform (pulse), trends

on key themes such as pride and advocacy, and insight

into plans to drive further colleague engagement.

The Board’s diversity statement is on page 99. The

Committee has a key role in supporting publication of

this statement through its oversight of DEI activities,

these are presented to the Committee at least twice a

year to report on progress to deliver against

Committee-approved framework, action plans and

initiatives. The Committee reviewed progress against

the Group’s DEI ambition and plan, being:

– We’re committed to building a business that attracts

brilliant talent and where all our people can thrive;

where they belong, and can learn, develop and do

their best work. Priorities:

– Gender: Supporting and growing our Balance

network; Mentoring and sponsorship; Continued

actions to close the UK gender pay gap; Establishing

communities of support.

– Ethnicity: Supporting and growing our Unity Network;

Publishing the UK Ethnicity pay gap; Working with

our new partner for ethnicity.

– Business/regional: Locally defined and owned based

on data, demographics, and cultural or regional

nuances.

The Committee further reviewed relevant trends, data

points, and regulation including:

– Internal colleague sentiment in relation to themes

such as voicing contrary opinion, and the perceptions

of diversity & inclusion by colleagues.

– External landscape such as client and RFP volume and

interest, and external partnerships, industry bodies,

and abrdn pledges.

Committee effectiveness

The effectiveness review was conducted internally in

2024, with the most recent externally-facilitated review

undertaken in 2022.

Details of the 2024 review are on page 101 and reflect

the themes raised across the Board and its Committees.


122	Annual report 2024


Corporate governance statement continued

4. Directors’ remuneration report

Remuneration Committee Chair’s

statement

This report sets out what the Directors of abrdn were

paid in 2024 together with an explanation of how the

Remuneration Committee reached its

recommendations.

Where tables and charts in this report have been

audited by KPMG LLP, we have marked them as

‘audited’ for clarity.

The report is structured in the following sections and

corresponding page numbers:


	Page
At a glance – 2024 remuneration outcomes	126
At a glance – 2025 Policy implementation	127
Directors’ remuneration in 2024	128
Shareholdings and outstanding share awards	131
Executive Directors’ remuneration in context	135
Remuneration for non-executive Directors and the Chair	138
The Remuneration Committee	140

Approval

The Directors’ remuneration report was approved by

the Board and signed on its behalf by:

Jonathan Asquith

Chair of the Remuneration Committee

3 March 2025

Dear shareholder

On behalf of the Board I am pleased to present the

Directors’ remuneration report for the year ended

31 December 2024.

Introduction

At the 2024 AGM our directors’ remuneration report for

2023 received an 86% vote in favour. I would like to thank

all shareholders for your continued support and

constructive dialogue on remuneration matters. I would

also like to welcome Katie Bickerstaffe who joined the

Remuneration Committee in October.

The Directors’ Remuneration Policy (the Policy) is now in

its final year of operation prior to being submitted to

shareholders at the 2026 AGM. Therefore, during 2025,

the Remuneration Committee will review the Policy to

ensure that it remains fit for purpose for our strategy

and that it reflects the evolving executive remuneration

landscape. Shareholder input will, as always, be sought

as part of the process.

2024 was a year of transition for abrdn in which good

progress resulted in improved financial outcomes. As set

out in the strategic report, all three of our businesses

reported increased profits in 2024, AUMA increased

from last year and progress on the transformation

programme has exceeded our initial expectations.

Overall, noteworthy traction in financial and non-

financial outcomes was noted in H2 2024.

ii reported another year of strong growth in customer

numbers, AUMA and net flows and our Adviser business

reported increased profits. Our Investments business

delivered significantly reduced net outflows and

improved investment performance. As a result, financial

performance measures for the annual bonus came out

towards the upper end of the range. Strategic actions

taken by management in year also resulted in outcomes

at the upper end of the range against non-financial

performance for annual bonus.


			Annual report 2024	123


	GOVERNANCE

New Chief Executive Officer’s

remuneration

The remuneration arrangements for Jason Windsor’s

appointment as Chief Executive Officer and Stephen

Bird’s exit were agreed by the Remuneration

Committee in conformity with the Policy agreed at the

2023 AGM. Jason’s remuneration package as Chief

Executive Officer comprises:

– A base salary of £800,000 per annum.

– A pension allowance of 18% of salary aligned to the

maximum contribution available to abrdn's UK-based

employees and other benefits in line with our Policy.

– An Annual Bonus up to a maximum of 250% of salary

subject to performance (with 50% of any bonus

earned being deferred for three years into abrdn

shares, which will vest in three equal annual tranches).

– An annual Long Term Incentive award of 350% of

salary (final vesting percentage is based on stretching

financial and shareholder return targets over the

three-year performance period and the award is

subject to a further two-year holding period after

vesting).

The structure and quantum of the Chief Executive

Officer’s remuneration package is consistent with our

Policy and falls below the maximum levels permitted

under the Policy. Jason’s package was calibrated in the

context of an assessment of what it would take to

attract the required skills and expertise from the market

(utilising benchmarking data for similar roles across

FTSE Financial Services peer group companies), the

expectations of other candidates considered for the

role and the previous Chief Executive Officer’s

remuneration package.

The Remuneration Committee is confident that the

remuneration package has been set at a level that takes

into account the skills and experience that Jason brings

to his new role.

Implementation in 2024

Jason’s annual bonus opportunity was based on a pro-

rata combination of his CEO and CFO maximum

opportunities and salaries, based on the portion of 2024

served in each role. Further details are set out on page

126.

Similarly, his 2024 LTIP award was based on a pro-rata

combination of his CEO and CFO maximum

opportunities and salaries. As set out in the

announcement on 27 September 2024, this was

delivered through a supplementary LTIP award, as the

original 2024 LTIP award was granted prior to Jason

becoming CEO. Further details are set out on page 133.

New Chief Financial Officer’s remuneration

As announced on 28 February 2025, Siobhan Boylan has

been appointed as Chief Financial Officer, subject to

regulatory approval. She is expected to join the

Company during the summer and her remuneration

arrangements are fully in line with our Policy. Siobhan’s

ongoing annual remuneration package consists of a

salary of £495,000, pension allowance of 18% of salary

and other benefits in line with our Policy, maximum

bonus opportunity of 150% of salary and a typical LTIP

grant of 200% of salary. Siobhan is also eligible to be

granted buyout awards for any awards that she will

forfeit in resigning from her current role. Full details on

any buyout awards that are granted and how her

remuneration was implemented in 2025 will be

disclosed in the Annual report and accounts 2025.

How our Policy was applied in 2024

Strategic progress was made in 2024 in reducing our

cost base, sustaining strong organic customer growth in

ii, improving customer satisfaction whilst maintaining

profits in Adviser and improving our investment

performance and Investments net flows position. While

we remain focused on increasing group profitability and

there is continued work to be done to return Adviser and

Investments to growth, 2024 was a year of

improvement.

The annual bonus, as set out in our current Policy, is

intended to reward the successful delivery of the

Company’s business plan for the year. The LTIP is

intended to align with our shareholders and promote

sustainability of our performance by rewarding the

delivery of long-term growth in shareholder value. With

the strong in-year momentum balanced by low

shareholder returns, as measured by the metrics in the

2022 LTIP, the Remuneration Committee is comfortable

that the Policy operated as intended with the annual

bonus and LTIP outcomes.

Annual bonus (detail on pages 128 to 130)

Financial performance (65%)

Financial targets were set with reference to the Board-

approved plan including measures on investment

performance, net flows and adjusted operating profit.

Adjusted operating profit increased overall. Despite

market challenges, investment performance improved

in 2024. While net flows for Adviser disappointed in 2024,

net flows have materially improved in Investments and

have significantly increased for ii.

Investment performance: investment performance on a

1-year basis exceeded 70% and on a 3-year basis

improved year on year. Strong investment performance

has continued within alternatives, fixed income, liquidity

and quantitative strategies. Equities performance

remained challenged, including the impact of our AUM

bias towards Asia and emerging markets. The overall

outcome was between threshold and stretch targets.

Net flows: in ii, net flows have remained strong,

significantly increasing to £5.7bn in 2024 from £2.9bn in

2023. Despite positive traction on gross inflows, higher


124	Annual report 2024


Corporate governance statement continued

redemptions in 2024 were reflected in net outflows of

£3.9bn for Adviser. While still in net outflows, our

Investments business has seen an encouraging

improvement in net flows year on year. Excluding

liquidity, net flows from Institutional, Retail and Wealth

clients were £9.5bn better year on year, benefiting from

both higher gross inflows and lower redemptions.

Performance on net flows exceeded the stretch target

for ii, fell below the threshold target for Adviser and fell

between threshold and stretch targets for Investments.

Adjusted operating profit: this came in 2% higher than the

prior year, at £255m. Adjusted operating profit

increased in all three of our Wealth and Investments

businesses. The overall outcome was between threshold

and stretch targets.

The outcomes for the financial element of the 2024

annual bonus are summarised below.


Financial performance measure	Weighting (% of total scorecard)	2024 outcome
Investment performance	15%	10.50%
Net flows	15%	7.33%
Adjusted operating profit	35%	32.07%

This resulted in an overall outcome of 49.90% out of a

maximum of 65% on financial measures.

Non-financial performance (35%)

In 2024, we assessed non-financial performance

against three groups of measures: Strategic (one

measure related to a critical group-wide strategic

initiative), ESG (comprising Environment and Social

categories) and Customer. See page 129 for further

details.

Strategic: the transformation programme, established to

deliver increased efficiency across the Group, was the

key strategic focus in 2024. In 2024, the initial cost

targets that were set out have been surpassed, with

£70m of in-year cost savings delivered and over £100m

of savings on an annualised basis have been achieved,

all within risk appetite. This increased progress towards

right-sizing our cost base, reinforces our focus in 2025

on further streamlining the company and positioning it

for future growth. On this basis, we determined the final

outcome of 10% out of 10%.

Environment: as investors, we concluded our two-year

engagement programme with our top 20 largest

financed emitters, with voting action to follow where

required. Tracking at a 45% carbon intensity reduction in

in-scope public market portfolios compared to our 2019

baseline (34% reduction in in-scope real estate

portfolio), we are also making good progress towards

our target of a 50% reduction by 2030. For our own

operational net zero, we improved year-on-year in our

progress to meet our long-term net zero carbon

emission target. Noting these, the Remuneration

Committee also took into account slower progress in

certain other areas considered as part of this scorecard.

Overall, the outcome was determined at 3.5% out of 5%.

Social/people: with organisational transformation

ongoing, engagement levels continued on their positive

trajectory from 50% in 2022, to 54% in 2023 and to 57%

in 2024. Colleagues have demonstrated their desire to

contribute to shaping the future of the company with

participation in the engagement survey at its highest

ever. Under new leadership in the second half of 2024,

swift changes brought with them momentum in

employee sentiment. Increased employee scores in

motivation and confidence were observed, with

colleagues reporting strong client focus, challenging

and interesting work, collaborative team relationships

and growing belief in leadership. Progress on global

senior leadership gender representation and UK

ethnicity diversity targets remained strong. Taking into

account a wide range of performance indicators, the

Remuneration Committee determined the final

outcome of 8% out of 10%.

Customer: in ii, the Remuneration Committee noted the

sustained strong organic growth in customer numbers

and continued customer satisfaction across website

customers. In our Adviser business, customer

satisfaction scores and service net promoter scores

both significantly increased through 2024. This was

balanced by net outflows and a reduction in total

customer numbers year on year. In our Investments

business, strong relationships persisted with key clients

despite a challenging environment. There was also a

reduction in redemptions observed year on year, along

with an improved new business win rate, resulting in

improved net flows. Taking into account the range of

quantitative and qualitative performance indicators

across the three businesses, the Remuneration

Committee determined the final outcome of 6.08% out

of 10%.

Considering all components together, this resulted in an

overall assessment of 27.58% out of a maximum of 35%

on non-financial measures.

Remuneration Committee assessment

To assess whether the outcomes generated by the

scorecard were fair in the broader performance and

risk context, the Remuneration Committee reviewed the

individual components which contributed to the delivery

of this performance and the alignment of scorecard

outcomes with the experience of a range of

stakeholders.

The Committee carefully considered, amongst other

factors:

– The wider workforce experience, while taking into

account that by design, there are differences in how

the wider workforce and executive Directors are

remunerated:

– Continued investment in individual salary reviews

within the wider workforce, with no salary increases

awarded to the executive Directors.

– Increased bonus pool funding.

– Continued material funding for restricted stock

awards.


			Annual report 2024	125


	GOVERNANCE

– Our shareholder experience:

– While share price and total shareholder returns

(TSR) performance is not where we would like it to

be, TSR - in its various forms - comprises 100% of the

LTIP for executive Directors and constitutes the

majority of their maximum total variable pay

outcome. Shareholder experience is, therefore,

reflected in long-term remuneration outcomes for

executive Directors.

– Additionally, the executive Directors’ own mandated

shareholding provides for further alignment to the

shareholder experience.

– Feedback received from the Audit Committee and

the Risk and Capital Committee on material

accounting, reporting and disclosure matters and the

management of risk within the business.

The Remuneration Committee concluded that the

outcomes delivered by the scorecard were a fair and

balanced assessment of performance and no

adjustment to them was needed or made.

Summarising these results, the Remuneration

Committee approved the following outcomes based on

performance against targets:


Executive Director	Final outcome (% of max)	2024 total bonus (000's)
Jason Windsor1	77.48%	1,249
Stephen Bird2	77.48%	843

1. The 2024 total bonus for Jason Windsor reflects his time served as

CFO and CEO during the year.

2. The 2024 total bonus for Stephen Bird was prorated to reflect his

commencement of garden leave effective 1 July 2024.

Long-term incentives (detail on page 130)

Vesting of the 2022 Long-Term Incentive Plan (LTIP)

award granted to Stephen Bird is based on

performance over the three-year period ending on

31 December 2024. A proportion of Jason Windsor’s

2022 Long-Term Incentive Buyout is also subject to the

performance conditions of the 2022 LTIP (see pages

126 and 127 of the Annual report and accounts 2023 for

more detail). After review, the Remuneration

Committee concluded that performance had not met

the stretching targets set under both measures.

Therefore, the award will not vest.

Policy implementation in 2025

Following a review, no change has been made to

salaries for the executive Directors or fees for the non-

executives and the Chair for 2025.

In line with previous practice, we will continue to set

stretching targets for the annual bonus and the LTIP to

ensure that the maximum opportunity will only be

earned for exceptional performance.

The scorecard for the 2025 annual bonus is detailed on

page 127 and the targets, which are commercially

sensitive, will be disclosed at the end of this performance

year in the Annual report and accounts 2025. The

scorecard continues to focus the majority of the

opportunity on the achievement of financial targets as

set out in our Policy (65%), with the balance measured

against non-financial performance including Strategic,

Environment, Social/People and Customer objectives.

The Remuneration Committee has agreed a Strategic

measure and a range of key indicators in the other

areas which will allow a rounded assessment of

performance to be made. Details on these metrics,

including how the Remuneration Committee assessed

performance against them, will be disclosed

retrospectively.

The Remuneration Committee has reviewed the

operation of the Relative TSR measure for LTIP awards

over the past few years and observed the wide

dispersion in the performance of individual companies in

the competitor set, driven by the idiosyncratic effects of

differences in scale, product mix, channel and

geographical focus. This dispersion, combined with the

changes in the Group’s own profile over the period, has

led the Remuneration Committee to conclude that we

cannot select a bespoke peer group for Relative TSR

benchmarking purposes that is not overly subjective and

prone to distortion.

The Group is committed, under its Policy, to have at least

one relative performance measure for the

determination of rewards under the LTIP. Given the

investment alternatives available to our shareholders

and the need for a more stable basis to judge the

Group’s relative performance over time, the

Remuneration Committee has decided that the

benchmark for the Relative TSR component (50%) of the

2025 LTIP will be the total return of the FTSE 350 index.

Performance ranges will be set as before, with threshold

(25%) being set at median performance and maximum

(100%) at the 75th centile. Details of the 2025 LTIP grant

can be found on page 127.

To help you navigate the report effectively, I would like to

draw your attention to the sections on pages 126 and

127 which summarise both the outcomes for 2024 and

how the Policy will be implemented in 2025.

On behalf of the Board, I invite you to read our

remuneration report. As always, the Remuneration

Committee and I are open to hearing your views on this

year’s report and our Policy in general.


126	Annual report 2024


Corporate governance statement continued

At a glance – 2024 remuneration outcomes

Outcome of performance measures ending in the financial year

The following charts show performance against the target range for the annual bonus and commentary on the

2022 LTIP. Further detail on the assessment of the performance conditions can be found on pages 128 to 130.

Performance vs Maximum (%) - Financial measures


Investment performance (15%)1
Net flows (15%)2
Adjusted operating profit (35%)

Performance vs Maximum (%) - Non-financial measures


Strategic (10%)
Environment (5%)
Social/People (10%)
Customer (10%)

1. % AUM above benchmark average of one-year and three-year for all asset classes.

2. Excl. cash/liquidity and Insurance Partners.

2024 annual bonus scorecard outcome

The following table sets out the final outcome for the 2024 annual bonus. A detailed breakdown of the assessment

of performance conditions can be found on pages 128 to 130.


	Bonus Scorecard Outcome			Total Bonus Outcome
	Financial metrics (minimum 65%)	Non-financial metrics (maximum 35%)	Board approved outcome (% of maximum)	Total award ('000s)
Jason Windsor1	49.90%	27.58%	77.48%	1,249
Stephen Bird2	49.90%	27.58%	77.48%	843

1. Jason Windsor was appointed to the Board effective 23 October 2023 as Chief Financial Officer. He then served as Interim CEO from 24 May 2024

to 10 September 2024 and was appointed as CEO on 10 September 2024. For the period 1 January to 23 May 2024, the outcome was linked to

150% maximum of his Chief Financial Officer salary of £675,000. For the period 24 May 2024 to 31 December 2024, the outcome was linked to

250% maximum of his Chief Executive Officer salary of £800,000.

2. Stephen Bird commenced garden leave effective 1 July 2024. The total 2024 annual bonus awarded value was prorated to reflect the proportion

of the 2024 performance year for which he served at abrdn prior to commencement of garden leave.

2022 LTIP outcome

The performance period for the 2022 LTIP concluded on 31 December 2024. Performance against the Adjusted

Diluted Capital Generation per share (CAGR) and Relative TSR performance measures were assessed to be below

the threshold required. Therefore, the award will not vest. Detail of the performance assessment for the 2022 LTIP

can be found on page 130.

Total remuneration outcomes in 2024

The chart below shows the remuneration outcomes for the CEO in 2024 based on performance compared to the

maximum opportunity.


All figures in £000s
Jason Windsor	Max1	£2,838
Jason Windsor	Actual 2024 1	£2,150


ò	Salary, pension and benefits	ò	Annual bonus - cash	ò	Annual bonus - deferred	ò	LTIP

1. Max and actual outcomes for the CEO in 2024 reflect time served as CEO and CFO during 2024. The LTIP max and actual figures relate only to the

proportion of the 2022 Long-Term Incentive Buyout subject to abrdn performance conditions.


			Annual report 2024	127


	GOVERNANCE

At a glance – 2025 Policy implementation

This section sets out how we propose to implement our Policy in 2025. The full Policy, which remains unchanged for

2025 from the Policy approved by shareholders at the 2023 AGM, including detail on how it addresses the principles

as set out in the 2018 Corporate Governance Code, can be found in the Annual report and accounts 2022 on pages

120 to 130.


Element of remuneration	Key features of operation	2025 implementation
Salary
Core reward for undertaking the role	Normally reviewed annually, taking into account a range of internal and external factors.	Jason Windsor: £800,000
Pension
Competitive retirement benefit	Aligned to the current maximum employer contribution available to the UK wider workforce (18% of salary).	Jason Windsor 18% of salary
Benefits
Competitive benefits	Includes (i) private healthcare; (ii) death in service protection (iii) income protection (iv) reimbursement of membership fees of professional bodies; and (v) eligibility for the all- employee share plan.	No change to benefits provision
Annual bonus
To reward the successful delivery of the Company’s business plan	Annual performance assessed against a range of key financial and non-financial measures. At least 65% will be based on financial measures. At least 50% will be deferred into shares vesting in equal tranches over a three-year period. Awards are subject to malus and clawback terms.	Jason Windsor: 250% of salary See below for 2025 performance conditions
Long-term incentive plan
To align with our shareholders and reward the delivery of long-term growth	Awards are subject to a three-year performance period, with a subsequent two-year holding period. Dividend equivalents accrue over the performance and holding period. Awards are subject to two equally-weighted performance metrics linked to long-term strategic priorities and the creation of long-term shareholder value. Awards are subject to malus and clawback terms.	Jason Windsor: 350% of salary 2025 performance metrics are set out below
Shareholding requirements	Executive Directors are required to build up a substantial interest in Company shares. The share ownership policy for executive Directors requires shares up to the value of the shareholding requirement to be held for a period of two years following departure from the Board.	Jason Windsor: 350% of salary

Performance conditions for 2025 annual bonus


Financial (65% weighting)	Investment performance (10%), adjusted operating profit (40%) and net flows (15%)
Non-financial (35% weighting)	Performance against Customer (10%) and ESG objectives (comprising Environment and Social measures) (15%) and progress on a key strategic initiative (10%)

Due to commercial sensitivity, actual targets and ranges will be disclosed at the end of the performance period. The

Remuneration Committee retains an appropriate level of flexibility to apply discretion to ensure that remuneration

outcomes reflect a holistic view of overall performance, including conduct and culture.

Performance conditions for 2025 Long-term incentive plan


	Target range1
Net Capital Generation per share (50% weighting)	5% - 15% CAGR
Relative TSR (50% weighting)2	Equal to median – equal to upper quartile

1. Straight line vesting occurs between threshold and maximum. 25% vesting for threshold performance.

2. Relative TSR measure against the FTSE 350 Index.


128	Annual report 2024


Corporate governance statement continued

Directors’ remuneration in 2024

This section reports remuneration awarded and paid at the end of 2024 in further detail, including payments to past

Directors.

Single total figure of remuneration – executive Directors (audited)

The following table sets out the single total figure of remuneration for each of the individuals who served as an

executive Director at any time during the financial year ending 31 December 2024:


Executive Directors		Salary for year £000s	Taxable benefits in year 1 £000s	Pension allowance paid in year £000s	Bonus paid in cash £000s	Bonus deferred 2 £000s	LTIP with period ending in the year 3 £000s	Buyout Awards 4 £000s	Total for the year £000s	Total fixed £000s	Total variable £000s
Jason Windsor 5	2024	773	1	128	624.5	624.5	–	1,041	3,192	902	2,290
Jason Windsor 5	2023	130	–	23	35	35	3	712	938	153	785
Stephen Bird6	2024	347	–	63	421.5	421.5	–	–	1,253	410	843
Stephen Bird6	2023	875	1	158	393	393	275	–	2,095	1,034	1,061

1. This includes the taxable value of all benefits paid in respect of the relevant year. Included for 2024 are medical premiums at a cost to the Group

of £636 per annum for executive Directors.

2. This represents 50% of the total bonus award and is delivered in shares which will vest in equal tranches over a three-year period.

3. The LTIP with period ending in the year values reported for 2023 are restated to reflect the share price at date of vesting for the proportion of

Jason Windsor’s 2021 Long-Term Incentive Buyout award subject to abrdn performance conditions and for Stephen Bird’s 2021 LTIP award.

4. The value reported for 2024 for Jason Windsor includes two elements. The first is the value (£228k) of the proportion of his 2021 Long-Term

Incentive Buyout award subject to Aviva performance conditions (157,431 shares vesting), based on the share price at the vesting date (144.55

pence). The outcome of the proportion of his 2021 Long-Term Incentive Buyout award subject to Aviva performance conditions was not known,

nor able to be estimated, at the time of publication of the Annual report and accounts 2023. The second element, as disclosed on page 127 of the

Annual report and accounts 2023, is a buyout award in relation to the bonus foregone for the period 1 January to 13 October 2023 as a result of

leaving his previous employer. The value of this element (£813k) was determined by the Committee taking into account the reported outcome

and results of Jason’s previous employer. 50% of this element is deferred into abrdn shares vesting after 3 years, as detailed on page 133.

5. Jason Windsor was appointed to the Board effective 23 October 2023. He received an annual salary supplement (neither pensionable nor taken

into account for annual bonus or LTIP outcomes) whilst serving as Interim CEO from 24 May 2024 to 10 September 2024 and was then appointed

as CEO on 10 September 2024.

6. Stephen Bird stepped down from the Board effective 24 May 2024 and commenced garden leave effective 1 July 2024. All figures, excluding the

2024 annual bonus outcome, reflect amounts paid/awarded until stepping down from the Board. The 2024 annual bonus outcome reflects the

proportion of the 2024 performance year for which he served at abrdn prior to commencement of garden leave. See page 130 for further

information on payments made to Stephen Bird as a past director.

Base Salary (audited)

Jason Windsor received an annual salary supplement only for the period he served as Interim CEO from 24 May

2024 to 10 September 2024, which totalled £59,110 for the period. His annual salary was increased from £675,000 to

£800,000 on appointment as CEO on 10 September 2024.

Pension (audited)

Under the Policy approved at the 2023 AGM, the executive Directors received a cash allowance in lieu of pension

contribution of 18% of base salary.

Annual Bonus Plan

The following section contains details on the targets and the Remuneration Committee’s assessment of outcomes

for the period 1 January 2024 to 31 December 2024 against each of the elements of the executive Director bonus

scorecard.

Financial performance metrics – 65% of total scorecard outcome


	Weighting (% of overall scorecard)	Threshold (25% of maximum)	Stretch (100% of maximum)	Actual	Result (% of overall outcome)1
Investment performance2 – % AUM above benchmark average of 1-year and 3-year for all asset classes	15%	50%	70%	62%	10.50%
ii net flows (£bn)	5%	2.9	5.1	5.7	5.00%
Adviser net flows (£bn)	5%	(1.0)	2.0	(3.9)	0.00%
Investments net flows3 (£bn)	5%	(7.0)	1.0	(4.7)	2.33%
Adjusted operating profit (£m)	35%	204	261	255	32.07%

1. Straight-line vesting between threshold and stretch targets.

2. Investment performance assessed using performance reporting approach in place at the point in time that these targets were set by the

Remuneration Committee.

3. Excluding cash/liquidity and Insurance Partners.


			Annual report 2024	129


	GOVERNANCE

Non-financial performance metrics – 35% of total scorecard outcome


Category	Highlights from assessment	Result (% of overall outcome)
Strategic (10%): Surpassed initial targets for key strategic initiative across our Group	As announced in January 2024, the key strategic initiative that spans across the Group is our transformation programme. The intention of this initiative was to deliver increased efficiency and profitability across the Group. Over 2024, the initial cost targets that were set out have been exceeded, with £70m of in- year cost savings and over £100m of savings on an annualised basis delivered within risk appetite. This has led to a 7% reduction in our adjusted operating expenses and has helped to build a leaner, more efficient company, laying the foundations for growth.	10%
Environment (5%): Year-on-year improvement on progress towards portfolio decarbonisation and Operational Net Zero targets	The environmental measures we selected focused on the important contribution our Company has to make as a global institutional investor and a responsible Company. The Remuneration Committee considered a number of quantitative and qualitative measures. Our Sustainability and TCFD report, available on our website, contains further detail on our performance in this area. Key factors in the determination were: – In 2022, for our public market investments, we launched a two-year engagement programme with our top 20 largest financed emitters. This enabled meaningful engagement over time and reflects our goal to work with investee companies to support real-world decarbonisation. – In 2024, we were tracking at a 45% carbon intensity reduction in in-scope public market portfolios compared to our 2019 baseline (34% reduction in in-scope real estate portfolio), remaining on track for our target of a 50% reduction versus our 2019 baseline by 2030. This represents a year-on-year increase in progress against our long-term target, as we were tracking at a 41% reduction in 2023 compared to our 2019 baseline (25% reduction in in-scope real estate portfolio). – For our own operational net zero, we remain on track to meet our long-term net zero carbon emission target of operational net zero by 2040, with a 74% reduction versus our 2018 baseline in 2024. This represents a year-on-year increase in progress against our long-term target, as we were tracking at a 69% reduction versus our 2018 baseline in 2023.	3.5%
Social/people (10%): Noteworthy improvement in trackers of culture at abrdn, increase in engagement score and continued progress on senior leadership gender representation and ethnicity diversity targets	abrdn is a people business and we believe that in order to succeed it needs to embed diversity, equity and inclusion within a strong and shared cultural framework, enabling us to continue to attract and maintain an engaged and diverse talent base. The Remuneration Committee considered a number of quantitative and qualitative measures, including data points relating to gender and ethnicity representation amongst senior leadership and employee engagement. – Against a backdrop of organisational transformation, our employee engagement continued to steadily improve, with engagement scores at 57% (2023: 54% and 2022: 50%). However, there is still room for further improvement with a sustained positive trajectory. – Swift changes under new leadership in H2 2024 increased momentum in employee sentiment, evidenced through increased scores in motivation and confidence. – Our culture is healthy with colleagues reporting strong client focus, challenging and interesting work, collaborative team relationships and growing belief in leadership. – Amongst senior leadership, females (global) and individuals identifying as minority ethnic (UK) both increased year on year to 40% and 7% (2023: 34% and 4%) respectively.	8%


130	Annual report 2024


Corporate governance statement continued


Category	Highlights from assessment	Result (% of overall outcome)
Customer (10%): Measured across our ii, Adviser and Investments businesses	Our three-business model gives us a diverse customer base, from institutional to adviser to retail. We measure our success in delivering for our customers with reference to business-specific quantitative and qualitative metrics that holistically capture the experience of our different customer and client groups. The Remuneration Committee considered a range of quantitative and qualitative measures from internal and external sources. Key factors in the determination were: – In ii, there was sustained strong organic customer growth over 2024 and a significant year-on-year increase in the number of customer SIPPs. Customer satisfaction remains robust across website customers. – In Adviser, a significant improvement in client satisfaction occurred through 2024 after technology upgrade implementation headwinds. However, net outflows and a reduction in total customer numbers reflected a challenging year. – In our Investments business, strong relationships persisted with key clients despite a challenging environment. There was a reduction in redemptions year on year and improved new business win rate, as evidenced through improved net flows.	6.08%

2022 LTIP outcome

The following table details the targets and assessment of outcomes for the 2022 LTIP. The performance period for

this award concluded on 31 December 2024. The Remuneration Committee concluded that the award had not met

the required threshold performance. Therefore, the award will not vest.


	Threshold (25%)	Maximum (100%)	Actual outcome	% vesting
Adjusted Diluted Capital Generation per share (CAGR) (50%)	5%	15%	(1)%	0%
Relative TSR (50%)1	Median	Upper quartile	Below Median	0%

1. The peer group was made up of the following global peers: Affiliated Managers, Alliance Bernstein, Amundi, Ashmore Group, DWS Group, Franklin

Resources, Hargreaves Lansdown, Invesco, Janus Henderson Group, Jupiter Fund Management, M&G, Man Group, Ninety One, Quilter, Schroders,

SEI Investments, St James’s Place.

Payments to past Directors and payments for loss of office (audited)

Payments made to former executive Directors that have not been previously reported elsewhere are reported if

they are in excess of £20,000.

Stephen Bird stepped down from the Board effective 24 May 2024 and commenced garden leave effective 1 July

2024 to his termination date of 31 December 2024. Between 24 May 2024 and 31 December 2024, Stephen

received salary, pension allowance and taxable benefits totalling £623,834.

The Company has also made a payment in lieu of notice of basic salary, pension allowance and taxable benefits, in

monthly instalments (subject to mitigation) over the remainder of Stephen Bird’s contract (being a further four

months and twenty-three days to 23 May 2025). The final monthly instalment is due to be paid in May 2025. The

total of the five payments will be £410,975.

Stephen Bird was entitled to a capped contribution towards legal fees incurred in connection with his exit

arrangements. The contribution towards legal fees did not exceed £20,000.

The table below summarises the total payments to Stephen Bird as a past director for 2024:


Payment element				Amount (£)
Salary, pension allowance and taxable benefits after stepping down from Board				£623,834
Payment in lieu of notice of basic salary, pension allowance and taxable benefits				£410,975

For Stephen’s outstanding incentive awards, in accordance with the relevant plan rules, the following treatment

applied:

– Unvested deferred bonus awards (including the deferred award that will be awarded relating to the prorated

2024 bonus) will continue to vest on normal vesting dates and will remain subject to malus and clawback.

– Unvested LTIP awards will continue to vest on normal vesting dates and will remain subject to the satisfaction of

the relevant performance conditions (measured over the full performance period), holding periods and malus

and clawback. All LTIP awards will be prorated based on the proportion of the performance period completed to

Stephen’s termination date.

– The Company's post-cessation shareholding requirements apply for a two-year period from Stephen’s date of

departure from the Board on 24 May 2024.


			Annual report 2024	131


	GOVERNANCE

Shareholdings and outstanding share awards

This section reports our executive Directors’ interests in shares.

Directors’ interests in shares (audited)

Our shareholding requirements for executive Directors are detailed on page 127. The Policy requires executive

Directors to accumulate and maintain a material long-term investment in abrdn plc shares. The Remuneration

Committee reviews progress against the requirements annually. Personal investment strategies (such as hedging

arrangements) are not permitted for the purposes of reducing the economic exposure arising from the

shareholding requirements.

The following table shows the total number of abrdn plc shares held by the executive Directors and their connected

persons:


						Unvested shares
	Total number of shares owned at 1 January 2024	Shares acquired during the period 1 January 2024 and 31 December 2024	Total shares owned as at 31 December 2024	Options exercised during the period 1 January 2024 and 31 December 2024	Vested but unexercised shares1	Subject to performance conditions2	Not subject to performance conditions3	Shares lapsed4
Jason Windsor	—	357,635	357,635	—	234,370	2,769,957	766,144	23,432
Stephen Bird5	782,355	134,751	917,106	269,503	454,602	3,182,881	597,635	2,793,795

1. For Jason Windsor, this Includes buyout of 2021 Long-Term Incentive Plan and 2021 Bonus Award Buyout (bought-out) awards. For Stephen Bird,

this includes 2021 Long-Term Incentive Plan award and deferred bonus awards. The number of vested but unexercised shares includes shares to

be awarded in lieu of dividend equivalents.

2. For Jason Windsor, this includes 2022 and 2023 Long-Term Incentive Buyout awards and 2024 LTIP awards. For Stephen Bird, this includes 2022,

2023 and 2024 LTIP awards (awards subject to performance targets over three-year periods). The number of unvested shares presented under

awards subject to performance conditions exclude shares to be awarded in lieu of dividend equivalents. The figures for the 2022 LTIP are as at 31

December 2024 and do not reflect the subsequent lapsing of this award.

3. For Jason Windsor, this includes 2021 and 2022 Bonus Award Buyout awards and 2024 deferred bonus award. For Stephen Bird, this includes

2022, 2023 and 2024 deferred bonus awards. The number of unvested shares presented under awards not subject to performance conditions

include shares to be awarded in lieu of dividend equivalents.

4. For Jason Windsor, the shares lapsed relate to the performance outcome of his 2021 Long-Term Incentive Buyout award. For Stephen Bird, the

shares lapsed relate to the performance outcome of the 2021 LTIP award – see page 123 of the Annual report and accounts 2023 - and the

proration of his 2023 and 2024 LTIP awards for time employed during the performance periods.

5. On 8 April 2024, Stephen Bird exercised the second tranche of the deferred portion of his 2021 annual bonus. On 9 April 2024, he exercised the

third tranche of the deferred portion of his 2020 annual bonus award. On 11 April 2024, he exercised the first tranche of the deferred portion of his

2022 annual bonus award.


132	Annual report 2024


Corporate governance statement continued

The following table shows the number of qualifying awards included in assessing achievement towards the

shareholding requirement, as at 31 December 2024. The total Qualifying holding includes shares held outright

(which derive from vested and exercised awards plus any purchased shares) as well as Qualifying unvested or

unexercised awards. Purchased shares are valued at the higher of the cost of the purchase as disclosed in RNS

announcements or the closing market price on 31 December 2024. Qualifying unvested or unexercised awards

include 50% of the value (as a proxy for the payment of tax due on the exercise of the awards) of awards not

subject to performance conditions and which have not yet vested.


	Qualifying unvested or unexercised awards
	Number of shares under the deferred share plan which are not subject to performance conditions	Number of shares under option under long-term incentive plans which are no longer subject to performance conditions	Total Qualifying holding (shares owned from table above and 50% of Qualifying unvested or unexercised awards)1	Value of holding2	Shareholding requirement (as % salary)	Basic salary	Total of the value of shares owned and 50% of the value of qualifying awards at 31 December 2023 as a % of salary	Shareholding requirement met?
Jason Windsor	823,207	177,307	857,892	1,210,915	350%	800,000	151%	In progress
Stephen Bird	788,245	263,992	1,443,225	2,683,431	350%	875,000	307%	In progress

1. Of the total number of shares shown, Jason Windsor purchased 357,635 shares at a total cost of £505k and Stephen Bird purchased 750,000

shares at a total cost of £1,705k.

2. The closing market price at 31 December 2024 used to determine the value of non-purchased shares was 141.15 pence.

Executive Directors who have not yet satisfied the shareholding requirement are expected to accumulate shares

until they have fully met their shareholding requirement. They are required to hold 100% of vested shares (post-tax)

granted under the Company’s share plans (including any dividend equivalents) until they have met their

shareholding requirement. All other shares acquired and held by the executive Director or owned indirectly by a

partner or family trust also count towards the shareholding requirement.

Jason Windsor, who was appointed in October 2023, has not yet met the shareholding requirement. However, the

Remuneration Committee is satisfied with the progress he has made towards his requirements given his tenure.

Under the Policy, an executive Director is required to hold shares up to the value of their shareholding requirement

for 24 months following departure from the Board. However, if at the date of departure from the Board, the

executive Director holds shares with a value lower than the value of the requirement, the number of shares held at

the date of departure from the Board must be retained for 24 months thereafter. Any self-purchased shares are not

subject to this requirement. Accordingly, Stephen Bird is required to retain any shares (excluding self-purchased

shares) until 24 May 2026.


			Annual report 2024	133


	GOVERNANCE

Awards granted in 2024 (audited)

The following table shows the key details of the LTIP, deferred and buyout awards granted in 2024:


Participant	Type of award	Basis of award	% of salary	Face value at grant	Number of shares awarded	% payable for threshold performance	Details on performance conditions
Jason Windsor	Conditional Award	LTIP1	225%	£1,518,750	1,079,884	25%	Award is subject to performance against targets measured over three years as set out on page 120 of the Annual report and accounts 2023
	Conditional Award	Supplementary LTIP1,2	350%	£777,152	552,582	25%
	Conditional Award	Deferred Bonus1	Not applicable	£34,874	24,796	Not applicable	Not applicable
	Conditional Award	2023 Bonus Award Buyout1,3	Not applicable	£406,515	289,044	Not applicable	Not applicable
Stephen Bird	Conditional Award	LTIP1, 4	350%	£3,062,500	2,177,545	25%	Award is subject to performance against targets measured over three years as set out on page 120 of the Annual report and accounts 2023
Stephen Bird	Conditional Award	Deferred Bonus1	Not applicable	£392,875	279,347	Not applicable	Not applicable

1. The share price used to calculate the number of shares for the awards was 140.64 pence (the five-day average price over the five dealing days

prior to the grant date of 8 April 2024). The Supplementary LTIP award has also used this share price as the award relates to the original 2024 LTIP

award.

2. The Supplementary LTIP face value at grant has been calculated by first determining what the original 2024 LTIP face value at grant would have

been based on a £675,000 salary and 225% maximum opportunity up to and including 23 May 2024, then a £800,000 salary and 350% maximum

opportunity from 24 May 2024 up to and including 31 December 2024. The difference of this value and the original 2024 LTIP face value at grant

was then used as the face value at grant for the Supplementary LTIP. This reflects that Jason Windsor had fulfilled the CEO role from 24 May 2024

onwards, having been appointed as Interim CEO on 24 May 2024 and consequently CEO on 10 September 2024.

3. As set out on pages 126 and 127 of the Annual report and accounts 2023, the 2023 Bonus Award Buyout relates to the bonus foregone as a result

of Jason Windsor leaving his previous employer.

4. As set out in the announcement on 24 May 2024, time pro-rating will be applied to the number of shares (if any) over which Stephen Bird’s 2024

LTIP award vests by reference to the proportion of the award performance period that had elapsed at his termination date of 31 December 2024.

Share dilution limits

All share plans operated by the Company which permit awards to be satisfied by issuing new shares contain dilution

limits that comply with the guidelines produced by The Investment Association (IA). On 31 December 2024, the

Company’s standing against these dilution limits was 0.00% where the guideline is no more than 5% in any 10 years

under all discretionary share plans in which the executive Directors participate and 0.39% where the guideline is no

more than 10% in any 10 years under all share plans.

As is normal practice, there are employee trusts that operate in conjunction with the Executive LTIP, the abrdn

Discretionary Plan, the deferred elements of the abrdn plc annual bonus plan, the Aberdeen Asset Management

deferred plans and the abrdn all-employee plans. On 31 December 2024, the trusts held 53,958,247 shares

acquired to satisfy these awards. Of these shares 8,084,343 are committed to satisfying vested but unexercised

option awards. The percentage of share capital held by the employee trusts is 2.93% of the issued share capital of

the Company – within the 5% best practice limit endorsed by the IA.

Promoting all-employee share ownership

The Company promotes employee share ownership with a range of initiatives, including the abrdn plc (Employee)

Share Plan which allows eligible UK employees (our largest jurisdiction) to buy abrdn plc shares directly from

earnings.

A similar tax-approved plan is operated by the company in Ireland. As at 31 December 2024, 1,015 employees in the

UK and Ireland were actively making monthly contributions averaging £73. As at 31 December 2024, 1,304

individuals were abrdn plc shareholders through participation in the Plan.

The Sharesave Plan was offered in 2024 to eligible employees in the UK. This plan allows UK tax resident employees

to save towards the exercise of options over abrdn plc shares with the option price set at the beginning of the

savings period at a discount of up to 20% of the market price. As at 31 December 2024, 1,352 employees were

saving towards one or more of the Sharesave offers.


134	Annual report 2024


Corporate governance statement continued

Executive Directors’ service contracts

Service contracts for both executive Directors are not for a fixed term but have notice periods in line with the

executive Director’s role:

– Six months by the executive Director to the employer.

– Up to 12 months by the employer to the executive Director.

Executive Directors’ external appointments

Executive Directors can accept a limited number of external appointments to the boards of other organisations and

can retain any fees paid for these services. Jason Windsor and Stephen Bird held representative directorships on

behalf of the Group during the year. Jason Windsor is a Governor of Felsted School and a Director of Felsted School

Trustees Limited. The executive Directors received no fees for their external appointments in 2024. Significant

external positions held during the year are set out below.


Executive Director	Role and Organisation	2024 Fees
Stephen Bird	Member of the Financial Services Growth & Development Board1 Board member at the Investment Association 2 Member of the President’s Committee for the Confederation of British Industry3 Member of the Lord Mayor’s Strategic Advisory Board for the Finance for Growth Project4	£nil £nil £nil £nil

1. Appointed on 17 January 2022.

2. Appointed on 27 April 2022.

3. Appointed on 3 February 2023.

4. Appointed on 18 April 2023.


			Annual report 2024	135


	GOVERNANCE

Executive Directors’ remuneration in context

Pay compared to

performance

The graph shows the difference in

the total shareholder return at

31 December 2024 if, on 1 January

2015, £100 had been invested in

abrdn plc and in the FTSE 350

respectively. It is assumed dividends

are reinvested in both. The FTSE

350 has been chosen as abrdn plc

has been a member of this index

for the full 10-year period.

Total shareholder return of abrdn plc compared to the FTSE 350 index

Source: Datastream

The following table shows the single figure of total remuneration for the Director in the role of Chief Executive

Officer for the same 10 financial years as shown in the graph above. Also shown are the annual incentive awards

and LTIP awards which vested based on performance in those years.


Year ended 31 December	Chief Executive Officer	Chief Executive Officer single total figure of remuneration 1 (£000s)	Bonus outcome/ annual incentive rates against maximum opportunity (%)	Long-term incentive plan vesting rates against maximum opportunity (%)
2024	Jason Windsor	3,192	77.48	—
2024	Stephen Bird	1,253	77.48	—
2023	Stephen Bird	2,143	35.92	18.75
2022	Stephen Bird	1,696	30.25	—
2021	Stephen Bird	2,795	80.5	—
2020	Stephen Bird	1,044	48	—
2020	Keith Skeoch	1,075	48	—
2019	Keith Skeoch	1,050	9	—
2018	Keith Skeoch	814	10	—
2018	Martin Gilbert	814	10	—
2017	Keith Skeoch	3,028	82	70.00
2017	Martin Gilbert	1,317	56	—
2016	Keith Skeoch	2,746	81	31.02
2015	Keith Skeoch	1,411	87	40.77
2015	David Nish	2,143	90	40.77

1. The Chief Executive Officer single total figure of remuneration for Jason Windsor includes £1,041m of buyout awards, as set out on page 128.

Relative importance of spend on pay

The following table compares what the Company spent on employee remuneration to what is paid in the form of

dividends to the Company’s shareholders. Also shown is the Company’s adjusted operating profit which is provided

for context as it is one of our key performance measures:


	2024	% Change	2023
Remuneration payable to all Group employees (£m)1	510	(4)%	529
Dividends paid in respect of financial year (£m)	260	(3)%	267
Share buybacks and return of capital (£m)	—	(100)%	302
Adjusted operating profit (£m)	255	2%	249

1. In addition, staff costs and other employee related costs of £35m (2023: £78m) and £8m (2023: £4m) are included in restructuring and corporate

transaction expenses and in cost of sales respectively. See Note 6 of the Group financial statements for further information.


136	Annual report 2024


Corporate governance statement continued

Annual percentage change in remuneration of Directors compared to UK based employees

The table below shows the percentage year-on-year change in salary, benefits and annual bonus in the relevant

year for the executive Directors, along with any percentage change in fees for the non-executive Directors,

compared to the average Group employee. Year-on-year movement on base salaries or Director fees is primarily

attributable to part-year appointment changes.


	% Salary/fee					Annual bonus outcome					% Benefits1
	2024	2023	2022	2021	2020	2024	2023	2022	2021	2020	2024	2023	2022	2021	2020
Executive Directors
Jason Windsor2	495%	—	—	—	—	1,684%	—	—	—	—	100%	—	—	—	—
Stephen Bird3	-60%	—	—	100%	—	7%	19%	-62%	234%	—	-100%	—	—	—	—
Non-executive Directors4, 5
Sir Douglas Flint	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Vivek Ahuja	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Jonathan Asquith	—	—	—	—	202%	—	—	—	—	—	—	—	—	—	—
Katie Bickerstaffe	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Catherine Bradley	-68%	20%	—	—	—	—	—	—	—	—	—	—	—	—	—
John Devine	7%	—	6%	-3%	-2%	—	—	—	—	—	100%	—	-100%	—	-100%
Hannah Grove	4%	21%	334%	—	—	—	—	—	—	—	—	—	—	—	—
Pam Kaur	—	72%	—	—	—	—	—	—	—	—	—	—	—	—	—
Michael O’Brien	—	72%	—	—	—	—	—	—	—	—	100%	—	—	—	—
Cathleen Raffaeli	2%	1%	10%	—	—	—	—	—	—	—	100%	—	—	—	-100%
Group employees6	3%	5%	—	—	3%	17%	-20%	-47%	50%	-53%	5%	—	—	—	17%

1. The change in benefits figures for employees (including executive Directors) are based on the change in medical premium paid by the Group on

their behalf. Benefits do not include pension contributions for these purposes.

2. Jason Windsor was appointed to the Board effective 23 October 2023. He received an annual salary supplement whilst serving as Interim CEO

from 24 May 2024 to 10 September 2024 and was then appointed as CEO on 10 September 2024.

3. Stephen Bird stepped down from the Board effective 24 May 2024. 2024 remuneration figures for Stephen used for the purposes of year-on-year

comparison reflect amounts paid until the date on which he stepped down from the Board, except from the annual bonus outcome which

reflects the proportion of the 2024 performance year for which he served at abrdn prior to commencement of garden leave on 1 July 2024.

4. Remuneration for non-executive Directors and the Chair is disclosed on page 138.

5. Catherine Bradley stepped down from the Board effective 24 April 2024. John Devine was appointed as Chair of the Audit Committee effective 24

April 2024. The subsidiary Board fees as a Chair and a member of the Standard Life Savings Limited and Elevate Portfolio Services Limited Boards

increased effective 1 August 2023. See the single total figure of remuneration non-executive Directors table on page 138 for more detail on

differences in year-on-year remuneration.

6. Disclosure is made on the basis of the period 31 December 2023 to 31 December 2024.

How pay was set across the wider workforce in 2024

Our principles for setting pay across the wider workforce are consistent with those for our executive Directors, in

that the proportion of the remuneration package which is linked to performance increases for more senior roles

within the Company as responsibility and accountability increase.

Base salaries are targeted at an appropriate level in the relevant markets in which the Group competes for talent.

The Remuneration Committee considers the base salary percentage increases for the Group’s broader UK and

international employee populations when determining any annual salary increases for the executive Directors. As a

result of organisational transformation in 2024, some employees experienced significant changes to their role. New

roles and responsibilities were reviewed and targeted salary increases were made, taking into account new

responsibilities, internal relativities and market data. These increases were designed to be meaningful to recognise

the change in role and increased contribution of these individuals. For other employees, increases were generally

limited to those earning less than £50,000 (or local country equivalent).

Having considered the market position of our executive Director pay and the recent determination of salary for

Jason Windsor upon his original appointment in October 2023, the Remuneration Committee determined that no

salary increases were appropriate for the executive Directors in 2024.

The eligibility criteria for participation in variable pay plans is set so that more senior individuals have a greater

proportion of their pay linked to performance. For roles where variable remuneration eligibility is retained, our clear

approach is designed to support and reward performance at a Company, team and individual level. Performance-

related variable remuneration includes deferred variable compensation at a suitable level for the employee’s role,

ensuring a performance link over a longer time horizon than a single year. Variable remuneration for employees,

including executive Directors, is determined as a total pool which is distributed across the business based on the

performance of each business line and function. Individuals are then considered for a bonus payment on the basis

of their individual performance objectives and goals, taking into account conduct.

The Group operates a Compensation Committee comprising the Chief People Officer (Chair), Chief Financial

Officer and Chief Risk Officer, the role of which is to consider the implementation of the remuneration policy across

the Group. The terms of reference of the Compensation Committee are set by the Remuneration Committee and


			Annual report 2024	137


	GOVERNANCE

the Chair of the Compensation Committee formally reports to the Remuneration Committee on all matters which

fall within the Compensation Committee’s remit.

Pay ratio

The table below sets out the ratio of CEO pay to the median, 25th and 75th percentile total remuneration of full-time

equivalent UK employees. We have identified the relevant employees for comparison using our gender pay gap

data set (snapshot data from 5 April 2024), referred to as Methodology B in the legislation. This was chosen by the

Remuneration Committee as it utilised a data set which had already been processed and thoroughly reviewed and

this enabled timely reporting for disclosure purposes. Some employing entities are excluded from the gender pay

gap calculation in line with the regulations due to the number of individuals employed by these entities being less

than 250. The Remuneration Committee considered this would not have a material impact on the outcome of the

pay ratio calculation given the limited number of individuals this excludes, relative to the total population being

captured, and the range of the remuneration for those excluded individuals, which was spread across quartiles.

The remuneration paid to each of the individuals identified under methodology B was reviewed against other

individuals within the quartile both above and below. The individuals identified at the 25th and 75th percentiles had

ceased employment in the year; therefore, the next identified individuals were selected. The individual identified at

the 50th percentile had changed working hours in the year; therefore, the next identified individual was selected.

Benefits figures were based on the medical premium paid by the Company on behalf of employees.

The pay ratio has increased from 2023, which reflects the fact that the CEO has a greater level of remuneration at

risk which is dependent on Company performance; based on both financial and non-financial performance in 2024,

the bonus for the CEO paid out at 77.48% of maximum, compared to 35.92% of maximum in 2023 and the LTIP

lapsed in its entirety as it did in 2023. The change of CEO during the year, the buyout awards for Jason Windsor and

the transformation the company underwent in 2024 makes a year-on-year comparison more challenging. In

particular, £1,041,000 of the total remuneration for the CEO in the year related to buyout awards with performance

conditions solely based on the performance of previous employers. If these were removed, the pay ratio would be

62 for the 25th percentile employee, 42 for the 50th percentile employee and 29 for the 75th percentile employee.

By design, there are differences in the priorities which drive how these two populations are remunerated; as a result,

their relative experiences can be different.

The Remuneration Committee is comfortable that the pay ratio reflects the pay and progression policies and

Remuneration Philosophy across the Company as set out above. Further detail on the make up of workforce pay is

set out below.


	Year	Method	25th percentile	50th percentile	75th percentile
Jason Windsor/Stephen Bird	2024	Option B	81	55	38
Stephen Bird	2023	Option B	39	27	19
Stephen Bird	2022	Option B	35	25	16
Stephen Bird	2021	Option B	62	45	25
Stephen Bird/Keith Skeoch	2020	Option B	49	30	18
Keith Skeoch	2019	Option B	34	23	13
Keith Skeoch	2018	Option B	30	19	12


	Salary (£000s)	Total pay (£000s)
CEO remuneration, of which:	1,120	4,445
Jason Windsor (excl. Buyout Awards)	773	3,192 (2,151)
Stephen Bird	347	1,253
25th percentile employee	46	55
50th percentile employee	65	80
75th percentile employee	91	118


138	Annual report 2024


Corporate governance statement continued

Remuneration for non-executive Directors and the Chair

Single total figure of remuneration – non-executive Directors (audited)

The following table sets out the single total figure of remuneration for each of the non-executive Directors who

served as a Director at any time during the financial year ending 31 December 2024. Non-executive Directors do

not participate in bonus or long-term incentive plans and do not receive pension funding.


Non-executive Directors		Fees for year ended 31 December £000s	Taxable benefits in year ended 31 December 1 £000s	Total remuneration for the year ended 31 December £000s
Sir Douglas Flint2	2024	475	–	475
	2023	475	–	475
Jonathan Asquith	2024	139	–	139
	2023	139	–	139
Catherine Bradley3	2024	42	–	42
	2023	131	–	131
John Devine4	2024	140	2	142
	2023	131	–	131
Hannah Grove5	2024	166	–	166
	2023	159	–	159
Pam Kaur	2024	109	–	109
	2023	109	–	109
Michael O’Brien	2024	109	1	110
	2023	109	–	109
Cathleen Raffaeli6	2024	169	8	177
	2023	166	–	166
Vivek Ahuja7	2024	23	–	23
	2023	–	–	–
Katie Bickerstaffe8	2024	23	–	23
	2023	–	–	–

1. Taxable benefits relate to taxable expenses incurred while undertaking their roles as non-executive Directors of the Group.

2. Sir Douglas Flint is eligible for life assurance of 4x his annual fee. This is a non-taxable benefit.

3. Catherine Bradley stepped down from the Board effective 24 April 2024.

4. John Devine was appointed as Chair of the Audit Committee effective 24 April 2024.

5. The subsidiary Board fees as a member of the Standard Life Savings Limited and Elevate Portfolio Services Limited Boards increased from

£37,500 p.a. to £50,000 p.a. effective 1 August 2023. Total fees include subsidiary Board fees of £50,000 p.a. (previously £37,500 p.a.) as a member

of the Standard Life Savings Limited and Elevate Portfolio Services Limited Boards. Hannah Grove also receives a Board Employee Engagement

fee of £15,000 p.a.

6. The subsidiary Board fees as Chair of the Standard Life Savings Limited and Elevate Portfolio Services Limited Boards increased from £55,000 p.a.

to £60,000 p.a. effective 1 August 2023. Total fees include subsidiary Board fees of £60,000 p.a. (previously £55,000 p.a.) as Chair of the Standard

Life Savings Limited and Elevate Portfolio Services Limited Boards.

7. Vivek Ahuja was appointed to the Board and the Audit Committee effective 1 October 2024.

8. Katie Bickerstaffe was appointed to the Board and the Remuneration Committee effective 1 October 2024.

The non-executive Directors, including the Chair, have letters of appointment that set out their duties and

responsibilities. The key terms are set out in the Policy which can be found in the Annual report and accounts 2022

on pages 120 to 130. The service agreements/letters of appointment for Directors are available to shareholders to

view on request from the Company Secretary at the Company’s registered address (which can be found in the

Shareholder information section) and will be accessible for the 2025 AGM.


			Annual report 2024	139


	GOVERNANCE

Details of the date of appointment to the Board and date of election by shareholders are set out below:


Chair/Non-executive Director	Initial appointment to the Board	Initial election by shareholders
Chair
Sir Douglas Flint	1 November 2018	AGM 2019
Senior Independent Director
Jonathan Asquith	1 September 2019	AGM 2020
Non-executive Directors
Vivek Ahuja	1 October 2024	–
Katie Bickerstaffe	1 October 2024	–
Catherine Bradley	4 January 2022	AGM 2022
John Devine	4 July 2016	AGM 2017
Hannah Grove	1 September 2021	AGM 2022
Cathleen Raffaeli	1 August 2018	AGM 2019
Pam Kaur	1 June 2022	AGM 2022
Michael O’Brien	1 June 2022	AGM 2022

Implementation of policy for non-executive Directors in 2025

The following table sets out abrdn non-executive Director fees to be paid in 2025. Fees for 2025 remain at the

current level.


Role	2025 fees	2024 fees
Chair’s fees1	£475,000	£475,000
Non-executive Director fee2	£73,500	£73,500
Additional fees:
Senior Independent Director	£25,000	£25,000
Chair of the Audit Committee	£30,000	£30,000
Chair of the Risk and Capital Committee	£30,000	£30,000
Chair of the Remuneration Committee	£30,000	£30,000
Committee membership (Audit, Risk and Capital and Remuneration Committees)	£17,500	£17,500
Committee membership (Nomination Committee)	£10,000	£10,000
Employee engagement	£15,000	£15,000

1. The Chair’s fees are inclusive of the non-executive Directors’ core fees and no additional fees are paid to the Chair where he chairs, or is a

member of, other committees/boards. The Chair is eligible to receive life assurance, which is a non-taxable benefit.

2. For non-executive Directors, individual fees are constructed by taking the core fee and adding extra fees for being the Senior Independent

Director, chair or member of committees and/or subsidiary boards where a greater responsibility and time commitment is required.

Non-executive Directors’ interests in shares (audited)

The following table shows the total number of abrdn plc shares held by each of the non-executive Directors and

their connected persons:


	Total number of shares owned at 1 January 2024 or date of appointment if later	Shares acquired during the period 1 January 2024 to 31 December 2024	Total number of shares owned at 31 December 2024 or date of cessation if earlier
Sir Douglas Flint	200,000	—	200,000
Vivek Ahuja	—	—	—
Jonathan Asquith	205,864	—	205,864
Katie Bickerstaffe	30,195	—	30,195
Catherine Bradley1	12,181	—	12,181
John Devine	52,913	—	52,913
Hannah Grove	33,000	—	33,000
Pam Kaur	—	—	—
Michael O’Brien	173,780	—	173,780
Cathleen Raffaeli	9,315	—	9,315

1. Catherine Bradley stepped down from the Board effective 24 April 2024.

Sir Douglas Flint, as Chair, is subject to a shareholding guideline of 100% of the value of his annual fee in abrdn plc

shares to be reached within four years of appointment. The total investment cost of Sir Douglas Flint’s shareholding

was £495k, equivalent to 104% of his annual fee.


140	Annual report 2024


Corporate governance statement continued

The Remuneration Committee

Membership

During 2024, the Remuneration Committee was made up of independent non-executive Directors. For their names,

the number of meetings and committee member attendance during 2024, please see the table on page 104.

The role of the Remuneration Committee

To consider and make recommendations to the Board in respect of the total remuneration policy across the

Company, including:

– Rewards for the executive Directors, senior employees and the Chair.

– The design and targets for any employee share plan.

– The design and targets for annual cash bonus plans throughout the Company.

– Changes to employee benefit structures (including pensions) throughout the Company.

The Remuneration Committee’s work in 2024


	Matters covered	Key outcomes
	– 2023 Directors’ remuneration report and Policy. – Updates from the Risk and Audit Committees on relevant matters for the Committee’s consideration when determining pay outcomes. – Approve performance outcomes for 2023 Annual Bonus and 2021 LTIP. – Agree 2024 Annual Bonus scorecard measures and targets and 2024 LTIP measures and targets. – Review remuneration outcomes for the Material Risk Taker population.	– Published 2023 Directors’ remuneration report for shareholder approval. – Established remuneration framework to incentivise executive Directors to deliver against company strategy, maintaining alignment with long-term shareholder value creation.
	– Agree Jason Windsor’s Interim CEO remuneration package. – Approve Stephen Bird’s exit remuneration arrangements. – Review regulatory remuneration disclosures and documentation. – Assess implications of current external environment on executive pay, new executive director policies within the UK listed investment management industry and observations from the 2024 AGM season.	– Supported the launch of abrdn’s CEO succession plan as part of the company’s transformation. – Ensured company compliance with regulatory remuneration disclosure requirements. – Considered options for the implementation of Policy in 2025 and for Policy review in advance of being taken to shareholders for approval at the 2026 AGM.
	– Mid-year review of performance against targets for annual bonus and in-flight LTIP awards for the executive Directors. – Remuneration decisions for senior employees within the Remuneration Committee’s remit. – Approve Jason Windsor’s CEO remuneration package.	– Tracked performance against financial and non- financial executive Director Annual Bonus scorecard targets as well as for in-flight LTIP awards. – Supported the appointment of abrdn’s CEO.
	– Update the Remuneration Committee and Compensation Committee’s Terms of Reference. – Review gender and ethnicity pay gap data. – Review Group Remuneration Policy for 2025 implementation. – Review variable remuneration pool allocation principles and approve overall funding. – Review 2025 remuneration proposals.	– Ensured Group Remuneration Policy supports company’s long-term strategy. – Determined funding available for variable remuneration and reviewed allocation principles, supporting the operation of a performance-driven culture.

At various points throughout the year the Remuneration Committee also:

– Made remuneration decisions for the Executive Leadership Team and other senior employees within the

Remuneration Committee’s remit.

– Considered and approved the design of special incentive schemes in different business areas.

– Considered and approved employee regulatory classifications and statutory and regulatory disclosures on

remuneration matters.

– Received updates relating to regulatory changes and market best practice.

– Reviewed minutes of subsidiary Committee meetings and their governance documents.

External advisers

During the year, the Remuneration Committee took advice from PwC LLP (a member of the Remuneration

Consultants Group (RCG)) who were appointed by the Remuneration Committee after a retender process was

conducted in 2022, as disclosed in the Annual report and accounts 2022 on page 118. As PwC LLP is a member of


			Annual report 2024	141


	GOVERNANCE

the RCG, the Remuneration Committee is satisfied that the advice given from PwC LLP during the year was

objective and independent. The remuneration advisers do not have connections with abrdn that might impair their

independence.

A representative from our external adviser attends, by invitation, all Remuneration Committee meetings to provide

information and updates on external developments affecting remuneration as well as specific matters raised by the

Remuneration Committee. Outside the meetings, the Remuneration Committee’s Chair seeks advice on

remuneration matters on an ongoing basis. As well as advising the Remuneration Committee, PwC LLP also

provided tax, accounting support, risk management, consultancy and assurance services to the Company during

the year.

Fees paid to PwC LLP during 2024 for professional advice to the Remuneration Committee were £126,300.

Where appropriate, the Remuneration Committee receives input from the Chair, Chief Executive Officer, Chief

Financial Officer, Chief People Officer, Global Head of Reward and the Chief Risk Officer. This input never relates to

their own remuneration. The Remuneration Committee also receives input from the Risk and Capital Committee

and the Audit Committee.

Remuneration Committee effectiveness

The Remuneration Committee reviews its remit and effectiveness each year. The 2024 review was conducted

internally, on behalf of the Board, by the Company Secretary. As part of the review the views of the Board were

sought on the performance of the Remuneration Committee and how Directors felt they were updated on its

activities following each meeting. This is supplemented by any matters a Director wish to raise as part of their year-

end 1:1 discussion with the Chair.

The review concluded that the Remuneration Committee continued to operate effectively during 2024 with no

material issues or concerns raised. The main areas in which the Remuneration Committee looked to see continued

improvement in 2025 were in relation to the insight and brevity of materials presented. More information about the

process involved, and its outcomes, can be found on page 101.

Shareholder voting

We remain committed to ongoing shareholder dialogue and take an active interest in voting outcomes.

The Policy was last subject to a vote at the 2023 AGM on 10 May 2023 and the following table sets out the outcome.


Policy 2023 AGM	For	Against	Withheld
% of total votes	94.29%	5.71%
No. of votes cast	675,020,934	40,860,480	189,168,584

The Directors’ remuneration report was subject to a vote at the 2024 AGM on 24 April 2024 and the following table

sets out the outcome.


2023 Directors’ Remuneration Report	For	Against	Withheld
% of total votes	86.83%	13.17%
No. of votes cast	540,767,951	82,055,677	180,082,555


142	Annual report 2024


Directors’ report

Directors’ report

The Directors present their annual report on the affairs

of the abrdn group of companies (the Group), together

with the audited International Financial Reporting

Standards (IFRS) consolidated financial statements for

the Group, financial information for the Group and

financial statements for abrdn plc (the Company) for

the year ended 31 December 2024.

