abrdn Q1 Earnings Call Highlights

Key Points

• abrdn reported group AUMA of £548bn at the end of Q1 and said assets rose to “more than £570bn” by the end of last week, while reaffirming FY26 targets of at least £300m adjusted operating profit and around £300m net capital generation.
• Interactive Investor delivered a record quarter with 513,000 customers (+14% YoY), record net inflows of £3bn (+88% YoY), and daily average retail trades of 35,000, taking ii AUMA to £95bn.
• Adviser outflows improved to £0.6bn as abrdn moves key service teams back in-house from FNZ to gain end-to-end control and potential long-term cost benefits; Investments saw £5.1bn net outflows (excluding liquidity) mainly due to a prior £4bn redemption, though gross inflows remained strong and management highlighted a Q2 pipeline including ~£1.2bn advisory and £1bn sterling credit mandates.

abrdn LON: ABDN reported group assets under management and administration (AUMA) of £548 billion at the end of the first quarter of fiscal 2026, with Chief Executive Officer Jason Windsor noting that assets had risen to “more than £570 billion by the end of last week,” underscoring the impact of recent market volatility.

Windsor described the past seven weeks as “a long and turbulent period in world news and in the markets,” adding that while uncertainty around markets and interest rates persists, the company’s business mix and focus on client outcomes are designed to be resilient. Management reiterated its commitment to full-year 2026 targets of adjusted operating profit of at least £300 million and net capital generation of around £300 million.

Interactive Investor posts record quarter amid volatility

Interactive Investor (ii) delivered what management described as a record quarter, supported by heightened customer trading activity and the introduction of simplified pricing that took effect in February.

Chief Financial Officer Siobhan Boyce said total customers reached 513,000, up 14% year-on-year. SIPP customers climbed 32% year-on-year and 10% during the quarter to 116,000. Net inflows hit a record £3 billion, up 88% year-on-year, while customer cash balances ended March at £8.7 billion, about 9% higher than at year-end.

Boyce also highlighted trading strength, with daily average retail trades reaching a record 35,000—about 21% higher than the prior quarter, which had been the previous high point. ii AUMA ended March at £95 billion; Boyce said this was roughly 2% higher than year-end when adjusting for the divestment of the financial planning business at the end of January, which reduced AUMA by £3.6 billion. The record net inflows were “only partly offset by lower markets,” she said.

During Q&A, management addressed whether ii’s pricing changes were shifting the platform’s customer mix. Windsor said the “primary source” of growth has been SIPP transfers, and that the firm has not seen “a large pickup in pure trading.” He added that average assets per client have increased “not going down,” and that the inflows are “clearly coming from transfers from somewhere,” primarily from other platforms and “mainly insurance providers.”

Adviser outflows improve as abrdn brings service teams in-house

In the Adviser business, Boyce reported net outflows of £0.6 billion for the quarter, an improvement versus the fourth quarter and in line with the year-ago period. She said gross inflows were higher but were offset by higher redemptions, though redemptions fell back below the elevated levels seen at the end of last year. Adviser AUMA was approximately £79 billion, ending 2% lower than year-end, reflecting negative market movements in March.

Boyce noted “good momentum” for Aberdeen SIPP, with 3,000 new customers since its launch in December 2025.

Windsor said the company is taking “further significant action to reposition the business for a return to growth,” including bringing key service teams back in-house from FNZ. In response to questions from analysts, Windsor said there is “no immediate cost impact,” as the amount paid to FNZ is “roughly the cost that we’ll be bringing over.” He framed the move as a step to gain “end-to-end control” of processes to improve client outcomes and reduce service handoffs, while adding that “longer term, I would expect to see some benefits from a cost perspective into the future.”

On the composition of Adviser outflows, Windsor told RBC that redemptions reflected “a bit of both” cash moves and platform transfers, with outflows primarily tied to “people taking pensions as we expect” and “a bit of transfers in the main.”

Windsor also confirmed a leadership transition in Adviser: “In May, Noel will hand over the baton to Rich Denning,” who Windsor said brings experience in adviser markets and technology solutions.

Investments sees outflows tied to previously announced redemptions; pipeline highlighted

In Investments, Boyce said net outflows excluding liquidity were £5.1 billion within the institutional, retail, and wealth segment, “largely” reflecting the previously announced £4 billion of lower-margin equity redemptions. She also cited small net outflows from commodities-based ETFs driven in part by “profit-taking and portfolio rebalancing” after a strong rally in commodity prices.

Boyce said gross inflows remained strong and consistent with recent trends. The company recorded net inflows of £0.4 billion across developed markets, credit, emerging markets, and fixed income funds, plus £1.1 billion in “trail assets.” Insurance partners flows were net zero in the quarter, which Boyce called “a significant improvement on recent trends.” Investments AUM totaled £169 billion, slightly above year-end, supported by £1.2 billion of market and other movements including a £2.3 billion transfer in from an INRW MyFolio fund range.

Management also previewed items expected to influence second-quarter flows. Boyce said Q2 net inflows are expected to include a roughly £1.2 billion advisory mandate within real assets and a £1 billion sterling credit win by a newly established insurance client team.

Asked about fees on those mandates, Windsor said the advisory mandate is “low margin,” real assets is “pretty much on par with what the rest of the book,” and that the GEM Income opportunity carries “an attractive margin.” He added that the company is not trying “to hype this,” but said the pipeline is “good” and the firm is seeing products “selling well.”

On GEM Equity Income, Windsor said confidence around future inflows is supported by “some unfunded mandates” that can take time to fund, as clients transition portfolios into the strategy. He also cited “great performance” and “good ratings,” alongside steady wholesale demand over the past year.

Standard Life-Aegon deal and insurance partner flows

Analysts asked about implications from Standard Life’s agreement to acquire Aegon’s U.K. business. Windsor said abrdn expects the transaction to close by the end of the year and emphasized the firm’s close working relationship with Standard Life, describing it as abrdn’s “largest customer.” He said Standard Life’s expanded scale could be “a good thing” for abrdn and referenced comments from Standard Life about rationalizing asset management providers. However, Windsor said he was “not in a position to communicate” any specific agreements.

On the quarter’s flat insurance partner flows—unusual compared with the runoff-driven outflows seen previously—Boyce said the improvement was “in the main” driven by benefits from wins Standard Life has achieved in workplace defined contribution (DC) business, adding that the line can “move up and down.”

In a brief exchange on corporate actions, management clarified that an elimination-related movement was connected to the adviser business sold at the end of January, noting some of it had been on the wrap platform.

Looking ahead, Boyce said ongoing geopolitical tensions are likely to keep market volatility elevated in the near term, but pointed to diversified revenue streams as a mitigating factor. Windsor concluded the call by reiterating management’s focus on executing its strategy while supporting customers through market uncertainty.

About abrdn LON: ABDN

Aberdeen is a Wealth & Investments group that connects investors to the expertise, tools, and solutions they need to grow and manage their wealth with confidence. We are structured around three businesses – interactive investor, Adviser and Investments. As a diversified group, we have positioned ourselves for growth in a changing investment landscape. As at 31 December 2025, Aberdeen manages and administers £556bn of client and customer assets.

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