TIDMABDN

RNS Number : 3261V

abrdn PLC

09 August 2022

abrdn plc

Half year results 2022

Part 3 of 3

9 August 2022

5. Supplementary information

   5.1      Alternative performance measures   APM 

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 condensed consolidated income statement, condensed consolidated statement of financial position and condensed consolidated statement of cash flows, which are presented in the Financial information 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 joint ventures.

 
 
Definition                                                          Purpose 
------------------------------------------------------------------  --------------------- 
Adjusted operating profit APM 
      A d justed operating profit before tax is the                 Adjusted operating 
       Group's key APM. Adjusted operating profit includes          profit has replaced 
       the results of the Group's three growth vectors:             adjusted profit 
       Investments, Adviser and Personal, along with                before 
       Corporate/strategic.                                         tax as the Group's 
       It excludes the Group's adjusted net financing               key APM. Adjusted 
       costs and investment return, and discontinued                operating 
       operations.                                                  profit reporting 
       Adjusted operating profit also excludes the impact           provides 
       of the following items:                                      further analysis of 
        *    Restructuring costs and corporate transaction          the results reported 
             expenses. Restructuring includes the impact of major   under IFRS and the 
             regulatory change.                                     Directors believe it 
                                                                    helps to give 
                                                                    shareholders 
        *    Amortisation and impairment of intangible assets       a fuller 
             acquired in business combinations and through the      understanding 
             purchase of customer contracts.                        of the performance 
                                                                    of the business by 
                                                                    identifying and 
        *    Profit or loss arising on the disposal of a            analysing 
             subsidiary, joint venture or equity accounted          adjusting items. 
             associate.                                             Segment reporting 
                                                                    used 
                                                                    in management 
        *    Change in fair value of/dividends from significant     information 
             listed investments.                                    is reported to the 
                                                                    level of adjusted 
                                                                    operating 
        *    Share of profit or loss from associates and joint      profit. 
             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 4.9 of the 
       Financial information section. 
------------------------------------------------------------------  --------------------- 
Fee based revenue APM 
Fee based revenue includes revenue we generate                      Fee based revenue is 
 from asset management charges (AMCs), platform                     a component of 
 charges, treasury income and other transactional                   adjusted 
 charges. AMCs are earned on products such as mutual                operating profit and 
 funds, and are calculated as a percentage fee                      provides the basis 
 based on the assets held. Investment risk on these                 for reporting of the 
 products rests principally with the client, with                   fee revenue yield 
 our major indirect exposure to rising or falling                   financial 
 markets coming from higher or lower AMCs. Fee                      ratio. Fee based 
 based revenue is shown net of costs of sale, such                  revenue 
 as commissions and similar charges.                                is also used to 
                                                                    calculate 
                                                                    the cost/income 
                                                                    ratio. 
------------------------------------------------------------------  --------------------- 
Adjusted operating expenses APM 
Adjusted operating expenses is a component of                       Adjusted operating 
 adjusted operating profit and relates to the day-to-day            expenses is a 
 expenses of managing our business. Adjusted operating              component 
 expenses excludes restructuring and corporate                      of adjusted operating 
 transaction expenses. Adjusted operating expenses                  profit and is used 
 also excludes amortisation and impairment of intangible            to calculate the 
 assets acquired in business combinations and through               cost/income 
 the purchase of customer contracts.                                ratio. 
------------------------------------------------------------------  --------------------- 
Adjusted profit before tax APM 
In addition to the results included in adjusted                     Adjusted profit 
 operating profit above, adjusted profit                            before 
 before tax includes adjusted net financing costs                   tax is a key input 
 and investment return.                                             to the adjusted 
                                                                    earnings 
                                                                    per share measure. 
------------------------------------------------------------------  --------------------- 
Adjusted net financing costs and investment return 
 APM 
Adjusted net financing costs and investment return                  Adjusted net 
 relates to the return from the net assets of the                   financing 
 shareholder business, net of costs of financing.                   costs and investment 
 This includes the net assets in defined benefit                    return is a component 
 staff pension plans and net assets relating to                     of adjusted profit 
 the financing of subordinated liabilities.                         before tax. 
Cost/income ratio APM 
This is an efficiency measure that is calculated                    This ratio is used 
 as adjusted operating expenses divided by fee                      by management to 
 based revenue in the period.                                       assess 
                                                                    efficiency and 
                                                                    reported 
                                                                    to the Board and 
                                                                    executive 
                                                                    leadership team. 
Fee revenue yield (bps) APM 
The fee revenue yield is calculated as annualised                   The average revenue 
 fee based revenue (excluding performance fees,                     yield on fee based 
 interactive investor and revenue for which there                   business is a measure 
 are no attributable assets) divided by monthly                     that illustrates the 
 average fee based assets. interactive investor                     average margin being 
 is excluded from the calculation of Personal and                   earned on the assets 
 total fee revenue yield as fees charged for this                   that we manage, 
 business are primarily from subscriptions and                      administer 
 trading transactions.                                              or advise our clients 
                                                                    on excluding 
                                                                    interactive 
                                                                    investor. 
Adjusted diluted earnings per 
 share APM 
Adjusted diluted earnings per share is calculated                   Earnings per share 
 on adjusted profit after tax. The weighted average                 is a commonly used 
 number of ordinary shares in issue is adjusted                     financial metric 
 during the period to assume the conversion of                      which 
 all dilutive potential ordinary shares, such as                    can be used to 
 share options granted to employees.                                measure 
 Details on the calculation of adjusted diluted                     the profitability and 
 earnings per share are set out in Note 4.8 of                      capital efficiency 
 the Financial information section.                                 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 
                                                                    executive 
                                                                    leadership team. 
Adjusted capital generation APM 
Adjusted capital generation is part of the analysis                 This measure aims to 
 of movements in IFPR regulatory capital. Adjusted                  show how adjusted 
 capital generation is calculated as adjusted profit                profit 
 after tax less returns relating to pension schemes                 contributes to 
 in surplus and interest paid on other equity,                      regulatory 
 which do not benefit regulatory capital. It also                   capital, and 
 includes dividends from associates, joint ventures                 therefore 
 and significant listed investments.                                provides insight into 
                                                                    our ability to 
                                                                    generate 
                                                                    capital that is 
                                                                    deployed 
                                                                    to support value for 
                                                                    shareholders. 
------------------------------------------------------------------  --------------------- 
Adjusted diluted capital generation 
 per share APM 
                                                                    This ratio is a 
                                                                    measure 
Adjusted diluted capital generation per share                       used to assess 
 is calculated as adjusted capital generation divided               performance 
 by the weighted average number of diluted ordinary                 for remuneration 
 shares outstanding.                                                purposes. 
------------------------------------------------------------------  --------------------- 
Cash and liquid resources APM 
Cash and liquid resources are IFRS cash and cash                    The purpose of this 
 equivalents (netted down for overdrafts), money                    measure is to 
 market instruments and holdings in money market                    demonstrate 
 funds. It also includes surplus cash that has                      how much cash and 
 been invested in liquid assets such as high quality                invested 
 corporate bonds, gilts and pooled investment funds.                assets we hold and 
 Seed capital and co-investments are excluded.                      can be readily 
                                                                    accessed. 
------------------------------------------------------------------  --------------------- 
 