For clarity, some of the matters that would otherwise

have been included in the Directors’ report have been

included in the Strategic report on pages 2 to 85, as the

Board considers they fit better within that report.

Specifically, these are:

– Future business developments.

– Risk management.

– Our approach to managing, and reporting, on our

global greenhouse gas emission impact(s).

– Information on how the Directors have had regard for

the Company’s stakeholders (also covered in the

Corporate governance statement on pages 95 and

96).

– Information on our people including employee

engagement, diversity and inclusion, and talent and

reward (details of the Board’s diversity statement can

be found in the Corporate governance statement on

page 99).

Reporting for the year ended 31 December

2024

During 2024, the Group operated primarily in the UK, rest

of Europe, Asia and the Americas. More information

about the relevant activities of the Company’s principal

subsidiary undertakings are in the Strategic report on

pages 2 to 85.

The Chief Executive Officer’s overview in the Strategic

report outlines the main trends and factors likely to

affect the future development, performance and

position of the Group. Reviews of the operating and

financial performance of the Group for the year ended

31 December 2024 are also given in the Strategic report.

The Chair’s statement, the Directors’ responsibility

statement and the Corporate governance statement

form part of this Directors’ report. The Corporate

governance statement on pages 92 to 141 is submitted

by the Board.

The results of the Group are presented in the Group

financial statements on pages 169 to 269. A detailed

description of the basis of preparation of the IFRS results

(including adjusted profit) is set out in the Group

financial statements section. The Group uses derivative

financial instruments in the normal course of its business

and information covering these instruments and related

financial risk management matters can be found in

Note 18 and Note 34 to the Group financial statements.

These notes are incorporated into this report by

reference.

This report forms part of the management report for the

purposes of the Disclosure Guidance and Transparency

Rules (DTR 4.1.8R) of the Financial Conduct Authority

(FCA).

Dividends

The Board recommends paying a final dividend for 2024

of 7.3p per ordinary share. This will be paid on 13 May

2025 to shareholders whose names are on the register

of members at the close of business on 28 March 2025,

subject to shareholder approval at the 2025 AGM.

The total payment is estimated at £130m for the final

dividend and together with the interim dividend of 7.3p

per share totalling £130m paid on 24 September 2024,

the total dividend for 2024 will be 14.6p per share (2023:

14.6p) totalling £260m (2023: £267m).

Share capital

The Company’s issued share capital as at 31 December

2024 comprised a single class of ordinary share. Full

details of the Company’s share capital, including

movements in the Company’s issued ordinary share

capital during the year, are in Note 24 to the Group

financial statements, which is incorporated into this

report by reference. An analysis of registered

shareholdings by size, as at 31 December 2024, can be

found in the Shareholder information section on page

310.

As at 31 December 2024, there were 1,840,742,629

ordinary shares in issue held by 81,329 registered

members. The abrdn Share Account (the Company-

sponsored nominee) held 613,561,526 of those shares

on behalf of 834,638 participants. No person has any

special rights of control over the Company’s share

capital and all issued shares are fully paid.

Between 1 January 2024 and the date this report was

signed, the Company received the following

notifications in respect of major shareholdings and

major proportions of voting rights in accordance with

the Disclosure Guidance and Transparency Rules of the

FCA:


Shareholder	Date of transaction	Type of transaction	Number of voting rights following the transaction	Percentage of voting rights following the transaction
Blackrock Inc	15 April 2024	Disposal of voting rights	138,496,903	7.50%
Blackrock Inc	17 April 2024	Disposal of voting rights	137,987,695	7.48%
Blackrock Inc	31 May 2024	Disposal of voting rights	Below 5%	Below 5%
Blackrock Inc	26 June 2024	Acquisition of voting rights	92,051,362	5%
Blackrock Inc	27 June 2024	Disposal of voting rights	Below 5%	4.96%
Blackrock Inc	22 August 2024	Acquisition of voting rights	92,052,418	5%
Blackrock Inc	23 August 2024	Disposal of voting rights	Below 5%	Below 5%
Blackrock Inc	4 September 2024	Acquisition of voting rights	92,093,766	5%


			Annual report 2024	143


	GOVERNANCE

In accordance with the terms of the abrdn Employee

Trust (formerly named the Standard Life Employee

Trust) Deed, the trustees waived all entitlements to

current or future dividend payments for shares they

hold.

Similarly, in accordance with the terms of The Aberdeen

Asset Management Employee Benefit Trust 2003 and

The abrdn Employee Benefit Trust 2019 (formerly

named the Standard Life Aberdeen Employee Benefit

Trust 2019), the trustees waived all entitlements to

current or future dividend payments for shares they hold

other than dividends payable on any shares held by the

trustee as nominee for any other person.

The trustees of the abrdn plc (Employee) Share Plan

voted the appropriate shares in accordance with any

instructions received from participants in the plan.

Restrictions on the transfer of shares and

securities

Except as listed below, there are no specific restrictions

on the size of a holding or on the transfer of shares. Both

are governed by the general provisions of the

Company’s articles of association (the Articles) and

current legislation and regulation. There are no

restrictions on voting rights.

A copy of the Articles can be obtained from Companies

House or by writing to the Company Secretary at our

registered address (details of which can be found in the

by a special resolution passed by the shareholders.


	The Articles are on our website at www.abrdn.com/en-gb/corporate/about-us/ governance

The Board may decline to register the transfer of:

– A share that is not fully paid.

– A certificated share, unless the instrument of transfer

is duly stamped or duly certified and accompanied by

the relevant share certificate or other evidence of the

right to transfer, is in respect of only one class of share

and is in favour of a sole transferee or no more than

four joint transferees.

– An uncertificated share, in the circumstances set out

in the uncertificated securities rules (as defined in the

Articles) and, in the case of a transfer to joint holders,

where the number of joint holders to whom the share

is to be transferred does not exceed four.

– A certificated share by a person with a 0.25 per cent

interest (as defined in the Articles) in the Company, if

that person has been served with a restriction notice

under the Articles, after failing to provide the

Company with information about interests in those

shares as set out in the Companies Act 2006 (unless

the transfer is shown to the Board to be pursuant to an

arm’s length sale under the Articles).

These restrictions are in line with the standards set out in

the FCA’s UK Listing Rules and are considered to be

standard for a listed company.

The Directors are not aware of any other agreements

between holders of the Company’s shares that may

result in restrictions on the transfer of securities or on

voting rights.

Rights attached to shares

Subject to applicable statutes, any resolution passed by

the Company under the Companies Act 2006 and other

shareholders’ rights, shares may be issued with such

rights and restrictions as the Company may decide by

ordinary resolution, or (if there is no such resolution or if it

does not make specific provision) as the Board may

decide. Subject to the Articles, the Companies Act 2006

and other shareholders’ rights, unissued shares are at

the disposal of the Board.

Every member and duly appointed proxy present at a

general meeting or class meeting has one vote on a

show of hands, provided that where a proxy is

appointed by more than one shareholder entitled to

vote on a resolution and is instructed by one shareholder

to vote ‘for’ the resolution and by another shareholder to

vote ‘against’ the resolution, then the proxy will be

allowed two votes on a show of hands – one vote ‘for’

and one vote ‘against’. On a poll, every member present

in person or by proxy has one vote for every share they

hold. For joint shareholders, the vote of the senior joint

shareholder who tenders a vote, in person or by proxy,

will be accepted and will exclude the votes of the other

joint shareholders. For this purpose, seniority is

determined by the order that the names appear on the

A member will not be entitled to vote at any general

meeting or class meeting in respect of any share they

hold if any call or other sum then payable by them for

that share remains unpaid or if they have been served

with a restriction notice (as defined in the Articles) after

failing to provide the Company with information about

interests in those shares required to be provided under

the Companies Act 2006.

The Company may, by ordinary resolution, declare

dividends up to the amount recommended by the

Board. Subject to the Companies Act 2006, the Board

may also pay an interim dividend, and any fixed rate

dividend, whenever the financial position of the

Company, in the opinion of the Board, justifies its

payment. If the Board acts in good faith, it is not liable to

holders of shares with preferred or pari passu rights for

losses that arise from paying interim or fixed dividends

on other shares.

The Board may withhold payment of all or part of any

dividends or other monies payable in respect of the

Company’s shares from a person with a 0.25 per cent

interest (as defined in the Articles) if that person has

been served with a restriction notice (as defined in the

Articles) after failure to provide the Company with

information about interests in those shares, which is

required under the Companies Act 2006.


144	Annual report 2024


Directors’ report continued

Subject to the Companies Act 2006, rights attached to

any class of shares may be varied with the written

consent of the holders of not less than three-quarters in

nominal value of the issued shares of that class

(excluding any shares held as treasury shares). These

rights can also be varied with the approval of a special

resolution passed at a separate general meeting of the

holders of those shares. At every separate general

meeting (except an adjourned meeting) the quorum

shall be two persons holding, or representing by proxy,

not less than one-third in nominal value of the issued

shares of the class (calculated excluding any shares

held as treasury shares).

A shareholder’s rights will not change if additional shares

ranking pari passu with their shares are created or

issued – unless this is expressly provided in the rights

attaching to their shares.

Power to purchase the Company’s own

At the 2024 Annual General Meeting (AGM),

shareholders granted the Directors limited powers to:

– Allot ordinary shares in the Company up to a

maximum aggregate amount of £51,423,866.

– Disapply, up to a maximum total nominal amount of

£38,567,899 of its issued ordinary share capital,

shareholders’ pre-emption rights in respect of new

ordinary shares issued for cash.

– Make market purchases of the Company’s ordinary

shares up to a maximum of 92,037,035 of its issued

ordinary shares which represented 5% of the share

capital at the time.

Significant agreements

Certain significant agreements to which the Company,

or one of its subsidiaries, is party entitle the

counterparties to exercise termination or other rights in

the event of a change of control of the Company. These

agreements are noted in the paragraphs below.

Credit Facility

Under a £400m revolving credit facility between the

Company and the banks and financial institutions

named therein as lenders (Lender) dated 5 February

2025 (the Facility), in the event that any persons or

group of persons acting in concert, gain control of the

Company, then any Lender may elect within a

prescribed time frame to cancel its outstanding

commitment under the Facility and declare its

participation in all outstanding loans, together with

accrued interest and all amounts accrued, immediately

due and payable, whereupon the commitment of that

Lender under the Facility will be cancelled and all such

outstanding amounts will become immediately due and

payable.

China

Under a joint venture agreement dated 12 October

2009 (as amended) between the Company and Tianjin

TEDA International Holding (Group) Co. Limited (TEDA),

pursuant to which the Company holds its interest in

Heng An Standard Life Insurance Company Limited

(Heng An Standard Life), upon a change of control of

the Company, TEDA has the right to terminate the

venture and to purchase, or nominate a third party to

purchase, the Company’s shares in Heng An Standard

Life for a price determined in accordance with the

agreement.

Other agreements

A number of other agreements contain provisions that

entitle the counterparties to exercise termination or

other rights in the event of a change of control of the

Company. However, these agreements are not

considered to be significant in terms of their likely

impact on the business of the Group as a whole.

The Directors are not aware of any agreements with

any employee that would provide compensation for loss

of office or employment resulting from a takeover. The

Company also has no agreement with any Director to

provide compensation for loss of office or employment

resulting from a takeover.

Appointment and retirement of Directors

The appointment and retirement of Directors is

governed by the Articles, the Companies Act 2006, the

UK Corporate Governance Code and related legislation.

Catherine Bradley stepped down from the Board on 24

April 2024 and Stephen Bird stepped down on 24 May

2024.

As announced, Pam Kaur will not stand for re-election at

the 2025 AGM on 8 May 2025 and will stand down from

the Board from that date.

Katie Bickerstaffe and Vivek Ahuja were appointed to

the Board on 1 October 2024 and will stand for election

at the 2025 AGM.

All remaining Directors as at the date of the 2025 AGM,

will retire and stand for election or re-election.

The powers of the Directors can also be found in the

Articles.

Directors and their interests

The Directors who served during the year, and up to the

date the report was signed were:


Sir Douglas Flint (Chair)	Catherine Bradley2
Stephen Bird1	John Devine
Jason Windsor	Hannah Grove
Jonathan Asquith	Pam Kaur
Vivek Ahuja3	Michael O’Brien
Katie Bickerstaffe3	Cathi Raffaeli

1. Retired 24 May 2024.

2. Retired 24 April 2024.

3. Appointed 1 October 2024.


	Biographies of the current Directors can be found on pages 88 to 91.


			Annual report 2024	145


	GOVERNANCE

Details of the Directors’ interests in the Company’s

ordinary shares, the abrdn plc (Employee) Share Plan,

the abrdn Sharesave Plan and the share-based

discretionary plans are set out in the Directors’

remuneration report together with details of the

executive Directors’ service contracts and non-

executive Directors’ appointment letters.

No Director has any interest in the Company’s listed

debt securities or in any shares, debentures or loan

stock of the Company’s subsidiaries. No Director has any

material interest in any contract with the Company or a

subsidiary undertaking which was significant in relation

to the Company’s business, except for the following:

– The benefit of a continuing third party indemnity

provided by the Company (in accordance with

company law and the Articles).

– Service contracts between each executive Director

and subsidiary undertakings (Aberdeen Corporate

Services Limited and abrdn Holdings Limited).

Copies of the following documents can be viewed at the

Company’s registered office (details of which can be

found in the Contact us section) during normal business

hours (9am to 5pm Monday to Friday) and are available

for inspection at the Company’s AGM:

– The Directors’ service contracts or letters of

appointment.

– The Directors’ deeds of indemnity, entered into in

connection with the indemnification of Directors’

provisions in the Articles.

– The rules of the abrdn plc Executive Long-Term

Incentive Plan.

– The rules of the abrdn plc Deferred Share Plan.

– The Company’s Articles.

Directors’ liability insurance

During 2024, the Company maintained directors’ and

officers’ liability insurance on behalf of its Directors and

officers to provide cover should any legal action be

brought against them. The Company also maintained

pension trustee liability indemnity policies (which

includes third party indemnity) for the boards of trustees

of the UK and Irish staff pension schemes where

required to do so.

Our people

Our people are central to delivering our strategy, and

we are focused on helping them thrive.


	More on our people strategy can be found in the Strategic report section of this report.

Communicating with and engaging

employees

During 2024 we have focused activity across colleague

experience on a refreshed connection and

commitment, creating a line of sight for colleagues at all

levels, supported by powerful storytelling and robust

feedback mechanisms. We inform and engage

colleagues on key topics through a regular drum beat of

messaging, from strategy and external context, to day-

to-day activity that supports our business.

To further improve transparency and embed new

leadership, we have created more opportunity to create

dialogue between colleagues and leaders, with listening

at the heart. Smaller conversational group sessions

support our intentional focus on building a tone of

openness and honesty, where leaders talk with our

people, share context and thinking, hear their questions

and respond in real time.

2024 also saw the introduction of our Colleague Council,

a new group of colleagues who represent global

colleague voice. With their help, we have listened closely

to our colleagues using their input to continuously shape

our activity. The first mission of our Colleague Council

was input to help shape our Pulse survey, ensuring we

are hearing from colleagues on the topics of greatest

importance.

‘Engage’, our technology tool enabling colleagues to

have direct and open communication with each other

and leadership teams across the business, has grown in

usage and momentum through 2024. A popular new

feature is #RingTheBell, new functionality where

colleagues can share wins and client news.

Our in-house ‘abrdn awards’ gained momentum in its

second year, reinforcing our culture commitments and

supporting positive change. Colleagues have the

opportunity to be recognised for excellence and

contribution both to abrdn and our clients and for the

work they do in their wider communities and with

charities they support outside the organisation. Our

‘Praise Board’ also continues to be well used for ‘in the

moment’ peer recognition.

Colleagues made good use of our new abrdn IDEAS

scheme, launched in 2024 as a streamlined way of

surfacing ideas to be assessed and actioned, with the

aim of simplifying our business to deliver for our clients.

We continue to support our performance culture –

guiding leaders and colleagues through meaningful

conversations including mid and end of year reviews. To

provide increased consistency and clarity and highlight

new opportunities for career growth, we launched our

Career Framework, with globally consistent and

transparent career families and levels. Leaders used the

Career Framework to have quality development

conversations with their teams in 2024 and we will

continue to build on this through embedding further in

2025.


146	Annual report 2024


Directors’ report continued

Diversity, equity and inclusion

Disability statement

We have specific policies to ensure that colleagues with

disabilities face no discrimination or obstacles in relation

to job applications, training, promotion and career

development. Reasonable adjustments are also made

to train and enable employees who become disabled to

allow them to continue and progress in their career.

In 2024 abrdn became a Disability Confident employer

under the UK Government’s scheme. Although we had

always offered candidates the ability to make

adjustments they needed to our recruitment process for

their disability, by joining this scheme we further

committed to visibly removing barriers for people with

disabilities. We revised the diversity statement on our

interview letters and templates to include specific

wording and guidance for candidates with a disability or

who are neurodivergent.

DEI policy, how it is implemented, progress made

against it

To complement the Board’s formal diversity statement

www.abrdn.com/corporate/about-us/governance, the

Executive Leadership Team put in place a Global

Diversity, Equity and Inclusion policy in 2019

www.abrdn.com/corporate/about-us/diversity-and-

inclusion. The policy affirms that diversity, equity and

inclusion remain fundamental pillars supporting all our

decisions.

The Company supports the principle that the best

person should be appointed to a role based on individual

merit. Due regard should be given to the benefits of

diversity (defined below), and recognises the positive

impact that diverse teams and strong culture have on

performance.

We define diversity in its broadest sense and support a

culture that values fairness and transparency. This is at

the heart of our cultural Commitments. We support the

right of all people (colleagues, workers, candidates,

customers, clients, and third parties) to be treated with

respect and dignity. Our targets and related actions

clearly align to our two core priorities of Gender and

Ethnicity. We are taking meaningful actions in both the

short and medium term to drive sustainable change

within our business.

In 2024, we introduced a new target for 6% of UK senior

leadership representation to identify as minority ethnic

by 2027. Already we have seen strong progress,

momentum, and are on track for this target. This has

been in addition to our increased disclosure among

colleagues for race and ethnicity data. Our Sustainability

and TCFD report 2024 alongside our Pay Gap report

describes our progress, priorities, and additional detail

against our DEI ambition and plan. Our 2024 report can

be found on our website at www.abrdn.com/

annualreport

Progress against our diversity, equity and inclusion

ambition and plan is reviewed twice a year by the

Nomination and Governance Committee.

Gender representation


Gender Diversity	31 December 2024	Target by 2025
Women at plc Board	40% (4 of 10)	40% women
Women in senior leadership 1	40% (37 of 93)	40% women
Women in global workforce 2	43% (1,898 of 4,396)	50% (+/- 3% tolerance)

1. Relates to leaders one and two levels below the Chief Executive

Officer, including Company Secretary, excluding administration

roles, and individuals on garden leave.

2. 24 colleagues without gender data on our people system are

excluded from the headcount data.

Ethnicity recommendations

As evidence of our commitment to ethnic diversity, we

introduced an ethnicity target for the first time which

took effect on 1 January 2021, following the

recommendations of the Sir John Parker review. Since

2019 we have met the recommendation to have at least

one Board member who identifies as ethnic minority.

The Board Charter mandates appointments to be

based on merit, with due consideration given to the

Board’s gender and ethnicity balance.

Sustainability

Building a sustainable business helps us to achieve our

purpose: to enable our clients to be better investors.

Sustainability is not only about managing risks, but also

capturing opportunities.

We aim to consider sustainability when determining our

corporate strategy and commercial initiatives. Our

disclosure is aligned to recognised guidance

frameworks and seeks to consider the interests of our

various stakeholders. We support our clients and

customers in managing the long-term risks and

opportunities associated with the environmental

transition and inclusive growth.

Political donations

The Company has a long-standing policy of not making

political donations. The Company has limited

authorisation from shareholders to make political

donations and incur political expenditure. This is

requested as a precaution against any inadvertent

breach of political donations legislation. While abrdn has

regular interaction with government and elected

politicians in the UK and other jurisdictions in which we

operate, we are strictly apolitical.


			Annual report 2024	147


	GOVERNANCE

Auditors

The Audit Committee is responsible for considering the

Group’s external audit arrangements. Resolutions

proposing the re-appointment of KPMG LLP as auditors

of the Company and giving authority to the Audit

Committee to determine their remuneration will be

submitted at the 2025 AGM.

Disclosure of information to the auditors

The Directors who held office at the date of the approval

of this Directors’ report confirm that, so far as they are

each aware, there is no relevant audit information of

which the Company’s auditor is unaware; and each

Director has taken all the steps that he or she ought to

have taken as a Director to make himself or herself

aware of any relevant audit information and to establish

that the Company’s auditor is aware of that information.

Annual General Meeting

The 2025 AGM is scheduled to take place on 8 May 2025

in Edinburgh. Details of the meeting content can be

found in our AGM guide 2025. The AGM guide and other

materials will be published online at www.abrdn.com in

advance of this year’s AGM.

Post balance sheet events

There have been no material events occurring between

the balance sheet date and the date of signing this

report.


148	Annual report 2024


Directors’ report continued

Other information

Under UK Listing Rule (UKLR) 6.6.4.R, a listed company must include all information required by UKLR 6.6.4.R in a single

identifiable location or cross-reference table. For the purposes of UKLR 6.6.4.R, the information required to be

disclosed can be found in the following locations. All the relevant information cross-referenced below is hereby

incorporated by reference into this Directors’ report.


	Location
Topic	Directors’ report	Directors’ remuneration report	None/ Not applicable
Interest capitalised			x
Publication of unaudited financial information in a class 1 circular or in a prospectus, other than in accordance with Annexes 1 and 2 of the FCA’s Prospectus Rules			x
Details of long-term incentive schemes		x
Waiver of emoluments by a Director			x
Waiver of future emoluments by a Director			x
Non pre-emptive issues of equity for cash			x
Non pre-emptive issues of equity for cash in relation to major subsidiary undertakings			x
Parent participation in a placing by a listed subsidiary			x
Contracts of significance			x
Provision of services by a controlling shareholder			x
Shareholder waivers of dividends	x
Shareholder waivers of future dividends	x
Agreements with controlling shareholders			x

Going concern

The Group’s business activities, together with the factors likely to affect its future development, performance and

financial position, are set out in the Strategic report. This includes details on our liquidity and capital management

and our viability statement in the Chief Financial Officer’s overview section and our principal risks in the Risk

management section. The Group financial statements include additional information relating to going concern in

the basis of preparation section on page 178.

The Group continues to meet group and individual entity capital requirements and day-to-day liquidity needs. The

Company has a revolving credit facility of £400m as part of our contingency funding plans and this is due to mature

in 2028. The Group has considerable financial resources together with a diversified business model, with a spread of

business and geographical reach. As a consequence, the Directors believe that the Group is well placed to manage

its business risks successfully.

After making enquiries and having assessed the principal risks and all other available information, the Directors are

satisfied that the Group and Company have and will maintain sufficient resources to enable them to continue

operating for at least 12 months from the date of approval of the financial statements and therefore consider it

appropriate to adopt the going concern basis of accounting in preparing the financial statements. There are no

material uncertainties relating to this going concern conclusion. In addition, the Directors have assessed the Group’s

viability over a period of three years.

The Directors’ report was approved by the Board and signed on its behalf by:

Iain Jones

Company Secretary

3 March 2025


			Annual report 2024	149


	GOVERNANCE

Statement of Directors’ responsibilities in respect of

the Annual report and the financial statements

The Directors are responsible for preparing the Annual

report and accounts and the Group and Company

financial statements in accordance with applicable law

and regulations.

Company law requires the Directors to prepare Group

and Company financial statements for each financial

year. Under that law they are required to prepare the

Group financial statements in accordance with UK-

adopted international accounting standards and

applicable law and have elected to prepare the

Company financial statements in accordance with UK

accounting standards and applicable law, including FRS

101 Reduced Disclosure Framework.

Under company law the Directors must not approve the

financial statements unless they are satisfied that they

give a true and fair view of the state of affairs of the

Group and Company and of the Group’s profit or loss for

that period. In preparing each of the Group and

Company financial statements, the Directors are

required to:

– Select suitable accounting policies and then apply

them consistently.

– Make judgements and estimates that are reasonable,

relevant and reliable.

– For the Group financial statements, state whether

they have been prepared in accordance with UK-

adopted international accounting standards.

– For the Company financial statements, state whether

applicable UK accounting standards have been

followed, subject to any material departures disclosed

and explained in the Company financial statements.

– Assess the Group’s and Company’s ability to continue

as a going concern, disclosing, as applicable, matters

related to going concern.

– Use the going concern basis of accounting unless they

either intend to liquidate the Group or the Company or

to cease operations, or have no realistic alternative

but to do so.

The Directors are responsible for keeping adequate

accounting records that are sufficient to show and

explain the Company’s transactions and disclose with

reasonable accuracy at any time the financial position

of the Company and enable them to ensure that its

financial statements comply with the Companies Act

2006. They are responsible for such internal control as

they determine is necessary to enable the preparation

of financial statements that are free from material

misstatement, whether due to fraud or error, and have

general responsibility for taking such steps as are

reasonably open to them to safeguard the assets of the

Group and to prevent and detect fraud and other

irregularities.

Under applicable law and regulations, the Directors are

also responsible for preparing a Strategic report,

Directors’ report, Directors’ remuneration report and

Corporate governance statement that complies with

that law and those regulations.

The Directors are responsible for the maintenance and

integrity of the corporate and financial information

included on the Company’s website. Legislation in the UK

governing the preparation and dissemination of

financial statements may differ from legislation in other

jurisdictions. In accordance with Disclosure Guidance

and Transparency Rule (DTR) 4.1.16R, the financial

statements will form part of the annual financial report

prepared under DTR 4.1.17R and 4.1.18R. The auditor’s

report on these financial statements provides no

assurance over whether the annual financial report has

been prepared in accordance with those requirements.

Responsibility statement of the Directors in

respect of the annual financial report

We confirm that to the best of our knowledge:

– The financial statements, prepared in accordance

with the applicable set of accounting standards, give a

true and fair view of the assets, liabilities, financial

position and profit or loss of the Company and the

undertakings included in the consolidation taken as a

whole.

– The Strategic report and Directors’ report include a

fair review of the development and performance of

the business and the position of the Company and the

undertakings included in the consolidation taken as a

whole, together with a description of the principal risks

and uncertainties that they face.

We consider the Annual report and accounts, taken as a

whole, is fair, balanced and understandable and

provides the information necessary for shareholders to

assess the Group’s position and performance, business

model and strategy.

By order of the Board



Sir Douglas Flint Chair 3 March 2025	Jason Windsor Chief Executive Officer 3 March 2025


150	Annual report 2024

Financial

information


			Annual report 2024	151


		FINANCIAL INFORMATION


Contents
Independent auditor’s report	152
Group financial statements	169
Company financial statements	270
Supplementary information	286


Note		Page
1	Group structure	180
2	Segmental analysis	183
3	Net operating revenue	187
4	Net gains or losses on financial instruments and other income	190
5	Administrative and other expenses	191
6	Staff costs and other employee-related costs	191
7	Auditors' remuneration	192
8	Restructuring and corporate transaction expenses	192
9	Taxation	193
10	Earnings per share	197
11	Adjusted profit and adjusting items	198
12	Dividends on ordinary shares	199
13	Intangible assets	199
14	Investments in associates and joint ventures	206
15	Property, plant and equipment	209
16	Leases	211
17	Financial assets	214
18	Derivative financial instruments	216
19	Receivables and other financial assets	218
20	Other assets	218
21	Assets and liabilities held for sale	219
22	Cash and cash equivalents	220


Note		Page
23	Unit linked liabilities and assets backing unit linked liabilities	221
24	Issued share capital and share premium	223
25	Shares held by trusts	223
26	Retained earnings	224
27	Movements in other reserves	225
28	Other equity and non-controlling interests	227
29	Financial liabilities	228
30	Subordinated liabilities	229
31	Pension and other post-retirement benefit provisions	230
32	Other financial liabilities	237
33	Provisions and other liabilities	238
34	Financial instruments risk management	239
35	Structured entities	246
36	Fair value of assets and liabilities	247
37	Statement of cash flows	252
38	Contingent liabilities and contingent assets	255
39	Commitments	255
40	Employee share-based payments and deferred fund awards	256
41	Related party transactions	259
42	Capital management	260
43	Events after the reporting date	261
44	Related undertakings	262

How to navigate our Group financial statements



	The Group’s significant accounting policies are included at the beginning of the relevant notes to the Group financial statements with this background colour. Critical judgements in applying accounting policies are summarised in the Presentation of consolidated financial statements section which follows the primary financial statements. Accounting policies that are relevant to the financial statements as a whole are also set out in that section.



	The Group’s critical accounting estimates and assumptions are summarised in the Presentation of consolidated financial statements section which follows the primary financial statements. Further detail on these critical accounting estimates and assumptions is provided in the relevant note with this background colour.


152	Annual report 2024


Independent auditor’s report to the members of abrdn plc

Independent auditor’s report to the members of

abrdn plc

1. Our opinion is unmodified

In our opinion:

– The financial statements of abrdn plc give a true and fair view of the state of the Group’s and of the Parent

Company’s affairs as of 31 December 2024, and of the Group’s profit for the year then ended.

– The Group financial statements have been properly prepared in accordance with UK-adopted international

accounting standards.

– The Parent Company financial statements have been properly prepared in accordance with UK accounting

standards, including FRS 101 Reduced Disclosure Framework.

– The Group and Parent Company financial statements have been prepared in accordance with the requirements

of the Companies Act 2006.

What our opinion covers

We have audited the Group and Parent Company financial statements of abrdn plc (the Company) for the year

ended 31 December 2024 (2024) included in the Annual report and accounts, which comprise:


Group	Parent Company (abrdn plc)
Consolidated income statement Consolidated statement of comprehensive income Consolidated statement of financial position Consolidated statement of changes in equity Consolidated statement of cash flows Notes 1 to 42(a) and 43 to the Group financial statements, including the accounting policies in those notes and in the Presentation of consolidated financial statements section.	Company statement of financial position Company statement of changes in equity Notes A to R to the Parent Company financial statements, including the accounting policies in the Company accounting policies section.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable

law. Our responsibilities are described below. We believe that the audit evidence we have obtained is a sufficient

and appropriate basis for our opinion. Our audit opinion and matters included in this report are consistent with those

discussed and included in our reporting to the Audit Committee (AC).

We have fulfilled our ethical responsibilities under, and we remain independent of the Group in accordance with, UK

ethical requirements including the FRC Ethical Standard as applied to listed public interest entities.


			Annual report 2024	153


		FINANCIAL INFORMATION

2. Overview of our audit


Factors driving our view of risks	Following our prior year (2023) audit and considering developments affecting the abrdn plc Group since then, we have updated our risk assessment. Much of the uncertainty in the macro-economic environment that existed at the end of 2023 remains. Continued performance challenges within the Investments business have negatively contributed to fee-based revenue during the financial year. This has been offset by continued growth in ii profits and the impact of group wide cost savings from the transformation programme announced on 24 January 2024. Overall, fee-based revenue has fallen slightly year on year and our materiality levels have fallen to reflect this. Our consideration in respect of Key Audit Matters identified are consistent with the prior year and are explained below. During 2023, given the challenging global economic environment as well as the Group’s wider financial performance, we identified that there was a significant risk around the recoverability of certain of the Group’s goodwill balances and certain of the Parent Company’s investments in subsidiaries. As there continues to be market uncertainty and performance challenges for the Group, we have again identified a significant risk in these areas for 2024. Due to impairments of certain goodwill balances in the prior years, in the current year the risk relates to the recoverability of ii goodwill only. Given the substantial size of the carrying value of the Parent Company’s investment in abrdn Holdings Limited (“aHL”) and the ongoing performance challenges faced by the Investments business, we continue to recognise a significant risk regarding the recoverability of this balance. In line with our considerations of the ii goodwill balance, we have also identified a significant risk in relation to the carrying value of the Parent Company’s investment in ii. We have not identified a significant risk over any other parent company investment in subsidiary balances due to the limited estimation uncertainty associated with these recoverable values. Due to the performance of the ii business in the year we believe that this risk of impairment has reduced compared to last year for both the Group goodwill and Parent Company investment in subsidiary balances. As part of our risk assessment, we maintained our focus on future economic and operational assumptions used by the Group in its accounting estimates. The most significant area that these could impact the financial statements (outside of goodwill and investment in subsidiaries as noted above) is in the valuation of the defined benefit pension obligation. As a result, this continues to be a Key Audit Matter.	Key audit matters	vs 2023	Item
		Recoverability of the ii goodwill (Group) and of certain of the parent company’s investments in subsidiaries (Parent company)	ê	4.1
		Valuation of the principal UK defined benefit pension scheme present value of funded obligation (Group)		4.2
		Revenue recognition: management fee revenue from contracts with customers	çè	4.3


154	Annual report 2024


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Factors driving our view of risks continued	The Group has a number of revenue streams. The area of revenue which had the greatest effect on our overall Group audit and audit effort in the current period is management fee income (institutional, retail wealth and insurance partners), including associated rebates of investment management fees. The nature of, and approach to calculating, management fees and rebates has remained consistent year on year, while market volatility and uncertainty continue to drive a revenue focus for users of the financial statements. While not reported as Key Audit Matters, we also identified that the Group’s ongoing cost transformation programme and corporate transactions would have financial reporting implications that would require consideration in the Group and Parent Company financial statements.




Audit Committee interaction	During the year, the AC met six times. KPMG are invited to attend all AC meetings and are provided with an opportunity to meet with the AC in private sessions without the Executive Directors being present. For each Key Audit Matter, we have set out communications with the AC in section 4, including matters that required particular judgment for each. The matters included in the Audit Committee Chair’s report on pages 105 - 113 are materially consistent with our observations of those meetings.
Our Independence	We have fulfilled our ethical responsibilities under, and we remain independent of the Group in accordance with, UK ethical requirements including the FRC Ethical Standard as applied to listed public interest entities. We have not performed any non-audit services during 2024 or subsequently which are prohibited by the FRC Ethical Standard. We were first appointed as auditor by the shareholders for the year ended 31 December 2017. The period of total uninterrupted engagement is for the eight financial years ended 31 December 2024. The Group engagement partner is required to rotate every 5 years. As these are the third set of the Group’s financial statements signed by Richard Faulkner, he will be required to rotate off after the FY26 audit. The average tenure of component engagement partners is 2.5 years, with the shortest being 1 year and the longest being 5 years.	Total audit fee	£7.5m
		Audit related fees (including interim review)	£2.7m
		Other services	£0.9m
		Non-audit fee as a % of total audit and audit related fee %	9%
		Date first appointed	16 May 2017
		Uninterrupted audit tenure	8 years
		Next financial period which requires a tender	FY27
		Tenure of Group engagement partner	3 years
		Average tenure of component engagement partners	2.5 year

Materiality (item 6 below)	The scope of our work is influenced by our view of materiality and our assessed risk of material misstatement. We have determined overall materiality for the Group financial statements as a whole at £13.2m (2023: £13.7m) and for the Parent Company financial statements as a whole at £13.0m (2023: £13.0m). Consistent with 2023, we determined that total revenue from contracts with customers remains the benchmark for the Group as underlying performance is such that a normalised profit benchmark would indicate materiality which is inappropriate for the size and scale of the Group. As such, we based our Group materiality on total revenue, of which it represents 1.0% (2023: 0.9%). Materiality for the Parent Company financial statements was determined with reference to a benchmark of Parent Company total assets, limited to be no more than materiality for the group financial statements as a whole. It represents 0.2% (2023: 0.2%) of the stated benchmark.	Materiality levels used in our audit


Group Materiality
Group Performance Materiality
Highest Component Materiality
Parent Company Materiality
Lowest Component Materiality
Audit Misstatement Posting Threshold


ò	2024	ò	2023


			Annual report 2024	155


		FINANCIAL INFORMATION


Group Scope (Item 7 Below)	We have performed risk assessment procedures to determine which of the Group’s components are likely to include risks of material misstatement to the Group financial statements, what audit procedures to perform at these components and the extent of involvement required from our component auditors around the world. In total, we identified 313 components, having considered our evaluation of the Group’s operational and legal structure and our ability to perform audit procedures centrally. Of those, we identified 7 quantitatively significant components which contained the largest percentages of either total revenue or total assets of the Group, for which we performed audit procedures. Of these, one component was also identified as requiring special audit consideration, owing to the Group risk relating to the UK Defined Benefit pension scheme residing in the component. Additionally, having considered qualitative and quantitative factors, we selected 10 components with accounts contributing to the specific risks of material misstatement of the Group financial statements. For the remaining components for which we performed no audit procedures, we performed analysis at an aggregated Group level to re-examine our assessment that there is not a reasonable possibility of a material misstatement in these components. We consider the scope of our audit, as communicated to the Audit Committee, to be an appropriate basis for our audit opinion.	Coverage of Group financial statements Our audit procedures covered 86% of Group revenue from contracts with customers: Our audit procedures covered 91% of Group total assets: Our audit procedures covered 81% of Group profit before tax:


ò	Revenue coverage
ò	Revenue not in scope


ò	Total assets coverage
ò	Total assets not in scope


ò	Profit before tax coverage
ò	Profit before tax not in scope


156	Annual report 2024


Independent auditor’s report to the members of abrdn plc continued


The impact of climate change on our audit	In planning our audit we have considered the potential impacts of climate change on the Group’s business and its financial statements. Climate change impacts the Group in a number of ways including the impact of climate risk on investment valuations, potential reputational risk associated with the Group’s delivery of its climate related initiatives, and greater emphasis on climate related narrative and disclosure in the annual report. The Group’s direct exposure to climate change in the financial statements is primarily through its investment holdings, as the key valuation assumptions and estimates may be impacted by climate risks. As part of our audit, we have made enquiries of Directors and the Group’s Corporate Sustainability team to understand the extent of the potential impact of climate change risk on the Group’s financial statements and the Group’s preparedness for this. We have performed a risk assessment of how the impact of climate change may affect the financial statements and our audit, in particular with respect to investment holdings. We consider that the impact of climate risk on level 1 and level 2 investments is already reflected in the market prices used to value these holdings at year end. As such, the impact of climate change was limited to the valuation of level 3 investment holdings; taking into account the relative size of the level 3 investments balance, we assessed that the impact of climate change was not a significant risk for our audit nor does it constitute a key audit matter. We did not consider the potential impact of climate change on the sustainability of earnings or cashflow forecasts to be material. We held discussions with our own climate change professionals to challenge our risk assessment. We have also read the Group’s disclosure of climate related information in the front half of the Annual report and accounts as set out on pages 42 to 63 and considered consistency with the financial statements and our audit knowledge.


			Annual report 2024	157


		FINANCIAL INFORMATION

3. Going concern, viability and principal risks and uncertainties

The Directors have prepared the financial statements on the going concern basis as they do not intend to liquidate

the Group or the Parent Company or to cease their operations and as they have concluded that the Group’s and

the Parent Company’s financial position means that this is realistic. They have also concluded that there are no

material uncertainties that could have cast significant doubt over their ability to continue as a going concern for at

least a year from the date of approval of the financial statements (the going concern period).


Going Concern
We used our knowledge of the Group, its industry and operating model, and the general economic environment to identify the inherent risks to its business model and analysed how those risks might affect the Group’s and the Parent Company’s financial resources or ability to continue operations over the going concern period. The risk that we considered most likely to adversely affect the Group’s and Parent Company’s available financial resources over this period was increased market volatility leading to reduced revenue for the Group. We considered whether this risk could plausibly affect the liquidity in the going concern period by assessing the degree of downside assumption that, individually and collectively, could result in a liquidity issue, taking into account the Group’s and Parent Company’s current and projected cash and facilities (a reverse stress test). We also assessed the completeness of the going concern disclosure. Accordingly, based on those procedures, we found the Directors’ use of the going concern basis of accounting without any material uncertainty for the Group and Parent Company to be acceptable. However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the above conclusions are not a guarantee that the Group or the Parent Company will continue in operation.	Our conclusions – We consider that the Directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate; – We have not identified, and concur with the Directors’ assessment that there is not, a material uncertainty related to events or conditions that, individually or collectively, may cast significant doubt on the Group’s or Parent Company's ability to continue as a going concern for the going concern period; – We have nothing material to add or draw attention to in relation to the Directors’ statement i n note (a)(r) to the financial statements on the use of the going concern basis of accounting with no material uncertainties that may cast significant doubt over the Group’s and Parent Company’s use of that basis for the going concern period, and we found the going concern disclosure in note (a)(r) to be acceptable; and – The related statement under the Listing Rules set out on page 148 is materially consistent with the financial statements and our audit knowledge.


Disclosures of emerging and principal risks and longer-term viability
Our responsibility We are required to perform procedures to identify whether there is a material inconsistency between the Directors’ disclosures in respect of emerging and principal risks and the viability statement, and the financial statements and our audit knowledge. Based on those procedures, we have nothing material to add or draw attention to in relation to: – The Directors’ confirmation within the Viability statement on page 80 that they have carried out a robust assessment of the emerging and principal risks facing the Group, including those that would threaten its business model, future performance, solvency and liquidity; – The Risk Management disclosures describing these risks and how emerging risks are identified and explaining how they are being managed and mitigated; and – The Directors’ explanation in the Viability Statement of how they have assessed the prospects of the Group, over what period they have done so and why they considered that period to be appropriate, and their statement as to whether they have a reasonable expectation that the Group will be able to continue in operation and meet its liabilities as they fall due over the period of their assessment, including any related disclosures drawing attention to any necessary qualifications or assumptions. We are also required to review the Viability Statement set out on page 80 under the Listing Rules. Our work is limited to assessing these matters in the context of only the knowledge acquired during our financial statements audit. As we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the absence of anything to report on these statements is not a guarantee as to the Group’s and Parent Company’s longer-term viability.	Our reporting We have nothing material to add or draw attention to in relation to these disclosures. We have concluded that these disclosures are materially consistent with the financial statements and our audit knowledge.


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Independent auditor’s report to the members of abrdn plc continued

4. Key audit matters

What we mean

Key audit matters are those matters that, in our professional judgement, were of most significance in the audit of the

financial statements and include the most significant assessed risks of material misstatement (whether or not due to fraud)

identified by us, including those which had the greatest effect on:

– The overall audit strategy.

– The allocation of resources in the audit.

– Directing the efforts of the engagement team.

We include below the Key Audit Matters in decreasing order of audit significance together with our key audit

procedures to address those matters and our findings from those procedures in order that the Company's

members, as a body, may better understand the process by which we arrived at our audit opinion. These matters

were addressed, and our findings are based on procedures undertaken, for the purpose of our audit of the financial

statements as a whole. We do not provide a separate opinion on these matters.

4.1 Recoverability of certain goodwill (Group) and of certain of the Parent Company’s

investments in subsidiaries (Parent Company)


Financial Statement Elements			Our assessment of risk vs 2023			Our findings
	2024	2023	ê	Due to impairments in previous years, the risk associated with the recoverability of Goodwill and Investment in Subsidiary balances has declined. Furthermore, the increased level of headroom on the interactive investor (‘ii’) goodwill investment in subsidiary indicates that there is a reduced risk of impairment on these balances.		2024: Balanced 2023: Balanced
Goodwill - ii:	£819m	£819m
Investment in subsidiaries - ii:	£1,512m	£1,512m
Investment in subsidiaries - aHL:	£1,113m	£1,228m

Description of the Key Audit Matter					Our response to the risk
The results in the Investments business have been impacted by the external market environment in addition to wider performance challenges. The abrdn Holdings Limited (“aHL”) subsidiary is the most material contributor to that business and has been impaired in the current year by £15m. The performance of the ii business is also very material to the Group, given the size of the associated goodwill and investment in subsidiary balances that arose on acquisition. Further, the net assets attributable to equity holders of the Parent Company and overall Group significantly exceeded the Group’s market capitalisation at the balance sheet date. These factors mean there is a heightened risk associated with the recoverability of the associated Parent Company investment in the ii and aHL subsidiaries and, in relation to ii, the goodwill balance allocated to the corresponding cash generating unit (CGU) in the Group financial statements. In the prior year, this Key Audit Matter included recoverability of the goodwill and investment in subsidiary balance associated with the Financial Planning business. The impairments recognised in the prior and current periods have reduced the carrying value of these balances to a level at which we have determined that the recoverability of the balances is no longer part of the Key Audit Matter.					We performed the procedures below rather than seeking to rely on any of the Group’s controls because the nature of the balances are such that we would expect to obtain audit evidence primarily through the detailed procedures described. Our procedures included: Our sector expertise: We critically assessed the Group’s assessment of whether there were any impairment indicators for the Parent Company’s investment in subsidiaries, including comparing the carrying value of Parent Company’s net assets with the Group’s market capitalisation and considering the subsidiaries’ business performance. Our valuation expertise: Using our own valuation specialists, we assessed the appropriateness of the Group’s FVLCD methodology and the appropriateness of the input assumptions used in calculating the FVLCD of the CGUs to which certain goodwill is allocated and of certain of the Parent Company’s investment in subsidiaries.


			Annual report 2024	159


		FINANCIAL INFORMATION


Goodwill and investment in subsidiaries - subjective estimate Goodwill is tested for impairment at least annually whether or not indicators of impairment exist. For goodwill, the impairment assessment is performed by comparing the carrying amount of each CGU or group of CGUs to which goodwill is allocated with its recoverable amount being the higher of its value in use (VIU) or fair value less costs of disposal (FVLCD). Similarly, for investments in subsidiaries the carrying value of the investment in the subsidiary is compared with the recoverable amount of that investment being the higher of its VIU or FVLCD. In determining the FVLCD, the key assumptions are forecast cash flows, market multiples (including applicable premiums/discounts) and discount rates (as applicable). The resulting recoverable amounts, in particular for the CGU and investments in subsidiaries set out above, are subjective due to the inherent uncertainty in determining these assumptions and are therefore also susceptible to management bias. The effect of these matters is that, as part of our risk assessment, we determined that the recoverable amount of the ii goodwill and certain investments in subsidiaries have a high degree of estimation uncertainty, with a potential range of reasonable outcomes greater than our materiality for the financial statements as a whole and possibly many times that amount. The financial statements (notes 13 and A) disclose the sensitivity estimated by the Group and Parent Company.					Benchmarking assumptions: We compared the Group’s assumptions to externally derived data in relation to key inputs such as market multiples and discount rates. Sensitivity analysis: We performed our own sensitivity analysis which included assessing the effect of reasonable alternative assumptions in respect of forecast cash flows, market multiples (including applicable premiums/discounts) and discount rates (as applicable) to evaluate the impact on the FVLCD of the CGUs to which certain goodwill is allocated and of certain of the Parent Company’s investment in subsidiaries. Assessing transparency: We assessed whether the Group’s disclosures (in respect of goodwill) and the Parent Company’s disclosures (in respect of investment in subsidiaries) about the sensitivity of the outcome of the impairment assessment to changes in key assumptions reflect the risks inherent in the recoverable amount of goodwill and investment in subsidiaries.
Communications with the abrdn plc Audit Committee Our discussions with and reporting to the Audit Committee included: – Our definition of the key audit matter relating to the recoverability of the ii goodwill and certain of the Parent Company’s investments in subsidiaries including our assessment of the risks associated with individual goodwill balances. – Our audit response to the key audit matter which included the use of specialists to challenge key aspects of the Group’s and Parent Company’s determination of the recoverable amount and level of impairment. – The findings of our procedures. Areas of particular auditor judgement We identified the following as the areas of particular auditor judgement: – Subjective and complex auditor judgement was required in evaluating the key assumptions used by the Group and Parent Company (including forecast cash flows, market multiples (and applicable premiums/discounts) and discount rates (as applicable)). Our findings We found the Group’s estimated recoverable amount of the ii goodwill to be balanced (2023: balanced) with proportionate (2023: proportionate) disclosures of the related assumptions and sensitivities. We found the Parent Company’s estimated recoverable amount of certain of its investments in subsidiaries and the related impairment charges to be balanced (2023: balanced) with proportionate (2023: proportionate) disclosures of the related assumptions and sensitivities.

Further information in the Annual Report and Accounts: See the Audit Committee Report on page 105 to 113 for

details on how the Audit Committee considered recoverability of the ii goodwill and of certain of the Parent

Company’s investments in subsidiaries as areas of significant attention, pages 199 to 205 for the accounting policy

on goodwill and financial disclosures, page 273 for the investment in subsidiaries accounting policy and pages 275

to 278 for the investment in subsidiaries financial disclosures.


160	Annual report 2024


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4.2 Valuation of the principal UK defined benefit pension scheme present value of funded

obligation (Group)


Financial Statement Elements			Our assessment of risk vs 2023		Our findings
	2024	2023	çè	Our assessment is that the risk is similar to 2023. Market volatility remains high and the risk associated with the selection of economic assumptions remains similar to 2023.	2024: Optimistic 2023: Balanced
Present value of funded obligation:	£1,552m	£1,784m	çè		2024: Optimistic 2023: Balanced


Description of the Key Audit Matter	Our response to the risk
Subjective valuation The present value of the Group’s funded obligation for the principal UK defined benefit pension scheme is an area that involves significant judgement over the uncertain future settlement value. The Group is required to use judgement in the selection of key assumptions covering both operating assumptions and economic assumptions. The key operating assumptions are base mortality and mortality improvement. The key economic assumptions are the discount rate and inflation. The risk is that inappropriate assumptions are used in determining the present value of the funded obligation. The effect of these matters is that, as part of our risk assessment, we determined that the valuation of the pension scheme obligation has a high degree of estimation uncertainty, with a potential range of reasonable outcomes greater than our materiality for the financial statements as a whole and possibly many times that amount. The financial statements (note 31) disclose the sensitivity estimated by the Group.	We performed the procedures below rather than seeking to rely on any of the Group’s controls because the nature of the balance is such that we would expect to obtain audit evidence primarily through the detailed procedures described. Our procedures included: Assessing actuaries’ credentials: We evaluated the competency and objectivity of the Group’s experts who assisted them in determining the actuarial assumptions used to calculate the defined benefit obligation. Benchmarking assumptions: We considered, with the support of our own actuarial specialists, the appropriateness of the base mortality assumption by reference to scheme and industry data on historical mortality experience and the outcome of the latest triennial report. We considered, with the support of our own actuarial specialists, the appropriateness of the mortality improvement assumptions by reference to industry-based expectations of future mortality improvements and the appropriateness of the discount rate and inflation assumptions by reference to industry practice. Assessing transparency: In conjunction with our own actuarial specialists, we considered whether the Group’s disclosures in relation to the assumptions used in the calculation of the present value of the funded obligation appropriately represent the sensitivities of the obligation to the use of alternative assumptions.
Communications with the abrdn plc Audit Committee Our discussions with and reporting to the Audit Committee included: – Our identification of the key audit matter relating to the valuation of the defined benefit pension obligation. – Our audit response to the key audit matter which included the use of our own specialists to challenge key aspects of the Group’s actuarial valuation. – The findings of our procedures. Areas of particular auditor judgement We identified the following as the areas of particular auditor judgement: – Subjective and complex auditor judgement was required in evaluating the key assumptions used by the Group (including the discount rate, inflation and mortality assumptions). Our findings We found the Group’s valuation of the Principal UK defined benefit pension scheme obligation to be optimistic (2023: balanced) with proportionate (2023: proportionate) disclosures of the related assumptions and sensitivities.

Further information in the Annual report and accounts: See the Audit Committee Report on pages 105 to 113 for

details on how the Audit Committee considered the valuation of the UK defined benefit pension scheme obligation

as an area of significant attention, page 230 for the accounting policy on the valuation of the UK defined benefit

pension scheme obligation, and note 31 for the financial disclosures.


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		FINANCIAL INFORMATION

4.3 Revenue recognition: management fee revenue from contracts with customers

(Group)


Financial Statement Elements			Our assessment of risk vs 2023		Our findings
	2024	2023	çè	Our assessment is that the risk is similar to 2023. The nature and complexity of management fee calculations remains at a similar level to last year while market volatility and uncertainty remain.	2024 and 2023: We found no significant items, either unadjusted or adjusted for
Management fee income – Institutional and Retail Wealth	£679m	769m
Management fee income – Insurance Partners	£116m	£132m


Description of the Key Audit Matter	Our response to the risk
Data capture and calculation error Revenue from contracts with customers is the most significant item in the consolidated income statement and represents one of the areas that had the greatest effect on the overall Group audit. In addition, market volatility and uncertainty has driven increased revenue focus. The balance comprises various revenue streams as outlined in note 3. The area of revenue which had the greatest effect on our overall Group audit and audit effort in the current period is management fee income (institutional, retail wealth and insurance partners), including associated management fee rebates, which is the most significant and, in certain areas, for example for segregated account management fee calculations, complex item. The nature and complexity of management fee calculations has remained largely stable year on year. The two key components in calculating management fee income are fee rates to be applied and the amount of assets under management (AUM) resulting in the following key risks: – Fee rates: There is a risk that fee rates have not been entered appropriately into the fee calculation and billing systems when clients are onboarded or agreements are amended. – AUM: There is a risk that AUM data from third-party service providers or client appointed administrators and/or custodians does not exist and/or is not accurate. – Calculation: There is a risk that management fee income, including associated rebates, is incorrectly calculated.	Our procedures included: We performed the detailed procedures below rather than seeking to rely on the Group’s controls as our knowledge indicated that we would be unlikely to obtain the required evidence to support reliance on the controls. We assessed the design and operating effectiveness of controls at third party service providers over the production of AUM data that is used in calculating management fees and associated rebates. This included inspecting the internal controls reports prepared by relevant outsourced service organisations covering the design and operation of key controls over the production of AUM data used in the calculation of management fees. Tests of details and substantive analytical procedures We agreed a selection of fee rates and associated rebate rates used in the calculation to the investment management agreements (IMAs), fee letters or fund prospectuses outlining the effective fee rates. Where AUM data was obtained from third party service organisations (and where we had tested the controls over the AUM data) we independently calculated management fees. Where AUM data was obtained from a client appointed administrator and/or custodian (and so we could not test controls over the AUM data) we independently calculated management fees and/or agreed a selection of amounts billed and received to invoice and bank statements.
Communications with the abrdn plc Audit Committee Our discussions with and reporting to the Audit Committee included: – Our definition of the key audit matter relating to revenue recognition: management fee revenue from contracts with customers. – Our audit response to the key audit matter which included use of data and analytics technology to complete certain of the recalculations. – The findings of our procedures. Our findings – We found no significant items, either unadjusted or adjusted for, in the Group’s management fee revenue from contracts with customers (2023: no significant items either unadjusted or adjusted for).

Further information in the Annual report and accounts: See page 187 for the accounting policy on revenue from

contracts with customers and note 3 for the financial disclosures.


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5. Our ability to detect irregularities, and our response


Fraud - Identifying and responding to risks of material misstatement due to fraud
Fraud risk assessment	To identify risks of material misstatement due to fraud (fraud risks) we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures included: – Enquiring of the Directors, the Audit Committee, Group Internal Audit and the Group’s Legal team and inspection of policy documentation as to the Group’s high-level policies and procedures to prevent and detect fraud, including the internal audit function, and the Group’s channel for ‘whistleblowing’, as well as whether they have knowledge of any actual, suspected or alleged fraud. – Reading Board and certain other committee minutes and attending Audit Committee and Risk and Capital Committee meetings. – Considering the findings of Group Internal Audit’s reviews covering the financial year. – Considering remuneration incentive schemes and performance targets for management and the Directors.
Risk communications	We communicated identified fraud risks throughout the audit team and remained alert to any indications of fraud throughout the audit. This included communication from the Group auditor to component auditors of relevant fraud risks identified at the Group level and requesting component auditors performing procedures at the component level to report to the Group auditor any identified fraud risk factors or identified or suspected instances of fraud.
Fraud risks	As required by auditing standards, and taking into account possible pressures to meet profit targets and our overall knowledge of the control environment, we performed procedures to address the risk of management override of controls, in particular the risk that Group and component management may be in a position to make inappropriate accounting entries, and the risk of bias in accounting estimates and judgements such as impairment and pension assumptions. On this audit we do not believe there is a fraud risk related to revenue recognition, given the lack of judgement involved in revenue recognition and the segregation of duties between management and third party service providers. In the current year we also continued to identify a fraud risk related to the recoverability of the Group’s ii goodwill balance and Parent Company’s ii investment in subsidiary balance given the size of the associated goodwill and investment in subsidiary balances that arose on acquisition and its significance to Group strategy going forward.
Link to KAMs	Further detail in respect of the risk of fraud over the recoverability of the Group’s ii goodwill balance and the Parent Company’s ii investment in subsidiary balance, including our procedure to compare certain key input assumptions to external market data, is set out in the key audit matter disclosures in section 4.1 of this report.
Procedures to address fraud risks	In determining the audit procedures we took into account the results of our evaluation and testing of the operating effectiveness of some of the Group-wide fraud risk management controls. We also performed substantive audit procedures including: – Identifying journal entries and other adjustments to test for all Group components based on risk criteria and comparing the identified entries to supporting documentation. These included journal entries posted by senior finance management and those posted to unusual accounts, as well as those which comprised unexpected posting combinations. – Evaluating the business purpose of significant unusual transactions. – Assessing significant accounting estimates for bias, including whether the judgements made in making accounting estimates are indicative of a potential bias.


			Annual report 2024	163


		FINANCIAL INFORMATION


Laws and regulations - Identifying and responding to risks of material misstatement RELATING TO compliance with laws and regulations
Laws and regulations risk assessment	We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements. For this risk assessment matters considered included the following: – Our general commercial and sector experience. – Discussion with the Directors and other management (as required by auditing standards). – Inspection of the Group’s regulatory and legal correspondence. – Inspection of the policies and procedures regarding compliance with laws and regulation. As the Group and many of its subsidiaries are regulated, our assessment of risks involved gaining an understanding of the control environment including the Group’s procedures for complying with regulatory requirements, how they analyse identified breaches and assessing whether there were any implications of identified breaches on our audit.
Risk communications	We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. This included communication from the Group auditor to component auditors of relevant laws and regulations identified at the Group level, and a request for component auditors to report to the Group audit team any instances of non-compliance with laws and regulations that could give rise to a material misstatement at the Group level. The potential effect of these laws and regulations on the financial statements varies considerably.
Direct laws context and link to audit	Firstly, the Group is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related companies legislation), distributable profits legislation, taxation legislation and pensions regulations and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
Most significant indirect law/ regulation areas	Secondly, the Group is subject to many other laws and regulations where the consequences of noncompliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect: – Specific areas of regulatory capital and liquidity; – Conduct, including Client Assets; – Anti-money laundering; and – Market abuse Regulation. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management and inspection of regulatory and legal correspondence, if any. Therefore, if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach.
Actual or suspected breaches discussed with AC	We discussed with the Audit Committee matters related to actual or suspected breaches of laws or regulations, for which disclosure is not necessary, and considered any implications for our audit.
Context
Context of the ability of the audit to detect fraud or breaches of law or regulation	Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of fraud, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non- compliance with all laws and regulation


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6. Our determination of materiality

The scope of our audit was influenced by our application of materiality. We set quantitative thresholds and overlay

qualitative considerations to help us determine the scope of our audit and the nature, timing and extent of our

procedures, and in evaluating the effect of misstatements, both individually and in the aggregate, on the financial

statements as a whole.


£13.2m (2023: £13.7m) Materiality for the group financial statements as a whole	What we mean A quantitative reference for the purpose of planning and performing our audit.
	Basis for determining materiality and judgements applied Materiality for the Group financial statements as a whole was set at £13.2m (2023: £13.7m). This was determined with reference to a benchmark of total revenue from contracts with customer Consistent with 2023, we determined that total revenue from contracts with customers remains the main benchmark for the Group as given the performance is such that a normalised profit benchmark would indicate materiality which is inappropriate for the size and scale of the Group. Our Group materiality of £13.2m was determined by applying a percentage to the total revenue from contracts with customers. When using a benchmark of total revenue from contracts with customers to determine overall materiality, KPMG’s approach for listed entities considers a guideline range of 0.5% to 1.0% of the measure. In setting overall Group materiality, we applied a percentage of 1.0% (2023: 0.9%) to the benchmark. Materiality for the Parent Company financial statements as a whole was set at £13.0m (2023: £13.0m), determined with reference to a benchmark of Parent Company total assets, limited to be less than materiality for the group financial statements as a whole (2023: no change). Our materiality was lower than we would have determined with reference to a benchmark of parent company total assets. It represents 0.2% (2023: 0.2%) of the stated benchmark.
£6.6m (2023: £6.9m) Performance materiality	What we mean Our procedures on individual account balances and disclosures were performed to a lower threshold, performance materiality, so as to reduce to an acceptable level the risk that individually immaterial misstatements in individual account balances add up to a material amount across the financial statements as a whole.
£6.6m (2023: £6.9m) Performance materiality	Basis for determining performance materiality and judgements applied We have considered performance materiality at a level of 50% (2023: 50%) of materiality for abrdn plc’s Group financial statements as a whole to be appropriate. The Parent Company performance materiality was set at £6.5m (2023: £6.5m), which equates to 50% (2023: 50%) of materiality for the Parent Company financial statements as a whole. We applied this reduced percentage in our determination of performance materiality for the Group and Parent Company financial statements in the current year as we identified specific factors indicating an elevated level of aggregation risk. These factors included the ongoing level of transformation and change impacting the Group’s systems of internal control.
£0.66m (2023: £0.69m) Audit misstatement posting threshold	What we mean This is the amount below which identified misstatements are considered to be clearly trivial from a quantitative point of view. We may become aware of misstatements below this threshold which could alter the nature, timing and scope of our audit procedures, for example if we identify smaller misstatements which are indicators of fraud. This is also the amount above which all misstatements identified are communicated to the Audit Committee.
£0.66m (2023: £0.69m) Audit misstatement posting threshold	Basis for determining the audit misstatement posting threshold and judgements applied We set our audit misstatement posting threshold at 5% (2023: 5%) of our materiality for the Group financial statements. We also report to the Audit Committee any other identified misstatements that warrant reporting on qualitative grounds.


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		FINANCIAL INFORMATION

The overall materiality for the Group financial statements of £13.2m (2023: £13.7m) compares as follows to the

main financial statement caption amounts:


	Total Group revenue		Group profit/(loss) before tax		Total Group assets
	2024	2023	2024	2023	2024	2023
Financial statement caption	£1,370m	£1,474m	£251m	(£6m)	£7,721m	£8,031m
Group materiality as % of caption	1.0%	0.9%	5.3%	(228.3%)	0.2%	0.2%

7. The scope of our audit


Group Scope	What we mean How the Group auditor determined the procedures to be performed across the Group.
Group Scope	This year, we applied the revised group auditing standard in our audit of the consolidated financial statements. The revised standard changes how an auditor approaches the identification of components, and how the audit procedures are planned and executed across components. In particular, the definition of a component has changed, shifting the focus from how the entity prepares financial information to how we, as the group auditor, plan to perform audit procedures to address group risks of material misstatement (RMMs). Similarly, the group auditor has an increased role in designing the audit procedures as well as making decisions on where these procedures are performed (centrally and/or at component level) and how these procedures are executed and supervised. As a result, we assess scoping and coverage in a different way and comparisons to prior period coverage figures are not meaningful. In this report we provide an indication of scope coverage on the new basis. We performed risk assessment procedures to determine which of the Group’s components are likely to include risks of material misstatement to the Group financial statements and which procedures to perform at these components to address those risks. In total, we identified 313 components, having considered our evaluation of the Group’s operational and legal structure and our ability to perform audit procedures centrally. Of those, we identified quantitatively significant components which contained the largest percentages of either total revenue or total assets of the Group, for which we performed audit procedures. Additionally, having considered qualitative and quantitative factors, we selected additional components with accounts contributing to the specific risks of material misstatement of the Group financial statements. The below summarises where we performed audit procedures:
	Component type	Number of components where we performed audit procedures	Range of materiality applied
	Quantitatively significant components	7	£4.6m - £5.9m
	Other components where we performed procedures	10	£1.3m - £5.2m
	Total	17
	We involved component auditors in performing the audit work on 11 components. We set the component materialities having regard to the mix of size and risk profile of the Group across the components. We performed the audit of the parent Company. Our audit procedures covered 86% of Group revenue from contracts with customers. We performed audit procedures in relation to components that accounted for 91% of Group total assets and 83% of Group profit before tax. For the remaining components for which we performed no audit procedures, no component represented more than 3% of Group total revenue from contracts with customers, Group profit before tax or Group total assets. We performed analysis at an aggregated Group level to re-examine our assessment that there is not a reasonable possibility of a material misstatement in these components. This included consideration of the work that had been performed over certain balances at a group level, including over Staff Bonuses and Taxation.


