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ABDN Abrdn Plc

166.75
-1.80 (-1.07%)
12 Jul 2024 - Closed
Delayed by 15 minutes
Abrdn Investors - ABDN

Abrdn Investors - ABDN

Share Name Share Symbol Market Stock Type
Abrdn Plc ABDN London Ordinary Share
  Price Change Price Change % Share Price Last Trade
-1.80 -1.07% 166.75 16:35:12
Open Price Low Price High Price Close Price Previous Close
165.50 165.45 169.00 166.75 168.55
more quote information »
Industry Sector
EQUITY INVESTMENT INSTRUMENTS

Top Investor Posts

Top Posts
Posted at 11/7/2024 10:26 by chinese investor
13p To 180p !

Chinese Investor (ABDN) 04 Jul 2024 - 08:56:07
23p To 180p !

Chinese Investor (ABDN) 14 Jun 2024 - 15:54:21
38p To 180p !
Posted at 10/7/2024 11:44 by chinese investor
Maybe This !

Chinese Investor (ABDN) 19 Jul 2023 - 13:32:20
Once the threat of high inflation evaporates then ABDN will zoom upwards.
IMO
Posted at 07/7/2024 11:27 by jubberjim
Does anyone still think that the dividend will be maintained at the current level.


Is only a question of when and not if the dividend is cut.

Cross holding in phoenix ?

And dividend paid like phoenix in equal instalments

The chair Douglas Flint has presided over the calamitous fall in the share price and has to go as he has let down the countless shareholders.

Will look to buy if dips to 132/133 level but otherwise remains unloved and unwanted by this particular investor
Posted at 21/6/2024 12:42 by growthpotential
What brokers is everyone using? I'm disappointed in interactive investor 1.5% FX charge, surely this needs to come down...(?)
Posted at 24/4/2024 07:53 by cwa1
Commenting, Stephen Bird, CEO abrdn plc, said:

"Our AUMA grew 3% in the period to £507.7bn, supported by a positive contribution from markets across all three businesses. We had net inflows at a group level, including strong liquidity flows which contributed to positive overall flows within Investments. At interactive investor, we saw continued organic growth in customers and flows. We were particularly pleased with the growth in SIPP customers. Yet clearly there is more work to be done in Investments and Adviser, where we have actions underway to improve performance.

Our cost transformation programme is on track as we take action to sustainably restore our business to a more acceptable level of profitability. Our key focus, and our most important priority, is on delivering investment performance for all of our clients."



All figures to the end of 31 March 2024 in this announcement are unaudited, and subject to revision.

Management will be hosting a call for analysts and investors at 8:30am (BST) on 24 April 2024. To access a webcast of the conference call, please go to the following link:
Posted at 22/4/2024 20:02 by growthpotential
interactive investor screw their investors over with the 1.5% margin rate on FX transactions
Posted at 28/2/2024 09:13 by jubberjim
I have an idea

When the share price goes up to 231 the price when the Bird Brain hatched his much lauded takeover of II only then would the board of directors from Flint downwards qualify for the proposed bonuses this year.

It is a kick in the teeth for those investors who have been hamstrung by the stupidity of the current crop of idiots intent on enriching themselves at the expense of the ordinary workers losing their jobs and us investors
Posted at 10/10/2023 17:06 by pj84
Hoper1

Here it is, it's quite long.

"Panmure Gordon: ‘Something has to change’ at Abrdn

Analysts at the investment bank want a change of strategy from Abrdn’s management, arguing that the right calls could provide huge value to investors.

BY JACK GILBERT, VICTORIA BELL

Analysts at Panmure Gordon have called for a structural overhaul of Abrdn’s (ABDN) management strategy, saying that ‘something has to change’ at the under-pressure provider.

The note from investment bank Panmure Gordon, seen by Wealth Manager’s sister title Citywire New Model Adviser, criticises Abrdn’s management decisions and recent performance and warns of the possible risks of its re-platforming project.

However, it also increases its Abrdn recommendation from ‘hold’ to ‘buy’ on the basis that the component parts of the business outweigh its market capitalisation of £3bn. It concludes that if management changes tack, the business has value for investors and its share price can rise by almost two-thirds.

Despite ‘management messaging at the interim results putting a gloss on performance to which we cannot subscribe’, the analysts said there is now a significant gap between Abrdn’s market cap and the underlying value of its assets.