 
   5.1.1     Adjusted operating profit and adjusted profit 

Reconciliation of adjusted operating profit and adjusted profit to IFRS profit by component

The key components of adjusted operating profit are fee based 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 Fee based revenue to the IFRS item Revenue from contracts with customers is provided in Note 4.4 of the Financial information section.

 
                                     Presentation  Adjusting  Adjusted 
IFRS term                      IFRS   differences      items    profit  Adjusted profit term 
H1 2022                        GBPm          GBPm       GBPm      GBPm 
----------------------------  -----  ------------  ---------  --------  ---------------------- 
Net operating revenue           696             -          -       696  Fee based revenue 
Total administrative                                                    Adjusted operating 
 and other expenses           (706)          (22)        147     (581)   expenses(1) 
----------------------------  -----  ------------  ---------  --------  ---------------------- 
                                                                        Adjusted operating 
                               (10)          (22)        147       115   profit 
----------------------------  -----  ------------  ---------  --------  ---------------------- 
Net gains or losses                                                     Adjusted net financing 
 on financial instruments                                                costs and investment 
 and other income             (298)             8        274      (16)   return 
Finance costs                  (15)            14          1         -  N/A 
Profit on disposal 
 of interests in associates       6             -        (6)         -  N/A 
Share of profit or 
 loss from associates 
 and joint ventures               6             -        (6)         -  N/A 
Impairment of interests 
 in associates                  (9)             -          9         -  N/A 
                                                                        Adjusted profit 
Loss before tax               (320)             -        419        99   before tax 
----------------------------  -----  ------------  ---------  --------  ---------------------- 
Total tax expense                31             -       (44)      (13)  Tax on adjusted profit 
----------------------------  -----  ------------  ---------  --------  ---------------------- 
                                                                        Adjusted profit 
Loss for the period           (289)             -        375        86   after tax 
----------------------------  -----  ------------  ---------  --------  ---------------------- 
 

1. Adjusted operating expenses includes staff and other related costs of GBP303m compared with IFRS staff costs and other employee-related costs of GBP266m. The difference primarily relates to the inclusion of contractor, temporary agency staff and recruitment and training costs of GBP14m (IFRS basis: Reported within other administrative expenses) and losses on funds to hedge deferred bonus awards of GBP8m (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 GBP15m (Adjusted profit basis: Reported within adjusted net financing costs and investment return).

 
                                     Presentation  Adjusting  Adjusted 
IFRS term                      IFRS   differences      items    profit  Adjusted profit term 
H1 2021                        GBPm          GBPm       GBPm      GBPm 
----------------------------  -----  ------------  ---------  --------  ---------------------- 
Net operating revenue           777             3       (25)       755  Fee based revenue 
Total administrative                                                    Adjusted operating 
 and other expenses           (759)           (7)        171     (595)   expenses 
----------------------------  -----  ------------  ---------  --------  ---------------------- 
                                                                        Adjusted operating 
                                 18           (4)        146       160   profit 
----------------------------  -----  ------------  ---------  --------  ---------------------- 
Net gains or losses                                                     Adjusted net financing 
 on financial instruments                                                costs and investment 
 and other income               (9)          (11)         23         3   return 
Finance costs                  (15)            15          -         -  N/A 
Profit on disposal 
 of subsidiaries and 
 other operations                84             -       (84)         -  N/A 
Profit on disposal 
 of interests in associates      68             -       (68)         -  N/A 
Share of profit or 
 loss from associates 
 and joint ventures            (33)             -         33         -  N/A 
                                                                        Adjusted profit 
Profit before tax               113             -         50       163   before tax 
----------------------------  -----  ------------  ---------  --------  ---------------------- 
Total tax expense              (11)             -        (2)      (13)  Tax on adjusted profit 
----------------------------  -----  ------------  ---------  --------  ---------------------- 
                                                                        Adjusted profit 
Profit for the period           102             -         48       150   after tax 
----------------------------  -----  ------------  ---------  --------  ---------------------- 
 

Presentation differences primarily relate to amounts presented in a different line item of the consolidated income statement.

5.1.2 Cost/income ratio

 
                                      H1 2022  H1 2021 
-----------------------------------  --------  ------- 
Adjusted operating expenses (GBPm)      (581)    (595) 
Fee based revenue (GBPm)                  696      755 
Cost/income ratio (%)                      83       79 
-----------------------------------  --------  ------- 
 

5.1.3 Fee revenue yield (bps)

 
                                     Average AUMA     Fee based revenue    Fee revenue yield 
                                        (GBPbn)             (GBPm)               (bps) 
                                   ----------------  -------------------  ------------------- 
                                   H1 2022  H1 2021    H1 2022   H1 2021    H1 2022   H1 2021 
---------------------------------  -------  -------  ---------  --------  ---------  -------- 
  Institutional and Wholesale(1)     239.4    249.4        446       490       37.1      39.4 
  Insurance                          184.3    202.0         90       101        9.9      10.1 
---------------------------------  -------  -------  ---------  --------  ---------  -------- 
Investments(1)                       423.7    451.4        536       591       25.3      26.3 
Adviser                               72.3     69.0         92        87       25.5      25.3 
Personal Wealth(1)                    13.8     13.7         45        41       60.0      55.9 
Parmenion(2)                             -      7.2          -        14          -      38.1 
Eliminations                        (11.8)   (10.9)        N/A       N/A        N/A       N/A 
---------------------------------  -------  -------  ---------  --------  ---------  -------- 
Fee revenue yield(1)                 498.0    530.4        673       733       26.9      27.6 
---------------------------------  -------  -------  ---------  --------  ---------  -------- 
interactive investor(3)                                     13         - 
Performance fees                                            10        22 
---------------------------------  -------  -------  ---------  --------  ---------  -------- 
Fee based revenue                                          696       755 
---------------------------------  -------  -------  ---------  --------  ---------  -------- 
 