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	Controls approach for group audit abrdn relies on the effectiveness of a number of IT systems and applications to ensure that financial transactions are recorded completely and accurately. The main financial accounting, reporting (including consolidation), invoice and billing systems and the interactive investor (ii) and Adviser platforms were identified as key IT systems relevant to our audit. The IT systems for the Group and Investments business are primarily managed from the centralised IT function in the UK and certain of these were evaluated by IT specialists who were part of the Group audit team. Other relevant IT systems were evaluated by component IT specialists to determine whether these could be relied upon. These included the IT systems and applications for the Adviser business and ii which have systems managed locally. At certain components of the Group, we identified control deficiencies relating to the posting, review and approval of manual journals. We modified our audit approach by assessing compensating controls and by enhancing our selection criteria in the testing of manual journal entries. For the Investments business we tested and relied on key manual and automated controls related to the billing process operated by third party service organisations as well as the Group’s oversight of relevant third-party service organisations, as discussed in the “Revenue recognition: management fee revenue from contracts with customers” key audit matter above. We assessed the status of remediation of prior year findings in respect of internal controls operated by the Group over invoicing and billing processes, ahead of the year end, and subsequently concluded that we would not rely on these controls as completion of strengthening and enhancing of these controls remained ongoing. Our overall audit response was largely substantive due to the nature of the identified key audit matters, and also deficiencies in certain controls in place in areas that we may have sought to rely on controls. The Audit Committee has discussed these internal control matters, and management’s actions to remediate them, on page 111. We performed incremental procedures to respond to the deficiencies in the control environment as outlined at 4.3 Revenue recognition: management fee revenue from contracts with customers.
Group auditor oversight	What we mean The extent of the Group auditor’s involvement in work performed by component auditors.
Group auditor oversight	As part of establishing the overall Group audit strategy and plan, we conducted risk assessment and planning discussion meetings with component auditors to discuss Group audit risks relevant to the components, including the key audit matter in respect of recognition of management fee revenue from contracts with customers. We visited each of the four component auditors not located in the UK to assesses the audit risks and strategy. Video and telephone conference meetings were also held with these component auditors. At these visits and meetings, the results of the planning procedures and further audit procedures communicated to us were discussed in more detail, and any further work required by us was then performed by the component auditors. We inspected the work performed by the component auditors for the purpose of the Group audit and evaluated the appropriateness of conclusions drawn from the audit evidence obtained and consistencies between communicated findings and work performed, with a particular focus on work performed over the recognition of management fee revenue from contracts with customers.


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		FINANCIAL INFORMATION

8. Other information in the annual report and accounts

The Directors are responsible for the other information presented in the Annual Report together with the financial

statements. Our opinion on the financial statements does not cover the other information and, accordingly, we do

not express an audit opinion or, except as explicitly stated below, any form of assurance conclusion thereon.


All other information
Our responsibility Our responsibility is to read the other information and, in doing so, consider whether, based on our financial statements audit work, the information therein is materially misstated or inconsistent with the financial statements or our audit knowledge.	Our reporting Based solely on that work we have not identified material misstatements or inconsistencies in the other information.
Strategic report and directors’ report
Our responsibility and reporting Based solely on our work on the other information described above we report to you as follows: – We have not identified material misstatements in the strategic report and the Directors’ report. – In our opinion the information given in those reports for the financial year is consistent with the financial statements. – In our opinion those reports have been prepared in accordance with the Companies Act 2006.
Directors’ remuneration report
Our responsibility We are required to form an opinion as to whether the part of the Directors’ Remuneration Report to be audited has been properly prepared in accordance with the Companies Act 2006.	Our reporting In our opinion the part of the Directors’ Remuneration Report to be audited has been properly prepared in accordance with the Companies Act 2006.
Corporate governance disclosures
Our responsibility We are required to perform procedures to identify whether there is a material inconsistency between the financial statements and our audit knowledge, and: – The Directors’ statement that they consider that the annual report and financial statements taken as a whole is fair, balanced and understandable, and provides the information necessary for shareholders to assess the Group’s position and performance, business model and strategy. – The section of the annual report describing the work of the Audit Committee, including the significant issues that the Audit Committee considered in relation to the financial statements, and how these issues were addressed. – The section of the annual report that describes the review of the effectiveness of the Group’s risk management and internal control systems.	Our reporting Based on those procedures, we have concluded that each of these disclosures is materially consistent with the financial statements and our audit knowledge.
We are also required to review the part of the Corporate Governance Statement relating to the Group’s compliance with the provisions of the UK Corporate Governance Code specified by the Listing Rules for our review.	We have nothing to report in this respect.
Other matters on which we are required to report by exception
Our responsibility Under the Companies Act 2006, we are required to report to you if, in our opinion: – Adequate accounting records have not been kept by the Parent Company, or returns adequate for our audit have not been received from branches not visited by us; or – The Parent Company financial statements and the part of the Directors’ Remuneration Report to be audited are not in agreement with the accounting records and returns; or – Certain disclosures of Directors’ remuneration specified by law are not made; or – We have not received all the information and explanations we require for our audit.	Our reporting We have nothing to report in these respects.


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Independent auditor’s report to the members of abrdn plc continued

9. Respective responsibilities

Directors’ responsibilities

As explained more fully in their statement set out on page 149, the Directors are responsible for: the preparation of

the financial statements including being satisfied that they give a true and fair view; such internal control as they

determine is necessary to enable the preparation of financial statements that are free from material misstatement,

whether due to fraud or error; assessing the Group and Parent Company’s ability to continue as a going concern,

disclosing, as applicable, matters related to going concern; and using the going concern basis of accounting unless

they either intend to liquidate the Group or the Parent Company or to cease operations, or have no realistic

alternative but to do so.

Auditor’s responsibilities

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free

from material misstatement, whether due to fraud or error, and to issue our opinion in an auditor’s report.

Reasonable assurance is a high level of assurance, but does not guarantee that an audit conducted in accordance

with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error

and are considered material if, individually or in aggregate, they could reasonably be expected to influence the

economic decisions of users taken on the basis of the financial statements.

A fuller description of our responsibilities is provided on the FRC’s website at www.frc.org.uk/auditorsresponsibilities

The Company is required to include these financial statements in an annual financial report prepared under

Disclosure Guidance and Transparency Rule 4.1.17R and 4.1.18R. This auditor’s report provides no assurance over

whether the annual financial report has been prepared in accordance with those requirements.

10. The purpose of our audit work and to whom we owe our responsibilities

This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the

Companies Act 2006 and the terms of our engagement by the Company. Our audit work has been undertaken so

that we might state to the Company’s members those matters we are required to state to them in an auditor’s

report, and the further matters we are required to state to them in accordance with the terms agreed with the

Company, and for no other purpose. To the fullest extent permitted by law, we do not accept or assume

responsibility to anyone other than the Company and the Company’s members, as a body, for our audit work, for

this report, or for the opinions we have formed.

Richard Faulkner (Senior Statutory Auditor)

for and on behalf of KPMG LLP, Statutory Auditor

Chartered Accountants

Saltire Court

20 Castle Terrace

Edinburgh

EH1 2EG

3 March 2025


			Annual report 2024	169


		FINANCIAL INFORMATION

Group financial statements

Consolidated income statement

For the year ended 31 December 2024


		2024	2023
	Notes	£m	£m
Revenue from contracts with customers	3	1,370	1,474
Cost of sales	3	(65)	(76)
Net operating revenue		1,305	1,398

Restructuring and corporate transaction expenses	5	(100)	(152)
Impairment of intangibles acquired in business combinations and through the purchase of customer contracts	5	(9)	(63)
Amortisation of intangibles acquired in business combinations and through the purchase of customer contracts	5	(120)	(126)
Staff costs and other employee-related costs	5	(510)	(529)
Other administrative expenses	5	(574)	(593)
Total administrative and other expenses		(1,313)	(1,463)

Net gains or losses on financial instruments and other income
Fair value movements and dividend income on significant listed investments	4	29	(114)
Other net gains or losses on financial instruments and other income	4	131	116
Total net gains or losses on financial instruments and other income		160	2
Finance costs		(25)	(25)
Profit on disposal of subsidiaries and other operations	1	89	79
Profit on disposal of interests in associates	1	11	—
Reversal of impairment	14	—	2
Share of profit or loss from associates and joint ventures	14	24	1
Profit/(loss) before tax		251	(6)
Tax (expense)/credit	9	(3)	18
Profit for the year		248	12
Attributable to:
Equity shareholders of abrdn plc		237	1
Other equity holders	28	11	11
		248	12
Earnings per share
Basic (pence per share)	10	13.2	0.1
Diluted (pence per share)	10	13.0	0.1


	The Notes on pages 176 to 269 are an integral part of these consolidated financial statements.


170	Annual report 2024


Group financial statements continued

Consolidated statement of comprehensive income

For the year ended 31 December 2024


		2024	2023
	Notes	£m	£m
Profit for the year		248	12
Items that will not be reclassified subsequently to profit or loss:
Remeasurement gains/(losses) on defined benefit pension plans	31	24	(139)
Share of other comprehensive income of associates and joint ventures	14	6	(4)
Total items that will not be reclassified subsequently to profit or loss		30	(143)

Items that may be reclassified subsequently to profit or loss:
Fair value gains/(losses) on cash flow hedges	18	20	(40)
Exchange differences on translating foreign operations		(2)	(35)
Share of other comprehensive income of associates and joint ventures	14	(53)	(27)
Items transferred to the consolidated income statement
Fair value (gains)/losses on cash flow hedges	18	(18)	28
Realised foreign exchange (gains)	1	—	(1)
Equity holder tax effect of items that may be reclassified subsequently to profit or loss	9	—	3
Total items that may be reclassified subsequently to profit or loss		(53)	(72)
Other comprehensive income for the year		(23)	(215)
Total comprehensive income for the year		225	(203)

Attributable to:
Equity shareholders of abrdn plc		214	(214)
Other equity holders	28	11	11
		225	(203)


	The Notes on pages 176 to 269 are an integral part of these consolidated financial statements.


			Annual report 2024	171


		FINANCIAL INFORMATION

Consolidated statement of financial position

As at 31 December 2024


		2024	2023
	Notes	£m	£m
Assets
Intangible assets	13	1,474	1,578
Pension and other post-retirement benefit assets	31	786	740
Investments in associates and joint ventures accounted for using the equity method	14	205	229
Property, plant and equipment	15	135	163
Deferred tax assets	9	197	215
Financial investments	17	1,818	2,047
Receivables and other financial assets	19	1,024	1,071
Current tax recoverable	9	23	10
Other assets	20	54	77
Assets held for sale	21	17	19
Cash and cash equivalents	22	1,321	1,196
		7,054	7,345
Assets backing unit linked liabilities	23
Financial investments		649	669
Receivables and other unit linked assets		4	4
Cash and cash equivalents		14	13
		667	686
Total assets		7,721	8,031


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Group financial statements continued


		2024	2023
	Notes	£m	£m
Liabilities
Third party interest in consolidated funds	29	184	187
Subordinated liabilities	30	597	599
Pension and other post-retirement benefit provisions	31	8	12
Deferred tax liabilities	9	101	129
Current tax liabilities	9	3	6
Derivative financial liabilities	29	3	9
Other financial liabilities	32	1,048	1,241
Provisions	33	64	66
Other liabilities	33	7	4
Liabilities of operations held for sale	21	—	2
		2,015	2,255
Unit linked liabilities	23
Investment contract liabilities		665	684
Other unit linked liabilities		2	2
		667	686
Total liabilities		2,682	2,941
Equity
Share capital	24	257	257
Shares held by trusts	25	(123)	(141)
Share premium reserve	24	640	640
Retained earnings	26	4,480	4,449
Other reserves	27	(427)	(327)
Equity attributable to equity shareholders of abrdn plc		4,827	4,878
Other equity	28	207	207
Non-controlling interests - ordinary shares	28	5	5
Total equity		5,039	5,090
Total equity and liabilities		7,721	8,031


	The Notes on pages 176 to 269 are an integral part of these consolidated financial statements.

The consolidated financial statements on pages 169 to 269 were approved by the Board and signed on its behalf by

the following Directors:



Sir Douglas Flint	Jason Windsor
Chair	Chief Executive Officer
3 March 2025	3 March 2025


			Annual report 2024	173


		FINANCIAL INFORMATION

Consolidated statement of changes in equity

For the year ended 31 December 2024


		Share capital	Shares held by trusts	Share premium reserve	Retained earnings	Other reserves	Total equity attributable to equity shareholders of abrdn plc	Other equity	Non- controlling interests - ordinary shares	Total equity
	Notes	£m	£m	£m	£m	£m	£m	£m	£m	£m
1 January 2024		257	(141)	640	4,449	(327)	4,878	207	5	5,090
Profit for the year		—	—	—	237	—	237	11	—	248
Other comprehensive income for the year		—	—	—	(23)	—	(23)	—	—	(23)
Total comprehensive income for the year	26,27	—	—	—	214	—	214	11	—	225
Issue of share capital	24	—	—	—	—	—	—	—	—	—
Dividends paid on ordinary shares	12	—	—	—	(260)	—	(260)	—	—	(260)
Interest paid on other equity	28	—	—	—	—	—	—	(11)	—	(11)
Reserves credit for employee share-based payments	27	—	—	—	—	26	26	—	—	26
Transfer to retained earnings for vested employee share- based payments	26,27	—	—	—	32	(32)	—	—	—	—
Transfer between reserves on impairment of subsidiaries	26,27	—	—	—	94	(94)	—	—	—	—
Shares acquired by employee trusts	25	—	(26)	—	—	—	(26)	—	—	(26)
Shares distributed by employee and other trusts and related dividend equivalents	25,26	—	44	—	(48)	—	(4)	—	—	(4)
Aggregate tax effect of items recognised directly in equity		—	—	—	(1)	—	(1)	—	—	(1)
31 December 2024		257	(123)	640	4,480	(427)	4,827	207	5	5,039


174	Annual report 2024


Group financial statements continued


		Share capital	Shares held by trusts	Share premium reserve	Retained earnings 1	Other reserves	Total equity attributable to equity shareholders of abrdn plc 1	Other equity	Non- controlling interests - ordinary shares	Total equity 1
	Notes	£m	£m	£m	£m	£m	£m	£m	£m	£m
31 December 2022		280	(149)	640	4,986	(129)	5,628	207	7	5,842
Effect of application of IFRS 9 on Investments in associates and joint ventures accounted for using the equity method 1		—	—	—	51	—	51	—	—	51
1 January 2023		280	(149)	640	5,037	(129)	5,679	207	7	5,893
Profit for the year		—	—	—	1	—	1	11	—	12
Other comprehensive income for the year		—	—	—	(170)	(45)	(215)	—	—	(215)
Total comprehensive income for the year	26,27	—	—	—	(169)	(45)	(214)	11	—	(203)
Issue of share capital	24	—	—	—	—	—	—	—	—	—
Dividends paid on ordinary shares	12	—	—	—	(279)	—	(279)	—	—	(279)
Interest paid on other equity	28	—	—	—	—	—	—	(11)	—	(11)
Share buyback	24,26,27	(23)	—	—	(302)	23	(302)	—	—	(302)
Other movements in non- controlling interests in the year	28	—	—	—	—	—	—	—	(2)	(2)
Reserves credit for employee share-based payments	27	—	—	—	—	24	24	—	—	24
Transfer to retained earnings for vested employee share- based payments	26,27	—	—	—	31	(31)	—	—	—	—
Transfer between reserves on impairment of subsidiaries	26,27	—	—	—	169	(169)	—	—	—	—
Shares acquired by employee trusts	25	—	(27)	—	—	—	(27)	—	—	(27)
Shares distributed by employee and other trusts and related dividend equivalents	25,26	—	35	—	(38)	—	(3)	—	—	(3)
31 December 2023		257	(141)	640	4,449	(327)	4,878	207	5	5,090

1. The Group implemented IFRS 9 in 2019. However, as permitted under a temporary exemption granted to insurers in IFRS 4 Insurance Contracts,

the Group’s insurance joint venture, Heng An Standard Life Insurance Company Limited (HASL), applied IFRS 9 at 1 January 2023 following the

implementation of the new insurance contracts standard, IFRS 17. In line with the approach adopted by the Group on its implementation of IFRS 9

on 1 January 2019, the 2022 comparatives were not restated for HASL’s adoption of IFRS 9. The impact of HASL adopting IFRS 9 was recognised in

retained earnings at 1 January 2023.


	The Notes on pages 176 to 269 are an integral part of these consolidated financial statements.


			Annual report 2024	175


		FINANCIAL INFORMATION

Consolidated statement of cash flows

For the year ended 31 December 2024


		2024	2023
	Notes	£m	£m
Cash flows from operating activities
Profit/(loss) before tax		251	(6)
Change in operating assets	37	112	157
Change in operating liabilities	37	(202)	(109)
Adjustment for non-cash movements in investment income		—	3
Other non-cash and non-operating items	37	77	210
Taxation paid1		(25)	(34)
Net cash flows from operating activities		213	221

Cash flows from investing activities
Purchase of property, plant and equipment		(7)	(18)
Proceeds from sale of property, plant and equipment		1	—
Acquisition of subsidiaries and unincorporated businesses net of cash acquired	1(b)	—	(108)
Disposal of subsidiaries net of cash disposed of	37	49	139
Acquisition of investments in associates and joint ventures	14	—	(2)
Proceeds in relation to contingent consideration	36	7	21
Payments in relation to contingent consideration	36	(9)	(12)
Disposal of investments in associates and joint ventures	1(c)	20	—
Purchase of financial investments		(138)	(445)
Proceeds from sale or redemption of financial investments	17	360	1,029
Taxation paid on sale or redemption of financial investments1		—	(41)
Prepayment in respect of potential acquisition of customer contracts	39(b)	1	20
Acquisition of intangible assets		(26)	(41)
Net cash flows from investing activities		258	542
Cash flows from financing activities
Payment of lease liabilities – principal		(23)	(24)
Payment of lease liabilities - interest		(6)	(6)
Shares acquired by trusts		(26)	(27)
Interest paid on subordinated liabilities and other equity		(38)	(20)
Other interest paid		(3)	(3)
Cash received relating to collateral held in respect of derivatives hedging subordinated liabilities		14	(50)
Share buyback	24	—	(302)
Ordinary dividends paid	12	(260)	(279)
Net cash flows from financing activities		(342)	(711)
Net increase in cash and cash equivalents		129	52
Cash and cash equivalents at the beginning of the year		1,210	1,166
Effects of exchange rate changes on cash and cash equivalents		(4)	(8)
Cash and cash equivalents at the end of the year	22	1,335	1,210
Supplemental disclosures on cash flows from operating activities
Interest received		93	85
Dividends received		82	91
Rental income received on investment property		2	3

1. Total taxation paid was £25m in 2024 (2023: £75m).


	The Notes on pages 176 to 269 are an integral part of these consolidated financial statements.


176	Annual report 2024


Group financial statements continued

Presentation of consolidated financial statements



	The Group’s significant accounting policies are included at the beginning of the relevant notes to the consolidated financial statements. This section sets out the basis of preparation, a summary of the Group’s critical accounting estimates and judgements in applying accounting policies, and other significant accounting policies which have been applied to the financial statements as a whole.

(a) Basis of preparation

These consolidated financial statements have been prepared in accordance with UK-adopted international

accounting standards. The consolidated financial statements have been prepared on a going concern basis and

under the historical cost convention, as modified by the revaluation of owner-occupied property, derivative

instruments and other financial assets and financial liabilities at fair value through profit or loss (FVTPL).

Climate risks have been taken into consideration in the preparation of the consolidated financial statements,

primarily in relation to fair value calculations and impairment assessments. Refer Note 34(a) for further details of our

consideration of climate impact including our current assessment that the impact on the consolidated financial

statements is not material.

The principal accounting policies set out in these consolidated financial statements have been consistently applied

to all financial reporting periods presented except as described below.

(a)(i) New standards, interpretations and amendments to existing standards that have been

adopted by the Group

The Group has adopted the following new International Financial Reporting Standards (IFRSs), interpretations and

amendments to existing standards, which are effective for annual periods beginning on or after 1 January 2024.

Amendments to existing standards

– Classification of Liabilities as Current or Non-current and Non-current Liabilities with Covenants - Amendments to

IAS 1.

– Lease Liability in a Sale and Leaseback - Amendments to IFRS 16.

– Disclosures: Supplier Finance Arrangements - Amendments to IAS 7 and IFRS 7.

The Group’s accounting policies have been updated to reflect these other amendments. Management considers

the implementation of the above amendments to existing standards has had no significant impact on the Group’s

financial statements.

(a)(ii) Standards, interpretations and amendments to existing standards that are not yet

effective and have not been early adopted by the Group

Certain new standards, interpretations and amendments to existing standards have been published that are

mandatory for the Group’s annual accounting periods beginning after 1 January 2024. The Group has not early

adopted the standards, amendments and interpretations described below.

IFRS 18 Presentation and Disclosure in Financial Statements (effective for annual reporting periods beginning on or

after 1 January 2027)

IFRS 18 was issued in April 2024 and will replace IAS 1 Presentation of Financial Statements. This standard includes a

number of changes to the current presentation and disclosure requirements under IAS 1 including:

– The categorisation of income and expenses in the consolidated income statement into five new categories:

operating, investing, financing, income taxes and discontinued operations based on an entity’s main business

activities.

– The disclosure of new mandatory IFRS subtotals for operating profit or loss, profit or loss before financing and

income taxes and profit or loss.

– The introduction of a new concept of management-defined performance measure (MPM) with related

disclosure requirements including the disclosure of information on MPMs within a single note to the financial

statements.

– Additional guidance on whether to ‘present’ information in the primary financial statements or ‘disclose’ in the

notes and on the levels of the aggregation permitted or disaggregation required.

Our assessment of the impact on the Group’s future financial reporting from the implementation of IFRS 18, which

has not yet been endorsed by the UK Endorsement Board, is currently ongoing. IFRS 18 will have no impact on the

Group’s recognition or measurement.


			Annual report 2024	177


		FINANCIAL INFORMATION

IFRS 19 Subsidiaries without Public Accountability: Disclosures (effective for annual reporting periods beginning on

or after 1 January 2027)

IFRS 19 was issued in May 2024 and specifies the disclosure requirements that allows eligible entities to apply

reduced disclosures while still applying the recognition, measurement and presentational requirements in other IFRS

accounting standards. The Company is not an eligible entity and will not be permitted to apply IFRS 19, which has

not yet been endorsed by the UK Endorsement Board, to its Company or consolidated financial statements. The

Group’s subsidiaries will, however, consider in due course if the application of IFRS 19 would be beneficial where they

qualify as eligible entities.

Other

There are no other new standards, interpretations and amendments to existing standards that have been published

that are expected to have a significant impact on the consolidated financial statements of the Group.

(a)(iii) Critical accounting estimates and judgements in applying accounting policies

The preparation of financial statements requires management to exercise judgements in applying accounting

policies and make estimates and assumptions that affect the reported amounts of assets and liabilities at the date

of the financial statements and the reported amounts of revenue and expenses arising during the year.

Judgements and sources of estimation uncertainty are continually evaluated and based on historical experience

and other factors, including expectations of future events that are believed to be reasonable under the

circumstances.

The areas where judgements have the most significant effect on the amounts recognised in the consolidated

financial statements are as follows:


Financial statement area	Critical judgements in applying accounting policies	Related note
Defined benefit pension plans	Assessment of whether the Group has an unconditional right to a refund of the surplus. Treatment of tax relating to the surplus.	Note 31

The following changes have been made to the Group’s critical judgements:

– As the Group has not made any significant acquisitions in 2024, the identification and valuation of intangible assets

arising from business combinations, and the determination of useful lives is not considered as a critical judgement

in 2024.

There are no other changes to critical judgements in applying accounting policies from the prior year.

The areas where assumptions and other sources of estimation uncertainty at the end of the reporting period have a

significant risk of resulting in a material adjustment to the carrying amounts of assets and liabilities within the next

financial year are as follows:


Financial statement area	Critical accounting estimates and assumptions	Related note
Intangible assets	Determination of the recoverable amount in relation to the impairment of certain goodwill.	Note 13
Financial instruments at fair value through profit or loss	Determination of the fair value of contingent consideration liabilities relating to the acquisition of Tritax.	Notes 34 and 36
Defined benefit pension plans	Determination of principal UK pension plan assumptions for mortality, discount rate and inflation.	Note 31

There are no changes to the critical accounting estimates and assumptions from the prior year.



	Further detail on critical accounting estimates and assumptions is provided in the relevant note.


178	Annual report 2024


Group financial statements continued

(a)(iv) Foreign currency translation



	The consolidated financial statements are presented in million pounds Sterling. The statements of financial position of Group entities, including associates and joint ventures accounted for using the equity method, that have a different functional currency than the Group’s presentation currency are translated into the presentation currency at the year end exchange rate and their income statements and cash flows are translated at average exchange rates for the year. All resulting exchange differences arising are recognised in other comprehensive income and the foreign currency translation reserve in equity. On disposal of a Group entity the cumulative amount of any such exchange differences recognised in other comprehensive income is reclassified to profit or loss. Foreign currency transactions are translated into the functional currency at the exchange rate prevailing at the date of the transaction. Gains and losses arising from such transactions and from the translation at year end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the relevant line in the consolidated income statement. Translation differences on non-monetary items, such as equity securities held at fair value through profit or loss, are reported as part of the fair value gain or loss within Net gains or losses on financial instruments and other income in the consolidated income statement. Translation differences on financial assets and liabilities held at amortised cost are included in the relevant line in the consolidated income statement.

(a)(v) Going concern

The Group’s business activities, together with the factors likely to affect its future development, performance and

financial position, are set out in the Strategic report. This includes details on our liquidity and capital management

and our viability statement in the Chief Financial Officer’s overview section and our principal risks in the Risk

management section including the impacts of the macroeconomic environment and global and regional

geopolitical events on these principal risks. In addition, these financial statements include notes on the Group’s

subordinated liabilities (Note 30), management of its risks including market, credit and liquidity risk (Note 34), its

contingent liabilities and commitments (Notes 38 and 39), and its capital structure and position (Note 42).

In preparing these financial statements on a going concern basis, the Directors have considered the following

matters and have taken into account market uncertainty:

– The Group has cash and liquid resources of £1.7bn at 31 December 2024. In addition, the Company has a

revolving credit facility of £400m as part of our contingency funding plans. This was refinanced on 5 February

2025 and is due to mature in 2028, with the option to extend for a further two years. It remains undrawn.

– The Group’s indicative regulatory Common Equity Tier 1 (CET1) capital surplus on an IFPR basis was £875m in

excess of capital requirements at 31 December 2024. The regulatory CET1 capital surplus does not include the

value of the Group’s significant listed investment in Phoenix Group Holdings (Phoenix).

– The Group performs regular stress and scenario analysis as described in the Annual report and accounts 2024

Viability statement. The diverse range of management actions available meant the Group would be able to

withstand these extreme stresses.

– The Group’s operational resilience processes have operated effectively during the period including the provision

of services by key outsource providers.

Based on a review of the above factors the Directors are satisfied that the Group and Company have and will

maintain sufficient resources to enable them to continue operating for at least 12 months from the date of approval

of the financial statements. Accordingly, the financial statements have been prepared on a going concern basis.

There were no material uncertainties relating to this going concern conclusion.


			Annual report 2024	179


		FINANCIAL INFORMATION

(b) Basis of consolidation



	The Group’s financial statements consolidate the financial statements of the Company and its subsidiaries. Subsidiaries are all entities (including investment vehicles) over which the Group has control. Control arises when the Group is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. For operating entities this generally accompanies a shareholding of 50% or more in the entity. For investment vehicles, including structured entities, the control assessment also considers the removal rights of other investors and whether the Group acts as principal or agent in assessing the link between power and variable returns. In determining whether the Group acts as principal, and therefore controls the entity, the removal rights of other investors and the magnitude of the variability associated with the returns are also taken into account. As a result, the Group often is considered to control investment vehicles in which its shareholding is less than 50%. Where the Group is considered to control an investment vehicle, such as an open-ended investment company, a unit trust or a limited partnership, and it is therefore consolidated, the interests of parties other than the Group are assessed to determine whether they should be classified as liabilities or as non-controlling interests. The liabilities are recognised in the third party interest in consolidated funds line in the consolidated statement of financial position and any movements are recognised in the consolidated income statement. The financial liability is designated at fair value through profit or loss (FVTPL) as it is implicitly managed on a fair value basis as its value is directly linked to the market value of the underlying portfolio of assets. The interests of parties other than the Group in all other types of entities are recorded as non-controlling interests. All intra-group transactions, balances, income and expenses are eliminated in full. The Group uses the acquisition method to account for acquisitions of businesses. At the acquisition date the assets and liabilities of the business acquired and any non-controlling interests are identified and initially measured at fair value on the consolidated statement of financial position. When the Group acquires or disposes of a subsidiary, the profits and losses of the subsidiary are included from the date on which control was transferred to the Group until the date on which it ceases, with consistent accounting policies applied across all entities throughout.


180	Annual report 2024


Group financial statements continued

Notes to the Group financial statements

1. Group structure

(a) Composition

The following diagram is an extract of the Group structure at 31 December 2024 and gives an overview of the

composition of the Group .

A full list of the Company’s subsidiaries is provided in Note 44.

(b) Acquisitions

(b)(i) Prior year acquisitions of subsidiaries

Healthcare fund management capabilities of Tekla Capital Management

On 27 October 2023, abrdn Inc. purchased the healthcare fund management capabilities of Tekla Capital

Management LLC (Tekla) through a purchase agreement. Tekla’s investment team transferred to the Group as

part of the agreement. The assets under management at the acquisition date were £2.3bn. At acquisition the cash

consideration was £108m and the fair value of deferred and contingent consideration was £11m. The acquisition

further strengthens abrdn’s closed-end fund business and allows the Group to draw on Tekla’s expertise in investing

in the healthcare sector as it looks to build out its offering in this area.


			Annual report 2024	181


		FINANCIAL INFORMATION

(c)(i) Current year disposal of subsidiaries and other operations

During 2024, the Group made three significant disposals of subsidiaries and other operations:

– On 26 April 2024, the Group completed the sale of its European-headquartered Private Equity business to Patria

Investments.

– On 2 July 2024, the Group completed the sale of threesixty services, its adviser support services business, to the

Fintel group.

– On 13 December 2024, the Group completed the sale of 80% of the share capital of Focus Business Solutions

(FBS) to Focus Advice Technology Holdings Limited. The sale included the operations of the Group’s digital

innovation group.

The Group’s European-headquartered Private Equity business and the threesixty services were reported in the

Investments and Adviser segments respectively. DIG was reported within Other business operations and corporate

costs.

Profit or (loss) on disposal of subsidiaries and other operations for the year ended 31 December 2024 have been

summarised below.


	2024 £m
Disposal of European-headquartered Private Equity business	92
Disposal of threesixty services	9
Disposal of FBS	(12)
Profit on disposal of subsidiaries and other operations for the year ended 31 December 2024	89

European-headquartered Private Equity business

The gain on sale, which is included in profit on disposals of subsidiaries and other operations in the consolidated

income statement for the year ended 31 December 2024 for the European-headquartered Private Equity business

was calculated as follows:


	£m
Total assets of operations disposed of	(29)
Total liabilities of operations disposed of	11
Net assets of operations disposed of	(18)
Cash consideration (less transaction costs) and outstanding intercompany balances1,2	74
Fair value of deferred/contingent consideration and retained interest3	36
Gain on sale before tax4	92

1. Included in cash consideration is £12m for additional upfront consideration which was determined based on the net assets of the European-

headquartered Private Equity business following a number of adjustments detailed in the sale price agreement and has now been agreed with

Patria Investments.

2. Following the completion of the sale, £5m relating to a number of unsettled outstanding intercompany balances which previously eliminated on

consolidation are now recognised as an asset of the Group.

3. The Group has also retained certain carried interest entitlements which have been recognised in the consolidated statement of financial position

at a fair value of £6m.

4. The provisional gain on sale reported in the Group’s HY24 results was £88m. The Group has now agreed with Patria Investments an additional £4m

payment comprising of a £2m uplift in the additional upfront consideration and a £2m payment of additional unsettled outstanding balances

which were previously intercompany balances.

Prior to the completion of the sale, the European-headquartered Private Equity business was classified as an

operation held for sale (refer Note 21).

threesixty services

The gain on sale, which is included in profit on disposals of subsidiaries and other operations in the consolidated

income statement for the year ended 31 December 2024 for threesixty services was calculated as follows:


	£m
Total assets of operations disposed of	(7)
Total liabilities of operations disposed of	2
Net assets of operations disposed of	(5)
Cash consideration (less transaction costs)	14
Gain on sale before tax	9


182	Annual report 2024


Group financial statements continued

FBS

The loss on sale, which is included in profit on disposals of subsidiaries and other operations in the consolidated

income statement for the year ended 31 December 2024 for FBS was calculated as follows:


	£m
Total assets of operations disposed of	(14)
Total liabilities of operations disposed of	2
Net assets of operations disposed of	(12)
Cash consideration (less transaction costs)	—
Fair value of retained holding1	—
Loss on sale before tax	(12)

1. The Group’s 20% retained holding in FBS has been recognised as an investment in an associate accounted for using the equity method at an

initial fair value of £nil.

(c)(ii) Current year disposal of joint ventures

Virgin Money Unit Trust Managers (Virgin Money UTM)

Profit on disposal of interests in joint ventures for the year ended 31 December 2024 of £11m relates to the sale of

the Group’s interest in Virgin Money UTM to its joint venture partner, Clydesdale Bank, on 2 April 2024 for a cash

consideration of £20m. Prior to the sale, the Group’s interest in Virgin Money UTM was classified as held for sale and

had a carrying value of £9m (refer Note 21). The interest in Virgin Money UTM did not form part of the Group’s

reportable segments.

(c)(iii) Prior year disposal of subsidiaries and other operations

During 2023, the Group made two material disposals of subsidiaries and other operations:

– On 1 September 2023, the Group completed the sale of abrdn Capital Limited (aCL), its discretionary fund

management business, to LGT UK Holdings Limited.

– On 2 October 2023, the Group completed the sale of its US Private Equity and Venture Capital capabilities to

HighVista Strategies LLC.

aCL and the Group’s US Private Equity and Venture Capital capabilities were reported in the ii and Investments

segments respectively.

Other disposals included the sale of abrdn Australia Ltd to Melbourne Securities Corporation Limited on 1 July 2023.

The disposal is not considered material to the Group.

Profit on disposal of subsidiaries and other operations for the year ended 31 December 2023 have been

summarised below.


	2023 £m
Disposal of aCL	58
Disposal of US Private Equity and Venture Capital capabilities	22
Other disposals	(1)
Profit on disposal of subsidiaries and other operations for the year ended 31 December 2023	79

On disposal, a net gain of £1m was recycled from the translation reserve and was included in determining the profit

on disposal of subsidiaries and other operations for the year ended 31 December 2023.


			Annual report 2024	183


		FINANCIAL INFORMATION

2. Segmental analysis



	The Group’s reportable segments have been identified in accordance with the way in which the Group is structured and managed. IFRS 8 Operating Segments requires that the information presented in the financial statements is based on information provided to the ‘Chief Operating Decision Maker’.

(a) Basis of segmentation

Reportable segments

interactive investor (ii)

ii, our direct investing platform and our financial planning business, abrdn Financial Planning and Advice. It also

included the Group’s discretionary fund management business until the completion of the sale of aCL on

1 September 2023. Refer Note 1 (c)(iii) for further details.

Adviser

Our UK financial adviser business which provides platform services to wealth managers and advisers along with the

Group’s Managed Portfolio Service (MPS) business. It also included threesixty services until its sale on 2 July 2024.

Refer Note 1(c)(i) for further details.

Investments

Our global asset management business which provides investment solutions for Institutional, Retail Wealth and

Insurance Partners clients.

In addition to the Group’s reportable segments above, the analysis of adjusted profit in Section b(i) below also

reports the following:

Other business operations and corporate costs (Other)

Other comprises Finimize along with certain corporate costs. It also included the Group’s digital innovation group

until the partial sale of FBS on 13 December 2024. Refer Note 1(c)(i) for further details.

These are all reported to the level of adjusted operating profit.


184	Annual report 2024


Group financial statements continued

(b) Reportable segments – adjusted profit and revenue information

(b)(i) Analysis of adjusted profit

Adjusted operating profit is presented by reportable segment in the table below.


		ii	Adviser	Investments	Other	Total
31 December 2024	Notes	£m	£m	£m	£m	£m
Adjusted net operating revenue1		278	237	797	9	1,321
Adjusted operating expenses		(162)	(111)	(736)	(57)	(1,066)
Adjusted operating profit		116	126	61	(48)	255
Adjusted net financing costs and investment return						99
Adjusted profit before tax						354
Tax on adjusted profit						(70)
Adjusted profit after tax						284
Adjusted for the following items
Restructuring and corporate transaction expenses	5					(100)
Amortisation and impairment of intangible assets acquired in business combinations and through the purchase of customer contracts	5					(129)
Change in fair value of significant listed investments	4					(27)
Profit on disposal of subsidiaries and other operations	1					89
Profit on disposal of interests in joint ventures						11
Dividends from significant listed investments	4					56
Share of profit or loss from associates and joint ventures	14					24
Other	11					(27)
Total adjusting items including results of associates and joint ventures						(103)
Tax on adjusting items						67
Profit attributable to other equity holders						(11)
Profit for the year attributable to equity shareholders of abrdn plc						237
Profit attributable to other equity holders						11
Profit for the year						248

1. The measure of segmental revenue has been renamed from net operating revenue to adjusted net operating revenue. See Note 3(c) for a

reconciliation of these revenue measures.

Adjusted net operating revenue is reported as the measure of revenue in the analysis of adjusted operating profit

and relates to revenues generated from external customers.

In the year ended 31 December 2024, transactions with one external customer amounted to more than 10% of

adjusted net operating revenue (2023: one). This adjusted net operating revenue1 of £151m (2023: £150m) is

included in the Investments and Adviser segments.

Adjusted operating expenses includes depreciation and amortisation of £31m (2023: £33m); £24m (2023: £26m) for

the Investments segment; £5m (2023: £5m) for the ii segment; and £2m (2023: £2m) for the Adviser segment.

Interest income, interest expense and income tax expense are not included in adjusted operation profit and are not

analysed by segment in the information provided to the ‘Chief Operating Decision Maker’.

Assets and liabilities by segment are not required to be presented as such information is not presented on a regular

basis to the ‘Chief Operating Decision Maker’.


			Annual report 2024	185


		FINANCIAL INFORMATION


		ii	Adviser	Investments	Other	Total
31 December 2023	Notes	£m	£m	£m	£m	£m
Adjusted net operating revenue1		287	224	878	9	1,398
Adjusted operating expenses		(173)	(106)	(828)	(42)	(1,149)
Adjusted operating profit		114	118	50	(33)	249
Adjusted net financing costs and investment return						81
Adjusted profit before tax						330
Tax on adjusted profit						(50)
Adjusted profit after tax						280
Adjusted for the following items
Restructuring and corporate transaction expenses	5					(152)
Amortisation and impairment of intangible assets acquired in business combinations and through the purchase of customer contracts	5					(189)
Profit on disposal of subsidiaries and other operations	1					79
Change in fair value of significant listed investments	4					(178)
Dividends from significant listed investments	4					64
Share of profit or loss from associates and joint ventures	14					1
Reversal of impairment of interests in joint ventures	14					2
Other	11					37
Total adjusting items including results of associates and joint ventures						(336)
Tax on adjusting items						68
Profit attributable to other equity holders						(11)
Profit for the year attributable to equity shareholders of abrdn plc						1
Profit attributable to other equity holders						11
Profit for the year						12

1. The measure of segmental revenue has been renamed from net operating revenue to adjusted net operating revenue. See Note 3(c) for a

reconciliation of these revenue measures.

(b)(ii) Reconciliation to the consolidated income statement

Adjusted net operating revenue

The reconciliation of adjusted net operating revenue, as presented in the analysis of Group adjusted profit by

segment to revenue from contracts with customers, as presented in the consolidated income statement, is included

in Note 3.

Adjusted operating expenses

The following table provides a reconciliation of adjusted operating expenses, as presented in the analysis of Group

adjusted profit by segment, to total administrative and other expenses, as presented in the consolidated income

statement.


	2024	2023
	£m	£m
Total administrative and other expenses as presented in the consolidated income statement	(1,313)	(1,463)
Restructuring and corporate transaction expenses included in adjusting items	100	152
Amortisation and impairment of intangible assets acquired in business combinations and through the purchase of customer contracts included in adjusting items	129	189
Administrative and other expenses relating to the unit linked business	—	1
Other differences	18	(28)
Adjusted operating expenses as presented in the analysis of Group adjusted profit by segment	(1,066)	(1,149)


186	Annual report 2024


Group financial statements continued

Other differences relate to items presented in adjusted net financing costs and investment return for segment

reporting (see commentary under table below) and other items classified as adjusting items (refer Note 11).

Adjusted net financing costs and investment return

The following table provides a reconciliation of adjusted net financing costs and investment return, as presented in

the analysis of Group adjusted profit by segment, to Net gains or losses on financial instruments and other income,

as presented in the consolidated income statement.


	2024	2023
	£m	£m
Net gains or losses on financial instruments and other income as presented in the consolidated income statement	160	2
Finance costs separately disclosed in the consolidated income statement	(25)	(25)
Change in fair value of significant listed investments included in adjusting items	27	178
Dividends from significant listed investments included in adjusting items	(56)	(64)
Net gains or losses on financial instruments and other income relating to the unit linked business	1	(4)
Other differences	(8)	(6)
Adjusted net financing costs and investment return as presented in the analysis of Group adjusted profit by segment	99	81

Other differences primarily relate to amounts presented in a different line item of the consolidated income

statement and other items classified as adjusting items. This includes the net interest credit relating to the staff

pension schemes of £22m (2023: £34m) which is presented in total administrative and other expenses in the

consolidated income statement and in adjusted net financing costs and investment return in the analysis of Group

adjusted profit by segment.

Total adjusted net operating revenue1 split by geographical location is as follows:


	2024	2023
	£m	£m
UK	985	1,037
Europe, Middle East and Africa	96	107
Asia Pacific	116	137
Americas	124	117
Total	1,321	1,398

1. Adjusted net operating revenue is allocated based on legal entity revenue recognition.

(d) Non-current non-financial assets by geographical location


	2024	2023
	£m	£m
UK	1,462	1,565
Europe, Middle East and Africa	10	33
Asia Pacific	10	13
Americas	127	130
Total	1,609	1,741

Non-current non-financial assets for this purpose consist of property, plant and equipment and intangible assets.


			Annual report 2024	187


		FINANCIAL INFORMATION

3. Net operating revenue



	Net operating revenue represents revenue from contracts with customers after deduction of cost of sales. Revenue from contracts with customers is recognised as services are provided i.e. as the performance obligation is satisfied. Performance fees and carried interest are only recognised once it is highly probable that a significant reversal will not occur in future periods. Where revenue is received in advance (front-end fees), this income is deferred and recognised as a deferred income liability (refer Note 32) and released to the consolidated income statement over the period services are provided. Where revenue received relates to performance obligations whose fulfilment involves another external party, for example fund accounting or custodian services, the Group assesses if it is acting as a principal with full responsibility for the performance obligation and control over its fulfilment or solely responsible for arranging for the third party to fulfil the performance obligation i.e. acting as an agent. Where the Group is acting as an agent, only its share of the revenue for the arrangement of the relevant service is recognised within revenue from contracts from customers, therefore the revenue is recognised net of the revenue passed on to the third party. This is not currently considered a significant judgement for the Group. Commission and other fee expenses which relate directly to revenue are presented as cost of sales. These expenses include ongoing commission expenses payable to financial institutions, investment platform providers and financial advisers that distribute the Group’s products which are generally based on an agreed percentage of AUM and are recognised in the consolidated income statement as the service is received. Other cost of sales also includes amounts payable to employees and others relating to carried interest and performance fee revenue.

(a) Revenue from contracts with customers

The following table provides a breakdown of total revenue from contracts with customers.


	2024	2023
	£m	£m
ii
Fee income – Advice and Discretionary	25	57
Account fees	52	54
Trading transactions	70	48
Treasury income	138	134
Revenue from contracts with customers for the ii segment	285	293
Adviser
Platform charges	196	184
Treasury income	33	31
Other revenue from contracts with customers1	10	11
Revenue from contracts with customers for the Adviser segment	239	226
Investments
Management fee income – Institutional and Retail Wealth2	679	769
Management fee income – Insurance Partners2	116	132
Performance fees and carried interest	20	18
Other revenue from contracts with customers	22	27
Revenue from contracts with customers for the Investments segment	837	946
Revenue from contracts with customers for Other	9	9
Total revenue from contracts with customers	1,370	1,474

1. Other revenue from contracts with customers for the Adviser segment includes £5m (2023: £4m) in relation to discretionary fund management

fee income.

2. In addition to revenues earned as a percentage of AUM, management fee income includes certain other revenues not based on a percentage of

AUM.


188	Annual report 2024


Group financial statements continued

Through its subsidiary Interactive Investor Services Limited (ii), the Group offers a subscription-based trading and

direct investing platform. The services that ii offers are provided on both a point in time and an over time basis.

Customers pay monthly account fees as part of ii’s subscription model. Account fees are invoiced monthly and are

payable immediately from the customer’s account, with receivables recognised if there are insufficient funds

available. The account fees cover the performance obligation to provide the customer with access to the platform

and custody services. For certain subscription levels, the account fee also entitles the customer to receive trading

credits which can be redeemed against future trades. For these subscription levels, the account fees also cover ii’s

performance obligation to perform these future trades. In accordance with IFRS 15, the account fees are allocated

to the two performance obligations. Access to the platform and custody services is provided over time and the

account fees revenue allocated to this performance obligation is recognised over the calendar month as the

customer receives the benefit of these services. Trading credits need to be used by the customer within 31 days of

the credit arising, therefore the revenue is recognised over the calendar month as a reasonable approximation of

when the performance obligation is satisfied at a point in time within the month.

In addition, ii performs additional trades and foreign exchange transactions for its customers. These are performed

at a point in time with the revenue recognised at the trade date of the transaction. Trading fees for transactions not

covered by trading credits are generally charged on a flat-fee basis with larger international share trades charged

based on a percentage of the trade value. These are added to the cost of purchasing shares or deducted from the

proceeds from the sale of shares with receivables recognised for unsettled trades. For foreign exchange trades, ii

receives a margin (varying depending on the size of the transaction) via a third party in the month following the

transaction, with receivables recognised prior to the payment.

In addition, ii is entitled to receive treasury income in relation to its performance obligations to the customer.

Treasury income is the interest earned on cash balances less the interest paid to customers based on the client

money balances held with third party banks and by reference to the applicable interest rates. Treasury income is

recognised on an over time basis with accrued income recognised for unpaid interest.

Through its subsidiary abrdn Financial Planning and Advice Limited, the Group also offers financial planning services.

Financial planning is either provided on a one-off basis or on an ongoing basis. The performance obligation for one-

off advice is performed at a point in time with the revenue recognised when the advice is provided. The

performance obligation for ongoing financial planning is performed over time with the revenue recognised as the

obligation is performed. The Group generally receives ongoing financial planning fees based on the percentage of

the assets under advice. One-off financial planning fees are invoiced to the customer following delivery of the

advice. Ongoing financial planning fees are invoiced to the customer or a designated financial provider either

monthly or quarterly. Receivables are recognised for unpaid invoices. The payment terms for invoiced revenue vary

but are typically 30 days from receipt of invoice. Accrued income is recognised to account for income earned but

not yet invoiced which is not dependent on any future performance.

Adviser

Through a number of its subsidiaries, the Group offers customers access to fund platforms. The platforms give

customers the ongoing functionality to manage and administer their investments. This performance obligation is

performed over time with the revenue recognised as the obligation is performed. Customers pay a platform charge

which is generally calculated as a percentage of their assets. The percentage varies depending on the level of

assets on the specific platform. The main platform charges are calculated either daily or monthly and are collected

and recognised monthly. The charges are collected directly from assets on the platform. There are no significant

payment terms.

In addition, Adviser receives treasury income for providing management and administration of cash held in platform

cash accounts. The performance obligation for cash management and administration is performed over time with

the revenue recognised as the obligation is performed. The customer receives interest on their cash balances after

deduction of a cash management administration charge which is generally calculated as a percentage of their

cash held in relevant accounts. The percentage varies depending on the interest received from the banks used to

provide the cash accounts. There are no significant payment terms.

Through its subsidiary abrdn Portfolio Solutions Limited, the Group offers discretionary fund management services

via its Managed Portfolio Service. The Managed Portfolio Service business has been reported in Adviser since its

transfer from aCL in May 2023. aCL, which was the Group’s primary discretionary fund management business, was

reported in the ii segment until the completion of its sale on 1 September 2023 (refer Note 1(c)(iii) for further

details).


			Annual report 2024	189


		FINANCIAL INFORMATION

The performance obligation for discretionary fund management services is performed over time with the revenue

recognised as the obligation is performed. The Group generally receives discretionary fund management services

fees based on the percentage of the assets under management. The percentage varies depending on the model

selected. Discretionary fund management services fees are deducted from assets. Deducted fees are generally

calculated and recognised daily and collected on a monthly or quarterly basis.

Investments

Through a number of its subsidiaries, the Group provides asset management services to its customers. This

performance obligation is performed over time with the revenue recognised as the obligation is performed. The

Group generally receives asset management fees based on the percentage of the assets under management. The

percentage varies depending on the level and nature of assets under management. Asset management fees are

either deducted from assets or invoiced. Deducted fees are generally calculated, recognised and collected on a

daily basis. Some larger clients separately receive rebates on these fees. Other asset management fees are

invoiced to the customer either monthly or quarterly with receivables recognised for unpaid invoices. The payment

terms for invoiced revenue vary but are typically 30 days from receipt of invoice. Accrued income is recognised to

account for income earned but not yet invoiced which is not dependent on any future performance.

There is also some use of performance fees and carried interest arrangements. Performance fees and carried

interest are earned from some investment mandates when contractually agreed performance levels are

exceeded within specified performance measurement periods. Performance fees and carried interest are only

recognised once it is highly probable that a significant reversal will not occur in future periods. Given the

unpredictability of future performance, the risk of a significant reversal occurring will typically only be considered

low enough to make recognition appropriate upon the crystallisation event occurring.

(b) Cost of sales

The following table provides a breakdown of total cost of sales.


	2024	2023
	£m	£m
Commission expenses	48	64
Other cost of sales	17	12
Total cost of sales	65	76

Other cost of sales includes amounts payable to employees and others relating to carried interest and

performance fee revenue. Cost of sales for each of the Group’s reportable segments is disclosed in Section (c)

below.

revenue as presented in the analysis of adjusted operating profit

The following table provides a reconciliation of revenue from contracts with customers as presented in the

consolidated income statement to adjusted net operating revenue as presented in the analysis of adjusted

operating profit (see Note 2(b) for each of the Group’s reportable segments).


	ii		Adviser		Investments		Other		Total
	2024	2023	2024	2023	2024	2023	2024	2023	2024	2023
	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m
Revenue from contracts with customers	285	293	239	226	837	946	9	9	1,370	1,474
Cost of sales	(7)	(6)	(2)	(2)	(56)	(68)	—	—	(65)	(76)
Net operating revenue as presented in the consolidated income statement	278	287	237	224	781	878	9	9	1,305	1,398
Other differences	—	—	—	—	16	—	—	—	16	—
Adjusted net operating revenue as presented in the analysis of Group adjusted profit by segment	278	287	237	224	797	878	9	9	1,321	1,398

In the current year, net operating revenue includes a reduction related to revenue recognised in previous years. As

this is not material, it has been adjusted for prospectively rather than restating comparative amounts. Other

differences reflect the effect of removing this adjustment as it does not relate to revenue recognised in the current

year.


190	Annual report 2024


Group financial statements continued

4. Net gains or losses on financial instruments and other income



	Gains and losses resulting from changes in both market value and foreign exchange on investments classified as fair value through profit or loss are recognised in the consolidated income statement in the period in which they occur. The gains and losses include investment income received such as interest payments and dividend income. Dividend income is recognised when the right to receive payment is established. Interest income on financial instruments measured at amortised cost is separately recognised in the consolidated income statement using the effective interest rate method. The effective interest rate method allocates interest and other finance costs at a constant rate over the expected life of the financial instrument, or where appropriate a shorter period, by using as the interest rate the rate that exactly discounts the future cash receipts over the expected life to the net carrying value of the instrument. Other income includes income related to vacant property and fair value movements in contingent consideration.


		2024	2023
	Notes	£m	£m
Fair value movements and dividend income on significant listed investments
Fair value movements on significant listed investments (other than dividend income)		(27)	(178)
Dividend income from significant listed investments		56	64
Total fair value movements and dividend income on significant listed investments		29	(114)

Non-unit linked business – excluding significant listed investments
Net gains or losses on financial instruments at fair value through profit or loss		26	6
Interest and similar income from financial instruments at amortised cost		87	76
Foreign exchange gains or losses on financial instruments at amortised cost		—	(7)
Other income		19	37
Net gains or losses on financial instruments and other income – non-unit linked business – excluding significant listed investments		132	112
Unit linked business
Net gains or losses on financial instruments at fair value through profit or loss
Net gains or losses on financial assets at fair value through profit or loss		56	69
Change in non-participating investment contract financial liabilities		(58)	(65)
Change in liability for third party interests in consolidated funds		—	(1)
Total net gains or losses on financial instruments at fair value through profit or loss		(2)	3
Interest and similar income from financial instruments at amortised cost		1	1
Net gains or losses on financial instruments and other income – unit linked business1	23	(1)	4
Total other net gains or losses on financial instruments and other income		131	116

Total net gains or losses on financial instruments and other income		160	2

1. In addition to the Net gains or losses on financial instruments and other income – unit linked business of £(1)m ( 2023: £4m), there are

administrative expenses of £nil (2023: £(1)m) and a policyholder tax credit of £1m (2023: tax expense of £3m) relating to unit linked business for

the account of policyholders. The result attributable to unit linked business for the year is £nil (2023: £nil). Refer Note 23 for further details.

Fair value movements on significant listed investments (other than dividend income) of losses of £27m for the year

ended 31 December 2024 related to the Group’s investment in Phoenix. Fair value movements on significant listed

investments (other than dividend income) of losses of £178m for the year ended 31 December 2023 comprised

losses of £77m relating to Phoenix, losses of £96m relating to HDFC Asset Management and losses of £5m relating to

HDFC Life.

Dividend income from significant listed investments of £56m for the year ended 31 December 2024 related to the

Group’s investment in Phoenix. Dividend income from significant listed investments of £64m for the year ended

31 December 2023 comprised £54m relating to Phoenix and £10m relating to HDFC Asset Management.


			Annual report 2024	191


		FINANCIAL INFORMATION

5. Administrative and other expenses


		2024	2023
	Notes	£m	£m
Restructuring and corporate transaction expenses	8	100	152
Impairment of intangibles acquired in business combinations and through the purchase of customer contracts
Impairment of intangibles acquired in business combinations	13	9	63
Total impairment of intangibles acquired in business combinations and through the purchase of customer contracts		9	63
Amortisation of intangibles acquired in business combinations and through the purchase of customer contracts
Amortisation of intangibles acquired in business combinations	13	109	115
Amortisation of intangibles acquired through the purchase of customer contracts	13	11	11
Total amortisation of intangibles acquired in business combinations and through the purchase of customer contracts		120	126
Staff costs and other employee-related costs	6	510	529
Other administrative expenses1		574	593
Total administrative and other expenses2		1,313	1,463

1. Other administrative expenses includes interest expense of £3m (2023: £4m). In addition, interest expense of £19m (2023: £19m) was incurred in

respect of subordinated liabilities and the related cash flow hedge (refer Note 18) and interest expense of £6m (2023: £6m) in respect of lease

liabilities (refer Note 16) which are included in Finance costs in the consolidated income statement.

2. Total administrative and other expenses includes £nil ( 2023: £1m) relating to unit linked business. Refer Note 23 for further details.

6. Staff costs and other employee-related costs


		2024	2023
	Notes	£m	£m
The aggregate remuneration payable in respect of employees:
Wages and salaries		411	443
Social security costs		47	51
Pension costs
Defined benefit plans		(22)	(39)
Defined contribution plans		48	55
Employee share-based payments and deferred fund awards	40	26	19
Total staff costs and other employee-related costs		510	529

In addition, wages and salaries of £5m (2023: £18m), social security costs of £1m (2023: £4m), pension costs –

defined benefit plans of £nil (2023: £nil), pension costs – defined contribution plans of less than £1m (2023: less than

£1m), employee share-based payments and deferred fund awards relating to transformation, leavers and

corporate transactions of £10m (2023: £12m) and termination benefits of £19m (2023: £44m) have been included

in restructuring and corporate transaction expenses. Refer Note 8. A further £8m (2023: £4m) of expenses are

included in other cost of sales in relation to amounts payable to employees and former employees relating to

carried interest and performance fee revenue. Refer Note 3.

The following table provides an analysis of the average number of staff employed by the Group during the year.


	2024	2023
ii	1,165	1,138
Adviser	507	536
Investments	1,933	2,132
IT and support functions	1,014	1,252
Total employees	4,619	5,058

Information in respect of Directors’ remuneration is provided in the Directors’ remuneration report on pages 122 to

141. In addition to the total remuneration disclosed as paid to the Directors for the prior year are amounts paid to

those Directors who stepped down from the Board during 2023 being £329k to Stephanie Bruce and £33k to Brian

McBride. There were also payments totalling £644k to Stephanie Bruce as a past director in 2023. This is as disclosed

in the 2023 Directors’ remuneration report.


192	Annual report 2024


Group financial statements continued

7. Auditors' remuneration

The following table shows the auditors’ remuneration during the year.


	2024	2023
	£m	£m
Fees payable to the Company's auditors for the audit of the Company's individual and consolidated financial statements	2.2	2.1
Fees payable to the Company’s auditors for other services
The audit of the Company's consolidated subsidiaries pursuant to legislation	5.3	5.1
Audit related assurance services	2.7	2.8
Total audit and audit related assurance fees	10.2	10.0
Other assurance services	0.9	1.0
Other non-audit fee services	—	—
Total non-audit fees	0.9	1.0
Total auditors’ remuneration	11.1	11.0

Auditors’ remuneration disclosed above excludes audit and non-audit fees payable to the Group’s principal auditor

by Group managed funds which are not controlled by the Group, and therefore not consolidated in the Group’s

financial statements.

During the year ended 31 December 2024, £nil audit fees were payable in respect of defined benefit plans to the

Group’s principal auditor ( 2023: £nil).

For more information on non-audit services, refer to the Audit Committee report in the Corporate governance

statement.

8. Restructuring and corporate transaction expenses

Total restructuring and corporate transaction expenses during the year were £100m (2023: £152m). Restructuring

expenses of £88m (2023: £121m) mainly consisted of costs to effect our cost transformation programme including

related severance expenses, and platform transformation expenses. Restructuring expenses in 2023 were partly

offset by a £32m release of the provision for separation costs. Refer Note 33 for further details. Corporate

transaction expenses were £12m (2023: £31m) and include deal costs relating to acquisitions for the year ended

31 December 2024 of £nil (2023: £2m). Further information on restructuring and corporate transaction expenses

can be found in Section 1.1 of Supplementary information.


			Annual report 2024	193


		FINANCIAL INFORMATION

9. Taxation



	The Group’s tax expense comprises both current tax and deferred tax expense. Current tax is the expected tax payable on taxable profit for the year and is calculated using tax rates and laws substantively enacted at the balance sheet date. A deferred tax asset represents a tax deduction that is expected to arise in a future period. It is only recognised to the extent that it is probable that the tax deduction will be capable of being offset against taxable profits and gains in future periods. A deferred tax liability represents taxes which will become payable in a future period as a result of a current or prior year transaction. Where local tax law allows, deferred tax assets and liabilities are netted off on the consolidated statement of financial position. The tax rates used to determine deferred tax are those enacted or substantively enacted at the balance sheet date that are expected to apply when the deferred tax asset or liability are realised. Any tax consequences of distributions on other equity instruments are credited to the statement in which the profit distributed originally arose. Deferred tax is recognised on temporary differences arising from investments in subsidiaries and associates unless the timing of the reversal is in our control and it is expected that the temporary difference will not reverse in the foreseeable future. The Group applies the exception to recognising and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes. Current tax and deferred tax are recognised in the consolidated income statement except when it relates to items recognised in other comprehensive income or directly in equity, in which case it is credited or charged to other comprehensive income or directly to equity respectively. The Group operates in a number of territories and during the normal course of business will be subject to audit or enquiry by local tax authorities. At any point in time the Group will also be engaged in commercial transactions the tax outcome of which may be uncertain due to their complexity or uncertain application of tax law. Tax provisions, therefore, are subjective by their nature and require management judgement based on the interpretation of legislation, management experience and professional advice. As such, this may result in the Group recognising provisions or disclosing contingent liabilities for uncertain tax positions. Management will provide for uncertain tax positions where they judge that it is probable there will be a future outflow of economic benefits from the Group to settle the obligation. Where a future outflow of economic benefits is judged as less than probable but more than remote, a contingent liability will be disclosed, where material. In assessing uncertain tax positions management considers each issue on its own merits using their judgement as to the estimate of the most likely outcome. When making estimates, management considers all available evidence. This may include forecasts of future profitability, the frequency and severity of any losses, and statutory carry forward and carry back provisions as well as management experience of tax attributes expiring without use. Where the final outcome differs from the amount provided this difference will impact the tax charge in future periods. Management re-assesses provisions at each reporting date based upon latest available information.

(a) Tax charge in the consolidated income statement

(a)(i) Current year tax expense


	2024	2023
	£m	£m
Current tax:
UK	11	17
Pillar Two Top-up tax	1	—
Overseas	7	51
Adjustment to tax expense in respect of prior years	(4)	(2)
Total current tax	15	66
Deferred tax:
Deferred tax credit arising from the current year	(5)	(69)
Adjustment to deferred tax in respect of prior years	(7)	(15)
Total deferred tax	(12)	(84)
Total tax expense/(credit)1	3	(18)

1. The tax expense of £3m ( 2023: tax credit of £18m) includes a tax credit of £1m (2023: tax expense of £3m) relating to unit linked business. Refer

Note 23 for further details.


194	Annual report 2024


Group financial statements continued

In 2024 unrecognised tax losses from previous years were used to reduce the current tax expense by £2m (2023:

£2m).

Current tax recoverable and current tax liabilities at 31 December 2024 were £23m (2023: £10m) and £3m (2023:

£6m) respectively. In addition current tax recoverable and current tax liabilities in relation to unit linked business

were £nil (2023: £nil) and £nil (2023: £nil) respectively. Current tax assets and liabilities at 31 December 2024 are

expected to be recoverable or payable in less than 12 months (2023: less than 12 months).

(a)(ii) Reconciliation of tax expense


	2024	2023
	£m	£m
Profit/(loss) before tax	251	(6)
Tax at 25% (2023: 23.5%)	63	(1)
Remeasurement of deferred tax due to rate changes	1	(5)
Permanent differences	4	1
Non-taxable dividends from significant listed investments	(14)	(13)
Non-taxable fair value movements on significant listed investments	7	18
Tax effect of accounting for share of profit or loss from associates and joint ventures	(6)	—
Tax effect of distributions on other equity instruments	(3)	(3)
Impairment losses on goodwill	1	15
Differences in overseas tax rates	(2)	4
Adjustment to current tax expense in respect of prior years	(4)	(2)
Recognition of previously unrecognised deferred tax credit	(9)	(1)
Deferred tax not recognised	1	2
Adjustment to deferred tax expense in respect of prior years	(7)	(15)
Non-taxable profit or loss on sale of subsidiaries, associates and significant listed investments	(26)	(18)
Other	(3)	—
Total tax expense/(credit) for the year	3	(18)

The standard UK Corporation Tax rate for the accounting period is 25%. The rate of UK Corporation Tax increased

from 19% to 25% with effect from 1 April 2023.

The accounting for certain items in the consolidated income statement results in certain reconciling items in the

table above, the values of which vary from year to year depending upon the underlying accounting values.

Details of significant reconciling items are as follows:

– Profits on the sale of our European-headquartered Private Equity business not being subject to tax

– Dividend income and fair value movements from our investments in Phoenix not being subject to tax.

– Overseas profits reducing the unrecognised deferred tax asset.

– Prior year adjustments reflecting the non taxable release of accounting provisions.

(b) Tax relating to components of other comprehensive income

Tax relating to components of other comprehensive income is as follows:


	2024	2023
	£m	£m
Tax relating to fair value gains and losses recognised on cash flow hedges	4	(10)
Tax relating to cash flow hedge gains and losses transferred to consolidated income statement	(4)	7
Equity holder tax effect relating to items that may be reclassified subsequently to profit or loss	—	(3)
Tax relating to other comprehensive income	—	(3)

All of the amounts presented above are in respect of equity holders of abrdn plc.


			Annual report 2024	195


		FINANCIAL INFORMATION


	2024	2023
	£m	£m
Tax relating to share-based payments	1	—
Tax relating to items taken directly to equity	1	—

(d) Deferred tax assets and liabilities

(d)(i) Analysis of recognised deferred tax


	2024	2023
	£m	£m
Deferred tax assets comprise:
Losses carried forward	167	160
Depreciable assets	24	35
Employee benefits	14	20
Provisions and other temporary timing differences	7	7
Gross deferred tax assets	212	222
Less: Offset against deferred tax liabilities	(15)	(7)
Deferred tax assets	197	215
Deferred tax liabilities comprise:
Unrealised gains on investments	6	4
Deferred tax on intangible assets acquired through business combinations	101	124
Other	9	8
Gross deferred tax liabilities	116	136
Less: Offset against deferred tax assets	(15)	(7)
Deferred tax liabilities	101	129
Net deferred tax asset at 31 December	96	86

A deferred tax asset of £167m (2023: £160m) has been recognised by the Group in respect of losses of the parent

company and various subsidiaries. The increase reflects the conversion of part of the deferred tax asset held on

depreciable assets to recognised losses carried forward. This increase was partially offset by the utilisation of

brought forward losses against taxable profits in the year.