‘There remains the real risk that value leaks through mismanagement, but the value gap has reopened and so opportunity is again in the share price,’ the note says.

Platform struggles

Under its CEO Stephen Bird, Abrdn’s leadership has been attempting to change the business’s reputation as a life and pensions company, in favour of a tech-focused asset manager.

However, it is facing some severe headwinds, including the recent performance of its platform business (which sits under its Adviser division), highlighted by Panmure Gordon.

Abrdn is gearing up to re-platform Elevate and FundZone adviser users onto its Wrap platform, which will be rebranded as AdviserOS. As part of this move, it launched a big software upgrade for Wrap in February, which caused issues for IFAs and contributed to it seeing a £600m net platform outflow over the first half of 2023.

The analyst note said the challenges Abrdn faces with the re-platforming could be even worse than many are anticipating. It cited NMA’s article in August that revealed that many advisers are holding off placing new platform business with Abrdn.

‘As was seen by Quilter previously, the negative impact from a technology mishap tends to be less short term than the company initially hopes,’ the note says. ‘It can take multiple quarters, if not years, before advisers regain confidence and trust in a platform.

‘The prolonged impact from technology disruption and damaged adviser relationships is likely to exacerbate the already weak relative performance of Abrdn’s adviser platform, we fear.’

Panmure Gordon says Abrdn was already losing platform market share before the re-platforming and is close to being overtaken by Quilter as the top platform by assets.

A spokesperson for Abrdn pointed to its platform business generating £103m of revenue and £49m of profit in the first half of 2023.

They also said that now its tech upgrade for Wrap has finished, the launch of AdviserOS will allow it to be a ‘key differentiator in the market’ and Abrdn will add more platform solutions for advisers including its managed portfolio service.

‘Despite the market volatility, the mid-term market opportunity remains compelling – with forecast assets under administration growth of 11% per annum,’ the Abrdn spokesperson said. ‘Using the capacity creation from our technology upgrade, we are well positioned to drive new business.’

Weak investment performance
Ever since Standard Life’s merger with Aberdeen Asset Management in 2017, the combined group, which rebranded as Abrdn in 2021, has seen its asset management arm struggle for performance and flows. Over one year, 64% of its assets are in the bottom half for performance against their peer groups, according to analysis by our sister title Citywire Amplify in June.

In July, Abrdn announced the closure of Global Absolute Return Strategies (Gars), once its flagship fund, and in April it was reported the firm was to cut 27 roles from its multi-asset team.

Abrdn’s management team laid out plans in March 2021 to focus its asset management arm on Asia, private markets and its wholesale channel, but Panmure Gordon analysts are unconvinced that this strategy has ‘achieved its aim of delivering a better flow performance’.

Excluding the assets it is losing as part of the Lloyds Swip transfer, Abrdn saw net outflows of £5.9bn from its fund management arm in the first half of 2023.

One shining light in Abrdn’s recent financials has been the performance of its direct-to-consumer platform Interactive Investor, which sits in its personal division. Interactive Investor’s revenues jumped from £40m to £115m in H1 2023.

Panmure Gordon acknowledged that Interactive Investor has performed strongly since its takeover in 2021, but added that this outperformance was driven by its cash margin, which generated £66m in revenues in the first six months of the year. The analysts cautioned that while this cash revenue is a valid source of income, ‘elsewhere in the sector, Hargreaves Lansdown is rarely praised for its revenue benefit from treasury income’.

Abrdn’s acquisition of investing community forum company Finimize was also singled out by Panmure Gordon as a ‘very poor one’. Since the acquisition in 2021, Abrdn has written down Finimize’s goodwill by £55m, wiping off around two-thirds of its original value of about £87m at the time of the deal.

Despite the challenges and missteps pointed out by Panmure Gordon in its note, the analysts believe Abrdn’s share price, which has fallen by 34% since the end of July, is undervalued by the market.

This assessment is based on a valuation of its component parts, which it aggregates to be £4.2bn, discounting any synergy between the divisions it does not believe is being seen by investors. The components are as follows:

10% stake in Phoenix, currently valued at £500m.
Surplus capital of £1bn at the time of the interim results.
Personal business value of £1.5bn, including a £1.3bn value for Interactive Investor (bought for £1.5bn).
£1bn valuation for its platform business, based on a 15x multiple.
£300m valuation of its fund management arm.