Analysis of Institutional and Wholesale by asset class(1)

 
                                                      Fee based revenue    Fee revenue yield 
                               Average AUM (GBPbn)          (GBPm)               (bps) 
                                 H1 2022    H1 2021    H1 2022   H1 2021    H1 2022   H1 2021 
----------------------------  ----------  ---------  ---------  --------  ---------  -------- 
Equities                            60.7       69.7        193       225       64.0      64.8 
Fixed income                        43.4       47.4         60        67       27.9      28.7 
Multi-asset                         33.4       34.4         52        58       31.5      34.1 
Private equity                      12.3       11.0         25        31       40.5      56.1 
Real assets                         40.9       34.2         89        82       44.0      48.5 
Alternatives                        21.9       20.0         14        12       12.9      12.6 
Quantitative                         6.2        6.0          2         2        6.5       6.5 
Liquidity                           20.6       26.7          6        10        6.0       7.8 
----------------------------  ----------  ---------  ---------  --------  ---------  -------- 
Institutional and Wholesale        239.4      249.4        441       487       37.1      39.4 
----------------------------  ----------  ---------  ---------  --------  ---------  -------- 
 

1. Institutional and Wholesale fee revenue yield excludes revenue of GBP5m (H1 2021: GBP3m) and Personal Wealth fee revenue yield excludes revenue of GBP4m (H1 2021: GBP3m) for which there are no attributable assets.

2. Parmenion is included in the Corporate/strategic vector. The sale of Parmenion completed on 30 June 2021 and the fee revenue yield reflects the position as at the date of disposal.

3. interactive investor is excluded from the calculation of Personal and total fee revenue yield as fees charged for this business are primarily from subscriptions and trading transactions.

5.1.4 Additional ii information

The results for ii are included in the Group's results following the completion of the acquisition on 27 May 2022. The adjusted operating profit for ii for the one month to 30 June 2022 of GBP6m is included in our overall H1 2022 adjusted operating profit of GBP115m.

The tables below provides detail of the performance of ii for the full six months ended 30 June 2022 and the full 12 months ended 31 December 2021 to provide a fuller understanding of the performance of this business. Adjusted operating profit has also been presented excluding losses relating to Share Limited to provide a more meaningful comparison to the go-forward position.

 
                                              FY 2021      FY 2021 
                                 H1 2022    12 months    12 months 
                                6 months         GBPm         GBPm 
                                                 Excl         Incl 
 Analysis of ii profit              GBPm     Share(1)     Share(1) 
----------------------------  ----------  -----------  ----------- 
Fee based revenue                     75          128          135 
Adjusted operating expenses         (42)         (83)         (99) 
----------------------------  ----------  -----------  ----------- 
Adjusted operating profit             33           45           36 
----------------------------  ----------  -----------  ----------- 
 

The FY 2021 adjusted operating profit of GBP36m included losses relating to Share Limited of GBP9m while part of this business was wound down. Excluding losses from Share Limited, the FY 2021 adjusted operating profit was GBP45m. The H1 2022 impact was GBPnil.

 
                                                            FY 2021      FY 2021 
                                               H1 2022    12 months    12 months 
                                              6 months         GBPm         GBPm 
                                                               Excl         Incl 
 Analysis of ii fee based revenue                 GBPm     Share(1)     Share(1) 
------------------------------------------  ----------  -----------  ----------- 
Trading transactions                                34           79           84 
Account fees (subscription based revenue)           27           48           50 
Treasury income                                     17            9            9 
Less: Cost of sales                                (3)          (8)          (8) 
------------------------------------------  ----------  -----------  ----------- 
Fee based revenue                                   75          128          135 
------------------------------------------  ----------  -----------  ----------- 
 

1. Losses were incurred in Share Limited and its subsidiaries (Share) as part of this business was wound down.

5.1.5 Adjusted capital generation

The table below provides a reconciliation of movements between adjusted profit after tax and adjusted capital generation. A reconciliation of adjusted profit after tax to IFRS profit/loss for the period is included earlier in this section.

 
                                                         H1 2022  H1 2021 
                                                            GBPm     GBPm 
-------------------------------------------------------  -------  ------- 
Adjusted profit after tax                                     86      150 
Less net interest credit relating to the staff pension 
 schemes                                                    (15)      (9) 
Less interest paid on other equity                           (6)        - 
Add dividends received from associates, joint ventures 
 and significant listed investments                           42       35 
-------------------------------------------------------  -------  ------- 
Adjusted capital generation                                  107      176 
-------------------------------------------------------  -------  ------- 
 

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:

 
                                                     H1 2022  H1 2021 
                                                        GBPm     GBPm 
---------------------------------------------------  -------  ------- 
Phoenix                                                   26       35 
HDFC Life                                                  1        - 
HDFC Asset Management                                     15        - 
Dividends received from associates, joint ventures 
 and significant listed investme nts                      42       35 
---------------------------------------------------  -------  ------- 
 

The table below provides detail of dividend coverage on an adjusted capital generation basis.

 
                                                         H1 2022  H1 2021 
Adjusted capital generation (GBPm)                           107      176 
Interim dividend (GBPm)                                      153      154 
-------------------------------------------------------  -------  ------- 
Dividend cover on an adjusted capital generation basis 
 (times)                                                    0.70     1.14 
-------------------------------------------------------  -------  ------- 
 

5.1.6 Adjusted diluted capital generation per share

A reconciliation of adjusted capital generation to adjusted profit after tax is included in 5.1.5 above.

 
                                                         H1 2022  H1 2021 
Adjusted capital generation (GBPm)                           107      176 
Weighted average number of diluted ordinary shares 
 outstanding (millions) - Note 4.8                      2,130(1)    2,156 
------------------------------------------------------  --------  ------- 
Adjusted diluted capital generation per share (pence)        5.0      8.2 
------------------------------------------------------  --------  ------- 
 

1. In accordance with IAS 33, no share options and awards have been treated as dilutive for the six months ended 30 June 2022 due to the loss attributable to equity holders of abrdn plc in that period. See Note 4.8 for further details.

5.1.7 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.