Deferred tax assets are recognised to the extent that it is probable that the losses will be capable of being offset

against taxable profits and gains in future periods. The value attributed to them takes into account the certainty or

otherwise of their recoverability. Their recoverability is measured against the reversal of deferred tax liabilities and

anticipated taxable profits and gains based on business plans. The deferred tax asset recognised on losses relates

to UK entities where there is currently no restriction on the period of time over which losses can be utilised.

Recognition of this deferred tax asset requires that management must consider if it is more likely than not that this

asset will be recoverable in future periods against future profits arising in the UK. In making this assessment

management have considered future operating plans and forecast taxable profits and are satisfied that forecast

taxable profits will be sufficient to enable recovery of the UK tax losses. The financial forecasts considered were

consistent with those used for the assessment of the Group’s intangible assets (refer Note 13). Based upon the level

of forecast taxable profits management do not consider there is significant risk of a material adjustment to the

carrying amount of the deferred tax asset on UK tax losses within the next financial year. Management expect the

deferred tax asset to be utilised over a period of between four and six years.

Deferred tax assets of £180m (2023: £215m) and liabilities of £80m (2023: £129m) are expected to be recovered or

settled after more than 12 months.


196	Annual report 2024


Group financial statements continued

(d)(ii) Movements in deferred tax assets and liabilities


	Losses carried forward	Depreciable assets	Employee benefits	Provisions and other temporary timing differences	Unrealised gains on investments	Deferred tax on intangible assets acquired through business combinations	Other	Net deferred tax asset
	£m	£m	£m	£m	£m	£m	£m	£m
At 1 January 2024	160	35	20	7	(4)	(124)	(8)	86
Credit or (charge) directly to equity	—	—	(1)	—	—	—	—	(1)
Amounts (expensed) in/credited to the consolidated income statement	8	(11)	(5)	1	(3)	23	(1)	12
Tax on cash flow hedge	—	—	—	—	—	—	—	—
Other	(1)	—	—	(1)	1	—	—	(1)
At 31 December 2024	167	24	14	7	(6)	(101)	(9)	96


	Losses carried forward	Depreciable assets	Employee benefits	Provisions and other temporary timing differences	Unrealised gains on investments	Deferred tax on intangible assets acquired through business combinations	Other	Net deferred tax asset
	£m	£m	£m	£m	£m	£m	£m	£m
At 1 January 2023	170	33	26	5	(60)	(162)	(11)	1
Amounts (expensed) in/credited to the consolidated income statement	(10)	2	(6)	2	56	38	2	84
Tax on cash flow hedge	—	—	—	—	—	—	3	3
Other	—	—	—	—	—	—	(2)	(2)
At 31 December 2023	160	35	20	7	(4)	(124)	(8)	86

(e) Unrecognised deferred tax

Due to uncertainty regarding recoverability, deferred tax assets have not been recognised in respect of the

following:

– Cumulative losses carried forward of £112m (2023: £91m) in the UK and losses and other temporary differences

of £343m (2023: £360m) in the US, losses of £7m in China (2023: £10m), losses of £8m in Japan (2023: £10m) and

losses of £10m (2023: £9m) in other overseas jurisdictions.

Of these unrecognised deferred tax assets, certain losses have expiry dates as follows:

– US losses of £136m (2023: £140m) with expiry dates between 2035-2037.

– Other overseas losses of £19m with expiry dates between 2025-2034 (2023: £21m with expiry dates between

2024-2033).

The following table provides an analysis of the losses with expiry dates for unrecognised deferred tax assets.


	2024	2023
	£m	£m
Less than 1 year	1	4
Greater than or equal to 1 year and less than 5 years	14	9
Greater than or equal to 5 years and less than 10 years	4	8
Greater than 10 years	136	140
Total losses with expiry dates	155	161

There is an unrecognised deferred tax asset of £6m (2023: liability of £18m) relating to temporary timing

differences associated with investments in subsidiaries, branches and associates and interests in joint

arrangements.


			Annual report 2024	197


		FINANCIAL INFORMATION

10. Earnings per share



	Basic earnings per share is calculated by dividing profit or loss attributable to ordinary equity holders by the weighted average number of ordinary shares in issue during the period excluding shares owned by the employee trusts that have not vested unconditionally to employees. Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares in issue during the period to assume the conversion of all dilutive potential ordinary shares, such as share options granted to employees. Details of the share options and awards issued under the Group’s employee plans are provided in Note 40. Adjusted earnings per share is calculated on adjusted profit after tax attributable to ordinary equity holders of the Company.

Basic earnings per share was 13.2p (2023: 0.1p) and diluted earnings per share was 13.0p (2023: 0.1p) for the year

ended 31 December 2024. The following table shows details of basic, diluted and adjusted earnings per share.


	2024	2023
	£m	£m
Adjusted profit before tax	354	330
Tax on adjusted profit	(70)	(50)
Adjusted profit after tax	284	280
Attributable to:
Other equity holders	(11)	(11)
Adjusted profit after tax attributable to equity shareholders of abrdn plc	273	269
Total adjusting items including results of associates and joint ventures	(103)	(336)
Tax on adjusting items	67	68
Profit attributable to equity shareholders of abrdn plc	237	1


	2024	2023
	Millions	Millions
Weighted average number of ordinary shares outstanding	1,796	1,902
Dilutive effect of share options and awards	22	28
Weighted average number of diluted ordinary shares outstanding	1,818	1,930


	2024	2023
	Pence	Pence
Basic earnings per share	13.2	0.1
Diluted earnings per share	13.0	0.1
Adjusted earnings per share	15.2	14.1
Adjusted diluted earnings per share	15.0	13.9


198	Annual report 2024


Group financial statements continued

11. Adjusted profit and adjusting items



	Adjusted profit excludes the impact of the following items: – Restructuring and corporate transaction expenses. Restructuring includes the impact of major regulatory change. – Amortisation and impairment of intangible assets acquired in business combinations and through the purchase of customer contracts. – Profit or loss arising on the disposal of a subsidiary, joint venture or equity accounted associate. – Change in fair value of/dividends from significant listed investments (see (a) below). – Share of profit or loss from associates and joint ventures. – Impairment loss/reversal of impairment loss recognised on investments in associates and joint ventures accounted for using the equity method. – Fair value movements in contingent consideration. – Items which are one-off and, due to their size or nature, are not indicative of the long-term operating performance of the Group. The tax charge or credit allocated to adjusting items is based on the tax treatment of each adjusting item. The operating, investing and financing cash flows presented in the consolidated statement of cash flows are for both adjusting and non-adjusting items.

(a) Significant listed investments

Following the sale of the Group’s final investments in HDFC Life and HDFC Asset Management in May 2023 and June

2023 respectively (see below), the Group has one remaining significant listed investment, Phoenix. There were no

additions or disposals of significant listed investments in 2024.

Fair value movements on significant listed investments are included as adjusting items, which is aligned with our

treatment of gains on disposal for these holdings when they were classified as associates. Dividends from significant

listed investments are also included as adjusting items, as these result in fair value movements.

(b) Other

Other adjusting items for the year ended 31 December 2024 include:

– £11m gain (2023: £23m gain) for net fair value movements in contingent consideration.

– £(15)m negative release (2023: £nil) to other administrative expenses of the prepayment recognised in relation to

the Group’s purchase of Phoenix’s trustee investment plan business for UK pension scheme clients. Refer Note 20

for further details.

– £(16)m negative adjustment (2023: £nil) to Revenue from contracts with customers recognised in prior periods

which were not restated as the impact was not considered material.

– Gain of £4m (2023: £4m gain) in relation to market movements on the investments held by the abrdn Financial

Fairness Trust which is consolidated by the Group. The assets of the abrdn Financial Fairness Trust are restricted

to be used for charitable purposes.

– £(10)m net expense (2023: £(9)m) related to properties which are not being used operationally.

Other adjusting items for the year ended 31 December 2023 included:

– £36m for an insurance liability recovery in relation to the single process execution event in 2022. The £41m

provision expense was included in other adjusting items for the year ended 31 December 2022. Refer Note 33.

– £21m provision expense relating to a potential tax liability. Refer Note 33.

– £5m fair value loss on a financial instrument liability related to a prior period acquisition.


			Annual report 2024	199


		FINANCIAL INFORMATION

12. Dividends on ordinary shares



	Dividends are distributions of profit to holders of abrdn plc’s share capital and as a result are recognised as a deduction in equity. Final dividends are announced with the Annual report and accounts and are recognised when they have been approved by shareholders. Interim dividends are announced with the Half year results and are recognised when they are paid.


	2024		2023
	Pence per share	£m1	Pence per share	£m
Prior year’s final dividend paid	7.30	130	7.30	142
Interim dividend paid	7.30	130	7.30	137
Total dividends paid on ordinary shares		260		279

Current year final recommended dividend	7.30	130	7.30	130

1. Estimated for current year final recommended dividend.

The final recommended dividend will be paid on 13 May 2025 to shareholders on the Company’s register as at

28 March 2025, subject to approval at the 2025 Annual General Meeting. After the current year final recommended

dividend, the total dividend in respect of the year ended 31 December 2024 is 14.60p (2023: 14.60p).

13. Intangible assets



	Goodwill is created when the Group acquires a business and the consideration exceeds the fair value of the net assets acquired. In determining the net assets acquired in business combinations, intangible assets are recognised where they are separable or arise from contractual or legal rights. Intangible assets acquired by the Group through business combinations consist mainly of customer relationships and investment management contracts, technology and brands. Any remaining value that cannot be identified as a separate intangible asset on acquisition forms part of goodwill. Goodwill is not charged to the consolidated income statement unless it becomes impaired. In addition to intangible assets acquired through business combinations, the Group recognises as intangible assets software which has been developed internally and other purchased technology which is used in managing and executing our business. Costs to develop software internally are capitalised after the research phase and when it has been established that the project is technically feasible and the Group has both the intention and ability to use the completed asset. Intangible assets are recognised at cost and amortisation is charged to the consolidated income statement over the length of time the Group expects to derive benefits from the asset. The allocation of the consolidated income statement charge to each reporting period is dependent on the expected pattern over which future benefits are expected to be derived. Where this pattern cannot be determined reliably the charge is allocated on a straight-line basis. The Group also recognises the cost of obtaining customer contracts (refer Note 3) as an intangible asset. These costs primarily relate to the cost of acquiring existing investment management contracts from other asset managers and commission costs for initial investors into new closed-end funds where these are borne by the Group. For the cost of obtaining customer contracts, the intangible asset is amortised on the same basis as the transfer to the customer of the services to which the intangible asset relates. Refer to the estimates and assumptions section below for details of the amortisation periods and methods applied.


200	Annual report 2024


Group financial statements continued


	Acquired through business combinations
	Goodwill	Brand	Customer relationships and investment management contracts	Technology & other	Internally developed software1	Purchased software and other	Cost of obtaining customer contracts	Total
	£m	£m	£m	£m	£m	£m	£m	£m
Gross amount
At 1 January 2023	4,665	110	1,483	101	137	5	105	6,606
Disposals and adjustments	—	1	(4)	—	2	—	—	(1)
Additions	41	—	78	—	8	—	33	160
Foreign exchange adjustment	(2)	—	(4)	—	—	—	(1)	(7)
At 31 December 2023	4,704	111	1,553	101	147	5	137	6,758
Disposals and adjustments	—	—	(12)	(5)	(21)	—	—	(38)
Additions	—	—	—	—	5	—	21	26
Foreign exchange adjustment	1	—	1	—	—	—	1	3
At 31 December 2024	4,705	111	1,542	96	131	5	159	6,749
Accumulated amortisation and impairment
At 1 January 2023	(3,730)	(96)	(874)	(74)	(130)	(5)	(78)	(4,987)
Amortisation charge for the year2	—	(4)	(99)	(12)	(2)	—	(11)	(128)
Impairment losses recognised3	(62)	—	(1)	—	(2)	—	—	(65)
At 31 December 2023	(3,792)	(100)	(974)	(86)	(134)	(5)	(89)	(5,180)
Disposals and adjustments	—	—	11	5	21	—	—	37
Amortisation charge for the year2	—	(3)	(96)	(10)	(3)	—	(11)	(123)
Impairment losses recognised3	(5)	—	(4)	—	—	—	—	(9)
At 31 December 2024	(3,797)	(103)	(1,063)	(91)	(116)	(5)	(100)	(5,275)
Carrying amount
At 1 January 2023	935	14	609	27	7	—	27	1,619
At 31 December 2023	912	11	579	15	13	—	48	1,578
At 31 December 2024	908	8	479	5	15	—	59	1,474

1. Included in the internally developed software of £15m (2023: £13m) is £6m (2023: £10m) relating to intangible assets not yet ready for use.

2. For the year ended 31 December 2024, £120m (2023: £126m) of the amortisation charge is recognised in Amortisation of intangibles acquired in

business combinations and through the purchase of customer contracts with £3m (2023: £2m) recognised in other administrative expenses.

3. For the year ended 31 December 2024, £9m (2023: £63m) of impairment is recognised in Impairment of intangibles acquired in business

combinations and through the purchase of customer contracts with £nil (2023: £2m) recognised in Restructuring and corporate transaction

expenses.

At 31 December 2024, there was:

– £40m (2023: £39m) of goodwill attributable to the abrdn Inc. cash-generating unit (CGU) in the Investments

segment in relation to the acquisition of the healthcare fund management capabilities of Tekla (refer Note 1(b)(i)

for further details).

– £819m (2023: £819m) and £24m (2023: £24m) of goodwill attributable to the ii CGU and the abrdn financial

planning business (aFP) CGU respectively in the ii segment.

– £25m (2023: £25m) of goodwill is attributable to an Adviser segment CGU.

At 31 December 2023, there was also £5m of goodwill attributable to the Finimize CGU which is reported within

Other business operations and corporate costs. This goodwill is now fully impaired – see below.

In addition to goodwill, the Group has a number of customer related acquired intangibles that are individually

material.


			Annual report 2024	201


		FINANCIAL INFORMATION

Tekla investment management contract intangible assets

On acquisition of the healthcare fund management capabilities of Tekla, £78m of customer relationships and

investment management contract intangibles were recognised. These assets primarily relate to investment

management contracts with the four NYSE listed funds. The description of the individually material intangible assets

including the estimated useful life at the acquisition date of 27 October 2023 were as follows:


Investment management contract intangible asset	Description	Useful life at acquisition date	Fair value on acquisition date	Carrying value 2024	Carrying value 2023
			£m	£m	£m
Tekla Healthcare Opportunities Fund	Investment management contract with Tekla Healthcare Opportunities Fund	12.1 years	28	25	26
Tekla Healthcare Investors	Investment management contract with Tekla Healthcare Investors	12.1 years	25	22	23

As the investment management contracts relate to closed-end funds, the straight-line method of amortisation is

considered appropriate for these intangibles. There has been no change to the useful lives and therefore the

residual useful life of these investment management contract intangible assets is 10.9 years.

ii intangible assets

On acquisition of ii, customer relationships, brand and technology and other intangibles of £421m, £16m and £32m

respectively were recognised. Identification and valuation of intangible assets acquired in business combinations

was a key judgement. The description of the individually material intangible asset including the estimated useful life

at the acquisition date of 27 May 2022 was as follows:


Customer relationship intangible asset	Description	Useful life at acquisition date	Fair value on acquisition date	Carrying value 2024	Carrying value 2023
			£m	£m	£m
Customer base	ii’s customer base at the date of acquisition	15 years	421	293	340

There has been no change to the useful life and therefore residual useful life of the customer relationships intangible

asset is 12.4 years. The reducing balance method of amortisation is considered appropriate for this intangible,

consistent with the attrition rate being constant over time.

Following the valuation of the ii intangibles discussed above goodwill of £993m was recognised. The allocation of this

goodwill to cash-generating units was a key judgement in 2022. The goodwill was allocated to cash-generating

units based on expected earnings contribution, including in relation to revenue synergies, at the time of the

transaction. We considered an earnings contribution method of allocation to be appropriate as earnings multiples

are a primary valuation method for businesses such as ii. This resulted in the goodwill being primarily allocated to the

ii cash-generating unit in the ii segment (£819m), with £132m and £42m allocated to the asset management group

of cash-generating units in the Investments segment and a cash-generating unit in the ii segment respectively. The

£132m allocated to the asset management group of cash-generating units was subsequently impaired in 2022. The

£42m allocated to a cash-generating unit in the ii segment was transferred to held for sale at 31 December 2022

and disposed of during 2023 as part of the sale of aCL.

Tritax investment management contract intangible assets

On acquisition of Tritax, £71m of customer relationships and investment management contracts intangibles were

recognised. These assets primarily relate to Tritax’s investment management contracts with Tritax Big Box REIT plc

which is a listed closed-end real estate fund and another closed-end real estate fund, Tritax EuroBox plc, (EuroBox)

which was delisted and renamed Titanium Ruth Holdco PLC in December 2024. See the estimates and assumptions

section below for details of the recent developments in relation to the EuroBox asset.

The description of the individually material intangible asset including the estimated useful life at the acquisition date

of 1 April 2021 was as follows:


Investment management contract intangible asset	Description	Useful life at acquisition date	Fair value on acquisition date	Carrying value 2024	Carrying value 2023
			£m	£m	£m
Tritax Big Box REIT plc	Investment management contract with Tritax Big Box REIT plc	13 years	50	36	40

As the investment management contracts relate to closed-end funds, the straight-line method of amortisation is

considered appropriate for these intangibles. There has been no change to the useful lives and therefore the

residual useful life of these investment management contract intangible assets is 9.25 years.


202	Annual report 2024


Group financial statements continued

abrdn Holdings Limited (aHL) intangibles

On the acquisition of aHL in 2017, we identified intangible assets in relation to customer relationships, brand and

technology as being separable from goodwill. Identification and valuation of intangible assets acquired in business

combinations is a key judgement.

The customer relationships acquired through aHL and its subsidiaries were grouped where the customer groups

have similar economic characteristics and similar useful economic lives. This gave rise to three separate intangible

assets which we termed Lloyds Banking Group, Open ended funds, and Segregated and similar.

The intangible asset for Lloyds Banking Group had a carrying value of £nil at the end of 2019. The description of the

remaining two separate intangible assets including their estimated useful life at the acquisition date of 14 August

2017 was as follows:


Customer relationship intangible asset	Description	Useful life at acquisition date	Fair value on acquisition date	Carrying value 2024	Carrying value 2023
			£m	£m	£m
Open ended funds	Separate vehicle group – open ended investment vehicles	11 years	223	19	30
Segregated and similar	All other vehicle groups dominated by segregated mandates which represent 75% of this group	12 years	427	29	43

The reducing balance method of amortisation is considered appropriate for these intangibles, consistent with the

attrition pattern on customer relationships which means that the economic benefits delivered from the existing

customer base will reduce disproportionately over time. There has been no change to the useful lives of the Open

ended funds and Segregated and similar customer relationship intangible assets. Therefore the residual useful life of

the Open ended funds customer relationship intangible asset is 3.6 years and the residual life of the Segregated and

similar customer relationship intangible asset is 4.6 years.


			Annual report 2024	203


		FINANCIAL INFORMATION



	Estimates and assumptions The estimates and assumptions in relation to intangible assets primarily relate to: – Determination of the recoverable amount of goodwill and customer intangibles. – Determination of useful lives. The determination of the recoverable amount of the interactive investor CGU is a key area of estimation uncertainty at 31 December 2024, and further details of assumptions and sensitivities are disclosed in this section. Determination of the recoverable amount of goodwill and customer intangibles For all intangible assets including goodwill, an assessment is made at each reporting date as to whether there is an indication that the goodwill or intangible asset has become impaired. If any indication of impairment exists then the recoverable amount of the asset is determined. In addition, the recoverable amount for goodwill must be assessed annually. The recoverable amounts are defined as the higher of fair value less costs of disposal (FVLCD) and the value in use (VIU) where the value in use is based on the present value of future cash flows. Where the carrying value exceeds the recoverable amount then the carrying value is written down to the recoverable amount. In assessing value in use or FVLCD measured using a discounted cash flow approach, expected future cash flows are discounted to their present value using a pre-tax discount rate for VIU or a post-tax discount rate for FVLCD. Judgement is required in assessing both the expected cash flows and an appropriate discount rate which is based on current market assessments of the time value of money and the risks associated with the asset. Goodwill In 2024 impairments of goodwill of £5m (2023: £62m) have been recognised. The goodwill impairment for the year ended 31 December 2024 relates to the Finimize CGU which is reported within Other business operations and corporate costs. The goodwill impairment for the year ended 31 December 2023 comprised a further £26m relating to the Finimize CGU and £36m relating to the aFP CGU which is included in the ii segment. The impairments are included within Impairment of intangibles acquired in business combinations and through the purchase of customer contracts in the consolidated income statement. Finimize In 2024 the Group recognised an impairment of the goodwill relating to the Finimize CGU of £5m. Following this impairment, the goodwill allocated to the Finimize CGU is now fully impaired (2023: £5m). This impairment was recognised at 30 June 2024. The impairment reflects higher anticipated losses in the period prior to which abrdn anticipates Finimize is likely to achieve profitability and the related Group support required in this period. The recoverable amount of the Finimize CGU at 30 June 2024 was £10m which was based on fair value less costs of disposal (FVLCD). The FVLCD considered a number of valuation approaches, with the primary approach being a revenue multiple approach. The key assumptions used in determining the revenue multiple valuation were future revenue projections, which were based on management forecasts and market multiples for broadly comparable listed companies, with appropriate discounts applied to take into account profitability, track record, revenue growth potential, and net premiums for control. This is a level 3 measurement as they are measured using inputs which are not based on observable market data. The goodwill allocated to the Finimize CGU was also impaired in 2023 by £26m. The recoverable amount of the Finimize CGU at 31 December 2023 was £10m which was based on FVLCD. As above, the FVLCD considered a number of valuation approaches, with the primary approach being a revenue multiple approach. aFP Goodwill of £24m (2023: £24m) is allocated to the aFP CGU which comprises the Group’s financial planning business. There was no impairment of the goodwill attributable to this CGU in 2024. The goodwill allocated to the aFP CGU was impaired in 2023 by £36m. The recoverable amount of the aFP CGU at 31 December 2023 was £45m which was based on FVLCD. The FVLCD considered a number of valuation approaches, with the primary approach being a multiples approach based on price to revenue and price to assets under advice (AUAdv). Multiples were based on trading multiples for aFP’s peer companies, adjusted to take into account profitability where appropriate, and were benchmarked against recent transactions. This was a level 3 measurement as they are measured using inputs which are not based on observable market data. Following this impairment, the residual goodwill attributable to the aFP CGU is not significant in comparison to the total carrying amount of goodwill.


204	Annual report 2024


Group financial statements continued



	interactive investor Goodwill of £819m (2023: £819m) is allocated to the interactive investor CGU which comprises the interactive investor business in the ii segment. There was no impairment of this goodwill attributable to this CGU in 2024 or 2023. The recoverable amount of this CGU was determined based on FVLCD. The FVLCD was based on an earnings multiple approach. This is a level 3 measurement as it is measured using inputs which are not based on observable market data. The key assumptions used in determining the earnings multiple valuation were future post tax adjusted earnings, which were based on management’s business plan projections and reflected past experience and market price to earnings multiples, which were based on multiples of a peer group of comparable listed direct- to-consumer investment platform providers. Sensitivities of key assumptions The business plan projections used to determine the future earnings are based on macroeconomic forecasts including interest rates and inflation, and forecast levels of client activity, market pricing, the percentage of client funds held in cash and expenses. The projections are therefore sensitive to these assumptions. A 20% reduction in forecast earnings has been provided as a sensitivity. The market price to earnings multiple used in the valuation is 17x based on multiples of a peer group of comparable listed direct-to-consumer investment platform providers. This assumption is sensitive to general equity market fluctuations and to market views on UK direct-to-consumer investment platform companies. A 40% sensitivity to an earnings multiple has been provided as a sensitivity. The recoverable amount at 31 December 2024 exceeds the carrying amount of the cash-generating unit by £692m. The impact of sensitivities to a single variable and change required to reduce headroom to zero are shown in the tables below.

	Impact on goodwill carrying amount at 31 December 2024	£m
	20% reduction in forecast post tax adjusted earnings	—
	40% reduction in market multiple	(84)

	Change required to reduce headroom to zero	%
	Change in forecast post tax adjusted earnings	(36)
	Reduction in market multiple	(36)

	We consider the 36% reduction in market multiple assumption to 11x to reduce the headroom to zero to be a reasonably possible change. The sensitivity for forecast post tax earnings has been included for illustrative purposes only. Other goodwill Goodwill of £40m (2023: £39m) is attributable to the abrdn Inc. CGU in the Investments segment. This relates to the acquisition of healthcare fund management capabilities of Tekla. Refer Note 1(b)(i) for further details. Goodwill of £25m (2023: £25m) is attributable to an Adviser segment CGU. There were no impairments of these goodwill balances in 2024 or 2023, both of which are not significant in comparison to the total carrying amount of goodwill. Customer relationship and investment management contract intangibles An impairment of £4m was recognised in 2024 in relation to the Investment management contract intangible asset for EuroBox within the Investments segment. The impairment resulted from the completion of the takeover of EuroBox on 10 December 2024 by a Brookfield real estate private fund. At 31 December 2024 the Group was still managing the assets of EuroBox. An impairment of customer relationship and investment management contract intangibles of £1m was recognised in 2023.


			Annual report 2024	205


		FINANCIAL INFORMATION


	Determination of useful lives The determination of useful lives requires judgement in respect of the length of time that the Group expects to derive benefits from the asset and considers for example expected duration of customer relationships and when technology is expected to become obsolete for technology based assets. The amortisation period and method for each of the Group’s intangible asset categories is as follows: – Customer relationships acquired through business combinations – generally between 7 and 15 years, generally reducing balance method. – Investment management contracts acquired through business combinations – between 10 and 17 years, straight-line. – Brand acquired through business combinations – between 2 and 5 years, straight-line. – Technology and other intangibles acquired through business combinations – between 1 and 6 years, straight- line. – Internally developed software – between 2 and 6 years. Amortisation is on a straight-line basis and commences once the asset is available for use. – Purchased software – between 2 and 6 years, straight-line. – Costs of obtaining customer contracts – between 3 and 12 years, generally reducing balance method. Internally developed software There was no impairment of internally developed software in 2024. An impairment of internally developed software of £2m was recognised in 2023.


206	Annual report 2024


Group financial statements continued

14. Investments in associates and joint ventures



	Associates are entities where the Group can significantly influence decisions made relating to the financial and operating policies of the entity but does not control the entity. For entities where voting rights exist, significant influence is presumed where the Group holds between 20% and 50% of the voting rights. Where the Group holds less than 20% of voting rights, consideration is given to other indicators and entities are classified as associates where it is judged that these other indicators result in significant influence. Joint ventures are strategic investments where the Group has agreed to share control of an entity’s financial and operating policies through a shareholders’ agreement and decisions can only be taken with unanimous consent. Associates, other than those accounted for at fair value through profit or loss, and joint ventures are accounted for using the equity method from the date that significant influence or shared control, respectively, commences until the date this ceases. Under the equity method, investments in associates and joint ventures are initially recognised at cost. When an interest is acquired at fair value from a third party, the value of the Group’s share of the investee’s identifiable assets and liabilities is determined applying the same valuation criteria as for a business combination at the acquisition date. This is compared to the cost of the investment in the investee. Where cost is higher the difference is identified as goodwill and the investee is initially recognised at cost which includes this component of goodwill. Where cost is lower a bargain purchase has arisen and the investee is initially recognised at the Group’s share of the investee’s identifiable assets and liabilities unless the recoverable amount for the purpose of assessing impairment is lower, in which case the investee is initially recognised at the recoverable amount. Subsequently the carrying value is adjusted for the Group’s share of post-acquisition profit or loss and other comprehensive income of the associate or joint venture, which are recognised in the consolidated income statement and other comprehensive income respectively. The Group’s share of post-acquisition profit or loss includes amortisation charges based on the valuation exercise at acquisition. The carrying value is also adjusted for any impairment losses. The Group’s share of post-acquisition profit or loss and other comprehensive income of the associate or joint venture are determined using consistent accounting policies. In relation to insurance contracts and contracts with discretionary participating features for which the Group adopted IFRS 17 Insurance Contracts from 1 January 2023, the Group’s primary exposure is through its insurance joint venture, HASL (see Section C below). The Group has no material direct exposure to insurance contracts and contracts with discretionary participating features. In relation to insurance contracts and contracts with discretionary participating features, there are three main measurement models: the general measurement model; the variable fee approach and the premium allocation approach. HASL primarily uses the general measurement model for its traditional insurance business and the variable fee approach for its direct participating contracts and investment contracts with direct participation features with some use of the premium allocation approach. HASL has elected to take the other comprehensive income (OCI) options under IFRS 17 to take elements of the movements in the measurement of insurance contract through OCI. HASL also classifies some of its debt securities as fair value through OCI. On partial disposal of an associate, a gain or loss is recognised based on the difference between the proceeds received and the equity accounted value of the portion disposed of. Indicators of significant influence are reassessed based on the remaining voting rights. Where significant influence is judged to have been lost, the investment in associate is reclassified to interests in equity securities and pooled investment funds measured at fair value. If an entity is reclassified, the difference between the fair value and the remaining equity accounted value is accounted for as a reclassification gain or loss on disposal. Where the Group has an investment in an associate, a portion of which is held by, or is held indirectly through, a mutual fund, unit trust or similar entity, including investment-linked insurance funds, that portion of the investment is measured at FVTPL. In general, investment vehicles which are not subsidiaries are considered to be associates where the Group holds more than 20% of the voting rights.

The level of future dividend payments and other transfers of funds to the Group from associates and joint ventures

accounted for using the equity method could be restricted by the regulatory solvency and capital requirements of

the associate or joint venture, certain local laws or foreign currency transaction restrictions.


			Annual report 2024	207


		FINANCIAL INFORMATION

(a) Investments in associates and joint ventures accounted for using the equity method


	2024			2023
	Associates	Joint ventures	Total	Associates	Joint ventures	Total
	£m	£m	£m	£m	£m	£m
Opening balance carried forward	15	214	229	14	218	232
Effect of application of IFRS 91	—	—	—	—	51	51
Opening balance at 1 January	15	214	229	14	269	283
Reclassified as held for sale during the year	—	—	—	—	(9)	(9)
Exchange translation adjustments	—	(3)	(3)	—	(19)	(19)
Additions and adjustments	—	2	2	2	—	2
(Loss)/profit after tax	(1)	25	24	(1)	2	1
Other comprehensive income	—	(47)	(47)	—	(31)	(31)
Reversal of impairment/(impairment)	—	—	—	—	2	2
At 31 December	14	191	205	15	214	229

1. The Group implemented IFRS 9 in 2019. However, as permitted under a temporary exemption granted to insurers in IFRS 4 Insurance Contracts,

the Group’s insurance joint venture, Heng An Standard Life Insurance Company Limited (HASL), applied IFRS 9 at 1 January 2023 following the

implementation of the new insurance contracts standard, IFRS 17. In line with the approach adopted by the Group on its implementation of IFRS 9

on 1 January 2019, the 2022 comparatives were not restated for HASL’s adoption of IFRS 9. The impact of HASL adopting IFRS 9 was recognised in

retained earnings at 1 January 2023.

The following joint venture is considered to be material to the Group as at 31 December 2024.


Name	Nature of relationship	Principal place of business	Measurement method	Interest held by the Group at 31 December 2024	Interest held by the Group at 31 December 2023
Heng An Standard Life Insurance Company Limited (HASL)	Joint venture	China	Equity accounted	50%	50%

The country of incorporation or registration is the same as the principal place of business. The interest held by the

Group is the same as the proportion of voting rights held. HASL is not listed.

(b) Investments in associates accounted for using the equity method


	2024	2023
	£m	£m
Carrying value of associates accounted for using the equity method	14	15
Share of profit/(loss) after tax	(1)	(1)

Investments in associates accounted for using the equity method primarily relates to the Group’s interests in Archax

Group Limited (Archax) (previously named Archax Holdings Limited). The Group’s interest in Archax was 10.77% at

31 December 2024 (31 December 2023: 11.00%). The classification of Archax as an associate reflects the Group’s

additional rights under Archax’s articles of association as a large external investor.

There were no additional investment into Archax in 2024 (2023: £2m) and there are no indicators of impairment at

31 December 2024.


	HASL		Other		Total
	2024	2023	2024	2023	2024	2023
	£m	£m	£m	£m	£m	£m
Carrying value of joint ventures accounted for using the equity method	190	214	1	—	191	214
Share of profit/(loss) after tax	26	3	(1)	(1)	25	2


208	Annual report 2024


Group financial statements continued

HASL

The Group has a 50% share in HASL, an insurance company in China offering life and health insurance products.

HASL is an investment which gives the Group access to one of the world’s largest markets. The table below provides

summarised financial information for HASL, the joint venture which is considered to be material to the Group. HASL’s

year-end date is 31 December, however, HASL is not adopting IFRS 17 and IFRS 9 for its local reporting until 2025.

Consequently, HASL has provided additional financial information on an IFRS 17 and IFRS 9 basis for the purposes of

the preparation of the Group’s consolidated financial statements.


	HASL
	2024	2023
	£m	£m
Summarised financial information of joint venture:
Revenue	151	154
Depreciation and amortisation	5	6
Interest income	105	97
Interest expense	1	2
Income tax (expense)/credit	(21)	(1)
Profit after tax	51	6
Other comprehensive income	(94)	(62)
Total comprehensive income	(43)	(56)
Total assets1	6,906	5,267
Total liabilities1	6,526	4,839
Cash and cash equivalents	169	179
Net assets	380	428
Attributable to investee’s shareholders	380	428
Interest held	50%	50%
Share of net assets	190	214

1. As a liquidity presentation is used by insurance companies when presenting their statement of financial position, an analysis of total assets and

total liabilities between current and non-current has not been provided for HASL.

In relation to HASL, there are no indicators that the recoverable amount of the Group’s investment in HASL is less

than the Group’s share of net assets.

Virgin Money UTM

The Group's interest in Virgin Money UTM which was previously included in other joint ventures accounted for using

the equity method was transferred to held for sale at 31 December 2023. The sale completed on 2 April 2024. Refer

Note 1(c)(ii) for further details. Prior to the transfer, a reversal of prior impairment of the Group’s interest of £2m was

recognised. The reversal of impairment was included in Reversal of impairment of interests in joint ventures in the

consolidated income statement for the year ended 31 December 2023. The interest in Virgin Money UTM did not

form part of the Group’s reportable segments.

(d) Investments in associates measured at FVTPL

The aggregate fair value of associates accounted for at FVTPL included in equity securities and interests in pooled

investment funds (refer Note 17) at 31 December 2024 is £1m (2023: £10m) none of which are considered

individually material to the Group.


			Annual report 2024	209


		FINANCIAL INFORMATION

15. Property, plant and equipment



	Property, plant and equipment consists primarily of property owned and occupied by the Group and the computer equipment used to carry out the Group’s business along with right-of-use assets for leased property and equipment. Owner occupied property: Owner occupied property is initially recognised at cost and subsequently revalued to fair value at each reporting date. Depreciation, being the difference between the carrying amount and the residual value of each significant part of a building, is charged to the consolidated income statement over its useful life. The useful life of each significant part of a building is estimated as being between 30 and 50 years. A revaluation surplus is recognised in other comprehensive income unless it reverses a revaluation deficit which has been recognised in the consolidated income statement. Equipment: Equipment is initially recognised at cost and subsequently measured at cost less depreciation. Depreciation is charged to the consolidated income statement over 2 to 15 years depending on the length of time the Group expects to derive benefit from the asset. Right-of-use asset: Refer Note 16 below for the accounting policies for right-of-use assets.


	Owner occupied property	Equipment	Right of use assets – property	Right of use assets – equipment	Total
	£m	£m	£m	£m	£m
Cost or valuation
At 1 January 2023	2	120	321	4	447
Additions	—	18	30	1	49
Disposals and adjustments1	—	(8)	(10)	(1)	(19)
Derecognition of right-of-use assets relating to subleases classified as finance leases	—	—	(24)	—	(24)
Foreign exchange adjustment	—	(2)	(4)	—	(6)
At 31 December 2023	2	128	313	4	447
Additions	—	7	4	1	12
Disposals and adjustments1	(2)	(7)	(72)	(2)	(83)
Foreign exchange adjustment	—	—	(1)	—	(1)
At 31 December 2024	—	128	244	3	375
	Owner occupied property	Equipment	Right of use assets – property	Right of use assets – equipment	Total
	£m	£m	£m	£m	£m
Accumulated depreciation and impairment
At 1 January 2023	(1)	(65)	(177)	(3)	(246)
Depreciation charge for the year2	—	(15)	(16)	(1)	(32)
Disposals and adjustments1	—	7	9	—	16
Derecognition of right-of-use assets relating to subleases classified as finance leases	—	—	20	—	20
Impairment3	—	(11)	(39)	—	(50)
Reversal of impairment3	—	—	3	—	3
Foreign exchange adjustment	—	2	2	1	5
At 31 December 2023	(1)	(82)	(198)	(3)	(284)
Depreciation charge for the year2	—	(13)	(15)	(1)	(29)
Disposals and adjustments1	1	4	65	2	72
Foreign exchange adjustment	—	—	1	—	1
At 31 December 2024	—	(91)	(147)	(2)	(240)
Carrying amount
At 1 January 2023	1	55	144	1	201
At 31 December 2023	1	46	115	1	163
At 31 December 2024	—	37	97	1	135

1. For the year ended 31 December 2024, £1m (2023: £5m) of disposals and adjustments relates to equipment with net book value of £nil which is

no longer in use.

2. Included in other administrative expenses.

3. Included in restructuring and corporate transaction expenses.


210	Annual report 2024


Group financial statements continued

Included in property right-of-use assets, are right-of-use assets that meet the definition of investment property.

Their carrying amount at 31 December 2024 is £22m (2023: £31m). This comprises a gross carrying value of £63m

(2023: £134m) and accumulated depreciation and impairment of £40m (2023: £103m). Rental income received

and direct operating expenses incurred to generate that rental income in the year to 31 December 2024 were £2m

(2023: £3m) and £1m (2023: £2m) respectively. In addition, there were direct expenses of £1m (2023: £1m) in

relation to investment properties not currently generating income.

The movements during the period of the carrying value of the Group’s investment property is analysed below.


	2024	2023
	£m	£m
At start of period	31	14
Transfers to investment property	—	63
Transfers from investment property	—	(3)
Depreciation	(2)	(4)
Derecognition related to new subleases classified as finance leases	(2)	(3)
Impairments	—	(39)
Reversal of impairment	—	3
Disposals and adjustments	(5)	—
At end of period	22	31

The disposals and adjustments for the year ended 31 December 2024 of £5m relate to the assignation of a lease

relating to a floor within a property in the UK. The assignation also resulted in the derecognition of related lease

liabilities of £10m and a gain of £3m has been recognised within Other income in Net gains or losses on financial

instruments and other income as a result of the assignation.

There were no transfers to or from investment property in 2024 and no impairments recognised.

The transfers to investment property in 2023 related to a number of properties in the UK and the US that will no

longer be used operationally by the Group. The right-of-use assets were assessed for impairment at the point of

transfer. Impairments of £39m were recognised in the year ended 31 December 2023 in relation to these properties

and one other property in the UK previously transferred to investment property. The right-of-use assets are related

to the Investments segment (£27m impairment), Other business operations and corporate costs (£11m

impairment) and ii segment (£1m impairment).

On transfers in 2023, the recoverable amount for the properties in the UK, which was based on value in use, was

£27m. The recoverable amount for the properties in the US, which was based on value in use, was £4m. The cash

flows were based on the rental income expected to be received under subleases during the term of the lease and

the direct expenses expected to be incurred in managing the leased property, discounted using a discount rate that

reflects the risks inherent in the cash flow estimates. The assessment of the cash flows took into consideration

climate related factors such as the energy efficiency of the buildings. It was not based on valuations by an

independent valuer.

The transfers from investment property in 2023 related to a property in the UK which was not being used

operationally but following the review of properties in the UK is being brought back into operational use. The right-

of-use asset was assessed for reversal of impairment at the point of transfer. The Group recognised a reversal of

impairment of £3m in the year ended 31 December 2023 in relation to this property. The recoverable amount for

this property was its carrying value at 30 June 2023 if it had not previously been impaired. The right-of-use asset is

also related to the Investments segment.

The fair value of investment property included within right-of-use assets at 31 December 2024 is £27m (2023:

£36m). The valuation technique used to determine the fair value considers the rental income expected to be

received under subleases during the term of the lease and the direct expenses expected to be incurred in

managing the leased property, discounted using a discount rate that reflects the risks inherent in the cash flow

estimates. It is not based on valuations by an independent valuer. This is a level 3 valuation technique as defined in

Note 36.

The Group disposed of its last owned occupied property in 2024, recognising a loss of less than £1m on the disposal.

Prior to the disposal, the expected residual value of owner occupied property was in line with the current fair value

and no depreciation was charged on owner occupied property.

Further details on the leases under which the Group’s right-of-use assets are recognised are provided in Note 16

below.


			Annual report 2024	211


		FINANCIAL INFORMATION

16. Leases



	A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. At inception of a contract, the Group assesses whether a contract is, or contains, a lease. In 2019, on adoption of IFRS 16 the Group used the practical expedient permitted to apply the new standard at transition solely to leases previously identified in accordance with IAS 17 and IFRIC 4 Determining whether an Arrangement Contains a Lease. Right-of-use assets are measured at cost less accumulated depreciation and impairment losses and are presented in property, plant and equipment (refer Note 15). The Group does not revalue its right-of-use assets. This applies to all right-of-use assets, including those that are assessed as meeting the definition of investment property. The cost comprises the amount of the initial measurement of the lease liability plus any initial direct costs and expected restoration costs not relating to wear and tear. Costs relating to wear and tear are expensed over the term of the lease. Depreciation is charged on right-of-use assets on a straight-line basis from the lease commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The Group assesses right-of-use assets for impairment when such indicators exist, and where required, reduces the value of the right-of-use asset accordingly. The related lease liability (included in other financial liabilities – refer Note 32) is calculated as the present value of the future lease payments. The lease payments are discounted using the rate implicit within the lease where readily available or the Group’s incremental borrowing rate where the implicit rate is not readily available. Interest is calculated on the liability using the discount rate and is charged to the consolidated income statement under finance costs. In determining the value of the right-of-use assets and lease liabilities, the Group considers whether any leases contain lease extensions or termination options that the Group is reasonably certain to exercise. Where a leased property has been sublet, the Group assesses whether the sublease has transferred substantially all the risk and rewards of the right-of-use asset to the lessee under the sublease. Where this is the case, the right-of-use asset is derecognised and a net investment in finance leases (included in Receivables and other financial assets – refer Note 19) is recognised, calculated as the present value of the future lease payments receivable under the sublease. Where a property is only partially sublet, only the portion of the right- of-use asset relating to the sublet part of the property is derecognised and recognised as a net investment in finance leases. Any difference between the initial value of the net investment in finance leases and the right-of-use asset derecognised is recognised in the consolidated income statement (within other income or expenses). Interest is calculated on the net investment in finance lease using the discount rate and is recognised in the consolidated income statement as interest income. Where the sublease does not transfer substantially all the risk and rewards of the right-of-use assets to the lessee under the sublease, the Group continues to recognise the right-of-use asset. The sublease is accounted for as an operating lease with the lease payments received recognised as property rental income in other income in the consolidated income statement. Lease incentives granted are recognised as an integral part of the property rental income and are spread over the term of the lease. The Group does not recognise right-of-use assets and lease liabilities for short-term leases (less than one year from inception) and leases where the underlying asset is of low value.


212	Annual report 2024


Group financial statements continued

(a) Leases where the Group is lessee

The Group leases various offices and equipment used to carry out its business. Leases are generally for fixed

periods but may be subject to extensions or early termination clauses. The remaining periods for current leases

range from less than 1 year to 14 years (2023: less than 1 year to 15 years). A number of leases which are due to

end in 2031 contain options that would allow the Group to extend the lease term. The Group reviews its property use

on an ongoing basis and these extensions have not been included in the right-of-use asset or lease liability

calculations. The Group had not committed to any leases at 31 December 2024 which had not yet commenced.

The Group has recognised the following assets and liabilities in relation to these leases where the Group is a lessee:


	2024	2023
	£m	£m
Right-of-use assets:
Property	97	115
Equipment	1	1
Total right-of-use assets	98	116

Lease liabilities	(193)	(223)

Details of the movements in the Group’s right-of-use assets including additions and depreciation are included in

Note 15.

The interest on lease liabilities is as follows:


	2024	2023
	£m	£m
Interest on lease liabilities	6	6

The total cash outflow for lease liabilities recognised in the consolidated statement of cash flows for the year ended

31 December 2024 was £29m (2023: £30m). Refer Note 37(f) for further details.

The following table provides a maturity analysis of the contractual undiscounted cash flows for the lease liabilities.


	2024	2023
	£m	£m
Less than 1 year	27	26
Greater than or equal to 1 year and less than 2 years	27	25
Greater than or equal to 2 years and less than 3 years	26	26
Greater than or equal to 3 years and less than 4 years	24	26
Greater than or equal to 4 years and less than 5 years	23	25
Greater than or equal to 5 years and less than 10 years	72	91
Greater than or equal to 10 years and less than 15 years	19	32
Total undiscounted lease liabilities	218	251

The Group does not recognise right-of-use assets and lease liabilities for short-term leases and leases where the

underlying asset is of low value. The expenses for these leases for the year ended 31 December 2024 were less than

£1m (2023: £1m). The Group has no lease commitments for short-term leases at 31 December 2024 (2023: none).

(b) Leases where the Group is lessor (subleases)

Where the Group no longer requires a leased property, the property may be sublet to a third party. The sublease

may be for the full remaining term of the Group’s lease or only part of the remaining term.

At 31 December 2024, the Group had a net investment in finance leases asset of £32m (2023: £31m) for subleases

which had transferred substantially all the risk and rewards of the right-of-use assets to the lessee under the

sublease. All other subleases are accounted for as operating leases.

(b)(i) Finance leases

During the year ended 31 December 2024, the Group received finance income on the net investment in finance

leases asset of less than £1m (2023: less than £1m). The Group recorded an initial gain of £2m in relation to new

subleases entered into during the year ended 31 December 2024 (2023: £6m). The following table provides a

maturity analysis of the future contractual undiscounted cash flows for the net investment in finance leases and a

reconciliation to the net investment in finance leases asset.


			Annual report 2024	213


		FINANCIAL INFORMATION


	2024	2023
	£m	£m
Less than 1 year	5	3
Greater than or equal to 1 year and less than 2 years	5	4
Greater than or equal to 2 years and less than 3 years	5	4
Greater than or equal to 3 years and less than 4 years	4	4
Greater than or equal to 4 years and less than 5 years	5	4
Greater than or equal to 5 years and less than 10 years	13	14
Greater than or equal to 10 years and less than 15 years	—	1
Total contractual undiscounted cash flows under finance leases	37	34
Unearned finance income	(5)	(3)
Total net investment in finance leases	32	31

(b)(ii) Operating leases

During the year ended 31 December 2024, the Group received property rental income from operating leases of

£2m (2023: £3m).

The following table provides a maturity analysis of the future contractual undiscounted cash flows for subleases

classified as operating leases.


	2024	2023
	£m	£m
Less than 1 year	2	2
Greater than or equal to 1 year and less than 2 years	1	2
Greater than or equal to 2 years and less than 3 years	—	1
Total contractual undiscounted cash flows under operating leases	3	5


214	Annual report 2024


Group financial statements continued

17. Financial assets



Financial assets are initially recognised at their fair value. Subsequently all equity securities and interests in pooled investment funds and derivative instruments are measured at fair value. All equity securities and interests in pooled investment funds are classified as FVTPL on a mandatory basis. Changes in their fair value are recognised in Net gains or losses on financial instruments and other income in the consolidated income statement. The classification of derivatives and the accounting treatment of derivatives designated as a hedging instrument are set out in Note 18. The subsequent measurement of debt instruments depends on whether their cash flows are solely payments of principal and interest and the nature of the business model they are held in as follows:
SPPI1 test satisfied?	Business model	Classification
Yes	A: Objective is to hold to collect contractual cash flows	Amortised cost2
Yes	B: Objective is achieved by both collecting contractual cash flows and selling	Fair value through other comprehensive income (FVOCI)2
Yes	C: Objective is neither A nor B	FVTPL
No	N/A	FVTPL

1. Solely payments of principal and interest. 2. May be classified as FVTPL if doing so eliminates or significantly reduces a measurement or recognition inconsistency (sometimes referred to as an ‘accounting mismatch’) that would otherwise arise from measuring assets or liabilities or recognising the gains and losses on them on different bases. The Group has no direct holding in debt instruments that are managed within a business model whose objective is achieved both by collecting contractual cash flows and selling and therefore there are no debt instruments classified as FVOCI. The Group’s Chinese joint venture, HASL, does hold debt securities classified as FVOCI. (refer Note 14). Debt instruments classified as FVTPL are classified as such due to the business model they are managed under, predominantly being held in consolidated investment vehicles. The methods and assumptions used to determine fair value of financial assets at FVTPL are discussed in Note 36. Amortised cost is calculated, and related interest is credited to the consolidated income statement, using the effective interest method. Impairment is determined using an expected credit loss impairment model which is applied to all financial assets measured at amortised cost. Financial assets measured at amortised cost attract a loss allowance equal to either: – 12 month expected credit losses (losses resulting from possible default within the next 12 months). – Lifetime expected credit losses (losses resulting from possible defaults over the remaining life of the financial asset). Financial assets attract a 12 month ECL allowance unless the asset has suffered a significant deterioration in credit quality or the simplified approach for calculation of ECL has been applied. As permitted under IFRS 9 Financial Instruments, the Group has applied the simplified approach to calculate the ECL allowance for trade receivables and contract assets recognised under IFRS 15 Revenue from Contracts with Customers and lease receivables recognised under IFRS 16 Leases. Under the simplified approach the ECL is always equal to the lifetime expected credit loss.


			Annual report 2024	215


		FINANCIAL INFORMATION

The table below sets out an analysis of financial assets excluding those assets backing unit linked liabilities which are

set out in Note 23.


		At fair value through profit or loss 1		Cash flow hedge2		At amortised cost		Total
		2024	2023	2024	2023	2024	2023	2024	2023
	Notes	£m	£m	£m	£m	£m	£m	£m	£m
Derivative financial assets	18	4	2	50	41	—	—	54	43
Equity securities and interests in pooled investment funds	36	1,105	1,139	—	—	—	—	1,105	1,139
Debt securities	36	659	740	—	—	—	125	659	865
Financial investments		1,768	1,881	50	41	—	125	1,818	2,047
Receivables and other financial assets	19	17	11	—	—	1,007	1,060	1,024	1,071
Cash and cash equivalents	22	—	—	—	—	1,321	1,196	1,321	1,196
Total		1,785	1,892	50	41	2,328	2,381	4,163	4,314

1. All financial assets measured at fair value through profit or loss have been classified at FVTPL on a mandatory basis. The Group has not

designated any financial assets as FVTPL.

2. Changes in fair value are recognised in the Cash Flow Hedges Reserve (refer Note 27) but may be reclassified subsequently to profit or loss.

The amount of debt securities expected to be recovered or settled after more than 12 months is £36m (2023: £8m).

Due to the nature of equity securities and interests in pooled investment funds, there is no fixed term associated with

these securities. The amount of equity securities and interests in pooled investment funds expected to be recovered

or settled after more than 12 months is £1,105m (2023: £1,139m).

Financial assets at 31 December 2024 of £4,163m (2023: £4,314m) includes £98m (2023: £94m) related to the

abrdn Financial Fairness Trust whose assets are restricted to be used for charitable purposes. Refer Note 44 for

further details.


216	Annual report 2024


Group financial statements continued

18. Derivative financial instruments



	A derivative is a financial instrument that is typically used to manage risk and whose value moves in response to an underlying variable such as interest or foreign exchange rates. The Group uses derivative financial instruments in order to match subordinated debt liabilities and to reduce the risk from potential movements in foreign exchange rates on seed capital and co-investments and potential movements in market rates on seed capital. Certain consolidated investment vehicles may also use derivatives to take and alter market exposure, with the objective of enhancing performance and controlling risk. Management determines the classification of derivatives at initial recognition. All derivative instruments are classified as at FVTPL except those designated as part of a cash flow hedge or net investment hedge. Derivatives at FVTPL are measured at fair value with changes in fair value recognised in the consolidated income statement. On adoption of IFRS 9 Financial instruments in 2019, the Group has elected to continue applying the hedge accounting requirements of IAS 39. The accounting treatment below applies to derivatives designated as part of a hedging relationship. Using derivatives to manage a particular exposure is referred to as hedging. For a derivative to be considered as part of a hedging relationship its purpose must be formally documented at inception. In addition, the effectiveness of the hedge must be initially high and be able to be reliably measured on a regular basis. Derivatives used to hedge variability in future cash flows such as coupons payable on subordinated liabilities or revenue receivable in a foreign currency are designated as cash flow hedges, while derivatives used to hedge currency risk on investments in foreign operations are designated as net investment hedges. Where a derivative qualifies as a cash flow or net investment hedge, hedge accounting is applied. The effective part of any gain or loss resulting from the change in fair value is recognised in other comprehensive income, and in the cash flow or net investment hedge reserve in equity, while any ineffective part is recognised immediately in the consolidated income statement. If a derivative ceases to meet the relevant hedging criteria, hedge accounting is discontinued. For cash flow hedges, the amount recognised in the cash flow hedge reserve is transferred to the consolidated income statement (recycled) in the same period or periods during which the hedged item affects profit or loss and is transferred immediately if the cash flow is no longer expected to occur. For net investment hedges, the amount recognised in the net investment hedge reserve is transferred to the consolidated income statement on disposal of the investment.


		2024			2023
		Contract amount	Fair value assets	Fair value liabilities	Contract amount	Fair value assets	Fair value liabilities
	Notes	£m	£m	£m	£m	£m	£m
Cash flow hedges	17	599	50	—	588	41	—
FVTPL	17, 29	555	4	3	628	2	9
Derivative financial instruments	36	1,154	54	3	1,216	43	9
Derivative financial instruments backing unit linked liabilities	23	—	—	—	2	—	—
Total derivative financial instruments		1,154	54	3	1,218	43	9

Derivative assets of £50m (2023: £41m) are expected to be recovered after more than 12 months. There are no

derivative liabilities (2023: none) expected to be settled after more than 12 months.


			Annual report 2024	217


		FINANCIAL INFORMATION

(a) Hedging strategy

The Group generally does not hedge the currency exposure relating to revenue and expenditure, nor does it hedge

translation of overseas profits in the consolidated income statement. Where appropriate, the Group may use

derivative contracts to reduce or eliminate currency risk arising from individual transactions or seed capital and

co-investment activity.

(a)(i) Cash flow hedges

On 18 October 2017, the Group issued subordinated notes with a principal amount of US$750m. In order to manage

its foreign exchange risk relating to the principal and coupons payable on these notes the Group entered into a

cross-currency swap which is designated as a cash flow hedge. The cash flow hedge was fully effective during the

year. The cross-currency swap has the effect of swapping the 4.25% US Dollar fixed rate subordinated notes into

3.2% Sterling fixed rate subordinated notes with a principal amount of £569m. The cross-currency swap has a fair

value asset position of £50m (2023: £41m asset). During the year ended 31 December 2024 fair value gain of £20m

(2023: losses of £40m) were recognised in other comprehensive income in relation to the cross-currency swap.

Gains of £11m (2023: losses of £35m) were transferred from other comprehensive income to Net gains or losses on

financial instruments and other income in the consolidated income statement in relation to the cross-currency

swap during the year. In addition, forward points of £6m (2023: £6m) and gains of £1m (2023: gains of £1m) were

transferred from other comprehensive income to Finance costs in the consolidated income statement.

(a)(ii) FVTPL

Derivative financial instruments classified as FVTPL include those that the Group holds as economic hedges of

financial instruments that are measured at fair value. FVTPL derivative financial instruments are also held by the

Group to match contractual liabilities that are measured at fair value or to achieve efficient portfolio management

in respect of instruments measured at fair value.


	2024			2023
	Contract amount	Fair value assets	Fair value liabilities	Contract amount	Fair value assets	Fair value liabilities
	£m	£m	£m	£m	£m	£m
Equity derivatives:
Futures	95	3	—	130	—	5
Swaps	6	—	—	13	—	—
Bond derivatives:
Futures	54	—	—	46	—	2
Interest rate derivatives:
Swaps	—	—	—	21	1	—
Foreign exchange derivatives:
Forwards	313	1	—	339	1	—
Other derivatives:
Credit default swaps	87	—	3	81	—	2
Derivative financial instruments at FVTPL	555	4	3	630	2	9

(b) Maturity profile

The maturity profile of the contractual undiscounted cash flows in relation to derivative financial instruments is as

follows:


	Within 1 year		1-5 years		Total
	2024	2023	2024	2023	2024	2023
	£m	£m	£m	£m	£m	£m
Cash inflows
Derivative financial assets	331	339	663	677	994	1,016
Derivative financial liabilities	11	25	—	—	11	25
Total	342	364	663	677	1,005	1,041

Cash outflows
Derivative financial assets	(319)	(331)	(614)	(632)	(933)	(963)
Derivative financial liabilities	(11)	(25)	(3)	(2)	(14)	(27)
Total	(330)	(356)	(617)	(634)	(947)	(990)

Net derivative financial instruments cash inflows	12	8	46	43	58	51


218	Annual report 2024


Group financial statements continued

Included in the above maturity profile are the following cash flows in relation to cash flow hedge assets:


	Within 1 year		1-5 years		Total
	2024	2023	2024	2024	2024	2024
	£m	£m	£m	£m	£m	£m
Cash inflows	25	25	663	676	688	701
Cash outflows	(18)	(18)	(614)	(632)	(632)	(650)
Net cash flow hedge cash inflows	7	7	49	44	56	51

Cash inflows and outflows are presented on a net basis where the Group is required to settle cash flows net.

19. Receivables and other financial assets


		2024	2023
	Notes	£m	£m
Amounts receivable from contracts with customers		115	110
Accrued income		333	310
Amounts due from counterparties and customers for unsettled trades and fund transactions		371	477
Net investment in finance leases		32	31
Collateral pledged in respect of derivative contracts	34	12	19
Contingent consideration assets	36	17	11
Deferred consideration assets		21	—
Other		123	113
Receivables and other financial assets		1,024	1,071

The carrying amounts disclosed above reasonably approximate the fair values as at the year end.

The amount of receivables and other financial assets expected to be recovered after more than 12 months is £84m

(2023: £67m).

Accrued income includes £329m (2023: £306m) of accrued income from contracts with customers.

20. Other assets


	2024	2023
	£m	£m
Prepayments	53	75
Other	1	2
Other assets	54	77

The amount of other assets expected to be recovered after more than 12 months is £2m (2023: £24m).

Prepayments of £53m (2023: £75m) includes prepayments of £6m (2023: £23m) which relate to the Group’s

purchase of certain products in Phoenix’s savings business offered through abrdn’s Wrap platform together with

Phoenix’s trustee investment plan (TIP) business for UK pension scheme clients. Refer Note 39(b) for further details.

During 2024, the Group has released £15m of the £19m prepayment recognised in relation to the TIP business to

other administrative expenses in the consolidated income statement following a review of the recoverability of

these costs from future profits from the TIP business. The transfer of this business to the Group is now expected to

occur in 2025.


			Annual report 2024	219


		FINANCIAL INFORMATION

21. Assets and liabilities held for sale



	Assets and liabilities held for sale are presented separately in the consolidated statement of financial position and consist of operations and individual non-current assets whose carrying amount will be recovered principally through a sale transaction (expected within one year) and not through continuing use. Operations held for sale, being disposal groups, and investments in associates accounted for using the equity method are measured at the lower of their carrying amount and their fair value less disposal costs. No depreciation or amortisation is charged on assets in a disposal group once it has been classified as held for sale. Operations held for sale include newly established investment vehicles which the Group has seeded but is actively seeking to divest from. For these investment funds, which do not have significant liabilities or non- financial assets, financial assets continue to be measured based on the accounting policies that applied before they were classified as held for sale. The Group classifies seeded operations as held for sale where the intention is to dispose of the investment vehicle in a single transaction. Where disposal of a seeded investment vehicle will be in more than one tranche the operations are not classified as held for sale in the consolidated statement of financial position. Amounts seeded into newly established investment vehicles which are not consolidated and are recognised as interests in pooled investment funds are also classified as held for sale where the Group intends to dispose of its investment in a single transaction. As above, they continue to be measured based on the accounting policies that applied before they were classified as held for sale.


		2024	2023
	Notes	£m	£m
Assets of operations held for sale
European-headquartered Private Equity business		—	10
Investments in joint ventures accounted for using the equity method
Virgin Money UTM	14	—	9
Investment vehicles		17	—
Assets held for sale		17	19
Liabilities of operations held for sale
European-headquartered Private Equity business		—	2
Liabilities of operations held for sale		—	2

(a) European-headquartered Private Equity business

On 26 April 2024, the Group completed the sale of its European-headquartered Private Equity business to Patria

Investments. Refer Note 1(c)(i). The European-headquartered Private Equity business was reported in the

investments segment.

At 31 December 2023, this disposal group was measured at its carrying amount and comprised the following assets

and liabilities:


	2023
	£m
Assets of operations held for sale
Receivables and other financial assets	9
Cash and cash equivalents	1
Total assets of operations held for sale	10
Liabilities of operations held for sale
Other financial liabilities	2
Total liabilities of operations held for sale	2
Net assets of operations held for sale	8

Net assets of operations held for sale were net of intercompany balances between the European-headquartered

Private Equity business and other group entities, the net assets on a gross basis as at 31 December 2023 were £8m.


220	Annual report 2024


Group financial statements continued

22. Cash and cash equivalents



	Cash and cash equivalents include cash at bank, money at call and short notice with banks, money market funds and any highly liquid investments with less than three months to maturity from the date of acquisition. For the purposes of the consolidated statement of cash flows, cash and cash equivalents also include bank overdrafts which are included in other financial liabilities on the consolidated statement of financial position where the overdraft is repayable on demand and forms an integral part of the Group’s cash management. Where the Group has a legally enforceable right of set off and intention to settle on a net basis, cash and overdrafts are offset in the consolidated statement of financial position.


	2024	2023
	£m	£m
Cash at bank and in hand	733	704
Money at call, term deposits, reverse repurchase agreements and debt instruments with less than three months to maturity from acquisition	415	301
Money market funds	173	191
Cash and cash equivalents	1,321	1,196


		2024	2023
	Notes	£m	£m
Cash and cash equivalents		1,321	1,196
Cash and cash equivalents backing unit linked liabilities	23	14	13
Cash and cash equivalents classified as held for sale	21	—	1
Total cash and cash equivalents for consolidated statement of cash flows		1,335	1,210

Cash at bank, money at call and short notice and deposits are subject to variable interest rates.

Cash and cash equivalents in respect of unit linked funds (including third party interests in consolidated funds) are

held in separate bank accounts and are not available for general use by the Group.

As at 31 December 2024, no cash and overdrafts were offset in the consolidated statement of financial position

(2023: none).


			Annual report 2024	221


		FINANCIAL INFORMATION

23. Unit linked liabilities and assets backing unit linked liabilities



	The Group operates unit linked life assurance businesses through an insurance subsidiary. This subsidiary provides investment products through a life assurance wrapper. These products do not contain any features which transfer significant insurance risk and therefore are classified as investment contracts. Unit linked non- participating investment contracts are separated into two components being an investment management services component and a financial liability. All fees and related administrative expenses are deemed to be associated with the investment management services component (refer Note 3). The financial liability component is designated at FVTPL as it is implicitly managed on a fair value basis as its value is directly linked to the market value of the underlying portfolio of assets. Where the Group is deemed to control an investment vehicle as a result of holdings in that vehicle by subsidiaries to back unit linked non-participating investment contract liabilities, the assets and liabilities of the vehicle are consolidated within the Group’s statement of financial position. The liability for third party interest in such consolidated funds is presented as a unit linked liability. Unit linked liabilities and assets backing unit linked liabilities are presented separately in the consolidated statement of financial position except for those held in operations held for sale, which are presented in assets and liabilities held for sale in the consolidated statement of financial position. Contributions received on non-participating investment contracts and from third party interest in consolidated funds are treated as deposits and not reported as revenue in the consolidated income statement. Withdrawals paid out to policyholders on non-participating investment contracts and to third party interest in consolidated funds are treated as a reduction to deposits and not recognised as expenses in the consolidated income statement. Investment return and related benefits credited in respect of non-participating investment contracts and third party interest in consolidated funds are recognised in the consolidated income statement as changes in investment contract liabilities and changes in liability for third party interest in consolidated funds respectively. Investment returns relating to unit linked business are for the account of policyholders and have an equal and opposite effect on income and expenses in the consolidated income statement with no impact on profit or loss after tax. Assets backing unit linked liabilities comprise financial investments, which are all classified as FVTPL on a mandatory basis, and receivables and other financial assets and cash and cash equivalents which are measured at amortised cost.