Based on these figures, Panmure Gordon believes there is significant opportunity for share price growth if the ‘board steps up’. Its price target for Abrdn is 250p per share, compared with its current price of 155.1p.

‘Whether it is this leadership team which realises the value is moot,’ the note said. ‘Reflecting the value opportunity and the need for the board to step up, we return to a buy recommendation.̵7;

Not everyone is so confident, however. Last week, two new short sellers – AHL Partners and Samlyn Capital – took out short positions against Abrdn.

Abrdn has been approached for comment.
Posted at 02/12/2021 11:49 by skinny
The boxed version :-)




Proposed acquisition of interactive investor Limited

abrdn announces plans to acquire 100 per cent. of the UK's leading subscription-based investment platform interactive investor for GBP1.49 billion. abrdn and interactive investor have a shared vision of the growth and development of the wealth market and a commitment to being the customer champion. This acquisition will significantly enhance our presence and growth opportunities within a fast-growing and attractive market.

Stephen Bird, Chief Executive Officer of abrdn plc commented:

"This is a unique opportunity and a transformative step in delivering our growth strategy. interactive investor is the UK's number one subscription-based investing platform with a powerful reputation as a consumer champion. abrdn's scale, resources, and shared vision will enable interactive investor to grow confidently and expand its leadership position in the UK's attractive savings and wealth market. I am delighted that Richard Wilson and his team will continue to lead interactive investor."

Richard Wilson, Chief Executive Officer of interactive investor Limited commented:

"This is an exciting new chapter in our history and means that we can focus exclusively on serving those who matter most: our customers. We will have access to abrdn's additional capabilities across research, advice and wealth management services, and we will benefit from being part of one of Europe's largest investment and wealth management firms, with a vision and values closely aligned to our own.

Our management will remain the same, and the same extraordinary team will continually develop our service and technology, while maintaining our subscription pricing, our whole of market choice and the same campaigning spirit and editorial independence."

-- abrdn has agreed to acquire 100 per cent. of the ordinary share capital of the holding company of interactive investor Limited ("interactive investor") from its shareholders, including J.C. Flowers IV L.P. (a fund advised by J.C. Flowers & Co.) and key members of interactive investor's management, for total consideration of GBP1.49 billion [1] .

-- Completion of the Acquisition is subject to the satisfaction of customary conditions including regulatory consents and abrdn Shareholder approval.

-- interactive investor is the leading subscription-based platform ([2]) within the high-growth UK direct investing market, with over 400,000 customers ([3]) and AUA of approximately GBP55 billion ([4]) . The UK direct investing market benefits from accelerating demographic and structural market trends. In combination, the high-tech, high-touch models of interactive investor and abrdn can enable clients to become better investors and create more opportunities for their financially secure futures.

-- The Acquisition is a material step in our building of a leadership position in the personal wealth market, with AUMA in the Personal vector increasing nearly fivefold to GBP69 billion [5] on a pro forma basis.

-- abrdn considers the investment choices, flexibility and fixed fee pricing model that interactive investor offers customers, and its ethos as a consumer champion, to positively differentiate it in the market. abrdn is therefore committed to interactive investor's standalone open-architecture, subscription-based revenue model for the long-term.

-- As part of the Acquisition, Richard Wilson, CEO of interactive investor will join abrdn and continue to lead interactive investor, which will operate as a standalone business within abrdn's Personal vector.

-- interactive investor has grown rapidly, attracting high-value customers and is expected to continue to deliver a strong profile of growth and efficiency. The Acquisition is expected to be double-digit earnings accretive [6] in the first full financial year following Completion.

-- The Acquisition will be funded in cash from abrdn's capital resources. Following the Acquisition, abrdn's capital position will remain strong with an indicative pro forma regulatory capital surplus (post IFPR) of c.GBP0.5 billion and in addition c.GBP2.5 billion of value from our listed investments [7] . We intend to issue Additional Tier 1 debt of c.GBP200 million to optimise our capital structure.