 
                                                           H1 2022  FY 2021 
                                                             GBPbn    GBPbn 
---------------------------------------------------------  -------  ------- 
Cash and cash equivalents per the condensed consolidated 
 statement of financial position                               1.4      1.9 
Bank overdrafts                                              (0.1)    (0.1) 
Debt securities excluding third party interests(2)             0.3      1.1 
Corporate funds held in absolute return funds                  0.2      0.2 
Other(3)                                                     (0.1)        - 
---------------------------------------------------------  -------  ------- 
Cash and liquid resources                                      1.7      3.1 
---------------------------------------------------------  -------  ------- 
 

2. Excludes GBP71m (FY 2021: GBP76m) relating to seeding.

3. Cash collateral, cash held for charitable funds and cash held in employee benefit trusts are excluded from cash and liquid resources.

   5.2      Investment performance 
 
Definition                                                 Purpose 
---------------------------------------------------------  --------------------------- 
Investment performance 
Investment performance has been aggregated using           As an asset managing 
 a money weighted average of our assets under               business this measure 
 management which are outperforming their respective        demonstrates our ability 
 benchmark. Calculations for investment performance         to generate investment 
 are made gross of fees with the exception of               returns for our clients. 
 those for which the stated comparator is net 
 of fees. Benchmarks differ by fund and are defined 
 in the relevant investment management agreement 
 or prospectus, as appropriate. The investment 
 performance calculation covers all funds that 
 aim to outperform a benchmark, with certain 
 assets excluded where this measure of performance 
 is not appropriate or expected, such as private 
 markets and execution only mandates, as well 
 as replication tracker funds which aim to perform 
 in line with a given index. 
---------------------------------------------------------  --------------------------- 
 
 
 
                                   1 year           3 years           5 years 
                              ----------------  ----------------  ---------------- 
% of AUM ahead of benchmark   H1 2022  FY 2021  H1 2022  FY 2021  H1 2022  FY 2021 
----------------------------  -------  -------  -------  -------  -------  ------- 
Equities                           30       36       51       72       34       61 
Fixed income                       44       59       63       82       76       87 
Multi-asset                        53       41       54       39       50       44 
Real assets                        87       83       75       52       69       50 
Alternatives                       97       87      100       98      100       98 
Quantitative                       21       98       45       44       57       68 
Liquidity                          82       88       85       87       70       84 
----------------------------  -------  -------  -------  -------  -------  ------- 
Total                              53       57       63       67       61       67 
----------------------------  -------  -------  -------  -------  -------  ------- 
 
   5.3     Assets under management and administration and flows 
 
Definition                                            Purpose 
----------------------------------------------------  --------------------------- 
AUMA 
AUMA is a measure of the total assets we manage,      The amount of funds 
 administer or advise on behalf of our clients.        that we manage, administer 
 It includes assets under management (AUM), assets     or advise directly impacts 
 under administration (AUA) and assets under           the level of fee based 
 advice (AUAdv).                                       revenue that we receive. 
 AUM is a measure of the total assets that we 
 manage on behalf of individual and institutional 
 clients. AUM also includes fee generating assets 
 managed for corporate purposes. 
 AUA is a measure of the total assets we administer 
 for clients through platform products such as 
 ISAs, SIPPs and general trading accounts. 
 AUAdv is a measure of the total assets we advise 
 our clients on, for which there is an ongoing 
 charge. 
----------------------------------------------------  --------------------------- 
Net flows 
Net flows represent gross flows less redemptions.     The level of net flows 
 Gross flows are new funds from clients. Redemptions   that we generate directly 
 are the money withdrawn by clients during the         impacts the level of 
 period.                                               fee based revenue that 
                                                       we receive. 
----------------------------------------------------  --------------------------- 
 

5.3.1 Analysis of AUMA

 
                                                                                                 Closing 
                          Opening                                                                   AUMA 
                          AUMA at                                           Market                    at 
                            1 Jan     Gross                              and other    Corporate   30 Jun 
                             2022   inflows  Redemptions  Net flows   movements(2)   actions(3)     2022 
6 months ended 30 June 
 2022                       GBPbn     GBPbn        GBPbn      GBPbn          GBPbn        GBPbn    GBPbn 
-----------------------  --------  --------  -----------  ---------  -------------  -----------  ------- 
  Institutional             174.0       7.7       (16.8)      (9.1)          (4.1)            -    160.8 
  Wholesale                  79.1       8.9       (10.8)      (1.9)          (5.7)            -     71.5 
  Insurance                 210.5       8.8       (35.1)     (26.3)         (30.2)            -    154.0 
-----------------------  --------  --------  -----------  ---------  -------------  -----------  ------- 
  Investments               463.6      25.4       (62.7)     (37.3)         (40.0)            -    386.3 
Adviser                      76.2       4.0        (2.6)        1.4          (9.3)            -     68.3 
  interactive investor          -       0.6        (0.4)        0.2          (3.3)         55.4     52.3 
  Personal Wealth            14.4       0.8        (0.7)        0.1          (1.2)            -     13.3 
-----------------------  --------  --------  -----------  ---------  -------------  -----------  ------- 
Personal(1)                  14.4       1.4        (1.1)        0.3          (4.5)         55.4     65.6 
Eliminations(1)            (12.1)     (1.4)          1.1      (0.3)            1.5        (0.9)   (11.8) 
-----------------------  --------  --------  -----------  ---------  -------------  -----------  ------- 
Total AUMA                  542.1      29.4       (65.3)     (35.9)         (52.3)         54.5    508.4 
-----------------------  --------  --------  -----------  ---------  -------------  -----------  ------- 
 