(a) Result for the year attributable to unit linked business


		2024	2023
	Notes	£m	£m
Net gains or losses on financial instruments and other income	4	(1)	4
Other administrative expense	5	—	(1)
(Loss)/profit before tax		(1)	3
Tax credit/(expense) attributable to unit linked business	9	1	(3)
Profit after tax		—	—

(b) Financial instrument risk management

The shareholder is not directly exposed to market risk or credit risk in relation to the financial assets backing unit

linked liabilities. The shareholder’s exposure to market risk on these assets is limited to variations in the value of

future revenue as fees are based on a percentage of fund value.

The shareholder is exposed to liquidity risk relating to unit linked funds. For the unit linked business, liquidity risk is

primarily managed by holding a range of diversified instruments which are assessed against cash flow and funding

requirements. A core portfolio of assets is maintained and invested in accordance with the mandates of the

relevant unit linked funds. Given that unit linked policyholders can usually choose to surrender, in part or in full, their

unit linked contracts at any time, the non-participating investment contract unit linked liabilities are designated as

payable within one year. Such surrenders would be matched in practice, if necessary, by sales of underlying assets.

Policyholder behaviour and the trading position of asset classes are actively monitored. The Group can delay

settling liabilities to unit linked policyholders to ensure fairness between those remaining in the fund and those

leaving the fund. The length of any such delay is dependent on the underlying financial assets.


222	Annual report 2024


Group financial statements continued

unit linked liabilities

Each of the unit linked financial liabilities and the financial assets backing unit linked liabilities has been categorised

below using the fair value hierarchy as defined in Note 36. Refer Note 36 for details of valuation techniques used.


	Level 1		Level 2		Level 3		Not at fair value		Total
	2024	2023	2024	2023	2024	2023	2024	2023	2024	2023
	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m
Financial investments	349	396	300	273	—	—	—	—	649	669
Receivables and other financial assets	—	—	—	—	—	—	4	4	4	4
Cash and cash equivalents	—	—	—	—	—	—	14	13	14	13
Total financial assets backing unit linked liabilities	349	396	300	273	—	—	18	17	667	686
Investment contract liabilities	—	—	665	684	—	—	—	—	665	684
Other unit linked financial liabilities	—	—	—	—	—	—	2	2	2	2
Total unit linked financial liabilities	—	—	665	684	—	—	2	2	667	686

The financial investments backing unit linked liabilities comprise equity securities and interests in pooled investment

funds of £616m (2023: £667m) and debt securities of £33m (2023: £2m).

The fair value of financial instruments not held at fair value approximates to their carrying value at both

31 December 2024 and 31 December 2023.

There were no significant transfers between levels 1 and 2 during the years ended 31 December 2024 and

31 December 2023. Transfers are deemed to have occurred at the end of the calendar quarter in which they arose.

The movements during the period of level 3 unit linked assets and liabilities held at fair value are analysed below.


	Equity securities and interests in pooled investment funds		Investment contract liabilities
	31 Dec 2024	31 Dec 2023	31 Dec 2024	31 Dec 2023
	£m	£m	£m	£m
At start of period	—	1	—	(1)
Sales	—	(1)	—	1
At end of period	—	—	—	—

Unit linked level 3 assets related to holdings in real estate funds. No individual unobservable input is considered

significant. Changing unobservable inputs in the measurement of the fair value of these unit linked level 3 financial

assets and liabilities to reasonably possible alternative assumptions would have no impact on profit attributable to

equity holders or on total assets.

Transfers of unit linked assets and liabilities to level 3 generally arise when external pricing providers stop providing

prices for the underlying assets and liabilities in the funds or where the price provided is considered stale.

(d)Change in non-participating investment contract liabilities

The change in non-participating investment contract liabilities was as follows:


	2024	2023
	£m	£m
At 1 January	684	773
Contributions	59	54
Account balances paid on surrender and other terminations in the year	(137)	(206)
Change in non-participating investment contract liabilities recognised in the consolidated income statement	58	65
Recurring management charges	1	(2)
At 31 December	665	684


			Annual report 2024	223


		FINANCIAL INFORMATION

24. Issued share capital and share premium


	Shares are classified as equity instruments when there is no contractual obligation to deliver cash or other assets to another entity on terms that may be unfavourable. The Company’s share capital consists of the number of ordinary shares in issue multiplied by their nominal value. The difference between the proceeds received on issue of the shares and the nominal value of the shares issued is recorded in share premium. Where the Company undertakes share buybacks, the reduction to retained earnings is accounted for on the trade date of the transaction of each repurchase with a liability recognised for unsettled trades, unless the Company has an irrevocable contractual obligation with a third party. Where the Company has an irrevocable contractual obligation, the full contractual value of the buyback programme is recognised as a liability and as a reduction to retained earnings on the date of the agreement. The reduction to share capital for the cancellation of the shares and the related credit to the capital redemption reserve is always accounted for on the settlement date for the repurchases.

The movement in the issued ordinary share capital and share premium of the Company was:


	2024			2023
	Ordinary share capital		Share premium	Ordinary share capital		Share premium
Issued shares fully paid	13 61/63p each	£m	£m	13 61/63p each	£m	£m
At 1 January	1,840,740,364	257	640	2,001,891,899	280	640
Shares issued in respect of share incentive plans	2,265	—	—	2,414	—	—
Share buyback	—	—	—	(161,153,949)	(23)	—
At 31 December	1,840,742,629	257	640	1,840,740,364	257	640

All ordinary shares in issue in the Company rank pari passu and carry the same voting rights and entitlement to

receive dividends and other distributions declared or paid by the Company.

In 2024 the Group has not undertaken any share buybacks.

During 2023, the Group undertook a £300m share buyback programme. The share buyback commenced on 5 June

2023 and was completed on 19 December 2023. The Company bought back and cancelled 161,153,949 shares for

a total consideration of £302m which included transaction costs.

The share buyback resulted in a reduction in retained earnings in the year ended 31 December 2023 of £302m. In

addition, £23m was credited to the capital redemption reserve relating to the nominal value of the shares cancelled.

The Company can issue shares to satisfy awards granted under employee incentive plans which have been

approved by shareholders. Details of the Group’s employee plans are provided in Note 40.

25. Shares held by trusts



	Shares held by trusts relates to shares in abrdn plc that are held by the abrdn Employee Benefit Trust (abrdn EBT), the abrdn Employee Trust (abrdn ET) and the Aberdeen Asset Management Employee Benefit Trust 2003 (AAM EBT). The abrdn EBT, abrdn ET and AAM EBT purchase shares in the Company for delivery to employees under employee incentive plans. Purchased shares are recognised as a deduction from equity at the price paid. Where new shares are issued to the abrdn EBT, abrdn ET or AAM EBT the price paid is the nominal value of the shares. When shares are distributed from the trust their corresponding value is released to retained earnings.


	2024	2023
Number of shares held by trusts
abrdn Employee Benefit Trust	30,362,961	34,076,343
abrdn Employee Trust	21,888,159	22,187,644
Aberdeen Asset Management Employee Benefit Trust 2003	1,707,127	2,080,853


224	Annual report 2024


Group financial statements continued

26. Retained earnings

The following table shows movements in retained earnings during the year.


		2024	2023
	Notes	£m	£m
Opening balance carried forward		4,449	4,986
Effect of application of IFRS 9 on Investments in associates and joint ventures accounted for using the equity method 1		—	51
Opening balance at 1 January		4,449	5,037
Recognised in comprehensive income
Recognised in profit/(loss) for the year attributable to equity holders		237	1
Recognised in other comprehensive income
Remeasurement losses on defined benefit pension plans	31	24	(139)
Share of other comprehensive income of associates and joint ventures	14	(47)	(31)
Total items recognised in comprehensive income		214	(169)

Recognised directly in equity
Dividends paid on ordinary shares		(260)	(279)
Share buyback	24	—	(302)
Transfer for vested employee share-based payments		32	31
Transfer between reserves on impairment of subsidiaries	27	94	169
Shares distributed by employee and other trusts		(48)	(38)
Aggregate tax effect of items recognised directly in equity	9	(1)	—
Total items recognised directly in equity		(183)	(419)
At 31 December		4,480	4,449

1. The Group implemented IFRS 9 in 2019. However, as permitted under a temporary exemption granted to insurers in IFRS 4 Insurance Contracts,

the Group’s insurance joint venture, Heng An Standard Life Insurance Company Limited (HASL), applied IFRS 9 at 1 January 2023 following the

implementation of the new insurance contracts standard, IFRS 17. In line with the approach adopted by the Group on its implementation of IFRS 9

on 1 January 2019, the 2022 comparatives were not restated for HASL’s adoption of IFRS 9. The impact of HASL adopting IFRS 9 was recognised in

retained earnings at 1 January 2023.


			Annual report 2024	225


		FINANCIAL INFORMATION

27. Movements in other reserves



	In July 2006 Standard Life Group demutualised and during this process the merger reserve, the reserve arising on Group reconstruction and the special reserve were created. Merger reserve: The merger reserve consists of two components. Firstly, at demutualisation in July 2006 the Company issued shares to former members of the mutual company. The difference between the nominal value of these shares and their issue value was recognised in the merger reserve. The reserve includes components attaching to each subsidiary that was transferred to the Company at demutualisation based on their fair value at that date. Secondly, following the completion of the merger of Standard Life plc and Aberdeen Asset Management PLC on 14 August 2017, an additional amount was recognised in the merger reserve representing the difference between the nominal value of shares issued to shareholders of Aberdeen Asset Management PLC and their fair value at that date. On disposal or impairment of a subsidiary any related component of the merger reserve is released to retained earnings. Reserve arising on Group reconstruction: The value of the shares issued at demutualisation was equal to the fair value of the business at that date. The business’s assets and liabilities were recognised at their book value at the time of demutualisation. The difference between the book value of the business’s net assets and its fair value was recognised in the reserve arising on Group reconstruction. The reserve comprises components attaching to each subsidiary that was transferred to the Company at demutualisation. On disposal of such a subsidiary any related component of the reserve arising on Group reconstruction is released to retained earnings. Special reserve: Immediately following demutualisation and the related initial public offering, the Company reduced its share premium reserve by court order giving rise to the special reserve. Dividends can be paid out of this reserve. Capital redemption reserve: In August 2018, as part of the return of capital and share buyback the capital redemption reserve was created. In July 2022 there was a cancellation of the capital redemption reserve of £1,059m. Additional capital redemption reserve is created by subsequent buybacks (refer Note 24).

The following tables show the movements in other reserves during the year.


	Cash flow hedges	Foreign currency translation	Merger reserve	Equity compensation reserve	Special reserve	Reserve arising on Group reconstruction	Capital redemption reserve	Total
	£m	£m	£m	£m	£m	£m	£m	£m
1 January 2024	14	34	106	41	115	(685)	48	(327)
Recognised in other comprehensive income
Fair value losses on cash flow hedges	20	—	—	—	—	—	—	20
Exchange differences on translating foreign operations	—	(2)	—	—	—	—	—	(2)
Items transferred to profit or loss	(18)	—	—	—	—	—	—	(18)
Total items recognised in other comprehensive income	2	(2)	—	—	—	—	—	—

Reserves credit for employee share- based payments	—	—	—	26	—	—	—	26
Transfer to retained earnings for vested employee share-based payments	—	—	—	(32)	—	—	—	(32)
Transfer between reserves on impairment of subsidiaries	—	—	(94)	—	—	—	—	(94)
Total items recognised directly within equity	—	—	(94)	(6)	—	—	—	(100)
At 31 December 2024	16	32	12	35	115	(685)	48	(427)

As at 31 December 2024, none of the merger reserve relates to the Group’s asset management businesses. (2023:

£94m). Following the impairment of the Company’s investment in abrdn Investments (Holdings) Limited (aIHL),

£94m was transferred from the merger reserve to retained earnings during the year ended 31 December 2024.

£169m was also transferred from the merger reserve to retained earnings in relation to aIHL during the year ended

31 December 2023. Refer Note A in the Company financial statements for further details.


226	Annual report 2024


Group financial statements continued


		Cash flow hedges	Foreign currency translation	Merger reserve	Equity compensation reserve	Special reserve	Reserve arising on Group reconstruction	Capital redemption reserve	Total
	Notes	£m	£m	£m	£m	£m	£m	£m	£m
1 January 2023		23	70	275	48	115	(685)	25	(129)
Recognised in other comprehensive income
Fair value losses on cash flow hedges		(40)	—	—	—	—	—	—	(40)
Exchange differences on translating foreign operations		—	(35)	—	—	—	—	—	(35)
Items transferred to profit or loss		28	(1)	—	—	—	—	—	27
Aggregate tax effect of items recognised in other comprehensive income		3	—	—	—	—	—	—	3
Total items recognised in other comprehensive income		(9)	(36)	—	—	—	—	—	(45)
Recognised directly in equity
Share buyback	24	—	—	—	—	—	—	23	23
Reserves credit for employee share-based payments		—	—	—	24	—	—	—	24
Transfer to retained earnings for vested employee share-based payments		—	—	—	(31)	—	—	—	(31)
Transfer between reserves on impairment of subsidiaries		—	—	(169)	—	—	—	—	(169)
Total items recognised directly within equity		—	—	(169)	(7)	—	—	23	(153)
At 31 December 2023		14	34	106	41	115	(685)	48	(327)


			Annual report 2024	227


		FINANCIAL INFORMATION

28. Other equity and non-controlling interests



	Perpetual subordinated notes issued by the Company are classified as other equity where no contractual obligation to deliver cash exists.

(a) Other equity – perpetual subordinated notes

5.25% Fixed Rate Reset Perpetual Subordinated Contingent Convertible Notes

On 13 December 2021, the Company issued £210m of 5.25% Fixed Rate Reset Perpetual Subordinated Contingent

Convertible Notes (the Notes). These were classified as other equity and initially recognised at £207m (proceeds

received less issuance costs of £3m).

The Notes initially bear interest on their principal amount at 5.25% per annum payable semi-annually in arrears on

13 June and 13 December in each year. The interest rate is subject to reset on 13 June 2027 and then every five

years thereafter. The payments of interest are discretionary and non-cumulative. The interest paid is recognised as

profit attributable to other equity when paid. The profit for the year attributable to other equity was £11m

(2023: £11m).

The Notes have no fixed redemption date. The Company has the option to redeem the Notes (in full) between

13 December 2026 and 13 June 2027 and every five years thereafter. The Notes are convertible to ordinary shares

in the Company at a conversion price of £1.6275 (fixed subject to adjustment for share corporate actions e.g. share

consolidations in accordance with the terms and conditions of the Notes) if the Group IFPR CET1 Ratio falls below

70%. The IFPR CET1 ratio at 31 December 2024 was 495% (2023: 467%).

(b) Non-controlling interests – ordinary shares

Non-controlling interests – ordinary shares of £5m were held at 31 December 2024 (2023: £5m). The profit for the

year attributable to non-controlling interests – ordinary shares was less than £1m (2023: less than £1m).


228	Annual report 2024


Group financial statements continued

29. Financial liabilities



	Management determines the classification of financial liabilities at initial recognition. Financial liabilities which are managed and whose performance is evaluated on a fair value basis are designated as at fair value through profit or loss. Changes in the fair value of these financial liabilities are recognised in the consolidated income statement. Derivatives are also measured at fair value. Changes in the fair value of derivatives are recognised in Net gains or losses on financial instruments and other income in the consolidated income statement except for derivative instruments that are designated as a cash flow hedge or net investment hedge. The classification of derivatives and the accounting treatment of derivatives designated as a hedging instrument are set out in Note 18. Except for contingent consideration liabilities which are measured at fair value, other financial liabilities are classified as being subsequently measured at amortised cost. Amortised cost is calculated, and the related interest expense is recognised in the consolidated income statement, using the effective interest method. All financial liabilities are initially recognised at fair value less, in the case of financial liabilities subsequently measured at amortised cost, transaction costs that are directly attributable to the issue of the liability. Where the terms of a financial liability measured at amortised cost are modified and the modification does not result in the derecognition of the liability, the liability is adjusted to the net present value of the future cash flows less transaction costs with a modification gain or loss recognised in the consolidated income statement. The methods and assumptions used to determine fair value of financial liabilities measured at fair value through profit or loss and derivatives are discussed in Note 36.

The table below sets out an analysis of financial liabilities excluding unit linked financial liabilities which are set out in

Note 23.


		At fair value through profit or loss1		At amortised cost		Total
		2024	2023	2024	2023	2024	2023
	Notes	£m	£m	£m	£m	£m	£m
Third party interest in consolidated funds		184	187	—	—	184	187
Subordinated liabilities	30	—	—	597	599	597	599
Derivative financial liabilities	18	3	9	—	—	3	9
Other financial liabilities	32	111	129	937	1,112	1,048	1,241
Total		298	325	1,534	1,711	1,832	2,036

1. All financial liabilities measured at fair value through profit or loss have been classified at FVTPL on a mandatory basis except for third party

interest in consolidated funds which the Group has designated as at FVTPL.


			Annual report 2024	229


		FINANCIAL INFORMATION

30. Subordinated liabilities



	Subordinated liabilities are debt instruments issued by the Company which rank below its other obligations in the event of liquidation but above the share capital. Subordinated liabilities are initially recognised at the value of proceeds received after deduction of issue expenses. Subsequent measurement is at amortised cost using the effective interest rate method.


		2024		2023
	Notes	Principal amount	Carrying value	Principal amount	Carrying value
Subordinated notes
4.25% US Dollar fixed rate due 30 June 2028		$750m	£597m	$750m	£599m
Total subordinated liabilities	36		£597m		£599m

A description of the key features of the Group’s subordinated liabilities as at 31 December 2024 is as follows:


	4.25% US Dollar fixed rate1
Principal amount	$750m
Issue date	18 October 2017
Maturity date	30 June 2028
Callable at par at option of the Company from	Not applicable
If not called by the Company interest will reset to	Not applicable

1. The cash flows arising from the US dollar subordinated notes give rise to foreign exchange exposure which the Group manages with a cross-

currency swap designated as a cash flow hedge. Refer Note 18 for further details.

The difference between the fair value and carrying value of the subordinated liabilities is presented in Note 36. A

reconciliation of movements in subordinated liabilities in the year is provided in Note 37.

The principal amount of the subordinated liabilities is expected to be settled after more than 12 months. There was

no accrued interest on the subordinated liabilities at 31 December 2024 (2023: £13m). Any accrued interest is

expected to be settled within 12 months.


230	Annual report 2024


Group financial statements continued

31. Pension and other post-retirement benefit provisions



	The Group operates two types of pension plans: – Defined benefit plans which provide pension payments upon retirement to members as defined by the plan rules. All of the Group’s defined benefit plans, with the exception of a small plan in Ireland, are closed to future service accrual. – Defined contribution plans where the Group makes contributions to a member’s pension plan but has no further payment obligations once the contributions have been paid. The Group’s liabilities in relation to its defined benefit plans are valued by at least annual actuarial calculations. The Group has funded these liabilities in relation to its UK and Ireland defined benefit plans by ring-fencing assets in trustee-administered funds. The Group has further smaller defined benefit plans some of which are unfunded. The consolidated statement of financial position reflects a net asset or net liability for each defined benefit pension plan. The liability recognised is the present value of the defined benefit obligation (estimated future cash flows are discounted using the yields on high quality corporate bonds) less the fair value of plan assets, if any. If the fair value of the plan assets exceeds the defined benefit obligation, a pension surplus is only recognised if the Group considers that it has an unconditional right to a refund of the surplus from the plan. The amount of surplus recognised will be limited by tax and expenses. Our judgement is that, in the UK, any refund would be subject to an authorised surplus payments charge and that a surplus payments charge is not an income tax. Consequently, any UK surplus is recognised net of an authorised surplus payments charge and the authorised surplus payments charge is not included within deferred taxation. For the principal defined benefit plan (abrdn UK Group plan), the Group considers that it has an unconditional right to a refund of a surplus, assuming the gradual settlement of the plan liabilities over time until all members have left the plan. The plan trustees can purchase annuities to insure member benefits and can, for the majority of benefits, transfer these annuities to members. The trustees cannot unconditionally wind up the plan or use the surplus to enhance member benefits without employer consent. Our judgement is that these trustee rights do not prevent us from recognising an unconditional right to a refund and therefore a surplus. Net interest income (if a plan is in surplus) or interest expense (if a plan is in deficit) is calculated using yields on high quality corporate bonds and recognised in the consolidated income statement. A current service cost is also recognised which represents the expected present value of the defined benefit pension entitlement earned by members in the period. A past service cost is also recognised which represents the change in the present value of the defined benefit obligation for service in prior periods, resulting from an amendment or curtailment to a plan. Remeasurements, which include gains and losses as a result of changes in actuarial assumptions, the effect of the limit on the plan surplus and returns on plan assets (other than amounts included in net interest) are recognised in other comprehensive income in the period in which they occur. Remeasurements are not reclassified to profit or loss in subsequent periods. For defined contribution plans, the Group pays contributions to separately administered pension plans. The Group has no further payment obligations once the contributions have been paid. The contributions are recognised in current service cost in the consolidated income statement as staff costs and other employee- related costs when they are due.


			Annual report 2024	231


		FINANCIAL INFORMATION

Defined contribution plans

The defined contribution plans comprise a mixture of arrangements depending on the employing entity and other

factors. Some of these plans are located within the same legal vehicles as defined benefit plans. The Group contributes a

percentage of pensionable salary to each employee’s plan. The contribution levels vary by employing entity and other

factors.


Defined benefit plans
UK plans
These plans are governed by trustee boards, which comprise employer and employee nominated trustees and an independent trustee. The plans are subject to the statutory funding objective requirements of the Pensions Act 2004, which require that plans be funded to at least the level of their technical provisions (an actuarial estimate of the assets needed to provide for benefits already built-up under the plan). The trustees perform regular valuations to check that the plans meet the statutory funding objective. While the IAS 19 valuation reflects a best estimate of the financial position of the plan, the funding valuation reflects a prudent estimate. There is no material difference in how assets are measured. The funding measure of liabilities (technical provisions) and the IAS 19 measure are materially different. The key differences are the discount rate and inflation assumptions. While IAS 19 requires that the discount rate reflect corporate bond yields, the funding measure discount rate reflects a prudent estimate of future investment returns based on the actual investment strategy. The funding valuation adopts a market consistent measure of inflation without any adjustment. The IAS 19 RPI inflation assumption is derived from market-implied RPI inflation with an adjustment to remove the inflation risk premium believed to exist within market prices, with an additional deduction required to derive the IAS 19 CPI inflation assumption (to reflect differences between RPI and CPI). The trustees set the plan investment strategy to protect the ratio of plan assets to the trustees’ measure of the value of assets needed to meet the trustees’ objectives. This investment strategy does not aim to protect the IAS 19 surplus or the ratio of plan assets to the IAS 19 measure of liabilities. After consulting the relevant employers, the trustees prepare statements of funding and investment principles and set a schedule of contributions. If necessary, this schedule includes a recovery plan that aims to restore the funding level to the level of the technical provisions.
abrdn UK Group (SLSPS) plan (principal plan)	This is the Group’s principal defined benefit plan. The plan closed to new membership in 2004 and changed from a final salary basis to a revalued career average salary basis in 2008. Accrual ceased in April 2016. Following a High Court ruling against a third party’s pension scheme in 2018, that required pension schemes to address inequalities for the effect of unequal GMPs accrued between May 1990 and April 1997, an allowance for assumed equalisation was recognised as a past service cost for our principal defined benefit plan in 2018 and this adjustment has been carried forward to 2024. There was a further judgement in 2020 requiring pension schemes to address inequalities for the effect of unequal GMPs for those beneficiaries that transferred out of the scheme between May 1990 and October 2018. The estimated impact is immaterial and was recognised as a past service cost in 2020 and this adjustment has been carried forward to 2024. The Virgin Media Ltd v NTL Pension Trustees decision, delivered by the High Court on 16 June 2023 and upheld by the Court of Appeal in June 2024 (the VM judgement), considers the implications of section 37 of the Pension Schemes Act 1993 for amendments to contracted-out schemes between 1997 and 2016. The Company is aware of the VM judgement and is in discussions with advisers regarding its potential impact on the Group’s three UK defined benefit pension plans. The judgement left significant questions unanswered. There is legal uncertainty since the Group’s pension plans are governed by Scots law, while the VM judgement was issued in English courts. The Group considers it would only be appropriate to assess the full implications of the VM judgement once further guidance is available, and it will work with the trustee boards of its pension plans to carry out further investigations when the position is clearer. The funding of the plan depends on the statutory valuation performed by the trustee, and the relevant employers, with the assistance of the scheme actuary – i.e. not the IAS 19 valuation. The funding valuation was last completed at 31 December 2022, and measured plan assets and liabilities to be £3.0bn and £2.1bn respectively. This corresponds to a surplus of £0.9bn and a funding level of 144%. As there is currently no deficit, no recovery plan is required. Following the judgement by the Court of Session in August 2023 that, among other things, confirmed that if a buy-out were to be completed and sufficient provision made for: (i) any remaining liabilities; and (ii) expenses of completing the winding-up of the pension scheme, there would be a resulting trust in respect of any residual surplus assets in favour of the employer, the Group has continued to work with the trustee on the long-term strategy for the plan. The Group has reached agreement with the trustee of the defined benefit pension plan to utilise part of the existing surplus to fund the cost of providing defined contribution benefits to current employees with an annual review of other options including an insurance buyout and within certain guardrails ensuring the continued financial strength of the plan. This is expected to result in an annual benefit of c.£35m to net capital generation from July 2025, assuming there is a decision to proceed with the proposed DC consolidation following completion of the ongoing employee consultation expected to conclude in March 2025. This agreement enables the Group to unlock value from the plan, while largely maintaining the surplus and retaining optionality. Any residual amount that would be returned to the Group would be determined at the time of the ultimate refund.


232	Annual report 2024


Group financial statements continued


Other UK plans	The Group also operates two UK defined benefit plans as a result of the acquisition of Aberdeen Asset Management PLC (now renamed abrdn Holdings Limited) in 2017. These plans are final salary based, with benefits depending on members’ length of service and salary prior to retirement. At the last statutory valuation date (30 June 2022), one plan, the Edinburgh Fund Managers Group Scheme (the EFM Scheme) was in deficit and the Group agreed funding plans with the plan’s trustees which aimed to eliminate the deficit. The other plan, the Murray Johnstone Limited Retirement Benefits Plan (the MJ Plan), was in surplus. Refer Section (d) for details of the buy-in undertaken on the MJ Plan in 2023.
Other plans
abrdn ROI plan	In December 2009, this plan closed to new membership and changed from a final salary basis to a career average revalued earnings (CARE) basis. Following the sale of the UK and European insurance business in 2018, there remain two employees who continue to accrue benefits under this plan. At the last funding valuation, effective 1 January 2022, the plan was in deficit and as above, the Group agreed funding plans with the plan’s trustees which aimed to eliminate the deficit.
Other	The Group operates smaller funded and unfunded defined benefit plans in other countries.

Plan regulations

The plans are administered according to local laws and regulations in each country. Responsibility for the

governance of the plans rests with the relevant trustee boards (or equivalent). The UK pensions market is regulated

by the Pensions Regulator whose statutory objectives and regulatory powers are described on its website,

www.thepensionsregulator.gov.uk

(a) Analysis of amounts recognised in the consolidated income statement

The amounts recognised in the consolidated income statement for defined contribution and defined benefit plans

are as follows:


	2024	2023
	£m	£m
Current service cost	48	55
Past service cost	—	(5)
Net interest income	(33)	(38)
Administrative expenses	11	4
Expense recognised in the consolidated income statement	26	16

Contributions made to defined contribution plans are included within current service cost.

Contributions to defined benefit plans in the year ended 31 December 2024 comprised £5m (2023: £8m) to the

Other UK plans and the abrdn ROI plan. Contributions are expected to be £4m in 2025 and are not expected to

materially change in the two subsequent years. These contributions include a mixture of deficit funding and funding

to achieve a targeted level of overall financial strength.

(b) Analysis of amounts recognised in the consolidated statement of financial position


	2024			2023
	Principal plan	Other	Total	Principal plan	Other	Total
	£m	£m	£m	£m	£m	£m
Present value of funded obligation	(1,552)	(217)	(1,769)	(1,784)	(234)	(2,018)
Present value of unfunded obligation	—	(2)	(2)	—	(2)	(2)
Fair value of plan assets	2,591	222	2,813	2,912	233	3,145
Net asset/(liability) before the limit on plan surplus	1,039	3	1,042	1,128	(3)	1,125
Effect of limit on plan surplus1	(260)	(4)	(264)	(394)	(3)	(397)
Net asset/(liability)	779	(1)	778	734	(6)	728

1. UK recoverable surpluses are reduced to reflect an authorised surplus payments charge of 25% that would arise on a refund. This charge was

reduced from 35% to 25% effective from 6 April 2024 and this is reflected in the net asset at 31 December 2024. The comparative figures at

31 December 2023 are shown with a 35% surplus charge.

Other comprises a defined benefit plan asset relating to two defined benefit plans (2023: one) of £7m (2023: £6m)

and a number of other defined benefit plans with a total liability of £8m (2023: £12m).

A pension plan surplus is considered to be recoverable where an unconditional right to a refund exists.


			Annual report 2024	233


		FINANCIAL INFORMATION


	Present value of obligation		Fair value of plan assets		Net asset/(liability) before the limit on plan surplus		Effect of limit of plan surpluses		Net asset/(liability)
	2024	2023	2024	2023	2024	2023	2024	2023	2024	2023
	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m
At 1 January	(2,020)	(1,986)	3,145	3,252	1,125	1,266	(397)	(447)	728	819
Total expense
Current service cost	—	—	—	—	—	—	—	—	—	—
Past service cost	—	5	—	—	—	5	—	—	—	5
Interest (expense)/income	(91)	(88)	142	146	51	58	(18)	(20)	33	38
Administrative expenses	(9)	(4)	(2)	—	(11)	(4)	—	—	(11)	(4)
Total (expense)/income recognised in consolidated income statement	(100)	(87)	140	146	40	59	(18)	(20)	22	39
Remeasurements
Return on plan assets, excluding amounts included in interest income	—	—	(392)	(186)	(392)	(186)	—	—	(392)	(186)
(Loss)/gain from change in demographic assumptions	(1)	31	—	—	(1)	31	—	—	(1)	31
(Loss)/gain from change in financial assumptions	236	(56)	—	—	236	(56)	—	—	236	(56)
Experience gains/(losses)	27	2	—	—	27	2	—	—	27	2
Change in effect of limit on plan surplus	—	—	—	—	—	—	154	70	154	70
Remeasurement (losses)/gains recognised in other comprehensive income	262	(23)	(392)	(186)	(130)	(209)	154	70	24	(139)
Exchange differences	5	4	(4)	(4)	1	—	(3)	—	(2)	—
Employer contributions	—	—	5	8	5	8	—	—	5	8
Benefit payments	82	72	(81)	(71)	1	1	—	—	1	1
At 31 December	(1,771)	(2,020)	2,813	3,145	1,042	1,125	(264)	(397)	778	728

(d) Defined benefit plan assets

Investment strategy is directed by the trustee boards (where relevant) who pursue different strategies according to

the characteristics and maturity profile of each plan’s liabilities. Assets and liabilities are managed holistically to

create a portfolio with the dual objectives of return generation and liability management. In the principal plan this is

achieved through a diversified multi-asset absolute return strategy seeking consistent positive returns, and hedging

techniques which protect liabilities against movements arising from changes in interest rates and inflation

expectations. Derivative financial instruments support both of these objectives and may lead to increased or

decreased exposures to the physical asset categories disclosed below.

To provide more information on the approach used to determine and measure the fair value of the plan assets, the

fair value hierarchy has been used as defined in Note 36. Those assets which cannot be classified as level 1 have

been presented together as level 2 or 3.


234	Annual report 2024


Group financial statements continued

The distribution of the fair value of the assets of the Group’s funded defined benefit plans is as follows:


	Principal plan		Other		Total
	2024	2023	2024	2023	2024	2023
	£m	£m	£m	£m	£m	£m
Assets measured at fair value based on level 1 inputs
Debt securities	1,412	1,403	—	—	1,412	1,403
Total assets measured at fair value based on level 1 inputs	1,412	1,403	—	—	1,412	1,403
Assets measured at fair value based on level 2 or 3 inputs
Derivatives	(3)	(3)	—	(2)	(3)	(5)
Equity securities	43	44	—	—	43	44
Interests in pooled investment funds
Debt	106	286	19	19	125	305
Equity	—	—	12	7	12	7
Multi-asset private markets	217	230	—	—	217	230
Property	79	82	9	11	88	93
Absolute return	—	—	4	9	4	9
Cash	—	9	52	73	52	82
Debt securities	909	1,110	3	2	912	1,112
Qualifying insurance policies	2	2	116	125	118	127
Total assets measured at fair value based on level 2 or 3 inputs	1,353	1,760	215	244	1,568	2,004
Cash and cash equivalents	111	103	4	4	115	107
Liability in respect of collateral held	(285)	(354)	3	(15)	(282)	(369)
Total	2,591	2,912	222	233	2,813	3,145

Further information on risks is provided at Section (g) of this Note. The £2,324m (2023: £2,515m) of debt securities

includes £1,619m (2023: £1,608m) of government bonds (including conventional and index-linked). Of the

remaining £705m (2023: £907m) debt securities, £645m (2023: £815m) are investment grade corporate bonds or

certificates of deposit.

Included in the qualifying insurance policy asset of £118m (2023: £127m) is £112m (2023: £121m) in relation to two

insurance policies purchased by the trustees of Other UK defined benefit plans to protect the plans against future

investment and actuarial risks.

– £40m (2023: £43m) in relation to the partial buy-in completed on the EFM Scheme in 2015.

– £72m (2023: £78m) in relation to the substantially full buy-in completed on the MJ Plan in 2023. The premium paid

was £99m.

The MJ Plan buy-in was not considered to be a settlement therefore, as noted above, the insurance policy is

recognised within the plan assets. The buy-in transaction was an investment decision made by the trustee to

increase the security of plan benefits. The insurance policy does provide the option to convert the buy-in into

individual policies which would transfer the future obligation to pay pensions to the insurer for the members covered

by the policy (known as a buy-out). However, this obligation remains with the Group and while the conversion to a

buy-out may be considered in the future, a separate decision will be required, and certain conditions will need to be

met, including changes to the MJ Plan's trust deed and rules, before any buy-out can be executed. Consequently

the difference between the valuation of the policy and the premium paid was recognised within Remeasurement

gains/(losses) recognised in other comprehensive income in 2023.

The £282m liability in respect of collateral held (2023: £369m) consists of repurchase agreements of £287m

(2023: £353m), margins on derivatives of £(17)m (2023: £(8)m) and collateral of £12m (2023: £24m).


			Annual report 2024	235


		FINANCIAL INFORMATION

(e) Estimates and assumptions

Determination of the valuation of principal plan liabilities is a key estimate as a result of the assumptions made

relating to both economic and non-economic factors.

The key economic assumptions for the principal plan, which are based in part on current market conditions, are

shown below:


	2024	2023
	%	%
Discount rate	5.60	4.60
Rates of inflation
Consumer Price Index (CPI)	2.75	2.65
Retail Price Index (RPI)	3.10	3.00

The changes in economic assumptions over the period reflect changes in both corporate bond prices and market

implied inflation. The underlying methodology used to set these assumptions has not changed over the reporting

period. The population of corporate bond prices excludes bonds issued by UK universities. The inflation assumption

reflects the future reform of RPI effective from 2030 as described in Section (g)(i) below.

The determination of the present value of the funded obligation at 31 December 2024 includes a methodology

change for post-retirement pension increases on ‘post 6th April 88’ GMP pensions in the principal plan. The previous

methodology used a deterministic approach in line with the relevant CPI index. The updated methodology allows

for the contractual pension increase cap and floor when deriving the pension increase assumption, using an

assumed CPI inflation volatility of 2% p.a. The impact of this methodology change is to reduce the closing obligation

by £5m.

The most significant non-economic assumption for the principal plan is post-retirement longevity which is inherently

uncertain. The longevity assumptions (along with sample expectations of life) are illustrated below:


				Expectation of life from NRA
			Normal retirement Age	Male age today		Female age today
2024	Table	Improvements	(NRA)	NRA	40	NRA	40
	Plan specific basis (calibrated by Club Vita) reflecting membership demographics	Core parameterisation of the CMI 2021 mortality improvements model (SK parameter of 7.0), with an initial improvement (or ‘A’) parameter of +0.5% for males and females, and a long-term rate of improvement of 1.5%.	60	27	28	29	32

				Expectation of life from NRA
			Normal retirement Age	Male age today		Female age today
2023	Table	Improvements	(NRA)	NRA	40	NRA	40
	Plan specific basis (calibrated by Club Vita) reflecting membership demographics	Core parameterisation of the CMI 2021 mortality improvements model (SK parameter of 7.0), with an initial improvement (or ‘A’) parameter of +0.5% for males and females, and a long-term rate of improvement of 1.5%.	60	27	28	29	31

These assumptions reflect a cautious allowance for the recently observed slowdown in longevity improvements.

The mortality improvement assumptions are in line with CMI 2021 but with a 10% weighting on 2020 and 2021 data.

This makes some allowance for recent post-pandemic experience whilst recognising that greater stability in recent

2022 mortality experience may be indicative of expected future trends.


236	Annual report 2024


Group financial statements continued

(f) Duration of defined benefit obligation

The graph below provides an illustration of the undiscounted expected benefit payments included in the valuation

of the principal plan obligations.

Undiscounted benefit payments (£m)


ò	Non-current pensioner	ò	Current pensioner


	2024	2023
Weighted average duration	years	years
Current pensioner	11	11
Non-current pensioner	20	22

The weighted average duration is calculated based on discounted benefit payments so is impacted by changes in

the discount and inflation rates used (Refer Section (e)).

(g) Risk

(g)(i) Risks and mitigating actions

The Group’s consolidated statement of financial position is exposed to movements in the defined benefit plans’ net

asset. In particular, the consolidated statement of financial position could be materially sensitive to reasonably likely

movements in the principal assumptions for the principal plan. By having offered post-retirement defined benefit

pension plans the Group is exposed to a number of risks. An explanation of the key risks and mitigating actions in

place for the principal plan is given below.

Asset volatility

Investment strategy risks include underperformance of the absolute return strategy and underperformance of the

liability hedging strategy. As the trustees set investment strategy to protect their own view of plan strength (not the

IAS 19 position), changes in the IAS 19 liabilities (e.g. due to movements in corporate bond prices) may not always

result in a similar movement in plan assets.

Failure of the asset strategy to keep pace with changes in plan liabilities would expose the plan to the risk of a deficit

developing, which could increase funding requirements for the Group. abrdn and the trustees are working together

to determine the most appropriate de-risking strategy to best protect against the risk that this plan strength

deteriorates in the future.

Yields/discount rate

Falls in yields would in isolation be expected to increase the defined benefit plan liabilities.

The principal plan uses both bonds and derivatives to hedge out yield risks on the relevant plan basis in order to

meet the trustee’s objectives, rather than the IAS 19 basis, which is expected to minimise the plan’s need to rely on

support from the Group.


			Annual report 2024	237


		FINANCIAL INFORMATION

Inflation

Increases in inflation expectations would in isolation be expected to increase the defined benefit plan liabilities.

The principal plan uses both bonds and derivatives to hedge out inflation risks on the relevant plan basis in order to

meet the objectives, rather than the IAS 19 basis, which is expected to minimise the plan’s need to rely on support

from the Group.

In the principal plan, pensions in payment are generally linked to CPI, however inflationary risks are hedged using RPI

instruments due to lack of availability of CPI linked instruments. Therefore, the plan is exposed to movements in the

actual and expected long-term gap between RPI and CPI.

A House of Lords report in 2019 raised the potential for changes to the RPI measure of inflation, which was followed

by recommendations from the UK Statistics Authority. The results of the consultation on the reform of RPI

(announced on 25 November 2020) confirmed that RPI will be aligned to CPIH (CPI including owner occupiers’

housing costs) as proposed, but not before 2030. While uncertainty remains, there is a risk that future cash flows

from, and thus the value of, the plan’s RPI-linked assets fall without a corresponding reduction in the plan’s CPI-linked

liabilities. While not directly observable from market data, the plan’s RPI-linked asset values may already reflect an

element of the expected changes and risk of such changes.

Life expectancy

Increases in life expectancy beyond those currently assumed will lead to an increase in plan liabilities. Regular

reviews of longevity assumptions are performed to ensure assumptions remain appropriate.

Climate

The principal plan adopts a low-risk strategy to investment, with the majority of plan assets invested in UK

government bonds. The trustees have assessed the principal plan’s exposure to severe climate change as being

minimal, as a result of the low-risk investment strategy alongside the plan’s strong funding level.

(g)(ii) Sensitivity to key assumptions

The sensitivity of the principal plan’s obligation and assets to the key assumptions is disclosed below.


		2024		2023
		(Increase)/decrease Increase/(decrease) in present value of obligation	(Increase)/decrease Increase/(decrease) in fair value of plan assets	(Increase)/decrease Increase/(decrease) in present value of obligation	(Increase)/decrease Increase/(decrease) in fair value of plan assets
	Change in assumption	£m	£m	£m	£m
Yield/discount rate	Decrease by 1% (e.g. from 5.60% to 4.60%)	(266)	444	(342)	566
Yield/discount rate	Increase by 1%	210	(346)	266	(432)
Rates of inflation	Decrease by 1%	184	(299)	233	(371)
Rates of inflation	Increase by 1%	(229)	384	(306)	485
Life expectancy	Decrease by 1 year	47	N/A	54	N/A
Life expectancy	Increase by 1 year	(47)	N/A	(54)	N/A

32. Other financial liabilities


		2024	2023
	Notes	£m	£m
Accruals		234	284
Amounts due to counterparties and customers for unsettled trades and fund transactions		355	464
Lease liabilities	16	193	223
Cash collateral held in respect of derivative contracts	34	57	40
Contingent consideration liabilities	36	96	114
Deferred income		12	4
Other		101	112
Other financial liabilities		1,048	1,241

The amount of other financial liabilities expected to be settled after more than 12 months is £268m (2023: £323m).

Accruals includes £13m (2023: £43m) relating to accruals for rebates due on contracts with customers.


238	Annual report 2024


Group financial statements continued

33. Provisions and other liabilities



	Provisions are obligations of the Group which are of uncertain timing or amount. They are recognised when the Group has a present obligation as a result of a past event, it is probable that a loss will be incurred in settling the obligation and a reliable estimate of the amount can be made. Where some or all of the expenditure required to settle a provision is expected to be reimbursed by another party, a separate reimbursement asset is recognised when it is virtually certain that reimbursement will be received if the Group settles the obligation.

(a) Provisions

The movement in provisions during the year is as follows:


	Separation costs		Process execution		Tax related provisions		Other provisions		Total provisions
	2024	2023	2024	2023	2024	2023	2024	2023	2024	2023
	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m
At 1 January	—	33	—	41	42	—	24	23	66	97
Charged/(credited) to the consolidated income statement
Additional provisions	—	—	—	—	—	42	22	33	22	75
Release of unused provision	—	(32)	—	—	(1)	—	(1)	(4)	(2)	(36)
Used during the year	—	(1)	—	(41)	—	—	(22)	(28)	(22)	(70)
At 31 December	—	—	—	—	41	42	23	24	64	66

The provision for a potential liability of £41m (2023: £42m) relates to a tax related matter which is the subject of an

ongoing appeal. Any resolution is not expected to be until 2026 at the earliest. A reimbursement asset has been

recognised within receivables and other financial assets for £19m (2023: £18m) which is an expected recovery in

the event of any settlement.

The opening separation cost provision at 1 January 2023 of £33m was in respect of costs expected to be incurred

following the sale of the UK and European insurance business to Phoenix. Following the completion of the separation

programme during the year ended 31 December 2023 the Group expected no further costs to be incurred and

£32m was released from the provision in the year ended 31 December 2023.

The opening process execution provision recognised at 1 January 2023 for £41m was in respect of a payment

required to compensate an asset management client relating to the provision of certain services has been fully

utilised in the year ended 31 December 2023 to fully settle the compensation. Following the settlement, the Group

had agreed a recovery of £36m from its liability insurance, being the cost of the compensation net of a £5m excess

of which £36m had been received by 31 December 2023. The recovery was credited against other administrative

expenses for the year ended 31 December 2023 in the consolidated income statement.

The majority of Other provisions relate to dilapidations on leased properties and restructuring provisions.

Dilapidations are generally expected to be settled after more than 12 months. Refer Note 16 for further details of the

Group’s leases. Restructuring provisions are generally expected to be settled within 12 months. Remaining balances

relate to other ongoing matters across the Group and are typically expected to be settled within 12 months.

The amount of provisions expected to be settled after more than 12 months is £52m (2023: £45m).

(b) Other liabilities

As at 31 December 2024, other liabilities totalled £7m (2023: £4m). The amount of other liabilities expected to be

settled after more than 12 months is £nil (2023: £nil).


			Annual report 2024	239


		FINANCIAL INFORMATION

34. Financial instruments risk management

(a) Overview

The principal risks and uncertainties that affect the Group’s business model and the Group’s approach to risk

management are set out in the Risk management section of the Strategic report.

The Group’s exposure to financial instrument risk is derived from the financial instruments that it holds directly, the

assets and liabilities of the unit linked funds of the life operations of the Group and the Group’s defined benefit

pension plans. In addition, due to the nature of the business, the Group’s secondary exposure extends to the impact

on treasury income and investment management and other fees that are determined on the basis of a percentage

of AUMA and are therefore impacted by financial risks borne by third party investors. In this Note, exposures and

sensitivities provided relate to the financial instrument assets and liabilities, in scope of IFRS 7, to which the

shareholder is directly exposed.

For the purposes of this Note:

– Shareholder business refers to the assets and liabilities to which the shareholder is directly exposed. The

shareholder refers to the equity holders of the Company.

– Unit linked funds refers to the assets and liabilities of the unit linked funds of the life operations of the Group. It does

not include the cash flows (such as asset management charges or investment expenses) arising from the unit

linked fund contracts. These cash flows are included in shareholder business.

– Third party interest in consolidated funds and non-controlling interests refers to the assets and liabilities recorded

on the Group’s consolidated statement of financial position which belong to third parties. The Group controls the

entities which own the assets and liabilities but the Group does not own 100% of the equity or units of the relevant

entities.

Unit linked funds are excluded from the analysis in this Note. Details regarding the financial risks of instruments

relating to the Group’s unit linked funds can be found in Note 23 and the risks relating to the Group’s principal

defined benefit pension plan are explained in Note 31.

Third party interests in consolidated funds do not expose the shareholder to market, credit or liquidity risk since the

financial risks from the assets and obligations are borne by third parties. As a result, equity risk, interest rate risk and

credit risk quantitative disclosures in this Note exclude these assets.

Under IFRS 7 the following financial instruments are excluded from scope:

– Interests in subsidiaries, associates and joint ventures.

– Rights and obligations arising from employee benefit plans.

– Insurance contracts as defined by IFRS 17.

– Share-based payment transactions.

For the purposes of managing risks to the Group’s financial instrument assets and liabilities, the Group considers the

following categories:


Risk	Definition and exposure
Market	The risk of financial loss as a result of adverse financial market movements. The shareholder is directly exposed to the impact of movements in equity prices, interest rates and foreign exchange rates on the value of assets held by the shareholder business.
Credit	The risk of financial loss as a result of the failure of a counterparty, issuer or borrower to meet their obligations or perform them in a timely manner. The shareholder is directly exposed to credit risk from holding cash, debt securities, derivative financial instruments and receivables and other financial assets.
Liquidity	The risk of financial loss as a result of being unable to settle financial obligations when they fall due, as a result of having insufficient liquid resources or being unable to realise investments and other assets other than at excessive costs. The shareholder is directly exposed to the liquidity risk from the shareholder business if it is unable to realise investments and other assets in order to settle its financial obligations when they fall due, or can do so only at excessive cost.

As set out in the Risk management section of the Strategic report, the Group reviews and manages climate-related

risks and opportunities. Climate change is considered amongst our principal risks and uncertainties, specifically

sitting within our ‘Sustainability’ principal risk. We consider climate risk to be material and acknowledge its

relationship with financial and regulatory and legal risk. We continue to assess the potential impacts on our business

with a view to the resilience of our operations and investment strategies. This is monitored through our climate risk

and opportunity radar to ensure we are well positioned to realise opportunities and mitigate risks. Our day-to-day

business is predominantly exposed to transition risk as markets and policies increasingly align to a lower carbon

world. We have a critical role to play as stewards of clients’ capital and this is reflected in our business strategy and

our commitment to reduce the carbon intensity of our portfolios and absolute emissions from our direct operations.

The Group is also exposed to climate risk in relation to its investment property which are primarily properties which


240	Annual report 2024


Group financial statements continued

are no longer being used operationally by the Group and are being sublet. Refer Note 15 for details of the Group’s

consideration of climate-related factors in relation to investment property. We have considered the implications of

climate-related risk, including transition risks, for the 2024 financial statements, and have concluded that there are

no material impacts on the valuation of the Group’s assets and liabilities, including the valuation of financial

instruments held at fair value through profit or loss (in particular in relation to level 3 investments) or at amortised

cost (in particular in relation to expected credit losses).

(b) Market risk

The Group’s largest exposure to market risk relates to our investment in Phoenix. Other market risk exposures

primarily arise as a result of holdings in newly established investment vehicles which the Group has seeded and co-

investments in property and infrastructure funds in the Investments segment. Seed capital is classified as held for

sale when it is the intention to dispose of the vehicle in a single transaction and within one year. Co-investments are

typically held for a longer term and align the Group’s economic interests with those of property, private equity and

infrastructure fund co-investors. The consolidated statement of financial position includes the following amounts in

respect of seed capital and co-investments.


	2024	2023
	£m	£m
Equity securities and interests in pooled investment funds at FVTPL	150	209
Debt securities	69	86
Assets held for sale	17	—
Total seed capital	236	295

Equity securities and interests in pooled investment funds at FVTPL	184	116
Total co-investments	184	116

The Group sets limits for investing in seed capital and co-investment activity and regularly monitors exposures

arising from these investments. The Group will consider hedging its exposure to market risk in respect of seed

capital investments where it is appropriate and efficient to do so. The Group will also consider hedging its exposure

to currency risk in respect of co-investments where it is appropriate and efficient to do so. Other market risks

associated with co-investments are not hedged given the need for the Group’s economic interests to be aligned

with those of the co-investors.

(b)(i) Elements of market risk

The main elements of market risk to which the Group is exposed are equity risk, interest rate risk and foreign

currency risk, which are discussed on the following pages.

Information on the methods used to determine fair values for each major category of financial instrument

measured at fair value is presented in Note 36.

(b)(i)(i) Exposure to equity risk

The Group is exposed to the risk of adverse equity market movements which could result in losses. This applies to

daily changes in the market values and returns on the holdings in equity securities.

At 31 December 2024 the shareholder exposure to equity markets was £734m (2023: £792m) in relation to equity

securities. This primarily relates to the Group’s investments in Phoenix of £530m (2023: £557m), seed capital

investments of £114m (2023: £151m), and equity securities held by the abrdn Financial Fairness Trust of £67m

(2023: £64m).

The Group is also exposed to adverse market price movements on its interests in pooled investment funds. The

shareholder exposure of £278m (2023: £235m) to pooled investment funds primarily relates to £220m (2023:

£174m) of seed capital and co-investments, investments in certain managed funds to hedge against liabilities from

variable pay awards that are deferred and settled in cash by reference to the price of those funds of £29m (2023:

£35m) and pooled investment funds held by the abrdn Financial Fairness Trust of £25m (2023: £22m).

Equities and interests in pooled investment funds at FVTPL included in the consolidated statement of financial

position includes £94m (2023: £112m) relating to third party interest in consolidated funds and non-controlling

interests – ordinary shares to which the shareholder is not exposed.

Exposures to equity risk are primarily managed though the hedging of market risk in respect of seed capital

investments where it is appropriate and efficient to do so. Additionally limits are imposed on the amount of seed

capital and co-investment activity that may be undertaken. The Group does not hedge equity risk in relation to its

investment in Phoenix.


			Annual report 2024	241


		FINANCIAL INFORMATION

(b)(i)(ii) Exposure to interest rate risk

Interest rate risk is the risk that arises from exposures to changes in the shape and level of yield curves which could

result in losses due to the value of financial assets and liabilities, or the cash flows relating to these, fluctuating by

different amounts.

The main financial assets held by the Group which give rise to interest rate risk are debt securities and cash and

cash equivalents. The Group is also exposed to interest rate risk on its investments in pooled investment funds where

the underlying instruments are exposed to interest rate risk.

Interest rate exposures are managed in line with the Group’s risk appetite.

(b)(i)(iii) Exposure to foreign currency risk

Foreign currency risk arises where adverse movements in currency exchange rates impact the value of revenues

received from, and the value of assets and liabilities held in, currencies other than UK Sterling. The Group’s financial

assets are generally held in the local currency of its operational geographic locations. The Group generally does not

hedge the currency exposure relating to revenue and expenditure, nor does it hedge translation of overseas profits

in the consolidated income statement. Where appropriate, the Group may use derivative contracts to reduce or

eliminate currency risk arising from individual transactions or seed capital and co-investment activity.

The table below summarises the financial instrument exposure to foreign currency risks in UK Sterling.


		UK Sterling		Euro		US Dollar		Singapore Dollar		Other currencies		Total
		2024	2023	2024	2023	2024	2023	2024	2023	2024	2023	2024	2023
	Notes	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m
Financial assets	17	3,183	3,280	193	204	540	612	87	59	160	159	4,163	4,314
Financial liabilities	29	(1,014)	(1,130)	(31)	(48)	(757)	(823)	(10)	(15)	(20)	(20)	(1,832)	(2,036)
Cash flow hedges		(599)	(588)	—	—	599	588	—	—	—	—	—	—
Non- designated derivatives		265	296	(69)	(66)	(146)	(186)	(12)	—	(38)	(44)	—	—
		1,835	1,858	93	90	236	191	65	44	102	95	2,331	2,278

Other currencies include assets of £50m (2023: £41m) and liabilities of £nil (2023: £nil) in relation to the fair value of

derivatives used to manage currency risk.

On 18 October 2017, the Group issued US dollar subordinated notes with a principal amount of US$750m. The

related cash flows expose the Group to foreign currency risk on the principal and coupons payable. The Group

manages the foreign exchange risk with a cross-currency swap which is designated as a cash flow hedge.

Non-designated derivatives relate to foreign exchange forward contracts that are not designated as cash flow

hedges or net investment hedges and primarily relate to the management of currency risk arising from seed capital

and co-investment activity.

In addition to financial instruments analysed above, the principal source of foreign currency risk for shareholders

arises from the Group’s investments in overseas subsidiaries and associates and joint ventures accounted for using

the equity method. The carrying value of the Group’s Chinese joint venture is disclosed in Note 14. The Group does

not hedge foreign currency risk in relation to these investments.

(b)(ii) Sensitivity of financial instruments to market risk analysis

The Group’s profit/loss after tax and equity are sensitive to variations in respect of the Group’s market risk

exposures and a sensitivity analysis is presented below. The analysis has been performed by calculating the

sensitivity of profit after tax and equity to changes in equity security prices (equity risk), changes in interest rates

(interest rate risk) and changes in foreign exchange rate (foreign currency risk) as at the reporting date applied to

assets and liabilities other than those classified as held for sale, and after allowing for the Group’s hedging strategy.

The variables used in the sensitivity analysis are considered reasonable assumptions and are consistent with market

peers. Changes to variables are provided by internal specialists who determine what are reasonable assumptions.


242	Annual report 2024


Group financial statements continued

Profit/loss after tax and equity sensitivity to market risk


		31 December 2024		31 December 2023
		A reasonable change in the variable within the next calendar year	Increase/ (decrease) in post- tax profit	A reasonable change in the variable within the next calendar year	Increase/ (decrease) in post-tax profit
		%	£m	%	£m
Equity prices	Increase	10	71	10	74
	Decrease	10	(71)	10	(74)
US Dollar against Sterling	Strengthen	10	14	10	12
	Weaken	10	(11)	10	(9)
Euro against Sterling	Strengthen	10	10	10	10
	Weaken	10	(8)	10	(8)

The reasonable change in variables have no impact on any other components of equity. These sensitivities concern

only the impact on financial instruments and exclude indirect impacts of the variable on fee income and certain

costs which may be affected by the changes in market conditions.

Interest rate sensitivity to a reasonable change in the variable within the next calendar year is not material in either

2024 or 2023.

Limitations

The sensitivity of the Group’s profit after tax and equity may be non-linear and larger or smaller impacts should not

be derived from these results. The sensitivities provided illustrate the impact of a reasonably possible change in a

single sensitivity factor, while the other sensitivity factors remain unchanged. Correlations between the different

risks and/or other factors may mean that experience would differ from that expected if more than one risk event

occurred simultaneously.

Exposures to credit risk and concentrations of credit risk are managed by setting exposure limits for different types

of financial instruments and counterparties. The limits are established using the following controls:


Financial instrument with credit risk exposure	Control
Cash and cash equivalents	Maximum counterparty exposure limits are set with reference to internal credit assessments.
Derivative financial instruments	Maximum counterparty exposure limits, net of collateral, are set with reference to internal credit assessments. The forms of collateral that may be accepted are also specified and minimum transfer amounts in respect of collateral transfers are documented.
Debt securities	The Group’s policy is to set exposure limits by name of issuer, sector and credit rating.
Other financial instruments	Appropriate limits are set for other financial instruments to which the Group may have exposure at certain times.

Group Treasury perform central monitoring of exposures against limits and are responsible for the escalation of any

limit breaches to the Chief Risk Officer.

Expected credit losses (ECL) are calculated on financial assets which are measured at amortised cost.

Financial assets attract an ECL allowance equal to either:


12 month ECL (losses resulting from possible default within the next 12 months)	No significant increase in credit risk since initial recognition. Trade receivables or contract assets with significant financing component, or lease receivables if lifetime ECL measurement has not been elected.
Lifetime ECL (losses resulting from possible defaults over the remaining life of the financial asset)	Significant increase in credit risk since initial recognition. Trade receivables or contract assets with no significant financing component. Trade receivables or contract assets with significant financing component, or lease receivables for which lifetime ECL measurement has been elected.
Changes in Lifetime ECL	Credit-impaired at initial recognition.

In determining whether a default has taken place, or where there is an increased risk of a default, a number of

factors are taken into account including a deterioration in the credit quality of a counterparty, the number of days

that a payment is past due, and specific events which could impact a counterparty’s ability to pay.

The Group assumes that a significant increase in credit risk has arisen when contractual payments are more than

30 days past due. The Group assumes that credit risk on a financial instrument has not increased significantly since

initial recognition if the financial instrument is determined to have low credit risk at the reporting date. Financial


			Annual report 2024	243


		FINANCIAL INFORMATION

instruments with an external rating of ‘investment grade’ are presumed to have low credit risk in the absence of

evidence to the contrary. Investment grade financial instruments are financial assets with credit ratings assigned by

external rating agencies with classification within the range of AAA to BBB. If a financial asset is not rated by an

external agency it is classified as ‘not rated’.

The Group applies the simplified approach, as permitted under IFRS 9, to calculate the ECL allowance for trade

receivables and contract assets including accrued income from contracts with customers and lease receivables.

Under the simplified approach, the ECL allowance is calculated over the remaining life of the asset, using a provision

matrix approach based on historic observed default rates adjusted for knowledge of specific events which could

influence loss rates.

The Group does not hold significant financial assets at amortised cost that it regards as credit-impaired or for which

it considers the probability of default would result in material expected credit losses in its Investments and Adviser

segments. At 31 December 2024, these segments had total receivables of £4m (2023: £nil) which were considered

to be credit impaired for which a lifetime loss allowance of £4m (2023: £nil) has been recognised based on

expected recovery. Historically, default levels have been insignificant for the Group’s customers within these

segments. Trade debtors past due but not in default at 31 December 2024 for these segments were £58m (2023:

£71m) of which £43m was over 90 days past due (2023: £36m). Except for a £4m balance above, we have not

identified significant credit risk with counterparties with balances over 90 days past due and recovery is still

expected. The expected credit losses recognised for non-credit impaired assets were less than £1m (2023: less

than £1m). In making this assessment the Group has considered if any evidence is available to indicate the

occurrence of an event which would result in a detrimental impact on the estimated future cash flows of these

assets.

The Group is exposed to a higher level of credit risk within its ii segment, primarily in relation to ii. Trade debtors past

due for the ii segment at 31 December 2024 were £6m (2023: £5m), the majority of which were considered to be

credit impaired. A lifetime loss allowance of £2m (2023: £2m) has been recognised based on expected recovery.

(c)(i) Credit exposure

The following table presents an analysis of the credit quality of shareholder financial assets and the maximum

exposure to credit risk without taking into account any collateral held.


					Amortised cost
	Fair value through profit or loss		Cash flow hedge		12 month ECL		Lifetime ECL1		Total
	2024	2023	2024	2023	2024	2023	2024	2023	2024	2023
	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m
AAA	—	30	—	—	138	115	—	—	138	145
AA+ to AA-	67	169	—	—	137	76	—	—	204	245
A+ to A-	467	405	50	41	942	977	—	—	1,459	1,423
BBB	69	86	—	—	75	127	—	—	144	213
Not rated	18	12	—	—	533	610	479	452	1,030	1,074
Gross carrying amount	621	702	50	41	1,825	1,905	479	452	2,975	3,100
Loss allowance	—	—	—	—	—	—	(5)	(2)	(5)	(2)
Carrying amount	621	702	50	41	1,825	1,905	474	450	2,970	3,098

Derivative financial assets	4	2	50	41	—	—	—	—	54	43
Debt securities	600	689	—	—	(1)	125	—	—	599	814
Receivables and other financial assets	17	11	—	—	533	610	474	450	1,024	1,071
Cash and cash equivalents	—	—	—	—	1,293	1,170	—	—	1,293	1,170
Carrying amount	621	702	50	41	1,825	1,905	474	450	2,970	3,098

1. As noted in Section (c) above, Lifetime ECL balances include trade debtors with a gross carrying value of £10m (2023: £5m) which are credit

impaired for which a loss allowance of £6m (2023: £2m) has been recognised. All other Lifetime ECL balances are not credit impaired.

In the table above, debt securities exclude debt securities relating to third party interests in consolidated funds of

£60m (2023: £51m). Cash and cash equivalents exclude cash and cash equivalents relating to third party interests in

consolidated funds of £28m (2023: £26m). The shareholder is not exposed to the credit risk in respect of third party

interests in consolidated funds since the financial risk of the assets are borne by third parties.


244	Annual report 2024


Group financial statements continued

(c)(ii) Collateral accepted and pledged in respect of financial instruments

Collateral in respect of bilateral over-the-counter (OTC) derivative financial instruments and bilateral repurchase

agreements is accepted from and provided to certain market counterparties to mitigate counterparty risk in the

event of default. The use of collateral in respect of these instruments is governed by formal bilateral agreements

between the parties. For OTC derivatives the amount of collateral required by either party is determined by the

daily bilateral OTC exposure calculations in accordance with these agreements and collateral is moved on a daily

basis to ensure there is full collateralisation. Under the terms of these agreements, collateral is posted with the

ownership captured under title transfer of the contract. With regard to either collateral pledged or accepted, the

Group may request the return of, or be required to return, collateral to the extent it differs from that required under

the daily bilateral OTC exposure calculations.

Where there is an event of default under the terms of the agreements, any collateral balances will be included in the

close-out calculation of net counterparty exposure. At 31 December 2024, the Group had pledged £12m (2023:

£19m) of cash and £nil (2023: £nil) of securities as collateral for derivative financial liabilities. At 31 December 2024,

the Group had accepted £57m (2023: £40m) of cash and £105m (2023: £35m) of securities as collateral for

derivatives financial assets and reverse repurchase agreements. None of the securities were sold or repledged at

the year end.

(c)(iii) Offsetting financial assets and liabilities



	Financial assets and liabilities are offset and the net amount reported on the consolidated statement of financial position only when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis, or to realise the asset and settle the liability simultaneously.

The Group does not offset financial assets and liabilities on the consolidated statement of financial position, as there

are no unconditional rights to set off. Consequently, the gross amount of other financial instruments presented on

the consolidated statement of financial position is the net amount. The Group’s bilateral OTC derivatives are all

subject to an International Swaps and Derivative Association (ISDA) master agreement. ISDA master agreements

and reverse repurchase agreements entered into by the Group are considered master netting agreements as they

provide a right of set off that is enforceable only in the event of default, insolvency, or bankruptcy.

The Group does not hold any other financial instruments which are subject to master netting agreements or similar

arrangements.

The following table presents the effect of master netting agreements and similar arrangements.


			Related amounts not offset on the consolidated statement of financial position
	Gross amounts of financial instruments as presented on the consolidated statement of financial position		Financial instruments		Financial collateral pledged/ (received)		Net position
	2024	2023	2024	2023	2024	2023	2024	2023
	£m	£m	£m	£m	£m	£m	£m	£m
Financial assets
Derivatives1	54	43	—	(2)	(54)	(39)	—	2
Reverse repurchase agreements	105	35	—	—	(105)	(35)	—	—
Total financial assets	159	78	—	(2)	(159)	(74)	—	2
Financial liabilities
Derivatives1	(3)	(2)	—	2	—	—	(3)	—
Total financial liabilities	(3)	(2)	—	2	—	—	(3)	—

1. Only OTC derivatives subject to master netting agreements have been included above.


			Annual report 2024	245


		FINANCIAL INFORMATION

(d) Liquidity risk

The shareholder is exposed to liquidity risk if the Group is unable to realise investments and other assets in order to

settle its financial obligations when they fall due, or can do so only at excessive cost. The following quantitative

liquidity risk disclosures are provided in respect of these financial liabilities.