Strategic rationale for the Acquisition

Acquisition achieves scale in the high-growth direct investing market, accessing new customer segments and capabilities

-- Growing our Personal vector and expanding its capabilities and scale is a clear strategic priority for abrdn. The current focus of our Personal vector on financial planning and discretionary investment management will be transformed by combining with the high-tech model of interactive investor enabling us to meet clients' financial needs throughout their lives. Following the Acquisition, our Personal vector will have GBP69 billion of AUMA [8] on a pro forma basis and the share of abrdn Group fee based revenue [9] from Personal will increase from 6 per cent. [10] to 13 per cent. [11]

-- The direct investing market has grown at c.15 per cent. [12] compound historically and is expected to continue growing at a similar rate in the future driven by accelerating demographic and structural market trends. These include the democratisation of wealth, increased digitalisation of services, better value for money propositions, substantial inter-generational wealth transfers and the growing importance of a dynamic offering to address changing client behaviours and needs over time.

interactive investor is the UK's leading subscription-based direct investing platform and consumer champion

-- interactive investor is the leading subscription-based direct investing platform in the UK, with over 400,000 customers, and a meaningful proportion of high-value customers based on AUA per customer. Its open-architecture, digitally-enabled, data-centric model and technology platform drives strong customer engagement, activity and acquisition, through data analytics, customer personalisation and high user functionality.

-- This has enabled interactive investor to build growth momentum, with net flows of GBP5.5 billion ([13]) , c.17 per cent. of opening AUA, and increasing trading volumes of c.21,700 daily average retail trades over the twelve month period to 30 June 2021, which compares to c.8,700 over the twelve month period to 31 December 2019. Total AUA has increased 55 per cent. compound over the period between 31 December 2018 to 30 June 2021.

-- interactive investor is focused on continuing to deliver enhanced user experience for its customers following the successful roll out of a new mobile app and website and, most recently, the launch of 'Friends and Family', where existing customers can introduce multiple friends or family for only GBP5 per month.

-- interactive investor's platform is scalable with a large proportion of efficient straight-through processing, which allows significant scaling in customer numbers and activity. Strong operating leverage in the business has resulted in an improving margin [14] from 23 per cent. ([15]) to 34 per cent. ([16]) .

Transforms our Personal vector, significantly growing and diversifying revenue and profitability

-- Following the Acquisition, abrdn's Personal vector will have scale and relevance, with fee based revenue more than doubling from GBP83 million ([17]) to GBP199 million ([18]) on a pro forma basis. The vector's growth potential is expected to accelerate given the trends supporting strong growth prospects for the personal wealth market and direct investing specifically.

-- interactive investor's projected revenue growth complements abrdn's high single digit revenue growth target (three year CAGR to 2023), accelerating sustainable growth, and its operating margin is incremental to abrdn's existing target to exit 2023 at a cost/income ratio of c.70 per cent.

-- The Acquisition significantly expands our addressable market and creates a step change in our combined UK wealth offering. interactive investor expands abrdn's client reach, adding over 400,000 customers, allowing us to meet a broader range of client behaviours and needs.

Shared vision of a combined high-tech, high-touch model that meets clients' financial needs throughout their lives

-- interactive investor aligns closely with abrdn's client-led offering. Together with abrdn's established propositions in financial planning and discretionary investment management, the combined offering provides clients with trust, confidence and compelling value for clients at all stages of their financial journeys.

-- interactive investor complements recently added new digital capabilities, with Exo Investing, which allows easier investing for clients through AI digital investing capabilities, and Finimize, which offers digestible investing information and insights to a highly engaged investor community.

-- interactive investor will be able to leverage abrdn's trust, deep expertise in financial advice, meticulous research and global perspective. In combination, interactive investor's high-tech model broadens abrdn's existing personal wealth offerings, from self-directed investing to high-touch financial planning and discretionary investment management.

Optimal deployment of our capital to drive sustainable growth, returns, scale and shareholder value - the Acquisition is expected to be double-digit earnings accretive [19]

-- The Acquisition creates a leading position for the Personal vector in the high-growth UK savings market, and is expected to be double-digit earnings accretive [20] in the first full financial year following Completion.

-- The Acquisition will be funded in cash from abrdn's capital resources. Following the Acquisition, abrdn's capital position will remain strong with an indicative pro forma regulatory capital surplus (post IFPR) of c.GBP0.5 billion and in addition c.GBP2.5 billion in value from our listed investments [21] . We intend to issue Additional Tier 1 debt of c.GBP200 million to optimise our capital structure.