 
                                                                                              Closing 
                          Opening                                                                AUMA 
                          AUMA at                                        Market                    at 
                            1 Jan     Gross                           and other    Corporate   30 Jun 
                             2021   inflows  Redemptions  Net flows   movements   actions(4)     2021 
6 months ended 30 June 
 2021                       GBPbn     GBPbn        GBPbn      GBPbn       GBPbn        GBPbn    GBPbn 
-----------------------  --------  --------  -----------  ---------  ----------  -----------  ------- 
  Institutional             171.7       9.1       (12.5)      (3.4)         0.8          2.5    171.6 
  Wholesale                  80.0      12.9       (14.0)      (1.1)         1.6            -     80.5 
  Insurance                 205.2       9.1       (12.9)      (3.8)         3.1            -    204.5 
-----------------------  --------  --------  -----------  ---------  ----------  -----------  ------- 
  Investments               456.9      31.1       (39.4)      (8.3)         5.5          2.5    456.6 
Adviser                      67.0       4.6        (2.6)        2.0         3.3            -     72.3 
  interactive investor          -         -            -          -           -            -        - 
  Personal Wealth            13.3       1.0        (0.5)        0.5         0.6            -     14.4 
-----------------------  --------  --------  -----------  ---------  ----------  -----------  ------- 
Personal(1)                  13.3       1.0        (0.5)        0.5         0.6            -     14.4 
Parmenion                     8.1       0.7        (0.4)        0.3         0.3        (8.7)        - 
Eliminations(1)            (10.7)     (1.4)          1.3      (0.1)       (0.7)            -   (11.5) 
-----------------------  --------  --------  -----------  ---------  ----------  -----------  ------- 
Total AUMA                  534.6      36.0       (41.6)      (5.6)         9.0        (6.2)    531.8 
-----------------------  --------  --------  -----------  ---------  ----------  -----------  ------- 
 

1. Eliminations remove the double count reflected in Investments, Adviser and Personal. The Personal vector includes assets that are reflected in both the discretionary investment management and financial planning businesses. This double count is also removed within Eliminations.

2. Market and other movements include the transfer of retained LBG AUM of cGBP7.5bn from Insurance into Institutional (quantitatives), to better reflect how the relationship is being managed.

3. Corporate actions in H1 2022 relate to the acquisition of interactive investor on 27 May 2022. The eliminations are to remove the double count for the assets that are reflected in both interactive investor and Investments.

4. Corporate actions relate to the acquisition of a majority interest in Tritax on 1 April 2021 supplementing Institutional AUM by cGBP6bn at the acquisition date. This is partially offset by the disposal of our domestic real estate business in the Nordics region on 31 May 2021 which reduced AUM by cGBP3bn. The sale of Parmenion completed on 30 June 2021.

5.3.2 Quarterly net flows

 
                               3 months to  3 months to  3 months to  3 months to  3 months to 
                                 30 Jun 22    31 Mar 22    31 Dec 21    30 Sep 21    30 Jun 21 
15 months ended 30 June 2022         GBPbn        GBPbn        GBPbn        GBPbn        GBPbn 
-----------------------------  -----------  -----------  -----------  -----------  ----------- 
  Institutional                      (7.8)        (1.3)          2.5        (2.0)        (0.7) 
  Wholesale                              -        (1.9)        (0.8)        (0.3)        (0.5) 
  Insurance                          (4.6)       (21.7)        (0.4)        (1.3)        (1.5) 
-----------------------------  -----------  -----------  -----------  -----------  ----------- 
Investments                         (12.4)       (24.9)          1.3        (3.6)        (2.7) 
Adviser                                0.5          0.9          1.1          0.8          0.9 
  interactive investor                 0.2            -            -            -            - 
  Personal Wealth                        -          0.1            -          0.1          0.3 
-----------------------------  -----------  -----------  -----------  -----------  ----------- 
Personal                               0.2          0.1            -          0.1          0.3 
Parmenion                                -            -            -            -          0.2 
Eliminations                         (0.1)        (0.2)        (0.2)        (0.1)            - 
-----------------------------  -----------  -----------  -----------  -----------  ----------- 
Total net flows                     (11.8)       (24.1)          2.2        (2.8)        (1.3) 
-----------------------------  -----------  -----------  -----------  -----------  ----------- 
 
   5.4      Institutional and Wholesale AUM 

Detailed asset class split

 
                             Opening                                                           Closing 
                              AUM at                                        Market              AUM at 
                               1 Jan     Gross                           and other  Corporate   30 Jun 
                                2022   inflows  Redemptions  Net flows   movements    actions     2022 
6 months ended 30 June 
 2022                          GBPbn     GBPbn        GBPbn      GBPbn       GBPbn      GBPbn    GBPbn 
---------------------------  -------  --------  -----------  ---------  ----------  ---------  ------- 
Developed markets equities      17.0       1.1        (1.6)      (0.5)       (4.8)          -     11.7 
Emerging markets equities       16.4       1.1        (1.5)      (0.4)       (2.4)          -     13.6 
Asia Pacific equities           25.3       1.4        (2.6)      (1.2)       (2.9)          -     21.2 
Global equities                 10.3       0.7        (0.8)      (0.1)       (2.1)          -      8.1 
---------------------------  -------  --------  -----------  ---------  ----------  ---------  ------- 
Total equities                  69.0       4.3        (6.5)      (2.2)      (12.2)          -     54.6 
---------------------------  -------  --------  -----------  ---------  ----------  ---------  ------- 
Developed markets credit        28.3       1.6        (2.8)      (1.2)       (2.9)          -     24.2 
Developed markets rates          2.9       0.2        (0.3)      (0.1)       (0.6)          -      2.2 
Emerging markets fixed 
 income                         12.2       1.6        (1.4)        0.2       (1.0)          -     11.4 
Private credit                   2.4       0.2        (0.1)        0.1         0.4          -      2.9 
---------------------------  -------  --------  -----------  ---------  ----------  ---------  ------- 
Total fixed income              45.8       3.6        (4.6)      (1.0)       (4.1)          -     40.7 
---------------------------  -------  --------  -----------  ---------  ----------  ---------  ------- 
Absolute return                 10.0       0.2        (0.7)      (0.5)       (2.0)          -      7.5 
Diversified growth/income        0.5       0.1        (0.1)          -       (0.1)          -      0.4 
MyFolio                         17.7       0.9        (1.0)      (0.1)       (1.8)          -     15.8 
Other multi-asset                7.8       0.5        (0.4)        0.1       (1.5)          -      6.4 
---------------------------  -------  --------  -----------  ---------  ----------  ---------  ------- 
Total multi-asset               36.0       1.7        (2.2)      (0.5)       (5.4)          -     30.1 
---------------------------  -------  --------  -----------  ---------  ----------  ---------  ------- 
Total private equity            12.3       0.2        (0.5)      (0.3)         0.7          -     12.7 
---------------------------  -------  --------  -----------  ---------  ----------  ---------  ------- 
UK real estate                  19.9       0.2        (0.5)      (0.3)         0.8          -     20.4 
European real estate            10.3       0.2            -        0.2         2.8          -     13.3 
Global real estate               1.8       0.1        (0.1)          -       (0.1)          -      1.7 
Real estate multi-manager        1.2       0.1        (0.1)          -           -          -      1.2 
Infrastructure equity            6.2       0.3        (0.5)      (0.2)         0.1          -      6.1 
---------------------------  -------  --------  -----------  ---------  ----------  ---------  ------- 
Total real assets               39.4       0.9        (1.2)      (0.3)         3.6          -     42.7 
---------------------------  -------  --------  -----------  ---------  ----------  ---------  ------- 
Total alternatives              20.8       1.3        (0.7)        0.6         1.2          -     22.6 
---------------------------  -------  --------  -----------  ---------  ----------  ---------  ------- 
Total quantitative(1)            5.5       1.5        (1.1)        0.4         6.4          -     12.3 
---------------------------  -------  --------  -----------  ---------  ----------  ---------  ------- 
Total liquidity                 24.3       3.1       (10.8)      (7.7)           -          -     16.6 
---------------------------  -------  --------  -----------  ---------  ----------  ---------  ------- 
Total(1)                       253.1      16.6       (27.6)     (11.0)       (9.8)          -    232.3 
---------------------------  -------  --------  -----------  ---------  ----------  ---------  ------- 
 