The Group has a liquidity risk framework and processes in place for monitoring, assessing, and managing liquidity

risk.

This framework ensures that liquidity risks are identified across the Group and, where relevant, mitigation measures

are put in place. Stress testing of the residual risks is performed to understand the quantum of risk under stress

conditions. This then informs the level of liquid resources that need to be maintained. Where appropriate, this is

enhanced with external credit facilities and the Group has a syndicated revolving credit facility of £400m which was

undrawn at 31 December 2024.

The level of liquid resources in the Group is also projected under a number of adverse scenarios. These are

described more fully in the Viability statement.

A contingency funding plan is maintained to ensure that if liquidity risk did materialise, processes and procedures

are already in place to assist with resolving the issue. Regular monitoring of liquid resources is performed and

projections undertaken (under both base and stressed conditions) to understand the outlook.

As a result of the policies and processes established to manage risk, the Group expects to be able to manage

liquidity risk on an ongoing basis. We recognise there are a number of scenarios that can impact the liquid resources

of a business as discussed in the Risk management section of the Strategic report.

(d)(i) Maturity analysis

The analysis that follows presents the undiscounted cash flows payable under contractual maturity at the reporting

date for all financial liabilities, other than those related to unit linked funds which are discussed in Note 23.


	Within 1 year		1-5 years		5-10 years		10-15 years		15-20 years		Greater than 20 years		Total
	2024	2023	2024	2023	2024	2023	2024	2023	2024	2023	2024	2023	2024	2023
	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m
Subordinated liabilities	26	24	662	647	—	—	—	—	—	—	—	—	688	671
Other financial liabilities	789	950	178	185	80	97	29	46	7	6	—	—	1,083	1,284
Total	815	974	840	832	80	97	29	46	7	6	—	—	1,771	1,955

Refer Note 18 for the maturity profile of undiscounted cash flows of derivative financial instruments.

The Group also had unrecognised commitments in respect of financial instruments as at 31 December 2024 (refer

Note 39) with a contractual maturity of within one year, between one and five years and over five years of £8m,

£6m and £52m respectively (2023: £2m, £29m and £36m). The commitments may generally be requested anytime

up to the contractual maturity.


246	Annual report 2024


Group financial statements continued

35. Structured entities



	A structured entity is an entity that is structured in such a way that voting or similar rights are not the dominant factor in deciding who controls the entity. The Group has interests in structured entities through investments in a range of investment vehicles including: – Pooled investment funds managed internally and externally, including OEICs, SICAVs, unit trusts and limited partnerships. – Debt securitisation vehicles which issue asset-backed securities. The Group consolidates structured entities which it controls. Where the Group has an investment in, but not control over these types of entities, the investment is classified as an investment in associate when the Group has significant influence. Investments in associates at FVTPL are included in equity securities and pooled investment funds in the analysis of financial investments. The Group also has interests in structured entities through asset management fees and other fees received from these entities.

(a) Consolidated structured entities

As at 31 December 2024 and 31 December 2023, the Group has not provided any non-contractual financial or

other support to any consolidated structured entity and there are no current intentions to do so.

(b) Unconsolidated structured entities

As at 31 December 2024 and 31 December 2023, the Group has not provided any non-contractual financial or

other support to any unconsolidated structured entities and there are no current intentions to do so.

The following table shows the carrying value of the Group’s interests in unconsolidated structured entities by line

item in the consolidated statement of financial position.


	2024	2023
	£m	£m
Financial investments
Equity securities and interests in pooled investment funds	482	482
Debt securities	—	—
Total financial investments	482	482
Receivables and other financial assets	162	196
Other financial liabilities	63	114

The Group’s exposure to loss in respect of unconsolidated structured entities is limited to the carrying value of the

Group’s investment in these entities and the loss of future asset management and other fees received by the Group

for the management of these entities. Exposure to loss arising from market and credit risk in relation to investments

held in the unit linked funds and relating to third party interest in consolidated funds and non-controlling interests –

ordinary shares is not borne by the shareholder.

Additional information on the Group’s exposure to financial risk and the management of these risks can be found in

Note 23 and Note 34.

The total assets under management of unconsolidated structured entities are £137,343m at 31 December 2024

(2023: £108,993m). The fees recognised in respect of these assets under management during the year to

31 December 2024 were £413m (2023: £453m).

As at 31 December 2024, the Group had no investments in unconsolidated structured debt securitisation vehicles

(2023: £nil).


			Annual report 2024	247


		FINANCIAL INFORMATION

36. Fair value of assets and liabilities



	The Group uses fair value to measure many of its assets and liabilities. Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable willing parties in an arm’s length transaction.

An analysis of the Group’s financial assets and financial liabilities in accordance with the categories of financial

instrument set out in IFRS 9 Financial Instruments is presented in Notes 17, 23 and 29 and includes those financial

assets and liabilities held at fair value.

(a) Fair value hierarchy

In determining fair value, the following fair value hierarchy categorisation has been used:

– Level 1: Fair values measured using quoted prices (unadjusted) in active markets for identical assets or liabilities.

An active market exists where transactions take place with sufficient frequency and volume to provide pricing

information on an ongoing basis.

– Level 2: Fair values measured using inputs other than quoted prices included within level 1 that are observable for

the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

– Level 3: Fair values measured using inputs that are not based on observable market data (unobservable inputs).

Information on the methods and assumptions used to determine fair values for equity securities and interests in

pooled investment funds, debt securities and derivatives measured at fair value is given below:


	Equities and interests in pooled investment funds1,2	Debt securities	Derivatives3
Level 1	Equity instruments listed on a recognised exchange valued using prices sourced from their primary exchange.	Debt securities listed on a recognised exchange valued using prices sourced from their primary exchange.	Exchange traded derivatives valued using prices sourced from the relevant exchange.
Level 2	Pooled investment funds where daily unit prices are available and reference is made to observable market data.	Debt securities valued using prices received from external pricing providers based on quotes received from a number of market participants. Debt securities valued using models and standard valuation formulas based on observable market data4.	Over-the-counter derivatives measured using a range of valuation models including discounting future cash flows and option valuation techniques.
Level 3	These relate primarily to interests in private equity, real estate and infrastructure funds which are valued at net asset value. Underlying real estate and private equity investments are generally valued in accordance with independent professional valuation reports or International Private Equity and Venture Capital Valuation Guidelines where relevant. The underlying investments in infrastructure funds are generally valued based on the phase of individual projects forming the overall investment and discounted cash flow techniques based on project earnings. Where net asset values are not available at the same date as the reporting date, the latest available valuations are reviewed and, where appropriate, adjustments are made to reflect the estimated impact of changes in market conditions between the date of the valuation and the end of the reporting period. Other unlisted equity securities are generally valued using a calibration to the price of a recent investment.	Debt securities valued using prices received from external pricing providers based on a single broker indicative quote. Debt securities valued using models and standard valuation formulas based on unobservable market data4.	N/A

1. Investments in associates at FVTPL are valued in the same manner as the Group’s equity securities and interests in pooled investment funds.

2. Where pooled investment funds have been seeded and the investment in the funds have been classified as held for sale, the costs to sell are

assumed to be negligible. The fair value of pooled investment funds held for sale is calculated as equal to the observable unit price.

3. Non-performance risk arising from the credit risk of each counterparty is also considered on a net exposure basis in line with the Group’s risk

management policies. At 31 December 2024 and 31 December 2023, the residual credit risk is considered immaterial and no credit risk

adjustment has been made.

4. If prices are not available from the external pricing providers or are considered to be stale, the Group has established procedures to arrive at an

internal assessment of the fair value.


248	Annual report 2024


Group financial statements continued

The fair value of liabilities in respect of third party interest in consolidated funds and non-participating investment

contracts are calculated equal to the fair value of the underlying assets and liabilities.

Thus, the value of these liabilities is dependent on the methods and assumptions set out above in relation to the

underlying assets and liabilities:

– For third party interest in consolidated funds, when the underlying assets and liabilities are valued using readily

available market information the liabilities in respect of third party interest in consolidated funds are treated as

level 2. Where the underlying assets and liabilities are not valued using readily available market information the

liabilities in respect of third party interest in consolidated funds are treated as level 3.

– For non-participating investment contracts, the underlying assets and liabilities are predominately categorised as

level 1 or 2 and as such, the inputs into the valuation of the liabilities are observable and these liabilities are

predominately categorised within level 2 of the fair value hierarchy. Where the underlying assets are categorised

as level 3, the liabilities are also categorised as level 3.

In addition, contingent consideration assets and contingent consideration liabilities are also categorised as level 3 in

the fair value hierarchy. Contingent consideration assets and liabilities have been recognised in respect of

acquisitions and disposals. Generally valuations are based on unobservable assumptions regarding the probability

weighted cash flows and, where relevant, discount rate.

(a)(i) Fair value hierarchy for assets measured at fair value in the consolidated statement of

financial position

The table below presents the Group’s non-unit linked assets measured at fair value by level of the fair value

hierarchy (refer Note 23 for fair value analysis in relation to assets backing unit linked liabilities).


							Fair value hierarchy
	As recognised in the consolidated statement of financial position line item		Classified as held for sale		Total		Level 1		Level 2		Level 3
	2024	2023	2024	2023	2024	2023	2024	2023	2024	2023	2024	2023
	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m
Owner occupied property	—	1	—	—	—	1	—	—	—	—	—	1
Derivative financial assets	54	43	—	—	54	43	—	—	54	43	—	—
Equity securities and interests in pooled investment vehicles 1	1,105	1,139	17	—	1,122	1,139	711	769	133	137	278	233
Debt securities	659	740	—	—	659	740	5	7	653	732	1	1
Contingent consideration assets	17	11	—	—	17	11	—	—	—	—	17	11
Total assets at fair value	1,835	1,934	17	—	1,852	1,934	716	776	840	912	296	246

1. Includes £530m (2023: £557m) for the Group’s listed equity investment in Phoenix which is classified as a significant listed investment. The

Group’s listed equity investments in HDFC Asset Management and HDFC Life which were also classified as significant listed investments were sold

in the year ended 31 December 2023.

There were no significant transfers between levels 1 and 2 during the years ended 31 December 2024 and

31 December 2023. Transfers generally relate to assets where changes in the frequency of observable market

transactions resulted in a change in whether the market was considered active and are deemed to have occurred

at the end of the calendar quarter in which they arose.

Refer Section (a)(iii) below for details of movements in level 3.

(a)(ii) Fair value hierarchy for liabilities measured at fair value in the consolidated statement of

financial position

The table below presents the Group’s non-unit linked liabilities measured at fair value by level of the fair value

hierarchy.


			Fair value hierarchy
	Total		Level 1		Level 2		Level 3
	2024	2023	2024	2023	2024	2023	2024	2023
	£m	£m	£m	£m	£m	£m	£m	£m
Liabilities in respect of third party interest in consolidated funds	184	187	—	—	115	117	69	70
Derivative financial liabilities	3	9	—	7	3	2	—	—
Contingent consideration liabilities	96	114	—	—	—	—	96	114
Other financial liabilities1	15	15	—	—	—	—	15	15
Total liabilities at fair value	298	325	—	7	118	119	180	199

1. Excluding contingent consideration liabilities.


			Annual report 2024	249


		FINANCIAL INFORMATION

There were no significant transfers between levels 1 and 2 during the years ended 31 December 2024 and

31 December 2023. Refer Section (a)(iii) below for details of movements in level 3. Transfers are deemed to have

occurred at the end of the calendar quarter in which they arose.

(a)(iii) Reconciliation of movements in level 3 instruments

The movements during the year of level 3 assets and liabilities held at fair value, excluding unit linked assets and

liabilities and assets and liabilities held for sale, are analysed below.


	Owner occupied property		Equity securities and interests in pooled investment funds		Debt securities		Liabilities in respect of third party interest in consolidated funds
	2024	2023	2024	2023	2024	2023	2024	2023
	£m	£m	£m	£m	£m	£m	£m	£m
At 1 January	1	1	233	231	1	2	(70)	(74)
Total gains/(losses) recognised in the consolidated income statement	—	—	6	1	—	—	—	—
Purchases	—	—	45	18	—	—	—	—
Sales and other adjustments	(1)	—	(6)	(17)	—	(1)	1	4
At 31 December	—	1	278	233	1	1	(69)	(70)


	Contingent consideration assets		Contingent consideration liabilities		Other financial liabilities1
	2024	2023	2024	2023	2024	2023
	£m	£m	£m	£m	£m	£m
At 1 January	11	19	(114)	(132)	(15)	(11)
Total amounts recognised in the consolidated income statement	2	7	9	16	—	(5)
Additions	11	7	—	(11)	—	—
Settlements	(7)	(21)	9	12	—	1
Other movements	—	(1)	—	1	—	—
At 31 December	17	11	(96)	(114)	(15)	(15)

1. Excluding contingent consideration liabilities.

For the year ended 31 December 2024, gains of £19m (2023: gains of £19m) were recognised in the consolidated

income statement in respect of non-unit linked assets and liabilities held at fair value classified as level 3 at the year

end, excluding assets and liabilities held for sale. Of this amount, gains of £19m (2023: gains of £19m) were

recognised in Net gains or losses on financial instruments and other income.

Transfers of equity securities and interests in pooled investment funds and debt securities into level 3 generally arise

when external pricing providers stop providing a price or where the price provided is considered stale. Transfers of

equity securities and interests in pooled investment funds and debt securities out of level 3 arise when acceptable

prices become available from external pricing providers.

(a)(iv) Significant unobservable inputs in level 3 instrument valuations

The table below identifies the significant unobservable inputs in relation to equity securities and interests in pooled

investment funds categorised as level 3 instruments at 31 December 2024 with a fair value of £278m (2023: £233m).


	Fair value
	2024 £m	2023 £m	Valuation technique	Unobservable input	Range (weighted average)
Private equity, real estate and infrastructure funds	266	221	Net asset value	Net asset value statements provided for a large number of funds including nine significant funds (fair value >£5m).	A range of unobservable inputs is not applicable as we have determined that the reported NAV represents fair value at the end of the reporting period.
Other unlisted equity securities	12	12	Indicative share price	Calibration to the price of a recent investment.	A range of unobservable inputs is not applicable as we have determined that the calibration to the price of a recent investment represents fair value at the end of the reporting period.


250	Annual report 2024


Group financial statements continued

The unobservable input for the Group’s related liabilities in respect of third party interest in consolidated funds

categorised as level 3 instruments at 31 December 2024 with a fair value of £(69)m (2023: £(70)m) are the same as

for the private equity, real estate, hedge and infrastructure funds above. There are no single significant funds in

relation to liabilities in respect of third party interest in consolidated funds.

The table below identifies the significant unobservable inputs in relation to contingent consideration assets and

liabilities and other financial instrument liabilities categorised as level 3 instruments at 31 December 2024 with a fair

value of £(94)m (2023: £(118)m).


	Fair value
	2024	2023
	£m	£m	Valuation technique	Unobservable input	Input used
Contingent consideration assets and liabilities and other financial instrument liabilities	(94)	(118)	Probability weighted cash flow and where applicable discount rates	Unobservable inputs relate to probability weighted cash flows and, where relevant, discount rates. The most significant unobservable inputs relate to assumptions used to value the contingent consideration liability related to the acquisition of Tritax of £85m (2023: £90m). The liability comprises an earn-out element, which will be settled on the exercise of put and call options based on the EBITDA of Tritax in 2025 or 2026, and a profit share element based on the net profit of Tritax up to the exercise of the options. As in prior periods, the valuation uses as its base, a forecast for Tritax’s core traditional business which includes the management of Tritax Big Box REIT plc (Big Box). In addition to the base forecast, in 2024 the assumptions reflect the effect of a new Big Box strategy which will generate new forms of revenues arising from the development, securing of power grid connections and management of large data centres, some of which are not recurring in nature. The contingent consideration has been valued applying a probability weighting reflecting a number of outcomes. In respect of the new strategy, the revenues have been assigned a lower probability than the base business reflecting the higher risk inherent in any new strategy. The valuation also allows for the possibility of adjustments to the profit used to determine the element of contingent consideration relating to the new Big Box strategy under the sale purchase agreement. The resulting valuation is discounted from the payment date to the balance sheet date. It was assumed that the timing of the exercise of the earn out put options between 2025 and 2026 would be that which is most beneficial to the holders of the put options.	The earn-out valuation used EBITDAs reflecting a probability weighted revenue compound annual growth rate (CAGR) from 31 March 2024 to 31 March 2026 of 19% and a probability weighted cost/ income ratio of c57%. The risk adjusted contingent consideration cash flows have been discounted using a discount rate of 4% (2023: 4%).

(a)(v) Sensitivity of the fair value of level 3 instruments to changes in key assumptions

At 31 December 2024 the shareholder is directly exposed to movements in the value of all non-unit linked level 3

instruments. See Note 23 for unit linked level 3 instruments.

Sensitivities for material level 3 assets and liabilities are provided below. Changing unobservable inputs in the

measurement of the fair value of the other level 3 financial assets and financial liabilities to reasonably possible

alternative assumptions would not have a material impact on loss attributable to equity holders or on total assets.

(a)(v)(i) Equity securities and interests in pooled investment funds

As noted above, of the level 3 equity securities and interests in pooled investment funds, £266m relates to private

equity, real estate, hedge and infrastructure funds (2023: £221m) which are valued using net asset value

statements. A 10% increase or decrease in the net asset value of these investments would increase or decrease the

fair value of the investments by £27m (2023: £22m).


			Annual report 2024	251


		FINANCIAL INFORMATION

(a)(v)(ii) Liabilities in respect of third party interest in consolidated funds

As noted above, £69m of liabilities in respect of third party interest in consolidated funds of the level 3 equity

securities and interests in pooled investment funds (2023: £70m) are also valued using net asset value statements. A

10% increase or decrease in the net asset value of these investments would increase or decrease the fair value of

the liability by £7m (2023: £7m).

(a)(v)(iii) Contingent consideration assets and liabilities and other financial instrument liabilities

As noted above, the most significant unobservable inputs for level 3 instruments relate to assumptions used to value

the contingent consideration related to the purchase of Tritax. Sensitivities for reasonably possible changes to key

assumptions are provided in the table below.


Assumption	Change in assumption	Consequential increase/(decrease) in contingent consideration liability
		2024
		£m
Revenue compound annual growth rate (CAGR) from 31 March 2024 to 31 March 2026	Decreased by 5%	(17)
	Increased by 10%	44
Cost/income ratio	Decreased by 5%	15
	Increased by 5%	(12)
Discount rate	Decreased by 2%	2
	Increased by 2%	(2)

(b) Assets and liabilities not carried at fair value

The table below presents estimated fair values by level of the fair value hierarchy of non-unit linked financial assets

and liabilities whose carrying value does not approximate fair value. Fair values of assets and liabilities are based on

observable market inputs where available, or are estimated using other valuation techniques.


		As recognised in the consolidated statement of financial position line item		Fair value		Level 1		Level 2		Level 3
		2024	2023	2024	2023	2024	2023	2024	2023	2024	2023
	Notes	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m
Assets
Debt securities		—	125	—	125	—	—	—	125	—	—
Liabilities
Subordinated liabilities	30	597	599	572	534	—	—	572	534	—	—

The estimated fair values for subordinated liabilities are based on the quoted market offer price.

The carrying value of all other financial assets and liabilities measured at amortised cost approximates their fair

value.


252	Annual report 2024


Group financial statements continued

37. Statement of cash flows



	The Group classifies cash flows in the consolidated statement of cash flows as arising from operating, investing or financing activities. Cash flows are classified based on the nature of the activity to which they relate and with consideration to generally accepted presentation adopted by peers. For activities related to asset management business, cash flows arising from the sale and purchase of debt securities and equity securities and interests in pooled investment funds, with the exception of those related to unit linked funds, are classified as cash flows arising from investing activities. For activities related to insurance business, including those related to unit linked funds, cash flows arising from the sale and purchase of debt securities and equity securities and interests in pooled investment funds are classified as cash flows arising from operating activities. For activities related to the acquisition and disposal of subsidiaries, associates and joint ventures, cash flows are classified as investing activities. The settlement of contingent and deferred amounts recognised on acquisitions and disposals are classified as investing activities where there is not considered to be a significant financing component of the related inflows or outflows. Purchases and sales of financial investments are presented on a gross basis except for purchases and sales of short-term instruments with a high turnover held in consolidated liquidity funds which are presented on a net basis. Dividends received from associates and joint ventures are presented as cash flows arising from operating activities. Movements in cash collateral held in relation to derivative contracts hedging subordinated debt are presented as cash flows arising from financing activities.

The tables below provide further analysis of the balances in the consolidated statement of cash flows.

(a) Change in operating assets


	2024	2023
	£m	£m
Equity securities and interests in pooled investment funds	55	314
Debt securities	(29)	13
Derivative financial instruments	(9)	30
Receivables and other financial assets and other assets	91	(184)
Assets held for sale	4	(16)
Change in operating assets	112	157

Change in operating assets includes related non-cash items.

(b) Change in operating liabilities


	2024	2023
	£m	£m
Other financial liabilities, provisions and other liabilities	(161)	76
Pension and other post-retirement benefit provisions	(13)	(48)
Investment contract liabilities	(19)	(90)
Change in liability for third party interest in consolidated funds	(7)	(53)
Liabilities held for sale	(2)	6
Change in operating liabilities	(202)	(109)

Change in operating liabilities includes related non-cash items.


			Annual report 2024	253


		FINANCIAL INFORMATION


	2024	2023
	£m	£m
Gain on sale of subsidiaries and other operations	(89)	(79)
Profit on disposal of interests in associates	(11)	—
Gain on disposal or derecognition of property, plant and equipment	—	(6)
Depreciation of property, plant and equipment	29	32
Amortisation of intangible assets	123	128
Impairment losses on intangible assets	9	65
Reversal of impairment of interests in associates and joint ventures	—	(2)
Impairment losses recognised on property, plant and equipment	—	50
Reversal of impairment losses recognised on property, plant and equipment	—	(3)
Movement in contingent consideration assets/liabilities	(11)	(23)
Equity settled share-based payments	26	24
Finance costs	25	25
Share of profit or loss from associates and joint ventures accounted for using the equity method	(24)	(1)
Other non-cash and non-operating items	77	210

(d) Disposal of subsidiaries and other operations1


		2024	2023
	Notes	£m	£m
Intangibles		1	59
Other assets of operations disposed of		48	30
Other liabilities of operations disposed of		(14)	(12)
Net assets disposed of		35	77
Items transferred to profit or loss on disposal of subsidiaries	1	—	(1)
Fair value of deferred/contingent consideration and retained interest	1	(36)	(5)
Other non-cash consideration2	1	(17)	(3)
Gain on sale	1	89	79
Transaction costs		4	13
Total cash consideration		75	160
Cash and cash equivalents disposed of		(26)	(21)
Cash inflow from disposal of subsidiaries		49	139

1. Relates to a number of disposals in 2024 (refer Note 1(c)(i) for further details) and 2023 (refer Note 1(c)(iii) for further details).

2. Includes the additional upfront consideration of £12m (2023: £nil) for the sale of our European-headquartered Private Equity business (refer Note

1(c)(i) for further details).

(e) Movement in subordinated liabilities

The following table reconciles the movement in subordinated liabilities in the year, split between cash and non-cash

items.


	2024	2023
	£m	£m
At 1 January	599	621
Cash flows from financing activities
Interest paid	(38)	(13)
Cash flows from financing activities	(38)	(13)
Non-cash items
Interest expense	24	26
Foreign exchange adjustment	12	(35)
At 31 December	597	599

Interest paid on subordinated liabilities and other equity in the consolidated statement of cash flows of £38m

(2023: £20m) also includes an inflow of £11m ( 2023: £4m) in relation to the related cash flow hedge (refer table

below and Note 18) and an outflow of £11m (2023: £11m) in relation to other equity (refer Note 28).


254	Annual report 2024


Group financial statements continued

The table below reconciles the movements in the year in the cash flow hedge asset of £50m (2023: asset of £41m)

and the liability of £52m (2023: liability of £39m) with the collateral held in respect of the derivative contracts liability

of £57m (2023: liability £40m (included in Other financial liabilities) which relates to the cash flow hedge, split

between cash and non-cash items.


	Cash flow hedge (asset)		Collateral held in respect of the cash flow hedges
	2024	2023	2024	2023
	£m	£m	£m	£m
At 1 January	(41)	(85)	39	89
Cash flows from financing activities
Realised gains on cash flow hedge	11	4	—	—
Change in cash received relating to collateral held in respect of derivatives hedging subordinated liabilities	—	—	13	(50)
Cash flows from financing activities	11	4	13	(50)
Non-cash items
Other fair value movements	(20)	40	—	—
At 31 December	(50)	(41)	52	39

(f) Movement in lease liabilities

The following table reconciles the movement in lease liabilities in the year, split between cash and non-cash items.


	2024	2023
	£m	£m
At 1 January	223	224
Cash flows from financing activities
Payment of lease liabilities – principal	(23)	(24)
Payment of lease liabilities – interest	(6)	(6)
Cash flows from financing activities	(29)	(30)
Non-cash items
Additions	5	28
Disposals and adjustments	(13)	(2)
Interest capitalised	6	6
Foreign exchange adjustment	1	(3)
At 31 December	193	223


			Annual report 2024	255


		FINANCIAL INFORMATION

38. Contingent liabilities and contingent assets



	Contingent liabilities are possible obligations of the Group of which timing and amount are subject to significant uncertainty. Contingent liabilities are not recognised on the consolidated statement of financial position but are disclosed, unless they are considered remote. If such an obligation becomes probable and the amount can be measured reliably it is no longer considered contingent and is recognised as a liability. Conversely, contingent assets are possible benefits to the Group. Contingent assets are only disclosed if it is probable that the Group will receive the benefit. If such a benefit becomes virtually certain it is no longer considered contingent and is recognised as an asset.

Legal proceedings, complaints and regulations

The Group is subject to regulation in all of the territories in which it operates investment management, asset

administration and insurance businesses. In the UK, where the Group primarily operates, the FCA has broad powers,

including powers to investigate marketing and sales practices.

The Group, like other financial organisations, is subject to legal proceedings, complaints and regulatory and tax

authority discussions and reviews in the normal course of its business. All such material matters are periodically

reassessed, with the assistance of external professional advisers where appropriate, to determine the likelihood of

the Group incurring a liability. Where it is concluded that it is more likely than not that a material outflow will be made

a provision is established based on management’s best estimate of the amount that will be payable. A subsidiary of

the Group is currently responding to certain information requests from an overseas Tax Authority in connection with

its Income Tax Returns. Interpretation of tax legislation is complex and therefore, as part of the normal course of

business, local tax authorities may sometimes request further information in order to clarify facts and technical

approach. These types of enquiries can sometimes be prolonged due to inherent complexity. At this stage of

enquiry, it is not possible to reliably predict the outcome. Certain other Group entities are also currently responding

to information requests from an investor in relation to the performance of a fund managed by a subsidiary of the

Group. At this time, the Group has received no notification of a claim, and it is not possible to reliably predict the

outcome of ongoing communications to which the Group is a party.

There are no other identified contingent liabilities that the Group anticipates could result in a material exposure.

39. Commitments



	The Group has contractual commitments which will be payable in future periods. These commitments are not recognised on the Group’s statement of financial position at the year end but are disclosed to give an indication of the Group’s future committed cash flows.

(a) Unrecognised financial instruments

As at 31 December 2024, the Group has committed to investing an additional £66m (2023: £67m) into funds in

which it holds a co-investment interest.

(b) Capital commitments

As at 31 December 2024, the Group has no capital commitments other than in relation to financial instruments

(2023: none).

In addition, the Group has commitments relating to future acquisitions.

– In February 2021, the Group announced the purchase of certain products in Phoenix’s savings business offered

through abrdn’s Wrap platform, comprising a self-invested pension plan (SIPP) and an onshore bond product;

together with Phoenix’s trustee investment plan business for UK pension scheme clients. The transfers to the

Group of the majority of the SIPP contracts and the TIP business are subject to regulatory and court approvals.

The transfer of the TIP business is expected to be completed during H1 2025. The Group and Phoenix are working

collaboratively on the timing of the transfer of the SIPP contracts. The upfront consideration paid by the Group in

February 2021 was £62.5m, which is offset in part by payments from Phoenix to the Group relating to profits of the

products prior to completion of the legal transfer. The net amount of consideration paid is included in

prepayments in the consolidated statement of financial position with cash movements in relation to the

consideration included in prepayment in respect of potential acquisition of customer contracts in the

consolidated statement of cash flows. Refer Note 20 for details of the release of the prepayments to expenses in

the year ended 31 December 2024.


256	Annual report 2024


Group financial statements continued

40. Employee share-based payments and deferred fund awards



	The Group operates share incentive plans for its employees. These generally take the form of an award of options, conditional awards or restricted shares in abrdn plc (equity-settled share-based payments) but can also take the form of a cash award based on the share price of abrdn plc (cash-settled share-based payments). The Group also incentivises certain employees through the award of units in Group managed funds (deferred fund awards) which are cash-settled. All the Group’s incentive plans have conditions attached before the employee becomes entitled to the award. These can be performance and/or service conditions (vesting conditions) or the requirement of employees to save in the save-as-you-earn scheme (non-vesting condition). The period over which all vesting conditions are satisfied is the vesting period and the awards vest at the end of this period. For all share-based payments, services received for the incentive granted are measured at fair value. For equity-settled share-based payment transactions, the fair value of services received is measured by reference to the fair value of the equity instruments at the grant date. The fair value of the number of instruments expected to vest is charged to the consolidated income statement over the vesting period with a corresponding credit to the equity compensation reserve in equity. At each period end the Group reassesses the number of equity instruments expected to vest and recognises any difference between the revised and original estimate in the consolidated income statement with a corresponding adjustment to the equity compensation reserve. At the time the equity instruments vest, the amount recognised in the equity compensation reserve in respect of those equity instruments is transferred to retained earnings. For cash-settled share-based payment and deferred fund awards transactions, services received are measured at the fair value of the liability. The fair value of the liability is remeasured at each reporting date and any changes in fair value are recognised in the consolidated income statement.

The following plans made awards during the year ended 31 December 2024:


Plan	Options	Conditional awards	Restricted shares	Typical vesting period (years)	Contractual life for options	Recipients	Conditions which must be met prior to vesting
abrdn plc Deferred Share Plan/ Discretionary Share Plan/ Executive LTIP Plan1	Yes	Yes	No	1-3 years (3 years for Executive LTIP)	Up to 10 years from date of grant	Executives and senior management	Service, or service and performance conditions. These can be tailored to the individual award.
Sharesave (Save- as-you-earn)	Yes	No	No	3 or 5 years	Up to 6 months after vesting	UK employees	Service only
Share incentive plan	No	No	Yes	3 years	Not applicable	UK and Irish employees	Service only

1. Included in Deferred and discretionary share plans in Section (b)(i) below.

All of the awards made under these plans are equity-settled except for a small number of cash-settled awards for

the deferred and discretionary share plans (see Section (d)(ii) below).

The fair value of awards granted under the Group’s incentive schemes is determined using a relevant valuation

technique, such as the Black Scholes option pricing model. The fair value of awards is recharged to employing

entities over the life of the awards.

The awards made under the deferred and discretionary share plans include awards for deferred bonuses of the

prior year. The deferred bonus awards generally still have service conditions of one, two or three years after the

date of the award but have no outstanding performance conditions.

The awards made include the awards for executive Directors under the Executive LTIP plan and certain awards

under the deferred and discretionary share plans to senior management with specific performance conditions.

Further details of the Executive LTIP are set out in the Directors’ remuneration report.

The deferred and discretionary share plans also made a number of deferred fund awards in the year end

31 December 2024 (see Section (d)(i) below).


			Annual report 2024	257


		FINANCIAL INFORMATION

Options and conditional awards are all at nil cost with the exception of Sharesave where eligible employees in the

UK save a monthly amount from their salaries, over either a three or five year period, which can be used to purchase

shares in the Company at a predetermined price.

The share incentive plan allows employees the opportunity to buy up to £1,800 of shares from their salary each year

with the Group matching up to £600 per year. The matching shares awarded are granted each month but are

restricted for three years (two years for Ireland).

In addition, the Group operates the following plan for which there are outstanding awards but for which no awards

were made during the year ended 31 December 2024:


Plan	Options	Conditional awards	Restricted shares	Typical vesting period (years)	Contractual life for options	Recipients	Conditions which must be met prior to vesting
Aberdeen Asset Management Deferred Share Plan 20091	Yes	No	No	1-3 (3-5 for executive management)	Up to 10 years from date of grant	Executives and senior management	Service only. There are no outstanding performance conditions at date of grant.

1. Included in Annual bonus deferred share options Section (b)(i) below.

(a) Employee share-based payments and deferred fund awards expense

The amounts recognised as an expense for equity-settled share-based payment transactions and deferred fund

awards with employees are as follows:


	2024	2023
	£m	£m
Share options and share awards granted under deferred and discretionary share plans1	24	22
Share options granted under Sharesave	1	1
Matching shares granted under share incentive plans	1	1
Equity-settled share-based payments	26	24
Cash-settled deferred fund awards2	10	7
Total expense	36	31

1. Includes expense for annual bonus deferred share options and conditional awards.

2. The expense for cash-settled deferred fund awards includes £nil (2023: £3m) for awards related to funds which are consolidated.

Included in the expense above is £10m (2023: £12m) which is included in Restructuring and corporate transaction

expenses in the consolidated income statement.

(b) Options and conditional awards granted

(b)(i) Deferred and discretionary share plans

The number and remaining contractual life for options outstanding and the share price at exercise of options

exercised during the year are as follows:


	2024		2023
	Deferred and discretionary share plans	Annual bonus deferred share options	Deferred and discretionary share plans	Annual bonus deferred share options
Outstanding at 1 January	43,370,260	3,853,791	61,117,377	5,574,422
Granted	3,081,687	—	7,847,719	—
Forfeited	(5,533,913)	(3,005)	(15,690,306)	(58,611)
Exercised	(15,255,187)	(1,771,002)	(9,904,530)	(1,662,020)
Outstanding at 31 December	25,662,847	2,079,784	43,370,260	3,853,791
Exercisable at 31 December	5,802,467	2,079,784	6,840,715	3,853,791
Remaining contractual life of options outstanding (years)1	4.80	2.08	5.96	2.70
Options exercised during the year
Share price at time of exercise1	151p	154p	198p	204p

1. Weighted average.

The options granted under the deferred and discretionary share plans in the year ended 31 December 2024 had a

grant date of 11 January 2024 and had a £nil exercise price. The weighted average option term was 2.59 years. The

weighted average share price at grant date was 169p and the weighted average fair value at grant date was 169p.

The options include an entitlement to the receipt of dividends in respect of awards that ultimately vest between the

date of grant and the vesting date. All other awards granted under the deferred and discretionary share plans

during the year ended 31 December 2024 were conditional awards (see below).


258	Annual report 2024


Group financial statements continued

In addition to nil costs options, 26,976,096 nil cost conditional awards were also granted under the deferred and

discretionary share plans (2023: 357,888) throughout 2024 with a main grant date of 8 April 2024. The weighted

average share price at grant date was 142p and the weighted average fair value at grant date was 134p. As for the

options above, the conditional awards include an entitlement to the receipt of dividends in respect of awards that

ultimately vest between the date of grant and the vesting date.

(b)(ii) Sharesave

The number, exercise price and remaining contractual life for options outstanding and the share price at exercise of

options exercised during the year are as follows:


	2024		2023
	Sharesave	Weighted average exercise price for sharesave	Sharesave	Weighted average exercise price for sharesave
Outstanding at 1 January	9,109,490	130p	9,981,563	143p
Granted	4,101,947	120p	1,864,914	132p
Forfeited	(812,071)	136p	(501,929)	154p
Exercised	(299,485)	118p	(440,123)	186p
Expired	(497,665)	196p	(1,045,470)	205p
Cancelled	(1,012,858)	133p	(749,465)	154p
Outstanding at 31 December	10,589,358	123p	9,109,490	130p
Exercisable at 31 December	202,092	158p	774,894	173p
Remaining contractual life of options outstanding (years)1	2.68		2.85
Options exercised during the year
Share price at time of exercise1	151p		201p

1. Weighted average.

The Sharesave options were granted on 10 October 2024 with an exercise price of 120p. The weighted average

option term was 3.48 years. The weighted average share price at grant date was 157p and the weighted average

fair value at grant date was 39p. Sharesave options have no dividend entitlement. In determining the fair value of

options granted under the Sharesave scheme the historic volatility of the share price over a period of up to five

years and a risk-free rate determined by reference to swap rates was also considered.

The following table shows the range of exercise prices of Sharesave options outstanding.


	2024	2023
	Number of options outstanding	Number of options outstanding
117p-119p	4,906,803	6,161,234
120p-129p	3,988,426	—
130p-139p	1,354,082	1,819,506
140p-259p	340,047	1,128,750
Outstanding at 31 December	10,589,358	9,109,490

During the year ended 31 December 2024, 371,678 matching shares were granted under the share incentive plan

(2023: 338,001). The weighted average share price at grant date was 153p which was also the weighted average

fair value at grant date. The plans include the entitlement to the receipt of dividends in respect of awards that

ultimately vest between the date of grant and the vesting date.

(d) Deferred fund awards and cash settled share based payments

(d)(i) Deferred fund awards

At 31 December 2024, the liability recognised for cash-settled deferred fund awards was £22m (2023: £27m). There

is no liability (2023: £nil) for deferred fund awards relating to funds which are consolidated.

(d)(ii) Cash settled share based payments

At 31 December 2024, the liability recognised for cash-settled share based payments was £nil (2023: £nil).


			Annual report 2024	259


		FINANCIAL INFORMATION

41. Related party transactions

(a) Transactions and balances with related parties

In the normal course of business, the Group enters into transactions with related parties that relate to investment

management and insurance businesses. In the year ended 31 December 2024, there have been no changes in the

nature of these transactions.

During the year, the Group recognised management fees of £2m (2023: £2m) from the Group’s defined benefit

pension plans. The Group’s defined benefit pension plans have assets of £541m (2023: £748m) invested in

investment vehicles managed by the Group.

During the year, there were no sales to associates accounted for using the equity method (2023: £nil) and no

purchases in relation to services received (2023: £nil). The Group had no balances due to or from associates

accounted for using the equity method as at 31 December 2024 (2023: £nil). In 2024, the Group made no capital

contributions to associates accounted for using the equity method (2023: £nil ) and had no commitments to make

such capital contributions (2023: £nil).

During the year ended 31 December 2024, there were sales to joint ventures accounted for using the equity method

of £2m (2023: £4m) and no purchases from joint ventures (2023: £nil). The sales to joint ventures accounted for

using the equity method included sales to Virgin Money UTM. The Group disposed of its interest in Virgin Money UTM

in 2024. Refer Note 1(c)(ii) for further details. The Group had no balances due to or from joint ventures as at

31 December 2024 (2023: £nil). In 2024, the Group made no capital contributions to joint ventures accounted for

using the equity method (2023: £nil) and had no commitments to make such capital contributions (2023: £nil).

In addition to these transactions between the Group and the above related parties during the year, in the normal

course of business the Group made a number of investments into/divestments from investment vehicles managed

by the Group which may be considered to be related parties including investment vehicles which are classified as

investments in associates measured at FVTPL. Group entities paid amounts for the issue of shares or units and

received amounts for the cancellation of shares or units. Information in relation to unconsolidated structured entities

can be found in Note 35.

(b) Compensation of key management personnel

Key management personnel includes Directors of abrdn plc (since appointment) and the members of the

Executive Leadership Team (since appointment).

The summary of compensation of key management personnel is as follows:


	2024	2023
	£m	£m
Salaries and other short-term employee benefits	10	10
Post-employment benefits	—	—
Share-based payments and deferred fund awards	12	7
Termination benefits	2	1
Total compensation of key management personnel	24	18

Certain members of key management personnel hold investments in investments products which are managed by

the Group. None of the amounts concerned are material in the context of funds managed by the Group. All

transactions between key management and their close family members and investments products which are

managed by the Group during the year are on terms which are equivalent to those available to all employees of the

Group.


260	Annual report 2024


Group financial statements continued

42. Capital management

(a) Capital and risk management policies and objectives

Managing capital is the ongoing process of determining and maintaining the quantity and quality of capital

appropriate for the Group and ensuring capital is deployed in a manner consistent with the expectations of our

stakeholders. For these purposes, the Board considers our key stakeholders to be our clients, the providers of capital

(our equity holders and holders of our subordinated liabilities) and the Financial Conduct Authority (FCA) as the lead

prudential supervisor for the Group.

There are two primary objectives of capital management within the Group. The first objective is to ensure that

capital is, and will continue to be, adequate to maintain the required level of financial stability of the Group and

hence to provide an appropriate degree of security to our stakeholders. The second objective is to create equity

holder value by driving profit attributable to equity holders.

The treasury and capital management policy, which is subject to review at least annually, forms one element of the

Group’s overall management framework. Most notably, it operates alongside and complements the strategic

investment policy and the Group risk policies. Integrating policies in this way enables the Group to have a capital

management framework that robustly links the process of capital allocation, value creation and risk management.

Capital requirements are forecast on a periodic basis and assessed against the forecast available own funds

(previously referred to as capital resources). In addition, rates of return achieved on capital invested are assessed

against hurdle rates, which are intended to represent the minimum acceptable return given the risks associated

with each investment. Ongoing monitoring of investments is incorporated into the Group’s established performance

management process. The capital planning process is the responsibility of the Chief Financial Officer. Capital plans

are ultimately subject to approval by the Board.

The formal procedures for identifying and assessing risks that could affect the capital position of the Group are

described in the Risk management section of the Strategic report. Information on financial instruments risk is also

provided in Note 34.

(b) Regulatory capital

(b)(i) Regulatory capital framework (unaudited)

The Group is supervised under the Investment Firms Prudential Regime (IFPR). The Group’s regulatory own funds

position under IFPR is determined by consolidating the eligible capital and reserves of the Group (subject to a

number of deductions) to derive regulatory own funds, and comparing this to the Group’s regulatory capital

requirements.

Stress testing is completed to inform the appropriate level of regulatory capital and liquidity that the Group must

hold, with results shared with the FCA at least annually. In addition, the Group monitors a range of capital and

liquidity statistics on a daily, monthly or less frequent basis as required. Surplus capital levels are forecast, taking

account of projected dividends and investment requirements, to ensure that appropriate levels of own funds are

maintained.

The Group is required to hold own funds to cover the higher of the Own Funds Requirement and the Own Funds

Threshold Requirement described below in complying with the Overall Financial Adequacy Rule.

Own Funds Requirement

The Own Funds Requirement focuses on the Group’s permanent minimum capital requirement, its fixed overhead

requirement and its K-factor requirement with the Own Funds Requirement being the highest of the three. At

31 December 2024, the Group’s indicative Own Funds Requirement was £296m.

Own Funds Threshold Requirement

The Own Funds Threshold Requirement supplements the Own Funds Requirement via the Internal Capital

Adequacy and Risk Assessment (ICARA), which is the means by which the Group assesses the level of own funds

that adequately supports all of the relevant current and future risks in its business, taking into account potential

periods of financial stress during the economic cycle as well as a potential wind-down scenario with the Own Funds

Threshold requirement being the highest of the two, as per the Overall Financial Adequacy Rule. The results of the

Group’s ICARA process is subject to periodic review by the FCA under the Supervisory Review and Evaluation

Process (SREP). The first review was conducted in 2023.

Under IFPR the Group fully excludes the value of its holding in significant listed investments from its own funds. IFPR

also includes constraints on the proportion of the minimum capital requirement that can be met by each tier of own

funds. As a result, approximately £154m of Tier 2 own funds, whilst continuing to be reported within the Group’s own

funds, is not available to meet the minimum capital requirement.


			Annual report 2024	261


		FINANCIAL INFORMATION

(b)(ii) IFPR (unaudited)


	20241	2023
	£m	£m
IFRS equity attributable to equity holders of abrdn plc	4,827	4,878
Deductions for intangibles and defined benefit pension assets, net of related deferred tax liabilities	(2,160)	(2,168)
Deductions for significant investments in financial sector entities	(735)	(780)
Deductions for non-significant investments in financial sector entities	(12)	(12)
Other deductions and adjustments, including provision for foreseeable dividend	(455)	(452)
Common Equity Tier 1 own funds	1,465	1,466
Additional Tier 1 own funds	207	207
Tier 1 own funds	1,672	1,673
Tier 2 own funds	417	539
Total own funds	2,089	2,212

Total own funds threshold requirement	(1,054)	(1,054)

CET1 own funds threshold requirement2	(590)	(590)
Surplus CET1 own funds	875	876

Own Funds Requirement	296	314
CET1 ratio (CET1 as % of own funds requirement)	495%	467%

1. 2024 draft position on 3 March 2025 following finalisation of the Annual report and accounts.

2. 56% of total own funds threshold requirement.

The Group has complied with all externally imposed capital requirements during the year.

43. Events after the reporting date

There have been no material events occurring between the balance sheet date and the date of signing this report.


262	Annual report 2024


Group financial statements continued

44. Related undertakings



	The Companies Act 2006 requires disclosure of certain information about the Group’s related undertakings which is set out in this Note. Related undertakings are subsidiaries, joint ventures, associates and other significant holdings. In this context significant means either a shareholding greater than or equal to 20% of the nominal value of any class of shares, or a book value greater than 20% of the Group’s assets.

The particulars of the Company’s related undertakings at 31 December 2024 are listed below. For details of the

Group’s consolidation policy refer to (b) Basis of consolidation in the Presentation of consolidated financial

statements section. Under that policy, limited partnerships and limited liability companies in which the Group has no

interest but whose general partner or manager is controlled by the Group are not consolidated. However, such

limited partnerships are considered to be subsidiaries under the Companies Act 2006 and therefore are listed

below. Where the Group has no interest in a limited partnership or limited liability company that is considered a

related entity, the interest held is disclosed as 0%.

The ability of subsidiaries to transfer cash or other assets within the Group for example through payment of cash

dividends is generally restricted only by local laws and regulations, and solvency requirements. Included in equity

attributable to equity holders of abrdn plc at 31 December 2024 is £98m (2023: £94m) related to the abrdn Financial

Fairness Trust, a subsidiary undertaking of the Group. The assets of the abrdn Financial Fairness Trust are restricted

to be used for charitable purposes.

The registered head office of all related undertakings is 1 George Street, Edinburgh, EH2 2LL unless otherwise

stated.

(a) Direct subsidiaries


Name of related undertaking	Share class1	% interest held2,3
30 STMA 4 Limited⁴	Ordinary shares	100%
30 STMA 5 Limited⁴	Ordinary shares	100%
6 SAS 3 Limited⁴	Ordinary shares	100%
Aberdeen Corporate Services Limited	Ordinary shares	100%
abrdn (Mauritius Holdings) 2006 Limited⁵	Ordinary shares	100%
abrdn Charitable Foundation	N/A	100%
abrdn Client Management Limited	Ordinary shares	100%
abrdn Finance Limited	Ordinary shares	100%
abrdn Financial Fairness Trust	N/A	100%
abrdn Financial Planning Limited⁶	Ordinary shares	100%
abrdn Holdings Limited	Ordinary shares	100%
abrdn Investments (Holdings) Limited	Ordinary shares	100%
Adviseros Limited⁴	Ordinary shares	100%
Adviseros Platform Limited⁴	Ordinary shares	100%
Adviseros Trustee Company Limited⁴	Ordinary shares	100%
Interactive Investor Limited⁷	Ordinary shares	100%
Standard Life Aberdeen Trustee Company Limited	Ordinary shares	100%
Standard Life Savings Limited	Ordinary shares	100%
The abrdn Company 2006	N/A	100%

(b) Other subsidiaries


Name of related undertaking	Share class1	% interest held2,3
6 SAS 1 Limited	Ordinary shares	100%
6 SAS 2 Limited	Ordinary shares	100%
Aberdeen Asia Enhanced Core Property Fund of Funds⁸	SIF fund with only Class 1A Units	0%
Aberdeen Asia III Property Fund Of Funds⁸	SIF fund with only Class A1 Units	2%
Aberdeen Asia IV (General Partner) S.a.r.l.⁹	Ordinary shares	100%
Aberdeen Asia Pacific Fund II, LP¹⁰	Limited Partnership	0%
Aberdeen Asia Pacific Fund, LP¹⁰	Limited Partnership	0%
Aberdeen Asia Pacific II (Offshore), LP¹⁰	Limited Partnership	0%
Aberdeen Asia Pacific III Ex-Co-Investment (Offshore), LP¹⁰	Limited Partnership	0%
Aberdeen Asia Pacific III Ex-Co-Investment, LP¹⁰	Limited Partnership	0%
Aberdeen Asia Pacific III, LP¹⁰	Limited Partnership	0%


			Annual report 2024	263


		FINANCIAL INFORMATION


Name of related undertaking	Share class1	% interest held2,3
Aberdeen Asia Partners III, LP¹¹	Limited Partnership	0%
Aberdeen ASIF Carry LP	Limited Partnership	25%
Aberdeen Asset Management (Thailand) Ltd¹²	Ordinary shares	100%
Aberdeen Asset Management Denmark A/S¹³	Ordinary shares	100%
Aberdeen Asset Management Finland Oy¹⁴	Ordinary shares	100%
Aberdeen Capital Managers GP LLC¹¹	Limited Liability Company	100%
Aberdeen Claims Administration, Inc.¹¹	Ordinary shares	100%
Aberdeen Direct Property (Holding) Limited⁴	Ordinary shares	100%
Aberdeen Emerging Asia Fund, LP¹⁰	Limited Partnership	0%
Aberdeen Emerging Asia Pacific II (Offshore), LP¹⁰	Limited Partnership	0%
Aberdeen Emerging Asia Pacific III Ex-Co-Investments, LP¹⁰	Limited Partnership	0%
Aberdeen Energy & Resource Company IV, LLC¹¹	Limited Liability Company	73%
Aberdeen Energy & Resources Company V, LLC¹¹	Limited liability company	93%
Aberdeen Energy & Resources Partners III, LP¹¹	Limited Partnership	0%
Aberdeen Energy & Resources Partners IV, LP¹¹	Limited Partnership	1%
Aberdeen Energy & Resources Partners V, LP¹¹	Limited Partnership	2%
Aberdeen European Infrastructure Carry GP Limited	Ordinary shares	100%
Aberdeen European Infrastructure Carry Limited	Ordinary shares	100%
Aberdeen European Infrastructure Co-Invest II LP⁴	Limited Partnership	0%
Aberdeen European Infrastructure GP II Limited⁴	Ordinary shares	100%
Aberdeen European Infrastructure GP III Limited⁴	Ordinary shares	100%
Aberdeen European Infrastructure GP Limited⁴	Ordinary shares	100%
Aberdeen European Infrastructure III A Limited⁴	Ordinary shares	100%
Aberdeen European Infrastructure III B Limited⁴	Ordinary shares	100%
Aberdeen European Infrastructure IV Ltd⁴	Ordinary shares	100%
Aberdeen European Infrastructure Partners Carry II LP	Limited Partnership	25%
Aberdeen European Infrastructure Partners Carry III LP	Limited Partnership	23%
Aberdeen European Infrastructure Partners Carry LP	Limited Partnership	25%
Aberdeen European Infrastructure Partners II LP⁴	Limited Partnership	3%
Aberdeen European Infrastructure Partners III LP⁴	Limited Partnership	2%
Aberdeen European Infrastructure Partners LP⁴	Limited Partnership	5%
Aberdeen European Opportunities Property Fund of Funds LLC¹⁵	Limited Liability Company	3%
Aberdeen European Residential Opportunities Fund SCSp⁸	Limited Partnership	0%
Aberdeen Fund Distributors LLC¹¹	Limited Liability Company	100%
Aberdeen General Partner CAPELP Limited¹⁰	Ordinary shares	100%
Aberdeen General Partner CGPLP Limited¹⁰	Ordinary shares	100%
Aberdeen General Partner CMENAPELP Limited¹⁰	Ordinary shares	100%
Aberdeen General Partner CPELP II Limited¹⁰	Ordinary shares	100%
Aberdeen General Partner CPELP Limited¹⁰	Ordinary shares	100%
Aberdeen Global ex-Japan GP Limited¹⁰	Ordinary shares	100%
Aberdeen Global ex-Japan Property Fund of Funds LP¹⁰	Limited Partnership	5%
Aberdeen Global Infrastructure Carry GP Limited	Ordinary shares	100%
Aberdeen Global Infrastructure GP II Limited¹⁶	Ordinary shares	100%
Aberdeen Global Infrastructure GP Limited¹⁶	Ordinary shares	100%
Aberdeen Global Infrastructure Partners II Carry LP	Limited Partnership	25%
Aberdeen Global Infrastructure Partners II LP¹⁷	Limited Partnership	0%
Aberdeen Global Infrastructure Partners III Carry LP	Limited Partnership	25%
Aberdeen Global Infrastructure Partners LP¹⁷	Limited Partnership	0%
Aberdeen Indirect Property Partners II FCP-FIS⁸	Class A1, A2 and A3 units	1%
Aberdeen Infrastructure Feeder GP Limited	Ordinary shares	100%
Aberdeen Infrastructure Finance GP Limited¹⁶	Ordinary shares	100%
Aberdeen Infrastructure GP II Limited⁴	Ordinary shares	100%
Aberdeen Infrastructure Partners II Carry LP	Limited Partnership	25%
Aberdeen Infrastructure Partners II LP⁴	Limited Partnership	0%
Aberdeen Infrastructure Partners LP Inc¹⁷	Limited Partnership	0%
Aberdeen Investment Company Limited	Ordinary shares	100%


264	Annual report 2024


Group financial statements continued


Name of related undertaking	Share class1	% interest held2,3
Aberdeen Keva Asia IV Property Partners SCSp⁹	Limited Partnership	1%
Aberdeen Pension Trustees Limited	Ordinary shares	100%
Aberdeen Pooling II GP AB¹⁸	Ordinary shares	100%
Aberdeen Property Investors (General Partner) S.a.r.l.¹⁹	Ordinary shares	100%
Aberdeen Property Investors The Netherlands BV²⁰	Ordinary shares	100%
Aberdeen Property Secondaries Partners II⁸	Limited Partnership	23%
Aberdeen Real Estate Fund Finland II LP²¹	Limited Partnership	100%
Aberdeen Real Estate Partners III, LP¹¹	Limited Partnership	0%
Aberdeen Secondaries II GP S.a.r.l.⁸	Ordinary shares	100%
Aberdeen Sidecar LP Inc¹⁷	Limited Partnership	0%
Aberdeen Standard Carlsbad Carry LP	Limited Partnership	25%
Aberdeen Standard Carlsbad GP Limited¹⁶	Ordinary shares	100%
Aberdeen Standard Carlsbad LP¹⁷	Limited Partnership	0%
Aberdeen Standard Core Infrastructure III LTP LP	Limited Partnership	25%
Aberdeen Standard Core Infrastructure III SCSp⁸	Limited Partnership	1%
Aberdeen Standard European Infrastructure GP IV Limited⁴	Ordinary shares	100%
Aberdeen Standard European Infrastructure Partners Carry IV LP	Limited Partnership	25%
Aberdeen Standard European Infrastructure Partners Co-invest IV LP⁴	Limited Partnership	0%
Aberdeen Standard European Infrastructure Partners IV LP⁴	Limited Partnership	5%
Aberdeen Standard European Long Income Real Estate Fund SCSp⁸	Limited Partnership	9%
Aberdeen Standard Global Infrastructure GP III Ltd¹⁶	Ordinary shares	100%
Aberdeen Standard Global Infrastructure Partners I (2021) Carry LP	Limited Partnership	25%
Aberdeen Standard Global Infrastructure Partners III LP¹⁷	Limited Partnership	5%
Aberdeen Standard Gulf Carry GP Limited	Ordinary shares	100%
Aberdeen Standard Gulf Carry LP	Limited Partnership	12%
Aberdeen Trust Limited	Ordinary shares	100%
Aberdeen UK Infrastructure Carry GP Limited	Ordinary shares	100%
Aberdeen UK Infrastructure Carry Limited	Ordinary shares	100%
Aberdeen Unit Trust Managers Limited	Ordinary shares	100%
abrdn – Emerging Markets Equity ADR Fund¹¹	Corporate Fund	100%
abrdn - US SMID Cap Equity Fund¹¹	Corporate Fund	100%
abrdn (CRED II) GP Limited	Ordinary shares	100%
abrdn (General Partner CRED) Limited⁴	Ordinary shares	100%
abrdn (General Partner ELIREF) S.a.r.l.⁸	Ordinary shares	100%
abrdn (General Partner EPGF) Limited	Ordinary shares	100%
abrdn (General Partner PFF 2018) S.a.r.l.⁸	Ordinary shares	100%
abrdn (General Partner SCF 1) Limited	Ordinary shares	100%
abrdn (IL Infrastructure Debt) GP Limited⁴	Ordinary shares	100%
abrdn (SLSPS) Pension Trustee Company Ltd	Ordinary shares	100%
abrdn Alternative Funds Limited	Ordinary shares	100%
abrdn Alternative Holdings Limited	Ordinary shares	100%
abrdn Alternative Investments Limited⁴	Ordinary shares	100%
abrdn Asia Limited²²	Ordinary shares	100%
abrdn Bloomberg Industrial Metals Strategy K-1 Free ETF²³	ETF	41%
abrdn Brasil Investimentos Ltda²⁴	Limited Liability Company	100%
abrdn Canada Limited²⁵	Ordinary shares	100%
abrdn Commercial Real Estate Debt II LP	Limited Partnership	0%
abrdn Commercial Real Estate Debt LP⁴	Limited Partnership	0%
abrdn Corporate Secretary Limited	Ordinary shares	100%
abrdn Eclipse HFRI 500 SP¹⁰	Private Commingled Fund	43%
abrdn ETFs Advisors LLC¹¹	Limited liability company	100%
abrdn ETFs Sponsor LLC¹¹	Limited liability company	100%
abrdn European Property Growth Fund LP⁴	Limited Partnership	0%
abrdn European Sustainable Infrastructure Co-Invest V LP⁴	Limited Partnership	0%
abrdn European Sustainable Infrastructure GP V Limited⁴	Ordinary shares	100%
abrdn European Sustainable Infrastructure Partners Carry V LP	Limited Partnership	25%


			Annual report 2024	265


		FINANCIAL INFORMATION


Name of related undertaking	Share class1	% interest held2,3
abrdn European Sustainable Infrastructure Partners V LP⁴	Limited Partnership	5%
abrdn FF USD 2 GP LLC¹¹	Limited Liability Company	100%
abrdn Financial Planning & Advice Limited⁴	Ordinary A shares Ordinary B	100%
abrdn Founder Co Limited	Ordinary shares	100%
abrdn Fund Managers Limited⁴	Ordinary shares	100%
abrdn Global Absolute Return Strategies Onshore Feeder Fund, LP¹¹	Limited Partnership	0%
abrdn Global Sustainable Infrastructure GP IV Ltd¹⁷	Ordinary shares	100%
abrdn Global Sustainable Infrastructure IV (Deeside) A Limited⁴	Ordinary shares	100%
abrdn Global Sustainable Infrastructure IV (Deeside) B Limited⁴	Ordinary shares	100%
abrdn Global Sustainable Infrastructure IV Carry LP	Limited Partnership	25%
abrdn Global Sustainable Infrastructure Partners IV LP¹⁷	Limited Partnership	9%
abrdn Hong Kong Limited²⁶	Ordinary shares	100%
abrdn Inc.¹¹	Ordinary shares	100%
abrdn Income Plus Fund²⁷	Unit trust	100%
abrdn Inflation-Linked Infrastructure Debt LP⁴	Limited Partnership	0%
abrdn Investment Management Limited	Ordinary shares	100%
abrdn Investments (General Partner UK Shopping Centre Feeder Fund LP)	Ordinary shares	100%
abrdn Investments Beteiligungs GmbH²⁸	Limited Liability Company	90%
abrdn Investments Deutschland AG²⁸	Ordinary shares	90%
abrdn Investments Group Limited⁴	Ordinary shares	100%
abrdn Investments Holdings Europe Limited⁴	Ordinary shares	100%
abrdn Investments Ireland Limited²⁹	Ordinary shares	100%
abrdn Investments Jersey Limited³⁰	Ordinary shares	100%
abrdn Investments Limited	Ordinary shares	100%
abrdn Investments Luxembourg Corporate Manager S.a r.l.⁸	Ordinary shares	100%
abrdn Investments Luxembourg S.A.⁸	Ordinary shares	100%
abrdn Investments Middle East Limited³¹	Ordinary shares	100%
abrdn Investments Switzerland AG³²	Ordinary shares	100%
abrdn Islamic Malaysia Sdn. Bhd.³³	Ordinary shares	100%
abrdn Japan Limited³⁴	Ordinary shares	100%
abrdn Jersey Limited³⁵	Ordinary shares	100%
abrdn Korea Co. Limited.³⁶	Ordinary shares	100%
abrdn Korea GP 2 Pte. Ltd³⁷	Ordinary shares	100%
abrdn Korea Separate Account 2 LP³⁷	Limited Partnership	1%
abrdn Life and Pensions Limited⁴	Ordinary shares	100%
abrdn Liquidity Fund (Lux) - Seabury Sterling Liquidity 1 Fund⁸	SICAV	100%
abrdn Malaysia Sdn. Bhd.³³	Ordinary shares, Irredeemable	100%
abrdn MSPC General Partner S.a.r.l.⁸	Ordinary shares	100%
abrdn Multi-Sector Private Credit Fund SCSp⁸	Limited Partnership	3%
abrdn Nominees Services HK Limited²⁶	Ordinary shares	100%
abrdn Oceania Pty Ltd³⁸	Ordinary shares	100%
abrdn OEIC III - abrdn Multi-Sector Credit Fund⁴	OEIC	100%
abrdn OEIC III - abrdn MyFolio Sustainable I Fund³⁹	OEIC	41%
abrdn OEIC III - abrdn MyFolio Sustainable Index I Fund⁴	OEIC	52%
abrdn OldCo Limited	Ordinary shares	75%
Abrdn Pan European Residential Property Feeder S.C.A. SICAV RAIF⁸	Limited Partnership	0%
abrdn Pan European Residential Property Fund SICAV-RAIF⁸	Limited Partnership	0%
abrdn Phoenix Fund Financing SCSp⁸	Limited Partnership	0%
abrdn Poinsettia GP Ltd¹⁰	Ordinary shares	100%
abrdn Portfolio Investments abrdn Asia-China Bond⁴⁰	Corporate Fund	98%
abrdn Portfolio Investments Limited	Ordinary shares	100%
abrdn Portfolio Investments US Inc.¹¹	Ordinary shares	100%
abrdn Portfolio Solutions Limited⁴	Ordinary shares	100%
abrdn Premises Services Limited	Ordinary shares	100%
abrdn Private Credit (Luxembourg) GP S.a.r.l⁸	Ordinary shares	100%
abrdn Private Fund Management (Shanghai) Company Limited⁴¹	Ordinary shares	100%


266	Annual report 2024


Group financial statements continued


Name of related undertaking	Share class1	% interest held2,3
abrdn Private Real Assets Co-Investment Fund I GP, LLC¹¹	Limited liability company	80%
abrdn Private Real Assets Co-Investment Fund I, LP¹¹	Limited Partnership	1%
abrdn Property Investors France SAS⁴²	Ordinary shares	100%
abrdn Real Estate Operations Limited	Ordinary shares	100%
abrdn Secure Credit LP	Limited Partnership	0%
abrdn SGD Money Market Fund²⁷	Unit trust	100%
abrdn Si Yuan Private Fund Management (Shanghai) Company Limited⁴¹	Ordinary shares	100%
abrdn SICAV I - Asia Pacific Dynamic Dividend Fund⁸	SICAV	100%
abrdn SICAV I - Asian Credit Sustainable Bond Fund⁸	SICAV	79%
abrdn SICAV I - Asian Sustainable Development Equity Fund⁸	SICAV	74%
abrdn SICAV I - CCBI Belt & Road Bond Fund⁸	SICAV	32%
abrdn SICAV I - China Next Generation Fund⁸	SICAV	76%
abrdn SICAV I - Climate Transition Bond Fund⁸	SICAV	46%
abrdn SICAV I - Global Mid-Cap Equity Fund⁸	SICAV	47%
abrdn UK Shopping Centre Feeder Fund Company Limited⁴³	Ordinary shares	100%
abrdn UK Shopping Centre Feeder Fund Limited Partnership⁴	Limited Partnership	100%
abrdn Wealthtech Singapore Pte. Ltd.⁴⁴	Ordinary shares	100%
AEROF (Luxembourg) GP S.a.r.l.⁸	Ordinary shares	100%
AERP V-A Master, LP¹¹	Limited Partnership	0%
AIA Series T Holdings LLC¹¹	Limited liability company	0%
AIP Co-investment Fund SCSp⁸	Limited Partnership	0%
AIPP Folksam Europe II Kommanditbolag¹⁸	Limited Partnership	0%
AIPP Folksam Europe⁸	Limited Partnership	0%
AIPP Pooling I SA⁸	Ordinary shares	100%
Airport Industrial GP Limited⁴⁵	Ordinary shares	60%
Airport Industrial Limited Partnership⁴⁶	Limited Partnership	0%
Airport Industrial Nominees B Limited⁴⁵	Ordinary shares	60%
Airport Industrial Nominees Limited⁴⁵	Ordinary shares	60%
Alliance Trust Savings Limited	Ordinary shares	100%
Andean Social Infrastructure (No. 1) Limited⁴	Ordinary shares	100%
Andean Social Infrastructure Fund I LP¹⁰	Limited Partnership	5%
Andean Social Infrastructure GP Limited¹⁰	Ordinary shares	100%
Arden Garden State NJ Fund, LP¹⁵	Limited Partnership	0%
Arden Institutional Advisers, LP¹⁵	Limited Partnership	0%
Arthur House (No.6) Limited⁴	Ordinary shares	100%
ASI (KFAS) RE GP LLP	Limited Liability Partnership	100%
ASI Direct RE GP LLP	Limited Liability Partnership	100%
ASI Han Co-Investment LP	Limited Partnership	93%
ASI REMM GP LLP	Limited Liability Partnership	100%
ASI Shin Co-Investment LP	Limited Partnership	100%
ASI Shin Global Investment GP Limited¹⁰	Ordinary shares	100%
ASIF Sidecar Carry LP	Limited Partnership	25%
ASPER (Luxembourg) GP S.a.r.l.⁸	Ordinary shares	100%
BOSEMP Feeder LP	Limited Partnership	0%
Coutts Global Property Limited Partnership¹⁰	Limited Partnership	0%
Edinburgh Fund Managers Group Limited	Ordinary shares	100%
Edinburgh Fund Managers Plc	Ordinary shares	100%
Edinburgh Unit Trust Managers Limited	Ordinary shares, Deferred	100%
Elevate Portfolio Services Limited⁴	Ordinary shares	100%
Emerging Markets Income Equity Fund, a series of the aICF, LLC¹¹	Private Commingled Fund	100%
Finimize Limited⁴	Ordinary shares	100%
Flag Asia Company III, LLC¹¹	Limited liability company	100%
Flag Asia Company III, LP¹¹	Limited Partnership	0%
Flag Energy & Resource Company II, LLC¹¹	Limited liability company	0%
Flag Energy & Resource Company III, LLC¹¹	Limited liability company	0%
Flag Real Estate Company III, LLC¹¹	Limited liability company	0%