-- The Acquisition improves abrdn's dividend cover. The Board intends to maintain the total dividend at 14.6 pence per annum until it is covered at least 1.5 times by adjusted capital generation, at which point the Board will seek to grow the dividend in line with its assessment of the underlying medium term growth in profitability.

Further information on interactive investor

interactive investor is the leading subscription-based, digitally enabled, direct investing platform in the UK, founded in 1995. Its holding company is controlled by a fund advised by J.C. Flowers & Co., a leading private equity firm. interactive investor is the UK's largest fixed fee subscription-based investing platform, with GBP55 billion of AUA and over 400,000 customers ([22]) .

interactive investor has a strong track record of acquiring, integrating and investing in complementary platform businesses. interactive investor completed the acquisition of TD Direct Investing in 2017, Alliance Trust Savings in 2019, and Share plc in 2020. The latest acquisition was the EQi book of customers, which completed in June 2021. interactive investor is based in Manchester, with offices in London and Leeds, and has c.777 employees [23] .

The interactive investor Group generated adjusted profit before tax of GBP45.5 million and reported profit before tax of GBP41.7 million for the year ended 2020 and had gross assets of GBP636 million as at 30 June 2021.
Posted at 02/12/2021 11:47 by spud
abrdn PLC Acquisition

02/12/2021 10:40am
UK Regulatory (RNS & others)

Abrdn (LSE:ABDN)
Intraday Stock Chart

Thursday 2 December 2021
Click Here for more Abrdn Charts.
TIDMABDN

RNS Number : 3704U

abrdn PLC

02 December 2021

2 December 2021

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN, INTO, OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF THAT JURISDICTION

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

FOR IMMEDIATE RELEASE

abrdn plc ("abrdn")

Proposed acquisition of interactive investor Limited

abrdn announces plans to acquire 100 per cent. of the UK's leading subscription-based investment platform interactive investor for GBP1.49 billion. abrdn and interactive investor have a shared vision of the growth and development of the wealth market and a commitment to being the customer champion. This acquisition will significantly enhance our presence and growth opportunities within a fast-growing and attractive market.

Stephen Bird, Chief Executive Officer of abrdn plc commented:

"This is a unique opportunity and a transformative step in delivering our growth strategy. interactive investor is the UK's number one subscription-based investing platform with a powerful reputation as a consumer champion. abrdn's scale, resources, and shared vision will enable interactive investor to grow confidently and expand its leadership position in the UK's attractive savings and wealth market. I am delighted that Richard Wilson and his team will continue to lead interactive investor."

Richard Wilson, Chief Executive Officer of interactive investor Limited commented:

"This is an exciting new chapter in our history and means that we can focus exclusively on serving those who matter most: our customers. We will have access to abrdn's additional capabilities across research, advice and wealth management services, and we will benefit from being part of one of Europe's largest investment and wealth management firms, with a vision and values closely aligned to our own.

Our management will remain the same, and the same extraordinary team will continually develop our service and technology, while maintaining our subscription pricing, our whole of market choice and the same campaigning spirit and editorial independence."

-- abrdn has agreed to acquire 100 per cent. of the ordinary share capital of the holding company of interactive investor Limited ("interactive investor") from its shareholders, including J.C. Flowers IV L.P. (a fund advised by J.C. Flowers & Co.) and key members of interactive investor's management, for total consideration of GBP1.49 billion [1] .

-- Completion of the Acquisition is subject to the satisfaction of customary conditions including regulatory consents and abrdn Shareholder approval.

-- interactive investor is the leading subscription-based platform ([2]) within the high-growth UK direct investing market, with over 400,000 customers ([3]) and AUA of approximately GBP55 billion ([4]) . The UK direct investing market benefits from accelerating demographic and structural market trends. In combination, the high-tech, high-touch models of interactive investor and abrdn can enable clients to become better investors and create more opportunities for their financially secure futures.

-- The Acquisition is a material step in our building of a leadership position in the personal wealth market, with AUMA in the Personal vector increasing nearly fivefold to GBP69 billion [5] on a pro forma basis.

-- abrdn considers the investment choices, flexibility and fixed fee pricing model that interactive investor offers customers, and its ethos as a consumer champion, to positively differentiate it in the market. abrdn is therefore committed to interactive investor's standalone open-architecture, subscription-based revenue model for the long-term.

-- As part of the Acquisition, Richard Wilson, CEO of interactive investor will join abrdn and continue to lead interactive investor, which will operate as a standalone business within abrdn's Personal vector.