1. Market and other movements include the transfer of retained LBG AUM of cGBP7.5bn from Insurance into Institutional (quantitatives), to better reflect how the relationship is being managed.

 
                             Opening                                                           Closing 
                              AUM at                                        Market              AUM at 
                               1 Jan     Gross                           and other  Corporate   30 Jun 
                                2021   inflows  Redemptions  Net flows   movements    actions     2021 
6 months ended 30 June 
 2021                          GBPbn     GBPbn        GBPbn      GBPbn       GBPbn      GBPbn    GBPbn 
---------------------------  -------  --------  -----------  ---------  ----------  ---------  ------- 
Developed markets equities      14.7       1.7        (2.0)      (0.3)         1.5          -     15.9 
Emerging markets equities       19.0       1.1        (2.0)      (0.9)         1.0          -     19.1 
Asia Pacific equities           26.6       2.7        (3.0)      (0.3)         0.2          -     26.5 
Global equities                  8.9       0.8        (0.8)          -         0.6          -      9.5 
---------------------------  -------  --------  -----------  ---------  ----------  ---------  ------- 
Total equities                  69.2       6.3        (7.8)      (1.5)         3.3          -     71.0 
---------------------------  -------  --------  -----------  ---------  ----------  ---------  ------- 
Developed markets credit        32.2       2.9        (4.4)      (1.5)       (1.5)          -     29.2 
Developed markets rates          2.8       0.3        (0.2)        0.1       (1.8)          -      1.1 
Emerging markets fixed 
 income                         12.2       2.3        (2.2)        0.1         1.3          -     13.6 
Private credit                   1.0       0.7            -        0.7         0.6          -      2.3 
---------------------------  -------  --------  -----------  ---------  ----------  ---------  ------- 
Total fixed income              48.2       6.2        (6.8)      (0.6)       (1.4)          -     46.2 
---------------------------  -------  --------  -----------  ---------  ----------  ---------  ------- 
Absolute return                 11.5       0.4        (1.1)      (0.7)       (0.6)          -     10.2 
Diversified growth/income        0.6         -        (0.1)      (0.1)           -          -      0.5 
MyFolio                         15.6       1.1        (1.4)      (0.3)         2.0          -     17.3 
Other multi-asset               10.0       0.6        (0.7)      (0.1)       (3.0)          -      6.9 
---------------------------  -------  --------  -----------  ---------  ----------  ---------  ------- 
Total multi-asset               37.7       2.1        (3.3)      (1.2)       (1.6)          -     34.9 
---------------------------  -------  --------  -----------  ---------  ----------  ---------  ------- 
Total private equity            10.9       1.3        (0.5)        0.8         0.3          -     12.0 
---------------------------  -------  --------  -----------  ---------  ----------  ---------  ------- 
UK real estate                   9.2       0.7        (0.5)        0.2         3.2        5.8     18.4 
European real estate            12.1       0.6        (0.2)        0.4         0.7      (3.3)      9.9 
Global real estate               1.8       0.2        (0.2)          -           -          -      1.8 
Real estate multi-manager        1.6       0.1        (0.1)          -       (0.6)          -      1.0 
Infrastructure equity            5.3       0.6        (0.3)        0.3           -          -      5.6 
---------------------------  -------  --------  -----------  ---------  ----------  ---------  ------- 
Total real assets               30.0       2.2        (1.3)        0.9         3.3        2.5     36.7 
---------------------------  -------  --------  -----------  ---------  ----------  ---------  ------- 
Total alternatives              19.5       1.4        (0.6)        0.8           -          -     20.3 
---------------------------  -------  --------  -----------  ---------  ----------  ---------  ------- 
Total quantitative               6.4       0.5        (0.5)          -       (0.4)          -      6.0 
---------------------------  -------  --------  -----------  ---------  ----------  ---------  ------- 
Total liquidity                 29.8       2.0        (5.7)      (3.7)       (1.1)          -     25.0 
---------------------------  -------  --------  -----------  ---------  ----------  ---------  ------- 
Total                          251.7      22.0       (26.5)      (4.5)         2.4        2.5    252.1 
---------------------------  -------  --------  -----------  ---------  ----------  ---------  ------- 
 
   5.5      Analysis of Insurance 
 
                    Opening                                                             Closing 
                     AUM at                                          Market              AUM at 
                      1 Jan                                 Net   and other  Corporate   30 Jun 
                       2022  Gross inflows  Redemptions   flows   movements    actions     2022 
6 months ended 30 
 June 2022            GBPbn          GBPbn        GBPbn   GBPbn       GBPbn      GBPbn    GBPbn 
------------------  -------  -------------  -----------  ------  ----------  ---------  ------- 
Phoenix               175.5            8.5        (9.5)   (1.0)      (21.7)          -    152.8 
Lloyds(1)              33.6            0.3       (25.5)  (25.2)       (8.4)          -        - 
Other                   1.4              -        (0.1)   (0.1)       (0.1)          -      1.2 
------------------  -------  -------------  -----------  ------  ----------  ---------  ------- 
Total(1)              210.5            8.8       (35.1)  (26.3)      (30.2)          -    154.0 
------------------  -------  -------------  -----------  ------  ----------  ---------  ------- 
 