			Annual report 2024	267


		FINANCIAL INFORMATION


Name of related undertaking	Share class1	% interest held2,3
Flag Squadron Asia Pacific III GP LP¹⁰	Limited Partnership	100%
FSA III EA SPV, LP¹⁰	Limited Partnership	0%
FSA III Pacific SPV, LP¹⁰	Limited Partnership	0%
Godo Kaisha abrdn Portfolio Investments⁴⁷	Ordinary shares	100%
GPMS Corporate Secretary Limited⁴⁸	Ordinary shares	100%
Griffin Nominees Limited⁴	Ordinary shares	100%
Interactive Investor Services Limited⁷	Ordinary shares	100%
Interactive Investor Services Nominees Limited⁷	Ordinary shares	100%
Investor Nominees (Dundee) Limited	Ordinary shares	100%
Investor Nominees Limited⁷	Ordinary shares	100%
Investor SIPP Trustees Ltd⁷	Ordinary shares	100%
KFAS Real Estate Limited Partnership	Limited Partnership	0%
Local2Local Limited⁴⁵	Ordinary shares	60%
Loimua Co-Investment Fund SCSp⁸	Limited Partnership	100%
Murray Johnstone Limited	Ordinary shares	100%
North East Trustees Limited⁴	Ordinary A shares Ordinary B	100%
Orion Partners CLP Inc.⁴⁹	Ordinary shares	100%
Orion Partners Services Inc.⁴⁹	Ordinary shares	100%
Ostara China Real Estate Fund LP⁴⁹	Limited Partnership	0%
Ostara Japan Fund 3 LP⁴⁹	Limited Partnership	1%
Ostara Korea GP 2 Pte. Ltd³⁷	Ordinary shares	100%
Ostara Korea Separate Account LP³⁷	Limited Partnership	0%
Ostara Partners Inc. China⁴⁹	Ordinary shares	100%
Ostara Partners Inc. Japan 3⁴⁹	Ordinary shares	100%
Pearson Jones & Company (Trustees) Limited⁴	Ordinary shares	100%
Pearson Jones Nominees Limited⁴	Ordinary shares	100%
Poinsettia Holdco LP¹⁰	Limited Partnership	0%
PT Aberdeen Standard Investments Indonesia⁵⁰	Limited Liability Company	99%
SG Commercial LLP⁴⁵	Limited Liability Partnership	60%
Share Nominees Limited⁷	Ordinary shares	100%
Shin Global Investment Partners LP¹⁰	Limited Partnership	0%
SL Capital Infrastructure Fund II Top-Up Co-Investment Fund SCSp⁸	Limited Partnership	0%
SL Capital Infrastructure I GP LP	Limited Partnership	100%
SL Capital Infrastructure I LP	Limited Partnership	0%
SL Capital Infrastructure II LTP LP	Limited Partnership	25%
SL Capital Infrastructure II SCSp⁸	Limited Partnership	1%
SL Capital Infrastructure Secondary I GP LP	Limited Partnership	25%
SL Capital Infrastructure Secondary I LP	Limited Partnership	0%
SL Capital Infrastructure Secondary II LP	Limited Partnership	0%
SLCI I Executive Co Investment Limited Partnership	Limited Partnership	0%
SLCI II Executive Co-Investment LP	Limited Partnership	0%
SLCI Rail Co-Invest LP	Limited Partnership	0%
SLCP (General Partner Infrastructure I) Limited	Ordinary shares	100%
SLCP (General Partner Infrastructure Secondary I) Limited	Ordinary shares	100%
SLIPC (General Partner Infrastructure II LTP 2017) Limited	Ordinary shares	100%
SLIPC (General Partner Infrastructure II) S.a.r.l.⁸	Ordinary shares	100%
SLIPC (General Partner Infrastructure III) S.à r.l.⁸	Ordinary shares	100%
Squadron Asia Pacific Fund II, LP¹⁰	Limited Partnership	0%
Squadron Asia Pacific Fund, LP¹⁰	Limited Partnership	0%
Squadron Capital Asia Pacific GP, LP¹⁰	Limited Partnership	100%
Squadron Capital Asia Pacific II GP LP¹⁰	Limited Partnership	100%
Squadron Capital Partners Limited¹⁰	Ordinary shares	100%
Squadron GP Participation II, LP¹⁰	Limited Partnership	0%
Squadron GP Participation, LP¹⁰	Limited Partnership	0%
Standard Life Investments (General Partner European Real Estate Club II)	Ordinary shares	100%
Standard Life Investments (General Partner European Real Estate Club III)	Ordinary shares	100%


268	Annual report 2024


Group financial statements continued


Name of related undertaking	Share class1	% interest held2,3
Standard Life Investments (General Partner European Real Estate Club)	Ordinary shares	100%
Standard Life Investments (General Partner GARS) Limited	Ordinary shares	100%
Standard Life Investments (General Partner GFS) Limited	Ordinary shares	100%
Standard Life Investments (General Partner Global Tactical Asset	Ordinary shares	100%
Standard Life Investments (General Partner MAC) Limited	Ordinary shares	100%
Standard Life Investments Brent Cross General Partner Limited	Ordinary shares	100%
Standard Life investments Brent Cross LP	Limited Partnership	0%
Standard Life Investments European Real Estate Club III LP⁴	Limited Partnership	2%
Tenon Nominees Limited	Ordinary shares	100%
Touchstone Insurance Company Limited⁵¹	Ordinary shares	100%
TPIF (No. 1) GP LLP⁴⁸	Limited Liability Partnership	60%
TPIF (No. 1) LP⁴⁸	Limited Partnership	0%
TPIF (Portfolio No. 1) GP LLP⁴⁵	Limited Liability Partnership	60%
TPIF (Portfolio No. 1) LP⁴⁶	Limited Partnership	0%
TPIF (Portfolio No. 1) Nominee Limited⁴⁵	Ordinary shares	60%
Tritax abrdn Supply Chain Carry GP LLP⁴⁵	Limited Liability Partnership	60%
Tritax abrdn Supply Chain Carry LP⁴⁸	Limited Partnership	12%
Tritax abrdn Supply Chain GP LLP⁴⁵	Limited Liability Partnership	60%
Tritax abrdn Supply Chain LP⁴⁶	Limited Partnership	0%
Tritax Assets LLP⁴⁵	Limited Liability Partnership	60%
Tritax LMR Carry GP LLP⁴⁸	Limited Liability Partnership	60%
Tritax LMR Carry Limited Partnership⁴⁸	Limited Partnership	7%
Tritax Management LLP⁴	Limited Liability Partnership	60%
Tritax Powerbox 1 GP LLP⁴⁵	Limited Liability Partnership	60%
Tritax Powerbox 1 LP⁴⁵	Limited Partnership	60%
Tritax Powerbox Carry GP LLP⁴⁵	Limited Liability Partnership	60%
Tritax Powerbox Carry LP⁴⁸	Limited Partnership	60%
Tritax PowerBox Limited⁴⁵	Ordinary shares	60%
Tritax Securities LLP⁴⁵	Limited Liability Partnership	60%
UK PRS Opportunities General Partner Limited⁴	Ordinary shares	100%
UK PRS Opportunities LP³	Limited Partnership	0%
VZWL Bestandsimmobilien GmbH & Co geschlossene Investment KG²⁸	Limited Partnership	0%
VZWL Private Equity GmbH & Co geschlossene Investment KG²⁸	Limited Partnership	0%


Name of related undertaking	Share class1	% interest held2,3
abrdn Investcorp Infrastructure Investments Manager Limited⁵²	Ordinary shares	50%
abrdn OEIC III - abrdn MyFolio Sustainable Index V Fund⁴	OEIC	23%
Archax Group Ltd⁵³	Ordinary shares	11%
Criterion Tec Holdings Ltd⁵⁴	Ordinary shares	21%
Focus Business Solutions Limited⁵⁵	Ordinary shares	20%
Heng An Standard Life Insurance Company Limited⁵⁶	Ordinary shares	50%
PURetail Luxembourg Management Company S.a.r.l.³⁹	Class A shares	50%
Tenet Group Limited⁵⁷	Ordinary B shares	25%

1. OEIC = Open-ended investment company

SICAV = Société d’investissement à capital variable

ETF = Exchange traded fund

ICAV = Irish collective asset-management vehicle

2. Limited Partnerships or limited liability companies in which the Group has no interest but whose general partner or manager is controlled by the

Group are considered subsidiaries under Companies Act 2006. Where the Group has no interest in a limited partnership or limited liability

company that is considered a subsidiary, the interest held is disclosed as 0%.

3. % interest held is rounded to the nearest 1%.


			Annual report 2024	269


		FINANCIAL INFORMATION

Registered offices

4. 280 Bishopsgate, London, EC2M 4AG

5. c/o IQ EQ Fund Services (Mauritius) Ltd, 33 Edith Cavell Street, Port

Louis, 11324, Mauritius

6. 30 Finsbury Square, London, EC2A 1AG

7. 201 Deansgate, Manchester, M3 3NW

8. 35a Avenue John F. Kennedy, L-1855 Luxembourg, Luxembourg

9. 287-289, route d'Arlon, L-1150 Luxembourg, Luxembourg

10. c/o Maples Corporate Services Limited, Ugland House, P.O. Box 309,

Grand Cayman, KY1-1104, Cayman Islands

11. c/o Corporation Service Company, 251 Little Falls Drive, Wilmington,

DE, 19808, USA

12. Bangkok City Tower, 28th Floor, 179 South Sathorn Road,

Thungmahamek, Sathorn, Bangkok, 10120, Thailand

13. Strandvejen 171,3, 2900 Hellerup, Denmark

14. c/o Aatsto DLA Piper Finland Oy, Kanavaranta 1, 00160, Helsinki,

Finland

15. 1900 Market Street, Suite 200, Philadelphia, PA 19103, USA

16. Western Suite, Ground Floor Mill Court, La Charroterie, St Peter Port,

Guernsey, GY1 1EJ

17. Top Floor, Mill Court, La Charroterie, St Peter Port, Guernsey, GY1 1EJ

18. Box 162 85, 103 25 Stockholm, Sweden

19. 2 Boulevard de la Foire, L-1528 Luxembourg, Luxembourg

20. WTC, H-Tower, 20th Floor, Zuidplein 166, 1077 XV Amsterdam,

Netherlands

21. One London Wall, London, EC2Y 5AB

22. 7 Straits View, #23-04 Marina One East Tower, 018936, Singapore

23. 712 5th Ave, New York, NY 10019, USA

24. Sao Paulo, Avenida Presidente Juscelino Kubitschek, 1327, Vila Nova

Conceicao, 04543-011, Brazil

25. 4 Chipman Hill, Suite 100, Saint John, New Brunswick, E2L 2A9,

Canada

26. 6th Floor, Alexandra House, 18 Chater Road, Central, Hong Kong

27. 5 Changi Business Park Crescent, Level 5, Singapore 486027

28. Bockenheimer Landstrasse 25, 60325 Frankfurt am Main, Germany

29. 2-4 Merrion Row, Dublin 2, D02 WP23, Ireland

30. 1st Floor, Sir Walter Raleigh House, Esplanade, St Helier, JE2 3QB,

Jersey

31. Office Unit 8, 6th Floor, Al Khatem Tower, Abu Dhabi Global Market

Square, Al Marya Island, PO Box 764605, Abu Dhabi, United Arab

Emirates

32. Schweizergasse 14, Zurich, 8001, Switzerland

33. Suite 1005, 10th Floor, Wisma Hamzah-Kwong Hing No.1, Leboh

Ampang 50100 Kuala Lumpur, Malaysia

34. Otemachi Financial City Grand Cube 9F, 1-9-2 Otemachi, Chiyoda-

ku, Tokyo, 100-0004, Japan

35. 44 Esplanade, St Helier, Jersey, JE4 9WG

36. 13th Fl., B Tower (Seocho-dong, Kyobo Tower Building), 465,

Gangnam-daero, Seocho-gu, Seoul, Korea

37. 9 Raffles Place, #26-01 Republic Plaza, 048619, Singapore

38. Governor Macquarie Tower, Level 40, 1 Farrer Place, Sydney, NSW,

2000, Australia

39. 1, rue Jean Piret, L-2350 Luxembourg, Luxembourg

40. 21 Church Street, #01-01, Capital Square Two, 049480, Singapore

41. West Area, 2F, No.707 Zhangyang Road, China (Shanghai) Pilot Free

Trade Zone

42. 19 Avenue de l'Opera 75001 Paris

43. Ogier House, Esplanade, St Helier, JE4 9WG, Jersey

44. 1 Marina Boulevard, #28-00, 018989, Singapore

45. 72 Broadwick Street, London, W1F 9QZ

46. 3rd Floor, 6 Duke Street St James's, London, SW1Y 6BN

47. Tokyo Kyodo Accounting Office, 1-4-1 Marunouchi, Chiyoda-ku,

Tokyo, 100-0005

48. 50 Lothian Road, Festival Square, Edinburgh, EH3 9WJ

49. Campbells Corporate Services Limited, 4th Floor, Willow House,

Cricket Square, Grand Cayman, KY1-9010, Cayman Islands

50. 16th Floor, Menara DEA Tower 2, 16th Floor, Kawasan Mega

Kuningan, Jl Mega Kuningan Barat Kav. E4.3 No. 1-2, 12950 Jakarta,

Indonesia

51. c/o Aon, PO Box 33, Maison Trinity, Trinity Square, St Peter Port,

Guernsey GY1 4AT

52. c/o Paget-Brown Trust Company Ltd, Boundary Hall, Cricket Square,

P.O. Box 1111, Grand Cayman, KY1-1102, Cayman Islands

53. 10 Queen Street Place, London, EC4R 1BE

54. 9-10 St Andrew Square, Edinburgh, EH2 2AF

55. 8 Hamilton Terrace, Leamington Spa, United Kingdom, CV32 4LY

56. 18F, Tower II, The Exchange, 189 Nanjing Road, Heping District, Tianjin,

People’s Republic of China, 300051

57. c/o Interpath Advisory, 10 Fleet Place, London, EC4M 7RB


270	Annual report 2024

Company financial statements

Company statement of financial position

As at 31 December 2024


		2024	2023
	Notes	£m	£m
Assets
Investments in subsidiaries	A	4,273	4,402
Investments in associates and joint ventures	B	196	196
Deferred tax assets	N	138	150
Loans to subsidiaries	C	58	—
Derivative financial assets	C	50	41
Equity securities and interests in pooled investment funds	C	544	574
Debt securities	C	1	126
Receivables and other financial assets	C	60	46
Current tax recoverable	N	12	—
Other assets	F	6	47
Cash and cash equivalents	C	9	21
Total assets		5,347	5,603

Liabilities
Subordinated liabilities	L	597	599
Current tax liabilities	N	—	1
Other financial liabilities	L	189	166
Other liabilities	P	1	—
Total liabilities		787	766

Equity
Share capital	G	257	257
Shares held by trusts	H	(119)	(137)
Share premium reserve	G	640	640
Retained earnings	I
Brought forward retained earnings		3,547	3,665
(Loss)/profit for the year attributable to equity shareholders of abrdn plc¹		(16)	300
Other movements in retained earnings		(181)	(418)
Total retained earnings		3,350	3,547
Other reserves	J	225	323
Equity attributable to equity shareholders of abrdn plc		4,353	4,630
Other equity	K	207	207
Total equity		4,560	4,837
Total equity and liabilities		5,347	5,603

1. The Company’s total loss for the year was £5m (2023: profit of £311m) of which a profit of £11m was attributable to other equity holders

(2023: profit of £11m).

The financial statements on pages 270 to 285 were approved by the Board and signed on its behalf by the following

Directors:



Sir Douglas Flint	Jason Windsor
Chair 3 March 2025	Chief Executive Officer 3 March 2025

Company registered number: SC286832


	The Notes on pages 273 to 285 are an integral part of these financial statements.


			Annual report 2024	271


		FINANCIAL INFORMATION

Company statement of changes in equity

For the year ended 31 December 2024


		Share capital	Shares held by trusts	Share premium reserve	Retained earnings	Other reserves	Total equity attributable to equity shareholders of abrdn plc	Other equity	Total equity
	Notes	£m	£m	£m	£m	£m	£m	£m	£m
1 January 2024		257	(137)	640	3,547	323	4,630	207	4,837
Loss for the year		—	—	—	(16)	—	(16)	11	(5)
Other comprehensive income for the year		—	—	—	—	2	2	—	2
Total comprehensive income for the year		—	—	—	(16)	2	(14)	11	(3)
Interest paid on other equity	K	—	—	—	—	—	—	(11)	(11)
Dividends paid on ordinary shares	I	—	—	—	(260)	—	(260)	—	(260)
Share buyback	G	—	—	—	—	—	—	—	—
Reserves credit for employee share-based payment	J	—	—	—	—	26	26	—	26
Transfer to retained earnings for vested employee share-based payment	J	—	—	—	32	(32)	—	—	—
Transfer between reserves on impairment of subsidiaries	J	—	—	—	94	(94)	—	—	—
Shares acquired by employee trusts	H	—	(26)	—	—	—	(26)	—	(26)
Shares distributed by employee and other trusts and related dividend equivalents	H	—	44	—	(47)	—	(3)	—	(3)
31 December 2024		257	(119)	640	3,350	225	4,353	207	4,560


	The Notes on pages 273 to 285 are an integral part of these financial statements.


272	Annual report 2024


Company financial statements continued


		Share capital	Shares held by trusts	Share premium reserve	Retained earnings	Other reserves	Total equity attributable to equity shareholders of abrdn plc	Other equity	Total equity
	Notes	£m	£m	£m	£m	£m	£m	£m	£m
1 January 2023		280	(145)	640	3,665	485	4,925	207	5,132
Profit for the year		—	—	—	300	—	300	11	311
Other comprehensive income for the year		—	—	—	—	(9)	(9)	—	(9)
Total comprehensive income for the year		—	—	—	300	(9)	291	11	302
Interest paid on other equity	K	—	—	—	—	—	—	(11)	(11)
Dividends paid on ordinary shares	I	—	—	—	(279)	—	(279)	—	(279)
Share buyback	G	(23)	—	—	(302)	23	(302)	—	(302)
Reserves credit for employee share-based payment	J	—	—	—	—	24	24	—	24
Transfer to retained earnings for vested employee share-based payment	J	—	—	—	31	(31)	—	—	—
Transfer between reserves on impairment of subsidiaries	J	—	—	—	169	(169)	—	—	—
Shares acquired by employee trusts	H	—	(27)	—	—	—	(27)	—	(27)
Shares distributed by employee and other trusts and related dividend equivalents	H	—	35	—	(37)	—	(2)	—	(2)
31 December 2023		257	(137)	640	3,547	323	4,630	207	4,837


	The Notes on pages 273 to 285 are an integral part of these financial statements.


			Annual report 2024	273


		FINANCIAL INFORMATION

Company accounting policies

(a) Basis of preparation

These separate financial statements are presented as required by the Companies Act 2006. The Company meets

the definition of a qualifying entity under Application of Financial Reporting Requirements 100 as issued by the

Financial Reporting Council. Accordingly, the financial statements for year ended 31 December 2024 have been

prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 101) as issued

by the Financial Reporting Council.

The financial statements have been prepared on a going concern basis (see the Basis of preparation section of the

Group financial statements for further details) and under the historical cost convention, as modified by the

revaluation of financial assets and financial liabilities (including derivative instruments) at fair value through profit or

loss (FVTPL). Climate risks have been taken into consideration in the preparation of the financial statements,

primarily in relation to fair value calculations and impairment assessments.

As permitted by FRS 101, the Company has taken advantage of the following disclosure exemptions available under

that standard:

– A cash flow statement and related notes.

– Capital management.

– Effect of IFRSs issued but not effective.

– Related party transactions with wholly owned subsidiaries.

As equivalent disclosures are given in the consolidated financial statements, we have also applied the disclosure

exemptions for share based payments and financial instruments.

The principal accounting policies adopted are the same as those given in the consolidated financial statements,

together with the Company specific policies set out below. These accounting policies have been consistently

applied to all financial reporting periods presented in these financial statements.

The Company has taken advantage of the exemption in section 408 of the Companies Act 2006 not to present its

own statement of comprehensive income in these financial statements. The auditors’ remuneration for audit and

other services is disclosed in Note 7 to the consolidated financial statements. The Company has no employees.

(a) (i) Investment in subsidiaries, associates and joint ventures

The Company has certain subsidiaries which are investment vehicles such as open-ended investment companies,

unit trusts and limited partnerships whose primary function is to generate capital or income growth through holding

investments. This category of subsidiary is held at FVTPL since they are managed on a fair value basis.

Investments in subsidiaries (other than those measured at FVTPL), associates (other than those measured at

FVTPL) and joint ventures are initially recognised at cost and subsequently held at cost less any impairment charge.

An impairment charge is recognised when the carrying amount of the investment exceeds its recoverable amount.

Any gain or loss on disposal of a subsidiary, associate or joint venture is recognised in profit for the year.

Distributions received of non-cash assets, including investments in subsidiaries, are recognised at fair value in the

balance sheet and as dividends in specie in income or other comprehensive income as appropriate in the

statement of comprehensive income.


274	Annual report 2024


Company financial statements continued

(a) (ii) Critical accounting estimates and judgements in applying accounting policies

The preparation of financial statements requires management to make estimates and assumptions and exercise

judgements in applying the accounting policies that affect the reported amounts of assets and liabilities at the date

of the financial statements and the reported amounts of revenues and expenses arising during the year. Estimates

and judgements are continually evaluated and based on historical experience and other factors, including

expectations of future events that are believed to be reasonable under the circumstances.

The areas where judgements have the most significant effect on the amounts recognised in the Company financial

statements are as follows:


Financial statement area	Critical judgements in applying accounting policies	Related notes
Investments in subsidiaries held at cost	Given that the net assets attributable to shareholders of abrdn plc at 31 December 2024 were higher than the market capitalisation of the Company judgement was required to determine for which subsidiaries this was considered an indicator of impairment	Note A

The areas where assumptions and other sources of estimation uncertainty at the end of the reporting period have a

significant risk of resulting in a material adjustment to the carrying amount of assets and liabilities within the next

financial year are as follows:


Financial statement area	Critical accounting estimates and assumptions	Related notes
Investments in subsidiaries held at cost	Determination of the recoverable amount	Note A


			Annual report 2024	275


		FINANCIAL INFORMATION

Notes to the Company financial statements

A. Investments in subsidiaries


	Investments in subsidiaries measured at cost	Investments in subsidiaries measured at FVTPL	Total
	£m	£m	£m
Cost
At 1 January 2023	8,592	170	8,762
Acquisition of subsidiaries1	40	180	220
Disposal of subsidiaries	—	(9)	(9)
At 31 December 2023	8,632	341	8,973
Acquisition of subsidiaries1	6	64	70
Disposal of subsidiaries	(25)	—	(25)
At 31 December 2024	8,613	405	9,018
Impairment
At 1 January 2023	(4,280)	—	(4,280)
Impairment of subsidiaries measured at cost	(304)	—	(304)
Reversal of impairment of subsidiaries measured at cost	13	—	13
Disposal of subsidiaries measured at cost	—	—	—
At 31 December 2023	(4,571)	—	(4,571)
Impairment of subsidiaries measured at cost	(179)	—	(179)
Reversal of impairment of subsidiaries measured at cost	—	—	—
Disposal of subsidiaries measured at cost	5	—	5
At 31 December 2024	(4,745)	—	(4,745)
Carrying amount
At 1 January 2023	4,312	170	4,482
At 31 December 2023	4,061	341	4,402
At 31 December 2024	3,868	405	4,273

1. Includes investment into existing subsidiaries measured at cost of £6m (2023: £40m).

Details of the Company’s subsidiaries are given in Note 44 of the Group financial statements.

(a) Acquisitions

During 2024, the Company made the following acquisitions of subsidiaries measured at cost:

– The Company increased its investment in Aberdeen Corporate Services Limited (ACSL) through the purchase of

3,318 ordinary shares for a cash consideration of £3.3m.

– The Company increased its investment in Focus Business Solutions Limited (FBS) through the purchase of

290,289,070 ordinary shares for a cash consideration of £2.9m. See Section (b) below for details of FBS’s

subsequent partial disposal.

During 2023, the Company made the following acquisitions of subsidiaries measured at cost:

– The Company increased its investment in ACSL through the purchase of 26,278 ordinary shares for a cash

consideration of £26.3m.

– The Company increased its investment in abrdn Financial Planning Limited (aFPL) through the purchase of

12,150,000 ordinary shares for a cash consideration of £12.2m.

– The Company increased its investment in abrdn Client Management Limited (aCM) through the purchase of

1,500,000 ordinary shares for a cash consideration of £1.5m.

See Section (d) below for details on investments in subsidiaries at FVTPL.

(b) Disposals

During 2024, the Company made the following disposals of subsidiaries measured at cost:

– In March 2024, Antler Holdco Limited (Antler) was liquidated. Prior to liquidation, the carrying value of the

Company’s interest in Antler was £7m and the Company received final liquidation proceeds of £7m in the form of

a distribution in specie of its intercompany balance due to Antler.

– In July 2024, the Company sold its interest in threesixty services LLP (threesixty) to Fintel group. At the time of the

sale, the carrying value of threesixty was £4m and the company received a consideration of £4m. The carrying

value of threesixty at 31 December 2023 was £19m. This has been reduced by £15m in 2024 in relation to the

following:

– In June 2024, threesixty paid a dividend of £3m to the Company. This was considered an indicator of

impairment and following the performance of a valuation, an impairment of the Company’s interest in


276	Annual report 2024


Company financial statements continued

threesixty of £5m was recognised. The recoverable amount of £14m was based on Company’s share of net

consideration for the subsequent sale of the threesixty business – refer Note 1 of the Group financial statements

for further details. The impairment was due to the payment of the dividend and a slight lowering of valuation of

the threesixty business. This is a level 3 measurement as they are measured using inputs which are not based on

observable market data.

– At this time, threesixty also transferred its business to a subsidiary of abrdn Holdings Limited (aHL), abrdn Newco

Limited (now renamed threesixty Services Limited) which was also sold to Fintel group in July 2024.

Consequently £10m of the consideration for the threesixty business was then receivable by aHL not the

Company. In recognition of this, £10m of the cost of threesixty was transferred to the cost of Company’s interest

in aHL which increased from £1,218m to £1,228m.

– In December 2024, the Company sold 80% of its interest in FBS to Focus Advice Technology Holdings Limited. At

the time of the sale, the carrying value of FBS was £8m and the Company received a consideration of £1.

Following the sale, the Company’s remaining 20% interest in FBS has been recognised as an investment in an

associate based on a fair value of £nil.

The Company’s net assets attributable to shareholders of abrdn plc at 31 December 2024 of £4.4bn are higher than

the Company’s market capitalisation of £2.6bn. Taking this into account along with the payment by abrdn

Investment Holdings Limited (aIHL) and abrdn Holdings Limited (aHL) of dividends of £102m and £40m respectively

to the Company in 2024 and the continued headwinds facing active asset managers, it was assessed that there

were indicators of impairments in relation to aIHL and aHL, the Company’s asset management holding companies.

Following the performance of valuation exercises, impairments of aIHL and aHL of £115m and £15m respectively

have been recognised.

Indicators of impairment were also identified in relation to abrdn Financial Planning Limited (aFPL) following the

payment of distributions in specie totalling £47m. An impairment of £45m has been recognised.

Refer Section (b) above for details of the impairment of threesixty prior to its disposal during 2024.

No other indicators of impairment were identified on any material investment in subsidiaries including Interactive

Investor Limited (IIL) for which illustrative sensitivities have been provided below.

Indicators of reversal of impairment have also been considered. There were no reversal of impairment in 2024. A

reversal of impairment of £13m was recognised in relation to Aberdeen Corporate Services Limited in 2023.

aIHL

The Company’s investment in its subsidiary aIHL was impaired during 2024 by £115m (2023: £169m). The

impairment primarily resulted from the payment of dividends from aIHL to the Company. The dividends included

dividend income received by aIHL from its subsidiary, abrdn Investment Management Limited (aIML) following the

sale of the European-headquartered Private Equity business (refer Note 1(c)(i) of the Group financial statements).

The recoverable amount of aIHL which is its FVLCD at 31 December 2024 was £704m. The FVLCD considered a

number of valuation approaches, with the primary approach based on the net assets of aIHL and its subsidiaries.

This is a level 3 measurement as it is measured using inputs which are not based on observable market data.

As the year end carrying values are the recoverable amount, any downside sensitivity will lead to a further future

impairment loss. As the primary approach was net assets as set out above, the valuation is not considered sensitive

to significant change. However, a 20% reduction in the net assets of aIHL and its subsidiaries would result in a further

impairment of £141m.

The Company’s investment in aIHL was also impaired during 2023 by £169m. The impairment primarily resulted

from the payment of dividends from aIHL to the Company in 2023 following the sale of its interest in HDFC Asset

Management held by aIML and abrdn Capital Limited.

The recoverable amount of aIHL which was its FVLCD at 31 December 2023 was £819m. The FVLCD considered a

number of valuation approaches, with the primary approach based on the net assets of aIHL and its subsidiaries

excluding those held for sale at 31 December 2023 as part of the sale of the European-headquartered Private

Equity business which completed in 2024. The recoverable amount also included the valuation of European-

headquartered Private Equity business which was based on an estimated price from the sale process.


			Annual report 2024	277


		FINANCIAL INFORMATION

aHL

The Company’s investment in its subsidiary aHL was impaired during 2024 by £15m (2023: £40m). The impairment

primarily resulted from the payment of a £40m dividend to the Company during 2024.

The recoverable amount of aHL which is its FVLCD at 31 December 2024 was £1,213m. The recoverable amount

was based on FVLCD. The FVLCD considered a number of valuation approaches, applied to the elements of aHL’s

business as appropriate. The primary approach was discounted cash flow with cash flows which were based on the

three year financial budgets approved by management split by region. Revenue in the management forecasts

reflects past experience and modelling based on assets under management and fee revenue yields by asset class.

Assets under management is modelled from future net flow assumptions and market movements. Expenses in the

management forecasts were based on past experience adjusted for planned expense savings and inflation

impacts.

Cash flow projections were extrapolated using a 3.5% revenue growth and 2% increase in expenses in years 4 and

5, and then a 1.9% terminal rate profit growth based on long-term inflation forecasts. Post tax discount rates of

between 12.93% and 14.47% were used based on the peer companies cost of equity adjusted for forecasting risk

and relative size. However, where the net assets of a significant element of aHL’s business were higher, the valuation

included the net asset value rather than the discounted cash flow value. The recoverable amount for aHL also

included the value of its subsidiaries, associates and joint ventures not included in the discounted cash flow

valuation. These primarily include Finimize Limited and Archax Group Limited. This is a level 3 measurement as it is

measured using inputs which are not based on observable market data.

As the year end carrying values are the recoverable amount, any downside sensitivity will lead to a further future

impairment loss. As noted above, net assets are not considered sensitive to significant change. However, earnings

and the discount rate are more subject to change and the table below gives sensitivities for the carrying amount of

aHL at 31 December 2024 in relation to these assumptions.


Impact on carrying amount at 31 December 2024	£m
25% reduction in forecast post tax adjusted earnings	(187)
2% increase in the post-tax discount rate	(109)

The Company’s investment in its subsidiary aHL was also impaired during 2023 by £40m. The impairment in 2023

resulted from lower future cash flow projections reflecting the headwinds facing active asset managers.

The recoverable amount of aHL which was its FVLCD at 31 December 2023 was £1,218m. As above, the FVLCD

considered a number of valuation approaches, with the primary approach being a discounted cash flow approach

with net assets used for a significant element of aHL’s business where these were higher than the discounted cash

flow valuation. This recoverable amount for aHL also included the value of its subsidiaries, associates and joint

ventures not included in the discounted cash flow valuation.

aFPL

The Company’s investment in its subsidiary aFPL was impaired during 2024 by £45m. The impairment resulted from

the payment of distributions in specie totalling £47m by aFPL to the Company in 2024. These distributions primarily

related to an intercompany loan and accrued interest due to aFPL from IIL following the sale of aFPL’s primary

subsidiary, abrdn Financial Planning and Advice Limited to IIL in January 2024. aFPL is now in liquidation and

following the distributions, the recoverable amount of aFPL was £1 which is also its carrying value. This was a level 3

measurement as they are measured using inputs which are not based on observable market data.

The Company’s investment in its subsidiary aFPL was impaired during 2023 by £52m. The recoverable amount of

aFPL at 31 December 2023 of £45m was based on FVLCD which considered a number of valuation approaches,

with the primary approach also being a multiples approach based on price to revenue and price to assets under

advice. Multiples were based on trading multiples for peer companies, adjusted to take into account profitability

where appropriate, and were benchmarked against recent transactions.

abrdn (Mauritius Holdings) 2006 Limited (aMH06)

The carrying amount of the Company’s investment in aMH06 is less than £1m (2023: less than £1m). During 2023,

the Company’s investment in its subsidiary aMH06 was impaired by £43m. The impairment resulted from the

payment of dividends from aMH06 to the Company in 2023. These dividends primarily related to the sale of aMH06’s

final investment in HDFC Life.


278	Annual report 2024


Company financial statements continued

IIL

The carrying amount of the Company’s investment in IIL is £1,512m (2023: £1,512m). There are no indicators that

recoverable amount of the Company’s investment in IIL is less than its carrying amount.

The recoverable amount of IIL was determined at 31 December 2024 based on FVLCD for illustrative sensitivities

purposes using the same approach and key assumptions as used in the impairment review for interactive investor

goodwill set out in Note 13 of the Group financial statements. The basis for sensitivities of key assumptions is also set

out in Note 13 of the Group financial statements. The impact of these illustrative sensitivities on the carrying amount

of IIL at 31 December 2024 is as follows:


Impact on carrying amount at 31 December 2024	£m
20% reduction in forecast post tax adjusted earnings	—
40% reduction in market multiple	(187)

ACSL

The carrying amount of the Company’s investment in ACSL is £105m (2023: £102m). Refer Section (a) for details of

the capital injection during the year. There was no impairment or reversal of impairment in relation to the

Company’s investment in ACSL during the year ended 31 December 2024 and no indicators that recoverable

amount of the Company’s investment in ACSL is less than its carrying amount.

In 2023 the Company recognised a reversal of impairment in its investments in subsidiaries of £13m. The Company’s

investment in ACSL had previously been impaired by £13m in the year ended 31 December 2017.

On 1 August 2023, the Court of Session confirmed that any residual surplus assets that remain after all plan-related

obligations of the Group’s main defined benefit plan, the abrdn UK Group (SLSPS) plan, are settled or otherwise

provided for would be available to ACSL as sponsoring employer (see Note 31 of the Group financial statements for

further details). Following this confirmation, the Directors of the Company assessed that it was appropriate to

consider ACSL’s pension scheme asset in determining the recoverable amount of ACSL. The recoverable amount

for ACSL was assessed based on the net assets of ACSL at 31 December 2023 which were £733m including a

defined benefit asset of £734m. This value of £734m was determined on an IAS 19 basis net of an authorised surplus

payments charge of 35%. The residual surplus assets that ACSL would realise would be significantly lower than this

surplus as would be expected following a buy-out transaction. However, even allowing for a prudent haircut to the

net assets for this, the net assets of ACSL would still be significantly in excess of ACSL’s carrying value before any

reversal of impairment of £13m and the reversal of impairment was recognised. This was a level 3 assessment as it

was measured using inputs which are not based on observable market data.

(d) Investments in subsidiaries at FVTPL

Investments in subsidiaries at FVTPL, valued at £405m (2023: £341m), relate to holdings in funds over which the

Company has control.

B. Investments in associates and joint ventures


	2024	2023
	£m	£m
Investment in associates measured at cost	—	—
Investment in joint venture measured at cost	196	196
Investments in associates and joint ventures	196	196

(a) Investment in associates

The Company has an interest of 25.3% (2023: 25.3%) in Tenet Group Limited (Tenet), a company incorporated in

England and Wales which is measured at cost less impairment. The carrying amount of the Company’s investment

in Tenet is £nil (2023: £nil). There were no capital contributions or impairments in relation to Tenet during the year

ended 31 December 2024 (2023: none). Tenet is currently in administration.

As noted in Note A(b) above, the Company’s remaining 20% interest in FBS is now also recognised as an investment

in an associate with a carrying value at 31 December 2024 of £nil.

(b) Investment in joint ventures

The Company has a 50% (2023: 50%) interest in Heng An Standard Life Insurance Company Limited (HASL), a

company incorporated in China. Further details on this joint venture are provided in Note 14 of the Group financial

statements.


			Annual report 2024	279


		FINANCIAL INFORMATION

C. Financial investments


		Fair value through profit or loss		Derivative financial instruments used for hedging		Amortised cost		Total
		2024	2023	2024	2023	2024	2023	2024	2023
	Notes	£m	£m	£m	£m	£m	£m	£m	£m
Investments in subsidiaries measured at FVTPL	A	405	341	—	—	—	—	405	341
Loan to subsidiaries		—	—	—	—	58	—	58	—
Derivative financial assets	D	—	—	50	41	—	—	50	41
Equity securities and interests in pooled investment funds		544	574	—	—	—	—	544	574
Debt securities		1	1	—	—	—	125	1	126
Receivables and other financial assets	E	—	—	—	—	60	46	60	46
Cash and cash equivalents		—	—	—	—	9	21	9	21
Total		950	916	50	41	127	192	1,127	1,149

The amount of debt securities expected to be recovered or settled after more than 12 months is £1m (2023: £1m).

The amount of loans to subsidiaries expected to be recovered or settled after more than 12 months is £10m (2023:

£nil). The amount of equity securities and interests in pooled investment funds expected to be recovered or settled

after more than 12 months is £544m (2023: £574m).

Under IFRS 9 the Company calculates expected credit losses (ECL) on financial assets which are measured at

amortised cost (refer to Note 34(c) of the Group financial statements), including loans to subsidiaries (which are

unrated). At 31 December 2024 the Company does not hold financial assets at amortised cost that it regards as

credit-impaired or for which it considers the probability of default would result in material expected credit losses.

The expected credit losses recognised were less than £1m ( 2023: less than £1m). In making this assessment the

Company has considered if any evidence is available to indicate the occurrence of an event which would result in a

detrimental impact on the estimated future cash flows of these assets.

D. Derivative financial instruments

The Company uses derivative financial instruments in order to reduce the risk from potential movements in foreign

exchange rates.


	2024			2023
	Contract amount	Fair value assets	Fair value liabilities	Contract amount	Fair value assets	Fair value liabilities
	£m	£m	£m	£m	£m	£m
Cash flow hedges	599	50	—	588	41	—
Foreign exchange forwards	33	—	—	40	—	—
Derivative financial instruments	632	50	—	628	41	—

The derivative asset of £50m (2023: derivative asset of £41m) is expected to be settled after more than 12 months.

On 18 October 2017, the Company issued subordinated notes with a principal amount of US $750m. In order to

manage the foreign exchange risk relating to the principal and coupons payable on these notes the Company

entered into a cross-currency swap which is designated as a hedge of future cash flows. The maturity profile of the

contractual undiscounted cash flows in relation to derivative financial instruments is as follows:


	Within 1 year		2-5 years		6-10 years		Total
	2024	2023	2024	2023	2024	2023	2024	2023
	£m	£m	£m	£m	£m	£m	£m	£m
Cash inflows
Cash flow hedges	25	25	663	676	—	—	688	701
Foreign exchange forwards	33	40	—	—	—	—	33	40
Total	58	65	663	676	—	—	721	741

Cash outflows
Cash flow hedges	(18)	(18)	(614)	(632)	—	—	(632)	(650)
Foreign exchange forwards	(33)	(40)	—	—	—	—	(33)	(40)
Total	(51)	(58)	(614)	(632)	—	—	(665)	(690)
Net derivative financial instruments cash flows	7	7	49	44	—	—	56	51


280	Annual report 2024


Company financial statements continued

E. Receivables and other financial assets


	2024	2023
	£m	£m
Amounts due from related parties	58	43
Other financial assets	2	3
Total receivables and other financial assets	60	46

The carrying amounts disclosed above reasonably approximate the fair values at the year end.

Receivables and other financial assets of £nil (2023: £nil) are expected to be recovered after more than 12 months.

F. Other assets


	2024	2023
	£m	£m
Prepayments	6	23
Other	—	24
Other assets	6	47

The amount of Other assets which are expected to be recovered after more than 12 months is £1m ( 2023: £21m).

Prepayments relate to the Group’s purchase of certain products in Phoenix’s savings business offered through

abrdn’s Wrap platform together with Phoenix’s trustee investment plan (TIP) business for UK pension scheme

clients. Refer Note 39(b) of the Group financial statements for further details.

During 2024, the Group has released £15m of the £19m prepayment recognised in relation to the TIP business to

other administrative expenses in the consolidated income statement following a review of the recoverability of

these costs from future profits from the TIP business. The transfer of this business to the Group is now expected to

occur in 2025.

Other includes £nil (2023: £24m) in respect of amounts due from related parties.

G. Share capital and share premium

Details of the Company’s share capital and share premium are given in Note 24 of the Group financial statements.

In 2024 the Company has not undertaken any share buybacks. Details of the share buyback undertaken by the

Company in 2023, including the impact on retained earnings and the capital redemption reserve (see Note J

below), are also included in Note 24 of the Group financial statements.

H. Shares held by trusts

Shares held by trusts relates to shares in abrdn plc that are held by the abrdn Employee Benefit Trust and the abrdn

Employee Trust. Further details of these trusts are provided in Note 25 of the Group financial statements.

I. Retained earnings

Details of the dividends paid on the ordinary shares by the Company are provided in Note 12 of the Group financial

statements. Note 12 also includes information regarding the final dividend proposed by the Directors for the year

ended 31 December 2024.

Refer Note J for details of the transfers from the merger reserve to retained earnings during the years ended

31 December 2024 and 31 December 2023.


			Annual report 2024	281


		FINANCIAL INFORMATION

J. Movements in other reserves

The following tables show the movements in other reserves during the year:


	Merger reserve	Equity compensation reserve	Special reserve	Capital redemption reserve	Cash flow hedges	Total
	£m	£m	£m	£m	£m	£m
At 1 January 2024	106	40	115	48	14	323
Fair value losses on cash flow hedges	—	—	—	—	20	20
Realised losses on cash flow hedges transferred to income statement	—	—	—	—	(18)	(18)
Reserves credit for employee share-based payments	—	26	—	—	—	26
Transfer to retained earnings for vested employee share-based payments	—	(32)	—	—	—	(32)
Transfer between reserves on impairment of subsidiaries	(94)	—	—	—	—	(94)
At 31 December 2024	12	34	115	48	16	225


	Merger reserve	Equity compensation reserve	Special reserve	Capital redemption reserve	Cash flow hedges	Total
	£m	£m	£m	£m	£m	£m
At 1 January 2023	275	47	115	25	23	485
Fair value losses on cash flow hedges	—	—	—	—	(40)	(40)
Realised losses on cash flow hedges transferred to income statement	—	—	—	—	28	28
Shares bought back on-market and cancelled	—	—	—	23	—	23
Reserves credit for employee share-based payments	—	24	—	—	—	24
Transfer to retained earnings for vested employee share-based payments	—	(31)	—	—	—	(31)
Transfer between reserves on impairment of subsidiaries	(169)	—	—	—	—	(169)
Tax effect of items that may be reclassified subsequently to profit or loss	—	—	—	—	3	3
At 31 December 2023	106	40	115	48	14	323

Following the impairment losses recognised in 2024 and 2023 on the Company’s investment in aIHL, £94m and

£169m was transferred from the merger reserve to retained earnings during the years ended 31 December 2024

and 31 December 2023 respectively. Refer Note A for details of these impairments.

K. Other equity

5.25 % Fixed Rate Reset Perpetual Subordinated Contingent Convertible Notes

In 2021, the Company issued £210m of 5.25% Fixed Rate Reset Perpetual Subordinated Contingent Convertible

Notes (the Notes). The Notes are classified as other equity and were initially recognised at £207m (the proceeds

received less issuance costs of £3m). Refer Note 28 (a) of the Group financial statements for further details.

The profit for the year attributable to other equity was £11m (2023: £11m).


282	Annual report 2024


Company financial statements continued

L. Financial liabilities


		Designated as Fair Value through Profit or loss		Amortised Cost		Total
		2024	2023	2024	2023	2024	2023
	Notes	£m	£m	£m	£m	£m	£m
Subordinated liabilities	M	—	—	597	599	597	599
Other financial liabilities	O	5	8	184	158	189	166
Total		5	8	781	757	786	765

M. Subordinated liabilities


	2024		2023
	Principal	Carrying amount value	Principal	Carrying amount value
Subordinated notes:
4.25% US Dollar fixed rate due 30 June 2028	$750m	£597m	$750m	£599m
Total subordinated liabilities		£597m		£599m

The principal amount of the subordinated liabilities is expected to be settled after more than 12 months. There was

no accrued interest on the subordinated liabilities at 31 December 2024 (2023: £13m). Any accrued interest is

expected to be settled within 12 months.

Further information on the subordinated liabilities including the terms and conditions is given in Note 30 of the Group

financial statements.


			Annual report 2024	283


		FINANCIAL INFORMATION

N. Taxation

(a) Current tax

Current tax recoverable amounts at 31 December 2024 were £12m (2023: liability of £1m). Current tax assets at

31 December 2024 are expected to be recoverable in less than 12 months.

(b) Deferred tax


	2024	2023
	£m	£m
Deferred tax assets	138	150

The amount of deferred tax assets expected to be recovered or settled after more than 12 months are £121m

(2023: £150m).

Recognised deferred tax


	2024	2023
	£m	£m
Deferred tax assets comprise:
Losses carried forward	143	155
Gross deferred tax assets	143	155
Less: Offset against deferred tax liabilities	(5)	(5)
Deferred tax assets	138	150
Deferred tax liabilities comprise:
Unrealised gains on cash flow hedges	5	5
Gross deferred tax liabilities	5	5
Less: Offset against deferred tax assets	(5)	(5)
Net deferred tax asset at 31 December	138	150
Movements in net deferred tax assets comprise:
At 1 January	150	143
Amounts credited to profit or loss	(12)	4
Amounts charged to other comprehensive income	—	3
At 31 December	138	150

The deferred tax assets and liabilities recognised are in respect of unused tax losses and unrealised gains on cash

flow hedges respectively. The deferred tax assets are recognised to the extent that it is probable that the losses will

be capable of being offset against future taxable profits (refer Note 9(d)(i) of the Group financial statements).

There is no unrecognised deferred tax relating to temporary timing differences associated with investments in

subsidiaries, branches and associates and interests in joint arrangements (2023: none).

Due to uncertainty regarding recoverability, deferred tax assets have not been recognised in respect of capital

losses carried forward of £32m (2023: £8m). UK capital losses can be carried forward indefinitely.


284	Annual report 2024


Company financial statements continued

Movements in deferred tax assets and liabilities


	Losses carried forward	Unrealised gains on investments	Unrealised gains or losses on cash flow hedges	Net deferred tax asset
	£m	£m	£m	£m
At 1 January 2024	155	—	(5)	150
Amounts credited to the income statement	(12)	—	—	(12)
Tax on cash flow hedge	—	—	—	—
At 31 December 2024	143	—	(5)	138


	Losses carried forward	Unrealised gains on investments	Unrealised gains or losses on cash flow hedges	Net deferred tax asset
	£m	£m	£m	£m
At 1 January 2023	151	—	(8)	143
Amounts credited to the income statement	4	—	—	4
Tax on cash flow hedge	—	—	3	3
At 31 December 2023	155	—	(5)	150

O. Other financial liabilities


	2024	2023
	£m	£m
Outstanding purchase of investment securities	1	1
Amounts due to related parties	121	109
Collateral held in respect of derivative contracts	52	39
Contingent consideration liabilities	5	8
Other	10	9
Other financial liabilities	189	166

Other financial liabilities of £5m (2023: £5m) are expected to be settled after more than 12 months.

P. Provisions and other liabilities

The Company has no provisions at 31 December 2024 (2023: £nil). During the year ended 31 December 2023, the

Company released a £32m provision relating to separation costs. Refer Note 33 of the Group financial statements

for further information.

Of Other liabilities at 31 December 2024 of £1m (2023: £nil), £1m was expected to be settled within 12 months

(2023: £nil) and was in respect of amounts due to related parties.


			Annual report 2024	285


		FINANCIAL INFORMATION

Q. Contingent liabilities, contingent assets, indemnities and guarantees

(a) Legal proceedings and regulations

The Company, like other financial organisations, is subject to legal proceedings and complaints in the normal course

of its business. All such material matters are periodically reassessed, with the assistance of external professional

advisers where appropriate, to determine the likelihood of the Company incurring a liability. Where it is concluded

that it is more likely than not that a material outflow will be made a provision is established based on management’s

best estimate of the amount that will be payable. At 31 December 2024, there are no identified contingent liabilities

expected to lead to a material exposure.

(b) Indemnities and guarantees

Under the trust deed in respect of the abrdn UK Group (SLSPS) plan, ACSL, the principal employer, must pay

contributions to the pension plan as the trustee’s actuary may certify necessary. The Company has guaranteed the

obligations of ACSL in relation to this plan. In addition, the Company has guaranteed similar obligations in respect of

certain other subsidiaries’ UK and Ireland defined benefit pension plans.

None of the guarantees issued by the Company give rise to any significant liabilities at 31 December 2024

(2023: none).

R. Related party transactions

(a) Key management personnel

The Directors and key management personnel of the Company are considered to be the same as for the Group.

See Note 41 of the Group financial statements for further information.


286	Annual report 2024


Supplementary information

Supplementary information

1. Alternative performance measures1

We assess our performance using a variety of measures that are not defined under IFRS and are therefore termed

alternative performance measures (APMs). The APMs that we use may not be directly comparable with similarly

named measures used by other companies. We have presented below reconciliations from these APMs to the most

appropriate measure prepared in accordance with IFRS. All APMs should be read together with the 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, and related metrics. Adjusted operating profit

excludes certain items which are likely to be recurring such as restructuring costs, amortisation of certain intangibles,

dividends from significant listed investments and the share of profit or loss from associates and joint ventures.

Metric used for executive remuneration in 2024. See page 127 for more information.


Definition	Purpose
Adjusted operating profit
Adjusted operating profit is the Group’s key APM, and is reported on a pre-tax basis. Adjusted operating profit includes the results of the Group’s three businesses: ii, Adviser and Investments, along with Other business operations and corporate costs. It excludes the Group’s adjusted net financing costs and investment return. Adjusted operating profit also excludes the impact of the following items: – Restructuring and corporate transaction expenses. Restructuring includes the impact of major regulatory change. – Amortisation and impairment of intangible assets acquired in business combinations and through the purchase of customer contracts. – Profit or loss arising on the disposal of a subsidiary, joint venture or equity accounted associate. – Change in fair value of/dividends from significant listed investments. – Share of profit or loss from associates and joint ventures. – Impairment loss/reversal of impairment loss recognised on investments in associates and joint ventures accounted for using the equity method. – Fair value movements in contingent consideration. – Items which are one-off and, due to their size or nature, are not indicative of the long-term operating performance of the Group. – Further details are included in Note 11 of the Group financial statements.	Adjusted operating profit reporting provides further analysis of the results reported under IFRS and the Directors believe it helps to give shareholders a fuller understanding of the performance of the business by identifying and analysing adjusting items. Segment reporting used in management information is reported to the level of adjusted operating profit.
Adjusted net operating revenue
Adjusted net operating revenue is a component of adjusted operating profit and includes revenue we generate from asset management charges (AMCs), platform charges, treasury income and other transactional charges. AMCs are earned on products such as mutual funds, and are calculated as a percentage fee based on the assets held. Investment risk on these products rests principally with the client, with our major indirect exposure to rising or falling markets coming from higher or lower AMCs. Treasury income is the interest earned on cash balances less the interest paid to customers. It excludes items which are one-off and, due to their size, or nature are not indicative of the long-term operating performance of the Group. Adjusted net operating revenue is shown net of fees, cost of sales, commissions and similar charges. Cost of sales include revenue from fund platforms which is passed to the product provider.	Adjusted net operating revenue is a component of adjusted operating profit and provides the basis for reporting of the revenue yield financial ratio. Adjusted net operating revenue is also used to calculate the cost/income ratio.
Adjusted operating expenses
Adjusted operating expenses is a component of adjusted operating profit and relates to the day-to-day expenses of managing our business. Adjusted operating expenses excludes restructuring and corporate transaction expenses. Adjusted operating expenses also excludes amortisation and impairment of intangible assets acquired in business combinations and through the purchase of customer contracts.	Adjusted operating expenses is a component of adjusted operating profit and is used to calculate the cost/income ratio.
Adjusted profit before tax
In addition to the results included in adjusted operating profit above, adjusted profit before tax includes adjusted net financing costs and investment return.	Adjusted profit before tax is a key input to the adjusted earnings per share measure.
Adjusted net financing costs and investment return
Adjusted net financing costs and investment return is a component of adjusted profit and relates to the return from the net assets of the shareholder business, net of costs of financing. This includes the net assets in defined benefit staff pension plans and net assets relating to the financing of subordinated liabilities.	Adjusted net financing costs and investment return is a component of adjusted profit before tax.

1. Supplementary information is unaudited in line with previous years.


			Annual report 2024	287


		FINANCIAL INFORMATION


Definition	Purpose
Cost/income ratio
This is an efficiency measure that is calculated as adjusted operating expenses divided by adjusted net operating revenue.	This ratio is used by management to assess efficiency and reported to the Board and the ‘Chief Operating Decision Maker’.
Adjusted net operating revenue yield (bps)
The adjusted net operating revenue yield is a measure that illustrates the average margin being earned on the assets that we manage or administer and excludes the ii business. It is calculated as annualised adjusted net operating revenue (excluding performance fees, ii and revenue for which there are no attributable assets) divided by monthly average fee based assets. The ii business is excluded from the calculation of adjusted net operating revenue yield as fees charged for this business are primarily from subscriptions and trading transactions.	The adjusted net operating revenue yield is a measure that illustrates the average margin being earned on the assets that we manage or administer and excludes the ii business.
Adjusted diluted earnings per share
Adjusted diluted earnings per share is calculated on adjusted profit after tax. The weighted average number of ordinary shares in issue is adjusted during the period to assume the conversion of all dilutive potential ordinary shares, such as share options granted to employees. Details on the calculation of adjusted diluted earnings per share are set out in Note 10 of the Group financial statements.	Earnings per share is a commonly used financial metric which can be used to measure the profitability and capital efficiency of a company over time. We also calculate adjusted diluted earnings per share to illustrate the impact of adjusting items on the metric. This ratio is used by management to assess performance and reported to the Board and ‘Chief Operating Decision Maker’.
Adjusted capital generation
Adjusted capital generation is part of the analysis of movements in IFPR regulatory capital. Adjusted capital generation is calculated as adjusted profit after tax less returns relating to pension schemes in surplus and interest paid on other equity (Additional Tier 1 instruments). It also includes dividends from associates, joint ventures and significant listed investments.	These measures aim to show how adjusted profit contributes to regulatory capital, and therefore provides insight into our ability to generate capital that is deployed to support value for shareholders.
Net capital generation
Net capital generation is calculated as adjusted capital generation less restructuring and corporate transaction expenses (net of tax).
Adjusted diluted capital generation per share
Adjusted diluted capital generation per share is calculated as adjusted capital generation divided by the weighted average number of diluted ordinary shares outstanding.	These ratios are measures used to assess performance for dividend paying capability.
Net diluted capital generation per share
Net diluted capital generation per share is calculated as net capital generation divided by the weighted average number of diluted ordinary shares outstanding.
Cash and liquid resources
Cash and liquid resources are IFRS cash and cash equivalents (netted down for overdrafts), money market instruments and holdings in money market funds. It also includes surplus cash that has been invested in liquid assets such as high-quality corporate bonds, gilts and pooled investment funds. Seed capital and co- investments are excluded. Cash collateral, cash held for charitable funds and cash held in employee benefit trusts are excluded from cash and liquid resources.	The purpose of this measure is to demonstrate how much cash and invested assets we hold and can be readily accessed.


288	Annual report 2024


Supplementary information continued

1.1. Adjusted operating profit and adjusted profit

Reconciliation of adjusted operating profit and adjusted profit to IFRS profit by component

The components of adjusted operating profit are adjusted net operating revenue and adjusted operating expenses.

These components provide a meaningful analysis of our adjusted results. The table below provides a reconciliation

of movements between adjusted operating profit component measures and relevant IFRS terms.

A reconciliation of Adjusted operating expenses to the IFRS item Total administrative and other expenses, and a

reconciliation of Adjusted net financing costs and investment return to the IFRS item Net gains on financial

instruments and other income are provided in Note 2b(ii) of the Group financial statements. A reconciliation of

adjusted net operating revenue to the IFRS item Revenue from contracts with customers is provided in Note 3 of the

Group financial statements.


IFRS term	IFRS	Presentation differences	Adjusting items	Adjusted profit	Adjusted profit term
2024	£m	£m	£m	£m
Net operating revenue	1,305	—	16	1,321	Adjusted net operating revenue1
Total administrative and other expenses	(1,313)	(16)	263	(1,066)	Adjusted operating expenses2
	(8)	(16)	279	255	Adjusted operating profit
Total net gains or losses on financial instruments and other income	160	(7)	(54)	99	Adjusted net financing costs and investment return
Finance costs	(25)	23	2	—	N/A
Profit on disposal of subsidiaries and other operations	89	—	(89)	—	N/A
Profit on disposal of interests in joint ventures	11	—	(11)	—	N/A
Share of profit or loss from associates and joint ventures	24	—	(24)	—	N/A
Profit before tax	251	—	103	354	Adjusted profit before tax
Total tax expense	(3)	—	(67)	(70)	Tax on adjusted profit
Profit for the year	248	—	36	284	Adjusted profit after tax

1. The measure of segmental revenue has been renamed from net operating revenue to adjusted net operating revenue.

2. Adjusted operating expenses includes staff and other related costs of £548m compared with IFRS staff costs and other employee-related costs

of £510m. The difference primarily relates to the inclusion of contractor, temporary agency staff and recruitment and training costs of £18m

(IFRS basis: Reported within other administrative expenses) and gains on funds to hedge deferred bonus awards of £2m (IFRS basis: Reported

within other net gains on financial instruments and other income) within staff and other related costs. IFRS staff costs and other employee-

related costs includes the benefit from the net interest credit relating to the staff pension schemes of £22m (Adjusted profit basis: Reported

within adjusted net financing costs and investment return and other adjusting items respectively).


IFRS term	IFRS	Presentation differences	Adjusting items	Adjusted profit
2023	£m	£m	£m	£m	Adjusted profit term
Net operating revenue	1,398	—	—	1,398	Adjusted net operating revenue
Total administrative and other expenses	(1,463)	(29)	343	(1,149)	Adjusted operating expenses
	(65)	(29)	343	249	Adjusted operating profit
Net gains or losses on financial instruments and other income	2	6	73	81	Adjusted net financing costs and investment return
Finance costs	(25)	23	2	—	N/A
Profit on disposal of subsidiaries and other operations	79	—	(79)	—	N/A
Share of profit or loss from associates and joint ventures	1	—	(1)	—	N/A
Reversal of impairment of interests in joint ventures	2	—	(2)	—	N/A
Loss before tax	(6)	—	336	330	Adjusted profit before tax
Total tax credit	18	—	(68)	(50)	Tax on adjusted profit
Profit for the year	12	—	268	280	Adjusted profit after tax

Presentation differences primarily relate to amounts presented in a different line item of the consolidated income

statement.


			Annual report 2024	289


		FINANCIAL INFORMATION

Analysis of adjusting items

The table below provides detail of the adjusting items made in the calculation of adjusted profit before tax:


	2024	2023
	£m	£m
Restructuring and corporate transaction expenses	(100)	(152)
Amortisation and impairment of intangible assets acquired in business combinations and through the purchase of customer contracts	(129)	(189)
Profit on disposal of subsidiaries and other operations	89	79
Profit on disposal of interests in joint ventures	11	—
Change in fair value of significant listed investments	(27)	(178)
Dividends from significant listed investments	56	64
Share of profit or loss from associates and joint ventures	24	1
Reversal of impairment of interests in joint ventures	—	2
Other	(27)	37
Total adjusting items including results of associates and joint ventures	(103)	(336)

An explanation for why individual items are excluded from adjusted profit is set out below:

– Restructuring and corporate transaction expenses are excluded from adjusted profit. Restructuring includes the

impact of major regulatory change. By highlighting and excluding these costs we aim to give shareholders a fuller

understanding of the performance of the business. Restructuring and corporate transaction expenses include

costs relating to acquisitions and our transformation programmes. Other restructuring costs excluded from

adjusted profit relate to projects which have a significant impact on the way the Group operates. Costs are only

excluded from adjusted profit where they are out-with business as usual activities and the costs would not have

been incurred had the restructuring project not taken place. The 2024 expenses mainly comprised £61m of costs

to implement our cost transformation programme (total 2024 implementation costs of £73m includes £12m loss

on disposal of subsidiary in respect of the partial disposal of Focus Business Solutions), £12m in respect of platform

transformation (2023: £26m), £7m in relation to specific costs to effect savings in investments (2023: £17m) and

£8m in respect of other restructuring activities. In 2023, restructuring costs were, partially offset by a credit of

£30m in respect of Phoenix separation costs following the £(32)m release of a related provision. Corporate

transaction costs of £12m (2023: £31m) mainly related to prior period acquisitions. Restructuring expenses in 2025

are expected to include costs of c.£80m relating to the multi-year cost transformation programme which is

expected to complete in 2025.

– Amortisation and impairment of intangible assets acquired in business combinations and through the purchase of

customer contracts is included as an adjusting item. This is consistent with peers and therefore excluding these

items aids comparability. Highlighting this as an adjusting item aims to give a fuller understanding of these

accounting impacts which arise where businesses have been acquired but do not arise where businesses have

grown organically. Further details are provided in Note 13 of the Group financial statements.

– Profit on disposal of subsidiaries and other operations of £89m in 2024 relates to £92m from the sale of our

European-headquartered Private Equity business, £9m from the sale of threesixty services, and £(12)m from the

sale of 80% of Focus Business Solutions. In 2023 the profit on disposal of subsidiaries and other operations mainly

related to the sales of our discretionary fund management business and our US private equity and venture capital

business. These items are excluded from adjusted profit as they are non-recurring in nature.

– Profit on disposal of interests in joint ventures of £11m (2023: £nil) relates to the sale of our shareholding in Virgin

Money UTM. Refer to Note 14 for further details.

– The change in fair value of significant listed investments was negative £27m (2023: negative £178m) and in 2024

represents the impact of market movements on our shareholding in Phoenix. Excluding fair value movements on

significant listed investments for the purposes of adjusted profit is aligned with our treatment of gains on disposal

for these holdings when they were classified as an associate, and reflects that the fair value movements are not

indicative of the long-term operating performance of the Group.

– Dividends from significant listed investments relates to our shareholding in Phoenix. The £56m in 2024 relates to

dividends received from Phoenix. The £64m in 2023 relates to dividends from Phoenix (£54m) and HDFC Asset

Management (£10m). Dividends from significant listed investments are included in adjusting items, as such

dividends result in fair value movements.

