abrdn (LON:ABDN) used its fourth-quarter AUMA and flows trading update to highlight improved strategic execution across its three business lines, stronger group assets supported by market performance, and reaffirmed financial targets for 2026. Chief Executive Officer Jason Windsor said the group is “in much better shape than it was a year ago” as it works toward becoming “the UK’s leading wealth and investments group.”
Group assets under management and administration (AUMA) ended the period at £556 billion, the highest level since COVID and up 9% year on year, which management attributed to positive markets.
Interactive Investor: customer growth, record trading and product launches
II delivered £1.4 billion of net inflows in the quarter, bringing full-year flows to £7.3 billion, a 28% increase year on year and equal to 9% of opening AUMA, according to Chief Financial Officer Siobhan. She also pointed to a busy quarter of development, including the launch of a managed SIP, a soft launch of II Advice, and II360 in advanced testing.
The pricing changes announced in December are set to become effective in February, which management said will simplify the proposition and improve competitive positioning. Responding to a question on the impact, Windsor characterized the fee changes as “MPV positive,” adding that the company expects higher trading volumes and customer growth as the new pricing takes effect.
On interest earned from customer cash, management said it does not expect 2026 margins to be materially different from 2025, though it noted the impact of a rate cut late in the year. Windsor said the cash deposit margin is expected to be in the 210–220 basis points range, with further guidance to come at full-year results in March.
Addressing II cash balances, management said balances were around £8 billion and are expected to remain broadly stable as a proportion of overall assets, at roughly 8%–10%. The increase in cash in the quarter was attributed in part to SIP tax-free cash being released and remaining on platform, as well as a “backlog of SIPs” that have not yet been fully invested.
On early traction for new managed offerings, management said the managed SIP had attracted around 1,000 customers so far. It also noted that the managed ISA has been operating for longer and is seeing activity of about 50 a day. Windsor said the broader aim is to widen the platform’s appeal beyond purely self-directed investors.
Separately, the company reiterated that the sale of the financial planning business announced in August is expected to complete “imminently.”
Adviser: improved full-year outflows but still negative in Q4
In the Adviser business, AUMA increased to over £80 billion, again helped by market performance. However, net outflows in the fourth quarter were elevated at £0.8 billion. Management said this was driven largely by market uncertainty ahead of the UK budget, which resulted in around £250 million of increased tax-free cash withdrawals during the quarter.
For the full year, net outflows improved by 44% to £2.2 billion. Siobhan attributed the improvement to repricing earlier in the year and a focus on service, noting an average net promoter score for the year of +45.
Despite the improvement, Windsor acknowledged there is “further to go” to return Adviser to growth, citing the need to increase gross flows and manage outflows. He noted that Q4 gross flows were about £1.8 billion and said the company remains “laser-focused” on closing the gap.
Management pointed to the launch of a new SIP integrated on the Adviser platform and said it had added approximately 1,000 SIP accounts since the beginning of December.
In response to a question on whether prior guidance still stands, management said it is still guiding to £1 billion of inflows in 2026 for Adviser.
Management also drew a contrast between cash behavior on the two platforms, saying cash redeemed from Adviser tends to leave the platform rather than remain in a cash product, unlike II where customers often use the platform as a broader “household account.” Windsor said there is potential upside over time as functionality expands and the firm works to retain more cash on platform.
Investments: higher AUM, mixed flows, and margin outlook
In Investments, assets increased by 6% during 2025 to end the year at £390 billion, again supported by markets. Fourth-quarter net outflows were £3 billion, including a previously flagged £4.5 billion low-margin quants withdrawal. Management also cited reduced net outflows in equities and insurance partner outflows of £1.2 billion.
On the positive side, institutional and retail wealth gross inflows in Q4 rose 26% year on year, with strength in multi-asset alternatives, fixed income, and equities. Excluding liquidity flows and Phoenix assets included in the business line, management said net flows for INRW were positive for the year at around £5 billion.
Multi-asset net inflows included £1.2 billion related to the Stagecoach pension scheme arrangement announced in December. Management also highlighted improved momentum in alternatives, with commodity ETFs driving an 85% improvement in net flows. Total commodity ETF AUM rose to £15.8 billion.
Given changing flow trends and asset mix in the second half, management now expects the full-year 2025 investments revenue margin to be around 19.2 basis points. Executives said the move was “primarily driven by mix,” including equities. Looking ahead, management said it expects the investment revenue margin to be around 19 basis points in 2026.
Asked about investment performance, Windsor said the company had not yet completed a full benchmark analysis for December but reported that performance has “improved sharply” year to date. He cited estimates of 84% of funds outperforming on a one-year basis and 80% over three years, adding that equities showed a “significant improvement.” He called out emerging market income as performing particularly well and also mentioned US small cap “Tekla.”
Stagecoach transaction and capital position
Management described the Stagecoach pension transaction as providing members with an opportunity to participate in upside, including an initial increment and a profit share arrangement between abrdn and members over time. Windsor said the deal is supported by an asset management agreement and includes a block of capital intended to support the investment mix and potential member benefits as well as surplus to abrdn.
On whether more such transactions could follow, Windsor said the company has a “limited appetite” and is not on the verge of announcing more, but would be open to additional opportunities if circumstances are right.
Regarding balance sheet impact, management said Stagecoach has “no significant impact” and only a “very marginal impact,” adding there was no cash consideration. Windsor said the risk of having to contribute extra cash is “very remote,” while acknowledging it is not zero under a “1 in 200” type scenario.
On capital, Siobhan said that effective year-end 2025, the group’s capital requirement will be lower and now based on the group’s internal capital assessment. Management said a fuller update will be provided with full-year results in March. Asked whether excess capital could lead to changes in distributions, Windsor said the company is not flagging a change in policy and noted one objective is to lower gross debt as it refines its approach to capital allocation.
For the group overall, management said full-year 2025 adjusted operating profit is expected to be in line with current market expectations. It reiterated its full-year 2026 targets of at least £300 million of adjusted operating profit and around £300 million of net capital generation.
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 30 September 2025, Aberdeen manages and administers £542bn of client and customer assets.