 
                    Opening                                                             Closing 
                     AUM at                                          Market              AUM at 
                      1 Jan                                 Net   and other  Corporate   30 Jun 
                       2021  Gross inflows  Redemptions   flows   movements    actions     2021 
6 months ended 30 
 June 2021            GBPbn          GBPbn        GBPbn   GBPbn       GBPbn      GBPbn    GBPbn 
------------------  -------  -------------  -----------  ------  ----------  ---------  ------- 
Phoenix               171.5            6.0        (9.9)   (3.9)         1.1          -    168.7 
Lloyds                 31.8            3.1        (2.9)     0.2         2.2          -     34.2 
Other                   1.9              -        (0.1)   (0.1)       (0.2)          -      1.6 
------------------  -------  -------------  -----------  ------  ----------  ---------  ------- 
Total                 205.2            9.1       (12.9)   (3.8)         3.1          -    204.5 
------------------  -------  -------------  -----------  ------  ----------  ---------  ------- 
 

1. Following completion of the LBG tranche withdrawals, the remaining LBG AUM of cGBP7.5bn which has been retained was reallocated to quantitatives in Institutional and is included in market and other movements in the table above.

   5.6      Analysis of total AUM 

5.6.1 AUM by geography

 
                                     30 Jun 2022                                   31 Dec 2021 
                      ------------------------------------------  --------------------------------------------- 
                       Institutional             Personal          Institutional 
                       and Wholesale  Insurance       (2)  Total   and Wholesale  Insurance  Personal(2)  Total 
                               GBPbn      GBPbn     GBPbn  GBPbn           GBPbn      GBPbn        GBPbn  GBPbn 
--------------------  --------------  ---------  --------  -----  --------------  ---------  -----------  ----- 
UK                             109.3      154.0       8.2  271.5           120.3      210.5          8.9  339.7 
Europe, Middle East 
 and Africa (EMEA)              56.4          -         -   56.4            62.5          -            -   62.5 
Asia Pacific (APAC)             17.3          -         -   17.3            19.2          -            -   19.2 
Americas                        49.3          -         -   49.3            51.1          -            -   51.1 
--------------------  --------------  ---------  --------  -----  --------------  ---------  -----------  ----- 
Total AUM                      232.3      154.0       8.2  394.5           253.1      210.5          8.9  472.5 
--------------------  --------------  ---------  --------  -----  --------------  ---------  -----------  ----- 
 

2. Excludes assets under advice of GBP5.1bn at 30 June 2022 (FY 2021: GBP5.5bn) and interactive investor assets under administration of GBP52.3bn (FY 2021: GBPnil).

   5.7      Surplus regulatory capital 

The GBP0.6bn indicative capital surplus below includes a deduction to allow for the proposed interim dividend which will be paid in September 2022.

 
                                                       H1 2022  FY 2021 
IFPR Group regulatory capital position                   GBPbn    GBPbn 
-----------------------------------------------------  -------  ------- 
Common Equity Tier 1 capital resources                     1.2      2.4 
Additional Tier 1 capital resources                        0.2      0.2 
-----------------------------------------------------  -------  ------- 
Total Tier 1 capital resources                             1.4      2.6 
Tier 2 capital resources                                   0.6      0.6 
-----------------------------------------------------  -------  ------- 
Total regulatory capital resources                         2.0      3.2 
Subordinated debt restrictions                           (0.3)    (0.3) 
-----------------------------------------------------  -------  ------- 
Total regulatory capital resources available to meet 
 total regulatory capital requirements                     1.7      2.9 
Total regulatory capital requirements                    (1.1)    (1.1) 
-----------------------------------------------------  -------  ------- 
Surplus regulatory capital                                 0.6      1.8 
-----------------------------------------------------  -------  ------- 
 

6. Glossary

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 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 profit

A d justed operating profit before tax is the Group's key APM. Adjusted operating profit includes the results of the Group's three growth vectors: Investments, Adviser and Personal, along with Corporate/strategic.

It excludes the Group's adjusted net financing costs and investment return, and discontinued operations.

Adjusted operating profit also excludes the impact of the following items:

-- Restructuring costs 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.

Carbon intensity

Weighted-Average Carbon Intensity (WACI) is calculated by summing the product of each company's weight in the portfolio or loan book with that company's carbon-to-revenue intensity. Carbon-to-revenue intensity is calculated by dividing the sum of all apportioned emissions, with the sum of all apportioned revenues across an investment portfolio or loan book. This metric gives an indication of how efficient companies in a portfolio or loan book are at generating revenues per tonne of carbon emitted.

Carbon neutral

Being carbon neutral means that carbon released through our operational emissions is balanced by an equivalent amount being removed through carbon offsetting. For the purposes of offsetting, we include Scope 1, 2 and 3 emissions within our operational emissions.

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 work with Climate Impact Partners to offset our operational greenhouse gas emissions and voluntarily offset via two verified projects. We have historically supported a Gold Standard wind turbine project in India and a Verified Carbon Standard (VCS) Climate, Carbon, and Community rainforest protection project in Gola. For our 2021 emissions, we supported the development of wind energy in Nicaragua, with a Gold Standard Project, and a VCS project in Malawi focused on forest conservation and provision of clean cook stoves. We chose offsets that we knew were verifiable and correctly accounted for and have a low risk of non-additionality, reversal, and creating negative unintended consequences for people and the environment . Our intention is to review our approach in H2 2022 as the voluntary carbon market continues to evolve.

Chief Operating Decision Maker

The executive leadership team.

Company

abrdn plc. Standard Life Aberdeen plc was renamed abrdn plc on 2 July 2021.

Cost/income ratio

This is an efficiency measure that is calculated as adjusted operating expenses divided by fee based revenue.

CRD IV

CRD IV is the European regulatory capital regime (comprising the Capital Requirements Directive and Capital Requirements Regulation) that applied to investment firms up to and including 31 December 2021. The new IFPR regime came into force on 1 January 2022.

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)

Our ELT leads the business across our growth vectors and supporting functions globally and is responsible for executing and monitoring progress on the delivery of our business plans. The ELT also ensures we meet our obligations to our clients, people, shareholders, regulators and partners.

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.

Fee based revenue

Fee based 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. Fee based revenue is shown net of fees, costs of sale, commissions and similar charges. Costs of sale include revenue from fund platforms which is passed to the product provider.