– Share of profit or loss from associates and joint ventures was a profit of £24m (2023: profit £1m). In 2024, this

mainly comprises the share of profit or loss from our holdings in HASL and Archax. Associate and joint venture

results are excluded from adjusted profit to help in understanding the performance of our core business

separately from these holdings.

– The reversal of impairment of interests in associates and joint ventures in 2023 of £2m related to our joint venture

in Virgin Money UTM. Refer to Note 14 for further details.


290	Annual report 2024


Supplementary information continued

– Details on items classified as ‘Other’ in the table above are provided in Note 11 of the Group financial statements.

Other adjusting items in 2024 primarily relates to £(16)m negative adjustment to revenue recognised in prior

periods which were not restated as the impact was not considered material, £(15)m negative release of the

prepayment recognised in relation to the Group’s purchase of Phoenix’s trustee investment plan business for UK

pension scheme clients and £(10)m net expense (2023: £(9)m) related to properties which are not being used

operationally. Other adjusting items in 2024 also includes a £11m gain (£23m gain) for net fair value movements in

contingent consideration. Other adjusting items in 2023 also included a £36m insurance liability recovery in

relation to the single process execution event in 2022.

1.2. Cost/income ratio


	2024	2023
Adjusted operating expenses (£m)	(1,066)	(1,149)
Adjusted net operating revenue (£m)	1,321	1,398
Cost/income ratio (%)	81	82

1.3. Adjusted net operating revenue yield (bps)


	Average AUMA (£bn)		Adjusted net operating revenue (£m)		Adjusted net operating revenue yield (bps)
	2024	2023	2024	2023	2024	2023
Adviser1	74.7	70.8	237	224	31.2	30.6
Institutional and Retail Wealth	210.5	220.0	648	716	30.8	32.6
Insurance Partners	158.0	147.7	137	148	8.7	10.0
Investments	368.5	367.7	785	864	21.3	23.5
Eliminations2	(7.4)	(7.8)	N/A	N/A	N/A	N/A
Adjusted net operating revenue yield2	435.8	430.7	1,022	1,088	23.4	25.1
ii2			278	287
Performance fees3			12	14
Other			9	9
Adjusted net operating revenue			1,321	1,398

Analysis of Institutional & Retail Wealth by asset class


	Average AUM (£bn)		Adjusted net operating revenue (£m)		Adjusted net operating revenue yield (bps)
	2024	2023	2024	2023	2024	2023
Equities	45.5	49.1	288	298	63.3	60.7
Fixed income	34.8	35.2	91	89	26.2	25.1
Multi-asset	24.9	26.5	43	61	17.1	23.1
Private equity	2.2	10.7	10	48	44.4	44.7
Real assets	37.6	39.5	159	171	42.4	43.4
Alternative investment solutions including private credit	26.0	23.8	34	31	13.2	13.1
Quantitative	19.3	15.9	7	5	3.7	3.1
Liquidity	20.2	19.3	16	13	7.9	6.9
Institutional and Retail Wealth	210.5	220.0	648	716	30.8	32.6

1. Adviser adjusted net operating revenue yield excludes revenue of £4m (2023: £7m) for which there are no attributable assets.

2. ii is excluded from the calculation of adjusted net operating revenue yield as fees charged for this business are primarily from subscriptions and

trading transactions. ii includes financial planning revenue previously classified as Personal Wealth, comparatives also include revenue relating to

abrdn Capital. Comparatives, including Eliminations have been restated.

3. Performance fees consist of Institutional & Retail Wealth £6m (2023: £8m) and Insurance Partners £6m (2023: £6m).


			Annual report 2024	291


		FINANCIAL INFORMATION

1.4. Additional ii information

The tables below provide additional detail of ii operational metrics.


ii operational metrics1	2024	2023
Total customers at period end	439k	407k
Customers holding a SIPP account	80.6k	62.4k
Customer cash balances	£6.2bn	£5.5bn
AUA per customer	£168k	£152k
New customers	50.7k	30.2k
Daily average retail trading volumes	20.1k	15.7k

1. Excludes our financial planning business.

1.5. Net capital generation

The table below provides a reconciliation of movements between adjusted profit after tax and net capital

generation. A reconciliation of adjusted profit after tax to IFRS profit for the year is included earlier in this section.


	2024	2023
	£m	£m
Adjusted profit after tax	284	280
Less net interest credit relating to the staff pension schemes	(22)	(34)
Less interest paid on other equity	(11)	(11)
Add dividends received from associates, joint ventures and significant listed investments	56	64
Adjusted capital generation	307	299
Less restructuring and corporate transaction expenses (net of tax)	(69)	(121)
Net capital generation	238	178

Net interest credit relating to the staff pension schemes

The net interest credit relating to the staff pension schemes is the contribution to adjusted profit before tax from

defined benefit pension schemes which are in surplus.

Dividends received from associates, joint ventures and significant listed investments

An analysis is provided below:


	2024	2023
	£m	£m
Phoenix	56	54
HDFC Asset Management	—	10
Dividends received from associates, joint ventures and significant listed investments	56	64

The table below provides detail of dividend coverage on an adjusted capital generation basis.


	2024	2023
Adjusted capital generation (£m)	307	299
Full year dividend (£m)	260	267
Dividend cover on an adjusted capital generation basis (times)	1.18	1.12


292	Annual report 2024


Supplementary information continued

1.6. Net diluted capital generation per share

A reconciliation of net capital generation to adjusted profit after tax is included in 1.5 a bove.


	2024	2023
Adjusted capital generation (£m)	307	299
Net capital generation (£m)	238	178
Weighted average number of diluted ordinary shares outstanding (millions)	1,818	1,930
Adjusted diluted capital generation per share (pence)	16.9	15.5
Net diluted capital generation per share (pence)	13.1	9.2

1.7. Cash and liquid resources

The table below provides a reconciliation between IFRS cash and cash equivalents and cash and liquid resources.

Seed capital and co-investments are excluded.


	2024	2023
	£bn	£bn
Cash and cash equivalents per the consolidated statement of financial position	1.3	1.2
Debt securities excluding third party interests1 – Note 34 (c)(i) of the Group financial statements	0.5	0.7
Other2	(0.1)	(0.1)
Cash and liquid resources	1.7	1.8

1. Excludes £69m (2023: £86m) relating to seeding.

2. Cash collateral, cash held for charitable funds and cash held in employee benefit trusts are excluded from cash and liquid resources.


			Annual report 2024	293


		FINANCIAL INFORMATION

2. Investment performance


Definition	Purpose
Investment performance
Investment performance is a measure of how investments are performing relative to a benchmark, target, or other comparator. The calculation covers funds that aim to outperform or track a benchmark/target, with certain assets excluded where these measures of performance are not appropriate or expected, such as certain private markets and execution only mandates. Benchmarks and targets differ by fund and are defined in the relevant investment management agreement or prospectus, as appropriate. The investment performance data is calculated internally by abrdn to give users guidance on how we are delivering positive investment outcomes for our clients. It is not intended for clients or potential clients investing in our products as more specific information and reporting is available for this purpose. Investment performance has been aggregated using a money weighted average of our assets under management. Calculations for investment performance are made gross of fees except for those funds for which the stated comparator is net of fees. The calculation uses a closing AUM weighting basis and is based on AUM data available as at the relevant reporting date. As at 31 December 2024, 80% of AUM is covered by this metric, performance is calculated relative to the relevant comparator for each investment strategy on the basis of: – Assets ahead of the benchmark or target defined in the investment management agreement or prospectus, as appropriate. This applies to 60% of the AUM. – Assets where the objective is to track an index are assessed based on being within or above an applicable tolerance for the strategy. This applies to 20% of the AUM.	As an asset managing business this measure demonstrates our ability to generate investment returns for our clients.


	1 year			3 year			5 year
% of AUM performing	2024	2023 restated 1	2023	2024	2023 restated 1	2023	2024	2023 restated 1	2023
Equities	32	27	27	15	17	17	25	48	48
Fixed income	83	81	81	90	75	75	93	84	84
Multi-asset	85	12	12	36	15	15	71	22	22
Real assets	30	30	30	46	56	56	56	45	45
Alternatives	94	98	100	100	98	100	100	98	100
Quantitative	98	100	100	90	100	100	96	95	37
Liquidity	100	100	100	100	95	95	100	97	97
Total	77	55	44	60	51	42	71	58	52

% of AUM covered by metric	80%	75%	61%

The extension to the scope of the investment performance calculation primarily relates to alternatives and

quantitative asset classes; the table below provides additional detail highlighting the change to these asset classes:


	1 year			3 years			5 years
% of AUM performing	2024	2023 restated 1	2023	2024	2023 restated 1	2023	2024	2023 restated 1	2023
Alternatives	94	98	100	100	98	100	100	98	100
Active	100	97	100	100	97	100	100	97	100
Index	78	100	N/A	100	100	N/A	100	N/A	N/A
Quantitative	98	100	100	90	100	100	96	95	37
Active	100	100	100	27	100	100	94	37	37
Index	98	100	N/A	100	100	N/A	96	99	N/A

1. The scope of the investment performance calculation has been extended to include index tracker funds which were previously excluded from

this metric. 2023 comparatives have been restated. We believe that this approach provides a more representative view of our overall investment

performance.


294	Annual report 2024


Supplementary information continued

3. Assets under management and administration and flows


Definition	Purpose
AUMA
AUMA is a measure of the total assets we manage, administer or advise on behalf of our clients. It includes assets under management (AUM), assets under administration (AUA) and assets under advice (AUAdv). AUMA does not include assets for associates and joint ventures. AUM is a measure of the total assets that we manage on behalf of individual and institutional clients. AUM also includes assets managed for corporate purposes. AUA is a measure of the total assets we administer for clients through our Platforms. AUAdv is a measure of the total assets we advise our clients on, for which there is an ongoing charge.	The amount of funds that we manage, administer or advise directly impacts the level of revenue that we receive.
Net flows
Net flows represent gross inflows less gross outflows or redemptions. Gross inflows are new funds from clients. Redemptions is the money withdrawn by clients during the period. Cash dividends which are retained on the ii platform are included in net flows for the ii business only. Cash dividends are included in market movements for other parts of the group including the Investments and Adviser platform businesses. We consider that this different approach is appropriate for the ii business as cash dividend payments which are retained result in additional income for ii, but are largely revenue neutral for the rest of the Group.	The level of net flows that we generate directly impacts the level of revenue that we receive.

3.1. Analysis of AUMA


	Opening AUMA at 1 Jan 2024	Gross inflows	Redemptions	Net flows	Market and other movements	Corporate actions6	Closing AUMA at 31 Dec 2024
12 months ended 31 December 2024	£bn	£bn	£bn	£bn	£bn	£bn	£bn
ii1	66.0	13.7	(8.0)	5.7	5.8	—	77.5
Adviser2	73.5	6.5	(10.4)	(3.9)	5.6	—	75.2
Institutional & Retail Wealth3	211.2	36.7	(36.4)	0.3	5.6	(6.6)	210.5
Insurance Partners3,4	155.5	23.8	(28.1)	(4.3)	8.0	—	159.2
Investments	366.7	60.5	(64.5)	(4.0)	13.6	(6.6)	369.7
Eliminations5	(11.3)	(2.4)	3.5	1.1	(0.8)	—	(11.0)
Total AUMA	494.9	78.3	(79.4)	(1.1)	24.2	(6.6)	511.4


	Opening AUMA at 1 Jan 2023	Gross inflows	Redemptions	Net flows	Market and other movements	Corporate actions7	Closing AUMA at 31 Dec 2023
12 months ended 31 December 2023	£bn	£bn	£bn	£bn	£bn	£bn	£bn
ii1	67.1	10.2	(7.3)	2.9	4.1	(8.1)	66.0
Adviser2	68.5	5.8	(7.9)	(2.1)	4.6	2.5	73.5
Institutional & Retail Wealth	231.2	28.1	(46.0)	(17.9)	(1.0)	(1.1)	211.2
Insurance Partners4	144.9	22.2	(23.3)	(1.1)	11.7	—	155.5
Investments	376.1	50.3	(69.3)	(19.0)	10.7	(1.1)	366.7
Eliminations5	(11.7)	(2.2)	2.8	0.6	—	(0.2)	(11.3)
Total AUMA	500.0	64.1	(81.7)	(17.6)	19.4	(6.9)	494.9

1. Includes financial planning business AUA at 31 December 2024 of £3.7bn (2023: £4.3bn).

2. Includes Platform AUA at 31 December 2024 of £72.4bn (2023: £70.9bn).

3. Market and other movements includes transfer of £1.7bn assets from Quantitative mandates in Institutional & Retail Wealth to Insurance

Partners.

4. Insurance Partners AUM at 31 December 2024 includes £158.1bn (2023: £154.4bn) relating to Phoenix and £1.1bn ( 2023: £1.1bn) of other AUM.

5. Eliminations remove the double count reflected in Investments, Adviser and ii.

6. Corporate actions in 2024 relate to the disposal of our European-headquartered Private Equity business in April 2024 (£(7.0)bn) and the

acquisition of First Trust Advisors closed-end funds in July and September 2024 (£0.3bn and £0.1bn).

7. Corporate actions in 2023 relate to the acquisition of Macquarie closed-end funds in March and July 2023 (£0.5bn and £0.2bn) and Tekla

healthcare fund management capabilities in October 2023 (£2.3bn) and the disposals of our discretionary fund management business in

September 2023 (£6.1bn) and US private equity and venture capital business in October 2023 (£4.1bn). Corporate actions also include the

transfer of the MPS business from Personal Wealth to Adviser in May 2023 of £2.5bn, and investment share plan and ISA customers who moved

on to the ii platform in December 2023 (£0.5bn), and resulting impact on eliminations.


			Annual report 2024	295


		FINANCIAL INFORMATION

3.2. Quarterly net flows


	3 months to 31 Dec 2024	3 months to 30 Sep 2024	3 months to 30 Jun 2024	3 months to 31 Mar 2024	3 months to 31 Dec 2023
15 months ended 31 December 2024	£bn	£bn	£bn	£bn	£bn
ii	1.4	1.2	1.9	1.2	0.5
Adviser	(0.9)	(1.0)	(1.1)	(0.9)	(1.0)
Institutional & Retail Wealth	2.3	(2.4)	(0.3)	0.7	(5.8)
Insurance Partners	(1.8)	(1.1)	(0.9)	(0.5)	0.3
Investments	0.5	(3.5)	(1.2)	0.2	(5.5)
Eliminations	0.2	0.2	0.4	0.3	0.3
Total net flows	1.2	(3.1)	—	0.8	(5.7)

4. Public markets and Alternatives investment capability

We have simplified and focused our investment capabilities on areas where we have both the skill and the scale to

capitalise on the key themes shaping the market, through either public markets or alternative asset classes. This

analysis includes Institutional, Retail Wealth and Insurance Partners.

Analysis of AUM and adjusted net operating revenue


	AUM (£bn)		Adjusted net operating revenue (£m)
	2024	2023	2024	2023
Equities	62.4	67.8	318	341
Fixed income (including Liquidity)1	124.2	122.4	165	156
Multi-asset	28.7	32.3	57	81
Quantitative	84.7	67.8	23	18
Public markets	300.0	290.3	563	596
Real assets	41.5	42.8	173	188
Private credit	7.7	8.8	17	15
Alternative investment solutions	20.5	17.1	32	28
Private equity	—	7.7	12	51
Alternatives	69.7	76.4	234	282
Total Investments	369.7	366.7	797	878

1. Total liquidity AUM at 31 December 2024 was £38.6bn (2023: £35.3bn). Total liquidity adjusted net operating revenue was £25m (2023: £23m).


296	Annual report 2024


Supplementary information continued

5. Institutional and Retail Wealth AUM

Detailed asset class split


	Opening AUM at 1 Jan 2024	Gross inflows	Redemptions	Net flows	Market and other movements 1	Corporate actions2	Closing AUM at 31 Dec 2024
12 months ended 31 December 2024	£bn	£bn	£bn	£bn	£bn	£bn	£bn
Developed markets equities	11.8	1.0	(2.6)	(1.6)	0.4	—	10.6
Emerging markets equities	11.1	1.4	(3.9)	(2.5)	0.3	—	8.9
Asia Pacific equities	16.3	2.0	(5.1)	(3.1)	1.8	—	15.0
Global equities	8.5	1.1	(1.8)	(0.7)	0.7	—	8.5
Total equities	47.7	5.5	(13.4)	(7.9)	3.2	—	43.0
Developed markets credit	21.4	4.0	(3.5)	0.5	(0.2)	0.4	22.1
Developed markets rates	3.3	0.5	(0.9)	(0.4)	(0.2)	—	2.7
Emerging markets fixed income	9.8	1.9	(2.0)	(0.1)	0.6	—	10.3
Total fixed income	34.5	6.4	(6.4)	—	0.2	0.4	35.1
Absolute return3	—	—	—	—	—	—	—
Diversified growth/income	0.2	—	(0.1)	(0.1)	0.8	—	0.9
MyFolio	16.2	1.4	(2.6)	(1.2)	1.2	—	16.2
Other multi-asset3	8.7	0.9	(1.1)	(0.2)	(0.9)	—	7.6
Total multi-asset	25.1	2.3	(3.8)	(1.5)	1.1	—	24.7
Total private equity	7.2	—	—	—	(0.2)	(7.0)	—
UK real estate	15.9	0.6	(1.4)	(0.8)	(0.3)	—	14.8
European real estate	13.6	0.3	—	0.3	(1.2)	—	12.7
Global real estate	1.2	0.9	(0.3)	0.6	(0.1)	—	1.7
Real estate multi-manager	1.5	0.2	(0.1)	0.1	(0.2)	—	1.4
Infrastructure equity	6.1	0.7	(0.1)	0.6	(0.1)	—	6.6
Total real assets	38.3	2.7	(1.9)	0.8	(1.9)	—	37.2
Total alternative investment solutions (including private credit)	24.0	2.1	(1.8)	0.3	3.3	—	27.6
Total quantitative	17.1	6.5	(2.9)	3.6	(0.4)	—	20.3
Total excluding liquidity	193.9	25.5	(30.2)	(4.7)	5.3	(6.6)	187.9
Total liquidity	17.3	11.2	(6.2)	5.0	0.3	—	22.6
Total	211.2	36.7	(36.4)	0.3	5.6	(6.6)	210.5

1. Market and other movements includes transfer of £1.7bn assets from Quantitative mandates in Institutional & Retail Wealth to Insurance

Partners.

2. Corporate actions in 2024 relate to the disposal of our European-headquartered Private Equity business in April 2024 (£(7.0)bn) and the

acquisition of First Trust Advisors closed-end funds in July and September 2024 (£0.3bn and £0.1bn).

3. Other multi-asset includes opening AUM of £3.4bn, flows of £nil, market and other movements of £nil and closing AUM of £3.4bn relating to assets

previously classified as Absolute return.


			Annual report 2024	297


		FINANCIAL INFORMATION


	Opening AUM at 1 Jan 2023	Gross inflows	Redemptions	Net flows	Market and other movements	Corporate actions1	Closing AUM at 31 Dec 2023
12 months ended 31 December 2023	£bn	£bn	£bn	£bn	£bn	£bn	£bn
Developed markets equities	11.1	1.1	(3.5)	(2.4)	0.8	2.3	11.8
Emerging markets equities	12.5	0.7	(2.2)	(1.5)	0.1	—	11.1
Asia Pacific equities	20.5	2.1	(4.7)	(2.6)	(1.6)	—	16.3
Global equities	8.2	1.3	(2.0)	(0.7)	0.6	0.4	8.5
Total equities	52.3	5.2	(12.4)	(7.2)	(0.1)	2.7	47.7
Developed markets credit	22.5	3.1	(5.7)	(2.6)	1.4	0.1	21.4
Developed markets rates	2.0	1.1	(0.8)	0.3	0.8	0.2	3.3
Emerging markets fixed income	11.3	1.4	(3.1)	(1.7)	0.2	—	9.8
Total fixed income	35.8	5.6	(9.6)	(4.0)	2.4	0.3	34.5
Absolute return2	1.4	0.1	(1.0)	(0.9)	(0.5)	—	—
Diversified growth/income	0.3	0.1	(0.3)	(0.2)	0.1	—	0.2
MyFolio	15.6	1.8	(2.7)	(0.9)	1.5	—	16.2
Other multi-asset2	11.0	0.8	(2.0)	(1.2)	(1.1)	—	8.7
Total multi-asset	28.3	2.8	(6.0)	(3.2)	—	—	25.1
Total private equity	12.3	0.1	(0.5)	(0.4)	(0.6)	(4.1)	7.2
UK real estate	19.3	0.2	(1.0)	(0.8)	(2.6)	—	15.9
European real estate	14.3	0.3	—	0.3	(1.0)	—	13.6
Global real estate	1.6	0.3	(0.6)	(0.3)	(0.1)	—	1.2
Real estate multi-manager	1.4	0.2	—	0.2	(0.1)	—	1.5
Infrastructure equity	6.1	0.4	(0.1)	0.3	(0.3)	—	6.1
Total real assets	42.7	1.4	(1.7)	(0.3)	(4.1)	—	38.3
Total alternative investment solutions (including private credit)	24.0	1.3	(1.5)	(0.2)	0.2	—	24.0
Total quantitative	15.0	3.1	(2.0)	1.1	1.0	—	17.1
Total excluding liquidity	210.4	19.5	(33.7)	(14.2)	(1.2)	(1.1)	193.9
Total liquidity	20.8	8.6	(12.3)	(3.7)	0.2	—	17.3
Total	231.2	28.1	(46.0)	(17.9)	(1.0)	(1.1)	211.2

1. Corporate actions in 2023 relate to the acquisition of Macquarie closed-end funds in March and July 2023 (£0.5bn and £0.2bn) and Tekla

healthcare fund management capabilities in October 2023 (£2.3bn) and the disposal of US private equity and venture capital business in October

2023 (£(4.1)bn).

2. Other multi-asset includes opening AUM of £4.3bn, net outflows of £0.6bn, market and other movements of £(0.3)bn and closing AUM of £3.4bn

relating to assets previously classified as Absolute return.

6. Investments AUM by geography


	31 December 2024			31 December 2023
	Institutional & Retail Wealth	Insurance Partners	Total	Institutional & Retail Wealth	Insurance Partners	Total
	£bn	£bn	£bn	£bn	£bn	£bn
UK	97.2	159.2	256.4	102.0	155.5	257.5
Europe, Middle East and Africa (EMEA)	52.9	—	52.9	51.9	—	51.9
Asia Pacific (APAC)	17.3	—	17.3	15.7	—	15.7
Americas	43.1	—	43.1	41.6	—	41.6
Total AUM	210.5	159.2	369.7	211.2	155.5	366.7


298	Annual report 2024

Other

information


			Annual report 2024	299


			OTHER INFORMATION


Contents
Sustainability - independent limited assurance report	300
Sustainability reporting criteria	302
Glossary	306
Shareholder information	310
Forward-looking statements	311
Contact us	IBC


300	Annual report 2024


Independent Limited Assurance Report of KPMG LLP to abrdn plc

Independent Practitioner’s Limited Assurance Report

to abrdn plc

Report on selected sustainability information included

within abrdn plc’s Annual Report and Accounts for the

year ended 31 December 2024.

Conclusion

We have performed a limited assurance engagement

on whether selected information on pages 50 and 56 of

abrdn plc’s (“abrdn” or the “Company”) Sustainability

section of abrdn’s Annual Report and Accounts (the

“Report”) for the year ended 31 December 2024 has

been properly prepared in accordance with abrdn’s

Sustainability reporting criteria as set out on pages 302 -

305 of the Annual Report and Accounts (the “Reporting

Criteria”). The information within the Report that was

subject to assurance is indicated with the symbol “∆ ”

and is in respect of the year ended 31 December 2024

(the “Selected Information”) and is also listed in

Appendix 1.

Based on the procedures performed and evidence

obtained, nothing has come to our attention that causes

us to believe that the Selected Information has not been

properly prepared, in all material respects, in

accordance with the Reporting Criteria.

Our conclusion is to be read in the context of the

remainder of this report, in particular the “Inherent

limitations in preparing the Selected Information” and

“Intended use of our report” sections below.

Our conclusion on the Selected Information does not

extend to other information that accompanies or

contains the Selected Information and our assurance

report (hereafter referred to as “Other Information”).

We have not performed any procedures as part of this

engagement with respect to such Other Information.

We audited the financial statements included within the

Other Information, and the part of the Directors’

Remuneration Report to be audited, and our report

thereon is included with the Other Information.

Basis of conclusion

We conducted our engagement in accordance with

International Standard on Assurance Engagements (UK)

3000 Assurance Engagements Other Than Audits or

Reviews of Historical Financial Information (“ISAE (UK)

3000”) issued by the Financial Reporting Council (“FRC”)

and, in respect of the greenhouse gas emissions

information included within the Selected Information, in

accordance with International Standard on Assurance

Engagements 3410 Assurance Engagements on

Greenhouse Gas Statements (“ISAE 3410”) issued by the

International Auditing and Assurance Standards Board

(“IAASB”). Our responsibilities under those standards are

further described in the “Our responsibilities” section of

our report.

We have complied with the Institute of Chartered

Accountants in England and Wales (“ICAEW”) Code of

Ethics, which includes independence and other ethical

requirements founded on fundamental principles of

integrity, objectivity, professional competence and due

care, confidentiality and professional behaviour, that are

at least as demanding as the applicable provisions of

the International Ethics Standards Board for

Accountants (“IESBA”) International Code of Ethics for

Professional Accountants (including International

Independence Standards).

Our firm applies International Standard on Quality

Management (UK) 1 Quality Management for Firms that

Perform Audits or Reviews of Financial Statements, or

Other Assurance or Related Services Engagements

(“ISQM (UK) 1”), issued by the FRC, which requires the

firm to design, implement and operate a system of

quality management including policies or procedures

regarding compliance with ethical requirements,

professional standards and applicable legal and

regulatory requirements.

We believe that the evidence we have obtained is

sufficient and appropriate to provide a basis for our

conclusion.

Inherent limitations in preparing the

Selected Information

The nature of non-financial information; the absence of

a significant body of established practice on which to

draw; and the methods and precision used to determine

non-financial information, allow for different, but

acceptable, evaluation and measurement techniques

and can result in materially different measurements,

affecting comparability between entities and over time.

The greenhouse gas (“GHG”) emissions quantification

process is subject to: scientific uncertainty, which arises

because of incomplete scientific knowledge about the

measurement of GHGs; and estimation (or

measurement) uncertainty resulting from the

measurement and calculation processes used to

quantify emissions within the bounds of existing scientific

knowledge.

For Scope 3 GHG emissions, there are also significant

limitations in the availability and quality of GHG

emissions data from third parties, resulting in abrdn’s

reliance on proxy data in determining estimated Scope

3 GHG emissions. Over time better information may

become available from third parties and the principles

and methodologies used to measure and report Scope

3 GHG emissions may change based on market

practice and regulation.

The Reporting Criteria has been developed to assist

abrdn in reporting sustainability information selected by

abrdn as key metrics to measure the success of its

sustainability strategy. As a result, the Selected

Information may not be suitable for another purpose.

Directors’ responsibilities

The Directors of abrdn are responsible for:

– designing, implementing and maintaining internal

controls relevant to the preparation and presentation

of the Selected Information that is free from material

misstatement, whether due to fraud or error;


			Annual report 2024	301


			OTHER INFORMATION

– selecting and/or developing suitable Reporting

Criteria for preparing the Selected Information;

– properly preparing the Selected Information in

accordance with the Reporting Criteria; and

– the contents and statements contained within the

Report and the Reporting Criteria

Our responsibilities

We are responsible for:

– planning and performing the engagement to obtain

limited assurance about whether the Selected

Information is free from material misstatement,

whether due to fraud or error;

– forming an independent limited assurance conclusion,

based on the procedures we have performed and the

evidence we have obtained; and

– reporting our conclusion to abrdn.

Summary of the work we performed as

the basis for our conclusion

We exercised professional judgment and maintained

professional scepticism throughout the engagement.

We planned and performed our procedures to obtain

evidence that is sufficient and appropriate to obtain a

meaningful level of assurance over the Selected

Information to provide a basis for our limited assurance

conclusion. Planning the engagement involves assessing

whether abrdn’s Reporting Criteria are suitable for the

purposes of our limited assurance engagement. Our

procedures selected depended on our judgement, on

our understanding of the Selected Information and

other engagement circumstances, and our

consideration of areas where material misstatements

are likely to arise.

In carrying out our engagement, we performed

procedures which included:

– conducting interviews with management and key

staff responsible for the Selected Information to obtain

an understanding of the key processes, systems and

controls in place for the preparation of the Selected

Information;

– obtaining documentation for a selection of

transactions, which supports the processes, systems

and controls in place for the Selected Information, but

did not include evaluating the design of controls,

obtaining evidence about their implementation nor

testing their operating effectiveness;

– evaluating whether abrdn’s methods for developing

key estimates were appropriate and had been

consistently applied, but did not include testing the

data on which the estimates are based or separately

developing our own estimates against which to

evaluate abrdn’s estimates;

– performing limited substantive testing, including

agreeing a selection of the Selected Information to

corresponding supporting information, including

invoices, survey data, human resources systems, and

published emission factors; and

– reading the Report with regard to the Reporting

Criteria and for consistency with our findings over the

Selected Information.

The procedures performed in a limited assurance

engagement vary in nature and timing from, and are

less in extent than for, a reasonable assurance

engagement. Consequently, the level of assurance

obtained in a limited assurance engagement is

substantially lower than the assurance that would have

been obtained had a reasonable assurance

engagement been performed.

Intended use of our report

Our report has been prepared for abrdn solely in

accordance with the terms of our engagement. We

have consented to the publication of our report on

abrdn’s website at abrdn.com for the purpose of abrdn

showing that it has obtained an independent assurance

report in connection with the Selected Information.

Our report was designed to meet the agreed

requirements of abrdn determined by abrdn's needs at

the time. Our report should not therefore be regarded

as suitable to be used or relied on by any party wishing

to acquire rights against us other than abrdn for any

purpose or in any context. Any party other than abrdn

who obtains access to our report or a copy and chooses

to rely on our report (or any part of it) will do so at its own

risk. To the fullest extent permitted by law, KPMG LLP will

accept no responsibility or liability in respect of our

report to any other party.

Joshua Olomolaiye

for and on behalf of KPMG LLP

Chartered Accountants

15 Canada Square

London

E14 5GL

3 March 2025

The maintenance and integrity of abrdn’s website is the

responsibility of the Directors of abrdn; the work carried

out by us does not involve consideration of these

matters and, accordingly, we accept no responsibility

for any changes that may have occurred to the

reported Selected Information, Reporting Criteria or

Report presented on abrdn’s website since the date of

our report.

Appendix 1 - Selected Information


No.	Metric
1	Percentage of women on abrdn plc Board level
2	Percentage of women in Senior leadership
3	Percentage of women in Global workforce
4	Number of Directors of abrdn plc Board identifying as minority ethnic
5	Percentage of Senior leadership identifying as minority ethnic
6	Scope 1 operational emissions
7	Scope 2 operational emissions (location based)
8	Scope 3 operational emissions
9	Total energy consumption (kWh)


302	Annual report 2024


Sustainability reporting criteria

Sustainability reporting criteria

Operational emissions disclosure

Reporting boundary

Our methodology aligns with Greenhouse Gas (GHG)

Protocol. We use an operational control boundary and

exclude any joint ventures and associates. Emissions

associated with our direct operations are therefore

representative of abrdn plc and its wholly-owned and

operated subsidiaries, reported as at 31 December

2024.

Data collection and collation

Our Corporate Sustainability team collects activity data

for Scope 1, 2 and 3 emissions categories from across

the business1 and use third-party software to support

conversion, and aggregation of inputs to tonnes of

carbon dioxide equivalent (tCO2e)2. Note that receipt of

information is varied in terms of KPI and sources. As

such, the collection of data is varied, dependent upon

the availability of such data. We are reliant on third-

parties for the collection of some data.

Scope 1 emissions

We report emissions from natural gas, fluorinated gas,

company-owned vehicles used solely for business

purposes, and stationary fuel3. Recorded metrics, such

as kilowatt-hours (kWh), relate to energy use in our

buildings and car mileage, and are converted to tCO2e

using regional guidance on conversion factors. The

recorded metrics are collected from various sources,

e.g. meter readings and supplier invoices, and differ for

each emission source (kWh, m³, kg, litres).

Scope 2 emissions

Consumption from electricity and district heating is

metered and measured in kWh for in-scope operations

and converted to tCO2e using regional guidance on

conversion factors. The source for this information is

typically energy bills from utility providers.

Reported Scope 3 emissions categories

We report fuel and energy related activities (Category

3), waste from UK operations (Category 5), business

travel (Category 6), and an estimate for employees

working from home (Category 7). For each category

we follow GHG Protocol guidance and prioritise the

conversion of real data, such as: meter readings and

supplier invoices (Category 3); third-party data

provided by waste contractors (Category 5); and

passenger kilometres travelled obtained by third-parties

(Category 6), to tCO2e using applicable conversion

factors.

Energy consumption

We report energy consumption associated with

purchased electricity, natural gas, company-owned

vehicles used solely for business purposes, stationary

fuel, and district heating in kWh. This data is reported in

both aggregated and disaggregated forms.

Estimating working from home emissions

Our approach

To calculate our estimated emissions associated with

colleagues working from home (part of Category 7), we

revised our approach in 2023 in collaboration with our

external partners, Pawprint. The basis of the approach is

to use the Pawprint methodology to calculate the

estimated emissions profile of an abrdn colleague

working from home, which is aggregated to an annual

tCO2e figure based upon inputs such as headcount4 and

assumed office occupancy. We are using the technical

model developed by Pawprint5, as we believe this has a

strong basis for this purpose.

Inputs from our colleague survey

We ask all colleagues to respond to a voluntary survey,

with questions designed to enable the generation of an

average emissions profile for abrdn colleagues. In 2024,

we received an 18% response rate across global

colleagues, which we use as the basis for the output.

Average emissions profile

The applied method builds an average emissions profile

based on survey inputs capturing home size, working

patterns, heating, cooling, and equipment use.

Consumption values are drawn and converted from

regional averages sourced from guidance published by

those such as the Department for Business, Energy &

Industrial Strategy (BEIS).

Office occupancy

Our colleagues are generally expected to work from our

offices three days a week and we use this as our ratio to

aggregate a 2024 average emissions profile. This is after

making allowances for annual leave and part-time

work. We also assume a seven-hour working day, based

on standard contractual terms. In practice, we

acknowledge that this will vary.

Total colleagues

Our survey was conducted during September and

October 2024, and we are using an average FTE across

the year as the basis for our total population.

1. See page 48 of the Sustainability and TCFD report 2024 for the

number of countries we operate in.

2. Conversion factors applied differ by region and source of emissions

data. Primary sources are DEFRA, IEA, NGA, UNFCCC, and

www.carbonfootprint.com

3. Fluorinated gas and stationary fuel limited to 5 sites, with 50% FTE

coverage

4. In 2024, we improved our FTE coverage to include contingent

workers.

5. Pawprint emissions methodology available at www.pawprint.eco/

methodology


			Annual report 2024	303


			OTHER INFORMATION

Operational emissions disclosure

Key limitations to our approach

Our 2024 approach uses colleague survey inputs to

create a more nuanced average emissions profile,

paired with the third-party model from Pawprint. We

believe this is a more robust approach for long-term

utility but stress that the calculation of working from

home emissions is inherently reliant on some key inputs

and assumptions. The reported figure should be treated

as an estimated value only. Figures such as the office

occupancy ratio and employee headcount have

significant bearing on the aggregate figures reported.

This means that changes to policy, or our business, may

result in higher or lower reported figures that are

unrelated to real-world emissions changes.

Improvements in 2024

Following the completion of our 2023 exercise, we

implemented several refinements to the methodology,

which allows for greater specificity in the calculations.

For example, we now account for specific laptop

models and types of lighting in use in the home.

Limitations and exclusions

Market-based emissions

We report both location- and market-based emissions,

but note that our operational targets are measured

using location-based emissions. We believe this to be

best practice, with the outputs reflecting absolute

emission reductions over time. Market-based emissions

are not included as part of our external assurance

engagement but are disclosed on page 56.

Use of estimates

We source primary data wherever possible but if data is

not available, we will estimate based on an equivalent

time for the previous year, the average consumption for

the facility, or a similar site within the portfolio, scaled

according to energy consumption and relative FTE. The

sites we estimate are immaterial in terms of our overall

emissions impact.

If data is completely unavailable for a site, we may

choose not to disclose a value rather than providing an

estimate; for example, there are limitations linked to the

completeness of some reported data such as waste

disposal across all global office locations.

Due to the nature of our operations, we focus our efforts

on the facilities with the largest proportion of FTE, and

we aim for continuous improvement year on year.

Other Scope 3 emissions categories

We do not currently report against all 15 categories of

Scope 3 defined by the GHG Protocol. Our assessment is

that some categories are not material due to the nature

of our operations, but we acknowledge gaps related to

purchased goods and services (Category 1), capital

goods (Category 2), employee commuting (Category

7) and investments (Category 15). Scope 3 reported

emissions do not include some emissions categories

deemed to be material, but where data is currently

unavailable.

During 2023, our procurement function worked to

develop a Category 1 and 2 baseline, which we expect

to report in future. We also carried out an employee

survey which will enable us to establish a Category 7

baseline. In 2024, our focus has been to improve and

refine these data sets in preparation for future

disclosure. Our focus for Category 15 has been to

enable our clients to understand emissions related to

their portfolios and we disclose portfolio carbon intensity

metrics on page 57, with scope limited by data

coverage and availability. This does not currently include

financed emissions associated with the assets on the

abrdn plc balance sheet.

Our intention is to disclose all material emissions

categories over time. However, our priority is to ensure

that abrdn’s data capability meets our reporting

requirements and to enable reporting of our emissions

to our clients. We will continue to allocate resources with

that view but expect to add to our disclosure in future.

This may result in adjustments to our reported baseline

and targets.


304	Annual report 2024


Sustainability reporting criteria continued

DEI – gender and ethnic representation

Outlining our reporting scope

Reporting boundary

Our reporting boundary for our global workforce and

senior leadership populations is representative of abrdn

plc and its wholly-owned and operated subsidiaries.

Data is reported as of 31 December 2024, unless

otherwise stated.

abrdn plc Board

The abrdn plc Board is comprised of one Chair, eight

Non-Executive Directors, and one Executive Director.

Diversity information for all Board members is self-

reported at point of joining, with option of updating at

any stage during tenure.

Global workforce

Our global workforce includes all full-time, part-time,

fixed term, graduates, apprentices, secondees and

intern employees. We do not make any adjustments for

part-time working and count each person as one

employee. As independent members of the Board, Non-

Executive Directors are not included in total populations.

All diversity characteristics are self-reported by all

colleagues through our people systems at point of

joining and self-service update at any stage during

employment. This information is typically disclosed

during onboarding processes, but colleagues do have

the ability to change and update their own information,

should this be required. Gender representation is

calculated based on a total headcount of 4,420 as at

31 December 2024. This is reported as a percentage of

the total workforce population.

Senior leadership

Our senior leadership is defined as those one and two

reporting levels below the CEO of abrdn plc, excluding

all administrative and support staff. This is a subset of our

global workforce and follows the same self-reporting

processes noted. Gender representation is calculated

based on a total senior leadership population of 93 as of

31 December 2024. This is reported as a percentage of

the total workforce population.

Definitions and exclusions

Gender

Reported representation figures are based upon self-

disclosed information from colleagues and Directors.

This is split by male and female gender identities for the

purposes of formal and regulatory reporting. We

recognise and are supportive of colleagues who may

choose to identify as a different gender to that assigned

at birth, as non-cisgender, or as non-binary.

Ethnicity

Our ethnicity data for the abrdn plc Board is based upon

our Board members’ self-reported ethnicity to our DEI

team, compared with UK census data to identify ethnic

minority backgrounds (all non-white groups). For our

senior leadership population, data is self-reported via

our people systems and is disclosed as the proportion of

individuals identifying as being from non-white groups, in

accordance with UK census data categories. The

disclosure rate for this population is 82%.

Administrative roles

Colleagues in administrative and support roles are

excluded from our senior leadership population for the

purposes of our related target and reporting. These

roles are defined by job title, or equivalent, with

supporting information on our people systems used as

the basis.

Leave

Colleagues on garden leave as at 31 December 2024

are excluded from the senior leadership population. In

simple terms, this reflects colleagues in the process of

leaving the business who remain on leave until the

completion of a notice period. Other forms of leave are

included.

Excluded data

When reporting aggregated gender representation,

any colleagues without gender on our people systems

as of 31 December 2024 are removed from the

calculation. This related to 24 colleagues in 2024 (2023:

63). When reporting aggregated ethnicity

representation, this is given as an overall percentage

figure with no exclusions. Where possible, we report

disclosure rate alongside ethnicity representation.


			Annual report 2024	305


			OTHER INFORMATION

Portfolio emissions disclosure

Public markets: Weighted average

carbon intensity (WACI)

WACI is our method of tracking public market

decarbonisation, in line with the original

recommendations of the TCFD. We source emissions

data from our specialist third-party provider and use our

proprietary tools to apply the data to our portfolios and

enable aggregate reporting. In-scope assets include

specific funds and mandates within equities, fixed

income and active quantitative strategies, with

demonstrable decarbonisation achieved across each of

the asset classes.

Real estate: Carbon intensity by floor area

Calculation approach

Carbon emissions data for real estate is based on the

energy consumed in the operation of real estate assets.

Data is collated by asset class specialists and

aggregated for reporting and disclosure purposes.

Existing scope

There is a significant lag to the collection of real estate

metrics from individual assets. This prevents reporting to

31 December 2024, with disclosure on page 57

applicable to financial year 2023. The scope of carbon

data disclosure reflects around 74% of direct real estate

AUM as at 31 December 2023. This translates to

approximately 4% of Group AUMA. Of this, 27% of direct

real estate AUM has associated Scope 1 and 2

emissions. The remaining emissions are Scope 3

emissions, which fall outside the scope of this target.

Scope 1 and 2 emissions

Data from Scope 1 and 2 emissions categories is in-

scope for our portfolio decarbonisation target (page

57). This is inclusive of activity data such as electricity,

gas, and district heating, which is then converted to

kgCO₂e using location-based emissions factors. These

factors are average grid carbon factors, which are

subject to change each year. Scope 1 and 2 emissions

relate to energy which the landlord (the investment

manager) procures and excludes energy procured by

tenants, which is categorised under Scope 3. This is

important, as procurement responsibility varies by

individual asset. Assets, such as multi-let office buildings,

typically have landlord procurement responsibility for

the entire building, whereas for asset types, such as

retail parks, the landlord may only procure energy for

common areas and exterior lighting. The result is that

some assets are more carbon intensive than others

based on the subdivision of this responsibility.

Scope 3 emissions

Our team collects and collates available Scope 3

emissions, but this data is not readily available to a high

level of completeness and accuracy. Scope 3 data is not

included as part of our portfolio decarbonisation target,

or subject to disclosure in this report.

Intensity by floor area

Our portfolio decarbonisation target uses floor area

(m²) as the denominator for carbon intensity across the

in-scope real estate portfolio. We note that the

availability of accurate floor area data across our entire

portfolio is limited. We consider our confidence level in

both this, and Scope 1 and 2 data, before including an

asset as in-scope for our target. This is something we

are working to improve over time.

Portfolio emissions metrics

As investors we do not have access to real-time

emissions data from companies and assets. There also

remain significant reporting gaps across some regions

and sectors, with Scope 3 reporting still to fully develop.

We use Scope 1 and 2 data to track progress against

our target and report core portfolio level metrics (page

57). The source for this data set in public markets is a

specialist third-party provider, whereas data for real

estate is collected directly from occupiers of those

assets. Both routes include a lag associated with data

being reported, collated, and made available to

investors. Asset classes other than listed equity,

corporate credit, and real estate remain difficult to

accurately monitor due to data availability and nascent

methodologies. Our portfolio metrics are based upon

the original recommendations of TCFD, and methods

established by the Partnership for Carbon Accounting

Financials (PCAF), which we believe to be best practice.

It is also important to recognise that portfolio carbon

metrics are subject to volatility not related to changes in

emissions, with revenues, asset values, and markets as

key drivers. We believe that tracking and reporting these

metrics is critical, but that tools such as climate scenario

analysis (page 55) are also essential to support

decision-making.


306	Annual report 2024


Glossary

Glossary

Adjusted capital generation

Adjusted capital generation is part of the analysis of

movements in IFPR regulatory capital. Adjusted capital

generation is calculated as adjusted profit after tax less

returns relating to pension schemes in surplus and

interest paid on other equity (Additional Tier 1

instruments). It also includes dividends from associates,

joint ventures and significant listed investments.

Adjusted net financing costs and

investment return

Adjusted net financing costs and investment return is a

component of adjusted profit and relates to the return

from the net assets of the shareholder business, net of

costs of financing. This includes the net assets in defined

benefit staff pension plans and net assets relating to the

financing of subordinated liabilities.

Adjusted net operating revenue

Adjusted net operating revenue is a component of

adjusted operating profit and includes revenue we

generate from asset management charges (AMCs),

platform charges, treasury income and other

transactional charges. AMCs are earned on products

such as mutual funds, and are calculated as a

percentage fee based on the assets held. Investment

risk on these products rests principally with the client,

with our major indirect exposure to rising or falling

markets coming from higher or lower AMCs. Treasury

income is the interest earned on cash balances less the

interest paid to customers. It excludes items which are

one-off and, due to their size, or nature are not indicative

of the long-term operating performance of the Group.

Adjusted net operating revenue is shown net of fees,

cost of sales, commissions and similar charges. Cost of

sales include revenue from fund platforms which is

passed to the product provider.

Adjusted net operating revenue yield

(bps)

The adjusted net operating revenue yield is a measure

that illustrates the average margin being earned on the

assets that we manage or administer and excludes the ii

business. It is calculated as annualised adjusted net

operating revenue (excluding performance fees, ii and

revenue for which there are no attributable assets)

divided by monthly average fee based assets. The ii

business is excluded from the calculation of adjusted net

operating revenue yield as fees charged for this

business are primarily from subscriptions and trading

transactions.

Adjusted operating expenses

Adjusted operating expenses is a component of

adjusted operating profit and relates to the day-to-day

expenses of managing our business. Adjusted operating

expenses excludes restructuring and corporate

transaction expenses. Adjusted operating expenses also

excludes amortisation and impairment of intangible

assets acquired in business combinations and through

the purchase of customer contracts.

Adjusted operating profit

Adjusted operating profit is the Group’s key APM, and is

reported on a pre-tax basis. Adjusted operating profit

includes the results of the Group’s three businesses: ii,

Adviser and Investments, along with Other business

operations and corporate costs.

It excludes the Group’s adjusted net financing costs and

investment return.

Adjusted operating profit also excludes the impact of

the following items:

– Restructuring and corporate transaction expenses.

Restructuring includes the impact of major regulatory

change.

– Amortisation and impairment of intangible assets

acquired in business combinations and through the

purchase of customer contracts.

– Profit or loss arising on the disposal of a subsidiary, joint

venture or equity accounted associate.

– Change in fair value of/dividends from significant

listed investments.

– Share of profit or loss from associates and joint

ventures.

– Impairment loss/reversal of impairment loss

recognised on investments in associates and joint

ventures accounted for using the equity method.

– Fair value movements in contingent consideration.

– Items which are one-off and, due to their size or

nature, are not indicative of the long-term operating

performance of the Group.

Adjusted profit before tax

In addition to the results included in adjusted operating

profit above, adjusted profit before tax includes adjusted

net financing costs and investment return.

Assets under management and

administration (AUMA)

AUMA is a measure of the total assets we manage,

administer or advise on behalf of our clients. It includes

assets under management (AUM), assets under

administration (AUA) and assets under advice (AUAdv).

AUMA does not include assets for associates and joint

ventures.

AUM is a measure of the total assets that we manage on

behalf of individual and institutional clients. AUM also

includes assets managed for corporate purposes.

AUA is a measure of the total assets we administer for

clients through our Platforms.

AUAdv is a measure of the total assets we advise our

clients on, for which there is an ongoing charge.

Board

The Board of Directors of the Company.


			Annual report 2024	307


			OTHER INFORMATION

Carbon intensity

Is a measure of the amount of carbon dioxide (CO2) or

other greenhouse gases emitted per unit of activity,

such as energy produced, economic output, or product

manufactured. It is often used to compare the

environmental impact of different fuels, processes, or

activities.

Carbon offsetting

Carbon offsetting is an internationally recognised way

to take responsibility for carbon emissions. The aim of

carbon offsetting is that for every one tonne of offsets

purchased there will be one less tonne of carbon dioxide

in the atmosphere than there would otherwise have

been. To offset emissions we purchase the equivalent

volume of carbon credits (independently verified

emissions reductions) to compensate for our

operational carbon emissions. We have been reviewing

our use of offsetting, and although we will continue to

use offsets as a means of addressing our residual

emissions, our prime objective is always to reduce our

environmental impact before compensating for it.

Common Equity Tier 1 (CET1) Capital

Coverage

CET1 capital coverage is calculated as CET1 own funds

as a percentage of total own funds threshold

requirement.

Company

abrdn plc.

Cost/income ratio

This is an efficiency measure that is calculated as

adjusted operating expenses divided by adjusted net

operating revenue.

Director

A director of the Company.

Earnings per share (EPS)

EPS is a commonly used financial metric which can be

used to measure the profitability and strength of a

company over time. EPS is calculated by dividing profit

by the number of ordinary shares. Basic EPS uses the

weighted average number of ordinary shares

outstanding during the year. Diluted EPS adjusts the

weighted average number of ordinary shares

outstanding to assume conversion of all dilutive potential

ordinary shares, such as share options awarded to

employees.

Effective tax rate

Tax expense/(credit) attributable to equity holders’

profit divided by profit before tax attributable to equity

holders’ profits expressed as a percentage.

Executive Leadership Team (ELT)

The ELT is responsible to the CEO for the execution of

corporate objectives and strategy, competitive analysis,

sharing client insights, ensuring communication and

alignment across senior leadership, oversight of annual

budget and business plan proposals, review of

performance against targets and plan, idea generation,

oversight and delivery of people-related matters,

oversight of sustainability and oversight of risk and

controls.

Fair value through profit or loss (FVTPL)

FVTPL is an IFRS measurement basis permitted for

assets and liabilities which meet certain criteria. Gains or

losses on assets or liabilities measured at FVTPL are

recognised directly in the income statement.

FCA

Financial Conduct Authority of the United Kingdom.

Greenhouse gases

Greenhouse gases are the atmospheric gases

responsible for causing global warming (i.e. the

greenhouse effect) and climate change. These gases,

both natural and anthropogenic in origin include carbon

dioxide, methane and nitrous oxide. Other greenhouse

gases which are less prevalent but with a greater Global

Warming Potential include hydrofluorocarbons (HFCs),

perfluorocarbons (PFCs) and sulphur hexafluoride

(SF6).

Group or abrdn

Relates to the Company and its subsidiaries.

Group Operating Committee (GOC)

The GOC is responsible to the CEO for the development

of corporate objectives and strategy, oversight of

commercial operations, finalisation of the annual

budget and business plan, proposals for inorganic

strategic activity, commercial aspects of people-related

matters and to support the effective operation and

cohesion of the ELT.

Internal Capital Adequacy and Risk

Assessment (ICARA)

The ICARA is the means by which the Group assesses

the levels of capital and liquidity that adequately support

all of the relevant current and future risks in its business.


308	Annual report 2024


Glossary continued

International Financial Reporting

Standards (IFRS)

International Financial Reporting Standards are

accounting standards issued by the International

Accounting Standards Board (IASB).

Investment Firms Prudential Regime

(IFPR)

The Investment Firms Prudential Regime is the FCA’s

prudential regime for MiFID investment firms.

Investment performance

Investment performance is a measure of how

investments are performing relative to a benchmark,

target, or other comparator. The calculation covers

funds that aim to outperform or track a benchmark/

target, with certain assets excluded where these

measures of performance are not appropriate or

expected, such as certain private markets and

execution only mandates. Benchmarks and targets

differ by fund and are defined in the relevant investment

management agreement or prospectus, as

appropriate. The investment performance data is

calculated internally by abrdn to give users guidance on

how we are delivering positive investment outcomes for

our clients. It is not intended for clients or potential clients

investing in our products as more specific information

and reporting is available for this purpose.

Investment performance has been aggregated using a

money weighted average of our assets under

management. Calculations for investment performance

are made gross of fees except for those funds for which

the stated comparator is net of fees. The calculation

uses a closing AUM weighting basis and is based on AUM

data available as at the relevant reporting date.

As at 31 December 2024, 80% of AUM is covered by this

metric, performance is calculated relative to the

relevant comparator for each investment strategy on

the basis of:

– Assets ahead of the benchmark or target defined in

the investment management agreement or

prospectus, as appropriate. This applies to 60% of the

AUM.

– Assets where the objective is to track an index are

assessed based on being within or above an

applicable tolerance for the strategy. This applies to

20% of the AUM.

LBG tranche withdrawals

On 24 July 2019, the Group announced that it had

agreed a final settlement in relation to the arbitration

proceedings between the parties concerning LBG’s

attempt to terminate investment management

arrangements under which assets were managed by

members of the Group for LBG entities. In its decision of

March 2019, the arbitral tribunal found that LBG was not

entitled to terminate these investment management

contracts. The Group had continued to manage

approximately £104bn (as at 30 June 2019) of assets

under management (AUM) for LBG entities during the

period of the dispute. Approximately two thirds of the

total AUM (the transferring AUM) will be transferred to

third party managers appointed by LBG through a

series of planned tranches from 24 July 2019. The Group

continued to be remunerated for its services in relation

to the transferring AUM until the final tranche withdrawal

was completed in H1 2022.

Market Disclosure

This IFPR disclosure complements the Own funds

requirement and Own funds threshold requirement with

the aim of improving market discipline by requiring

companies to publish certain details of their risks, capital

and risk management. Relevant disclosures are made in

the abrdn plc consolidated annual report and accounts

and alongside the accounts of the Group’s individual

IFPR-regulated entities, all of which can be found on the

abrdn plc Group’s website.

Net capital generation

Net capital generation is calculated as adjusted capital

generation less restructuring and corporate transaction

expenses (net of tax).

Net flows

Net flows represent gross inflows less gross outflows or

redemptions. Gross inflows are new funds from clients.

Redemptions is the money withdrawn by clients during

the period. Cash dividends which are retained on the ii

platform are included in net flows for the ii business only.

Cash dividends are included in market movements for

other parts of the group including the Investments and

Adviser platform businesses. We consider that this

different approach is appropriate for the ii business as

cash dividend payments which are retained result in

additional income for ii, but are largely revenue neutral

for the rest of the Group.

Net zero

It is generally accepted that net zero is the target of

completely negating the amount of greenhouse gases

produced by human activity, to be achieved by reducing

emissions to the lowest possible amount and offsetting

(see carbon offsetting) only the remainder as a last

resort.


			Annual report 2024	309


			OTHER INFORMATION

Operational emissions

Operational emissions are the greenhouse gas

emissions related to the operations of our business. They

are categorised into three groups or ‘scopes’ in

alignment with the Greenhouse Gas Protocol Corporate

Accounting and Reporting Standard. Scope 1 covers

direct emissions from owned or controlled sources.

Scope 2 covers indirect emissions from the generation

of purchased electricity, steam, heating and cooling

consumed by the reporting company. Scope 3 includes

all other indirect emissions that occur in a company’s

value chain. At abrdn we report on Scope 1 and Scope 2

emissions, and a selection of Scope 3 categories, where

deemed material, which includes our working from

home emissions.

Own Funds Requirement

Under IFPR, the Own Funds Requirement is the higher of

the permanent minimum capital requirement, the fixed

overheads requirements, and the K-factor requirement.

The K-factor requirement is the sum of: Risk-to-Client,

Risk-to-Market, and Risk-to-Firm K-factors.

Own Funds Threshold Requirement

Under IFPR, the Own Funds Threshold Requirement is the

higher of Own funds required on an ongoing basis and

Own funds required on a wind-down basis. The firm

identifies and measures risks of harm and determines

the degree to which systems and controls alone

mitigate those risks of harm (or risks of disorderly wind-

down). Any additional own funds needed, over and

above the Own funds requirement, to cover this

identified residual risk is held under the Own Funds

Threshold Requirement.

Paris alignment

‘Paris alignment’ refers to the alignment of public and

private financial flows with the objectives of the Paris

Agreement on climate change. Article 2.1c of the Paris

Agreement defines this alignment as “making finance

flows consistent with a pathway towards low

greenhouse gas emissions and climate-resilient

development”. Alignment in this way will help to scale up

the financial flows needed to strengthen the global

response to the threat of climate change.

Phoenix or Phoenix Group

Phoenix Group Holdings plc or Phoenix Group Holdings

plc and its subsidiaries.

Significant listed investments

At 31 December 2024, Phoenix is the only significant

listed investment. Our remaining stakes in HDFC Asset

Management and HDFC Life were sold during H1 2023.

Fair value movements and dividend income relating to

these investments are treated as adjusting items for the

purpose of determining the Group’s adjusted profit.

Subordinated liabilities

Subordinated liabilities are debts of a company which, in

the event of liquidation, rank below its other debts but

above share capital. The 5.25% Fixed Rate Reset

Perpetual Subordinated Contingent Convertible Notes

issued by the Company in December 2021 are classified

as other equity as no contractual obligation to deliver

cash exists.

Weighted Average Carbon Intensity

(WACI)

Is calculated by summing the product of each portfolio

holdings carbon intensity, typically carbon intensity by

revenue (tCO2/$m Revenue) and the corresponding

holdings’ weight in the portfolio after adjusting for non-

eligible assets. WACI can be calculated at different

levels of aggregation across holdings, portfolio and

asset classes.


310	Annual report 2024


Shareholder information

Shareholder information

Registered office

1 George Street

Edinburgh

EH2 2LL

Scotland

Company registration number: SC286832

Secretary: Iain Jones

Registrar: Equiniti

Auditors: KPMG LLP

Solicitors: Slaughter and May

Brokers: JP Morgan Cazenove, Goldman Sachs

Shareholder services

We offer a wide range of shareholder services. For more

information, please:

– Contact our registrar, Equiniti, who manage this

service for us. Their full details can be found on the

inside back cover.

– Visit our share portal at www.abrdnshares.com

– For shareholder services call: +44 (0)371 384 2464*

* Calls are monitored/recorded to meet regulatory obligations and for

training and quality purposes. Call charges will vary.

A Dividend Reinvestment Plan (DRIP) is provided by

Equiniti Financial Services Limited. The DRIP enables the

Company’s shareholders to elect to have their cash

dividend payments used to purchase the Company’s

shares. More information can be found at

www.abrdnshares.com

Signing up means:

– You’ll receive an email when documents like the

annual report and accounts, Half year results and

AGM guide are available on our website.

– Voting instructions for the Annual General Meeting will

be sent to you electronically.

Set up a share portal account

Having a share portal account means you can:

– Manage your account at a time that suits you.

– Download your documents when you need them.


	To find out how to sign up, visit www.abrdnshares.com

Preventing unsolicited mail

By law, the Company has to make certain details from

its share register publicly available. As a result it is

possible that some registered shareholders could

receive unsolicited mail, emails or phone calls. You could

also be targeted by fraudulent ‘investment specialists’,

clone firms or scammers posing as government bodies

e.g. HMRC, FCA. Frauds are becoming much more

sophisticated and may use real company branding, the

names of real employees or email addresses that

appear to come from the company. If you get a social or

email message and you’re unsure if it is from us, you can

send it to emailscams@abrdn.com and we’ll let you know.

You can also check the FCA warning list and warning

from overseas regulators, however, please note that this

is not an exhaustive list and do not assume that a firm is

legitimate just because it does not appear on the list as

fraudsters frequently change their name and it may not

have been reported yet.

www.fca.org.uk/consumers/unauthorised-firms-

individuals

www.iosco.org/investor_protection/?

subsection=investor_alerts_portal

You can find more information about share scams at the

Financial Conduct Authority website www.fca.org.uk/

consumers/scams

If you are a certificated shareholder, your name and

address may appear on a public register. Using a

nominee company to hold your shares can help protect

your privacy. You can transfer your shares into the

Company-sponsored nominee – the abrdn Share

Account – by contacting Equiniti, or you could get in

touch with your broker to find out about their nominee

services. If you want to limit the amount of unsolicited

mail you receive generally, please visit

www.mpsonline.org.uk

Financial calendar


Full year results 2024	4 March
Ex-dividend date for 2024 final dividend	27 March
Record date for 2024 final dividend	28 March
Last date for DRIP elections for 2024 final dividend	23 April
Annual General Meeting – Edinburgh	8 May
Dividend payment date for 2024 final dividend	13 May
Half year results 2025	30 July
Ex-dividend date for 2025 interim dividend	14 August
Record date for 2025 interim dividend	15 August
Last date for DRIP elections for 2025 interim dividend	3 September
Dividend payment date for 2025 interim dividend	23 September

Analysis of registered shareholdings at

31 December 2024


Range of shares	Number of holders	% of total holders	Number of shares	% of total shares
1-1,000	53,491	65.77	20,846,069	1.13
1,001-5,000	23,548	28.96	49,439,323	2.69
5,001-10,000	2,636	3.24	17,959,369	0.97
10,001-100,000	1,350	1.66	29,560,951	1.61
#100,001+	304	0.37	1,722,936,917	93.60
Total	81,329	100.00	1,840,742,629	100.00

# These figures include the Company-sponsored nominee – the abrdn

Share Account – which had 834,638 participants holding 613,561,526

shares.


			Annual report 2024	311


			OTHER INFORMATION

Forward-looking statements

This document may contain certain ‘forward-looking statements’ with respect to the financial condition,

performance, results, strategies, targets (including ESG targets), objectives, plans, goals and expectations of the

Company and its affiliates. These forward-looking statements can be identified by the fact that they do not relate

only to historical or current facts.

Forward-looking statements are prospective in nature and are not based on historical or current facts, but rather on

current expectations, assumptions and projections of management of the abrdn Group about future events, and

are therefore subject to known and unknown risks and uncertainties which could cause actual results to differ

materially from the future results expressed or implied by the forward-looking statements.

For example but without limitation, statements containing words such as ‘may’, ‘will’, ‘should’, ‘could’, ‘continues’,

‘aims’, ‘estimates’, ‘projects’, ‘believes’, ‘intends’, ‘expects’, ‘hopes’, ‘plans’, ‘pursues’, ‘ensure’, ‘seeks’, ‘targets’ and

‘anticipates’, and words of similar meaning (including the negative of these terms), may be forward-looking. These

statements are based on assumptions and assessments made by the Company in light of its experience and its

perception of historical trends, current conditions, future developments and other factors it believes appropriate.

By their nature, all forward-looking statements involve risk and uncertainty because they are based on information

available at the time they are made, including current expectations and assumptions, and relate to future events

and/or depend on circumstances which may be or are beyond the Group’s control, including, among other things:

UK domestic and global political, economic and business conditions; market related risks such as fluctuations in

interest rates and exchange rates, and the performance of financial markets generally; the impact of inflation and

deflation; the impact of competition; the timing, impact and other uncertainties associated with future acquisitions,

disposals or combinations undertaken by the Company or its affiliates and/or within relevant industries; experience

in particular with regard to mortality and morbidity trends, lapse rates and policy renewal rates; the value of and

earnings from the Group’s strategic investments and ongoing commercial relationships; default by counterparties;

information technology or data security breaches (including the Group being subject to cyberattacks); operational

information technology risks, including the Group’s operations being highly dependent on its information technology

systems (both internal and outsourced) and the continued development and enhancement of said technology

systems (including the utilisation of artificial intelligence (AI)); natural or man-made catastrophic events; the impact

of pandemics; climate change and a transition to a low-carbon economy (including the risk that the Group may not

achieve its relevant ESG targets); exposure to third-party risks including as a result of outsourcing; the failure to

attract or retain necessary key personnel; the policies and actions of regulatory authorities and the impact of

changes in capital, solvency or accounting standards, ESG disclosure and reporting requirements, and tax and

other legislation and regulations (including changes to the regulatory capital requirements) that the Group is

subject to in the jurisdictions in which the Company and its affiliates operate. As a result, the Group’s actual future

financial condition, performance and results may differ materially from the plans, goals, objectives and

expectations set forth in the forward-looking statements.

Neither the Company, nor any of its associates, directors, officers or advisers, provides any representation,

assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements

in this document will actually occur. Persons receiving this document should not place reliance on forward-looking

statements. All forward-looking statements contained in this document are expressly qualified in their entirety by

the cautionary statements contained or referred to in this section. Each forward-looking statement speaks only as

at the date of the particular statement. Neither the Company nor its affiliates assume any obligation to update or

correct any of the forward-looking statements contained in this document or any other forward-looking

statements it or they may make (whether as a result of new information, future events or otherwise), except as

required by law. Past performance is not an indicator of future results and the results of the Company and its

affiliates in this document may not be indicative of, and are not an estimate, forecast or projection of, the

Company’s or its affiliates’ future results.


This Annual report and accounts 2024 for abrdn plc, and the Strategic report and financial highlights 2024 are published on our website at www.abrdn.com/annualreport
	Certain measures such as adjusted operating profit, adjusted profit before tax, adjusted capital generation and net capital generation, 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. 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. Net flows on the highlights page excludes liquidity flows as these are volatile and lower margin.


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