Fee revenue yield (bps)

The average revenue yield on fee based business is a measure that illustrates the average margin being earned on the assets that we manage, administer or advise our clients on excluding interactive investor. It is calculated as annualised fee based revenue (excluding performance fees, interactive investor and revenue for which there are no attributable assets) divided by monthly average fee based assets. interactive investor is excluded from the calculation of Personal and total fee revenue yield as fees charged for this business are primarily from subscriptions and trading transactions.

Greenhouse gases

Greenhouse gases are those gaseous constituents of the atmosphere, both natural and anthropogenic, that absorb and emit radiation at specific wavelengths within the spectrum of thermal infrared radiation emitted by the earth's surface, the atmosphere itself, and by clouds. This property causes the greenhouse effect. Water vapour (H2O), carbon dioxide (CO2), nitrous oxide (N2O), methane (CH4) and ozone (O3) are the primary greenhouse gases in the earth's atmosphere. Moreover, there are a number of entirely human-made greenhouse gases in the atmosphere, such as halocarbons and other chlorine- and bromine-containing substances, dealt with under the Montreal Protocol. Beside CO2, N2O and CH4, the Kyoto Protocol deals with the greenhouse gases sulphur hexafluoride (SF6), hydrofluorocarbons (HFCs) and perfluorocarbons (PFCs).

Group or abrdn

Relates to the Company and its subsidiaries.

Growth vectors

We provide services across three growth vectors:

- I nvestments : Asset management investment solutions for institutional, wholesale and insurance clients.

   -    Adviser : Our Wrap and Elevate adviser platforms. 
   -    Personal : Comprises of Personal Wealth which includes our financial planning business and our direct-to-consumer services, and interactive investor following the completion of the acquisition in May 2022. 

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.

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 new prudential regime for MiFID investment firms. The regime came into force on 1 January 2022.

Investment performance

Investment performance has been aggregated using a money weighted average of our assets under management which are outperforming their respective benchmark. Calculations for investment performance are made gross of fees with the exception of those for which the stated comparator is net of fees. Benchmarks differ by fund and are defined in the relevant investment management agreement or prospectus, as appropriate. The investment performance calculation covers all funds that aim to outperform a benchmark, with certain assets excluded where this measure of performance is not appropriate or expected, such as private markets and execution only mandates, as well as replication tracker funds which aim to perform in line with a given index.

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 GBP104bn (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. During this period, the Group will continue to be remunerated for its services in relation to the transferring AUM. The final tranche withdrawal was completed in H1 2022.

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.

Net zero

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.

Net Zero Direct Investing

Net Zero Directed Investing means moving towards the goal of net zero in the real world - not just in specific investment portfolios. At abrdn we seek to achieve this goal through a holistic set of actions, including rigorous research into net-zero trajectories, developing net-zero-directed investment solutions and active ownership to influence corporates and policy makers.

Operational emissions

Operational emissions are the greenhouse gas emissions related to the operations of our business. They are categorised into three groups or 'scopes'. 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 Scope 1, Scope 2, and Scope 3 emissions, which includes our working from home emissions.

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

Relates to our investments in HDFC Asset Management, HDFC Life and Phoenix. 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.

7. Shareholder information

Registered office

1 George Street

Edinburgh

EH2 2LL

Scotland

Company registration number: SC286832

For shareholder services call: 0371 384 2464*

* Calls are monitored/recorded to meet regulatory obligations and for training and quality purposes. Call charges will vary.

Secretary: Kenneth A Gilmour

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 details can be found on the inside back cover.

   --      Visit our share portal at www.abrdnshares.com 

Sign up for Ecommunications

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

 
Half year results 2022            9 August 
Ex-dividend date for 2022        18 August 
 interim dividend 
Record date for 2022 interim     19 August 
 dividend 
Last date for DRIP elections   7 September 
 for 2022 interim dividend 
Dividend payment date for     27 September 
 2022 interim dividend 
----------------------------  ------------ 
 

Analysis of registered shareholdings at 30 June 2022

 
                                 % of                    % of 
Range                Number     total         Number    total 
 of shares       of holders   holders      of shares   shares 
--------------  -----------  --------  -------------  ------- 
1-1,000              59,344     65.69     23,754,048     1.09 
1,001-5,000          26,379     29.20     54,294,871     2.49 
5,001-10,000          2,642      2.92     17,651,293     0.81 
10,001-100,000        1,481      1.64     36,159,333     1.66 
(#) 100,001+            499      0.55  2,048,866,415    93.95 
--------------  -----------  --------  -------------  ------- 
Total                90,345    100.00  2,180,725,960   100.00 
--------------  -----------  --------  -------------  ------- 
 

# These figures include the Company-sponsored nominee - the abrdn Share Account - which had 927,858 participants holding 643,129,574 shares.

8. Forward-looking statements

This document may contain certain 'forward-looking statements' with respect to the financial condition, performance, results, strategies, 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, (such as the UK's exit from the EU and the ongoing conflict between Russia and Ukraine); 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); natural or man-made catastrophic events; the impact of pandemics, such as the COVID-19 (coronavirus) outbreak; climate change and a transition to a low-carbon economy (including the risk that the Group may not achieve its 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, 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.

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.

Contact us

Got a shareholder question? Contact our shareholder services team.

UK and overseas (excluding Germany and Austria)

   phone                +44 (0)371 384 2464* 
   email                   questions@abrdnshares.com 
   visit                     www.abrdnshares.com 
   mail                     abrdn Shareholder Services Aspect House 

Spencer Road Lancing, West Sussex

BN99 6DA, United Kingdom

Germany and Austria

   phone                +44 (0)371 384 2493* 
   email                   fragen@abrdnshares.com 
   visit                     www.abrdnshares.com 
   mail                     abrdn Shareholder Services Aspect House 

Spencer Road Lancing, West Sussex

BN99 6DA, United Kingdom

* Calls are monitored/recorded to meet regulatory obligations and for training and quality purposes. Call charges will vary.

Please remember that the value of shares can go down as well as up and you may not get back the full amount invested or any income from it. All figures and share price information have been calculated as at 30 June 2022 (unless otherwise indicated).

This document has been published by abrdn plc for information only. It is based on our understanding as at August 2022 and does not provide financial or legal advice.

abrdn plc is registered in Scotland (SC286832) at 1 George Street, Edinburgh EH2 2LL.

www.abrdn.com (c) 2022 abrdn, images reproduced under licence. All rights reserved.

UKIR22 0822

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END

IR EANPPELXAEFA

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August 09, 2022 02:00 ET (06:00 GMT)

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