-- interactive investor has grown rapidly, attracting high-value customers and is expected to continue to deliver a strong profile of growth and efficiency. The Acquisition is expected to be double-digit earnings accretive [6] in the first full financial year following Completion.

-- The Acquisition will be funded in cash from abrdn's capital resources. Following the Acquisition, abrdn's capital position will remain strong with an indicative pro forma regulatory capital surplus (post IFPR) of c.GBP0.5 billion and in addition c.GBP2.5 billion of value from our listed investments [7] . We intend to issue Additional Tier 1 debt of c.GBP200 million to optimise our capital structure.

Strategic rationale for the Acquisition

Acquisition achieves scale in the high-growth direct investing market, accessing new customer segments and capabilities

-- Growing our Personal vector and expanding its capabilities and scale is a clear strategic priority for abrdn. The current focus of our Personal vector on financial planning and discretionary investment management will be transformed by combining with the high-tech model of interactive investor enabling us to meet clients' financial needs throughout their lives. Following the Acquisition, our Personal vector will have GBP69 billion of AUMA [8] on a pro forma basis and the share of abrdn Group fee based revenue [9] from Personal will increase from 6 per cent. [10] to 13 per cent. [11]

-- The direct investing market has grown at c.15 per cent. [12] compound historically and is expected to continue growing at a similar rate in the future driven by accelerating demographic and structural market trends. These include the democratisation of wealth, increased digitalisation of services, better value for money propositions, substantial inter-generational wealth transfers and the growing importance of a dynamic offering to address changing client behaviours and needs over time.

interactive investor is the UK's leading subscription-based direct investing platform and consumer champion

-- interactive investor is the leading subscription-based direct investing platform in the UK, with over 400,000 customers, and a meaningful proportion of high-value customers based on AUA per customer. Its open-architecture, digitally-enabled, data-centric model and technology platform drives strong customer engagement, activity and acquisition, through data analytics, customer personalisation and high user functionality.

-- This has enabled interactive investor to build growth momentum, with net flows of GBP5.5 billion ([13]) , c.17 per cent. of opening AUA, and increasing trading volumes of c.21,700 daily average retail trades over the twelve month period to 30 June 2021, which compares to c.8,700 over the twelve month period to 31 December 2019. Total AUA has increased 55 per cent. compound over the period between 31 December 2018 to 30 June 2021.

-- interactive investor is focused on continuing to deliver enhanced user experience for its customers following the successful roll out of a new mobile app and website and, most recently, the launch of 'Friends and Family', where existing customers can introduce multiple friends or family for only GBP5 per month.

-- interactive investor's platform is scalable with a large proportion of efficient straight-through processing, which allows significant scaling in customer numbers and activity. Strong operating leverage in the business has resulted in an improving margin [14] from 23 per cent. ([15]) to 34 per cent. ([16]) .

Transforms our Personal vector, significantly growing and diversifying revenue and profitability

-- Following the Acquisition, abrdn's Personal vector will have scale and relevance, with fee based revenue more than doubling from GBP83 million ([17]) to GBP199 million ([18]) on a pro forma basis. The vector's growth potential is expected to accelerate given the trends supporting strong growth prospects for the personal wealth market and direct investing specifically.

-- interactive investor's projected revenue growth complements abrdn's high single digit revenue growth target (three year CAGR to 2023), accelerating sustainable growth, and its operating margin is incremental to abrdn's existing target to exit 2023 at a cost/income ratio of c.70 per cent.

-- The Acquisition significantly expands our addressable market and creates a step change in our combined UK wealth offering. interactive investor expands abrdn's client reach, adding over 400,000 customers, allowing us to meet a broader range of client behaviours and needs.

Shared vision of a combined high-tech, high-touch model that meets clients' financial needs throughout their lives

-- interactive investor aligns closely with abrdn's client-led offering. Together with abrdn's established propositions in financial planning and discretionary investment management, the combined offering provides clients with trust, confidence and compelling value for clients at all stages of their financial journeys.

-- interactive investor complements recently added new digital capabilities, with Exo Investing, which allows easier investing for clients through AI digital investing capabilities, and Finimize, which offers digestible investing information and insights to a highly engaged investor community.

-- interactive investor will be able to leverage abrdn's trust, deep expertise in financial advice, meticulous research and global perspective. In combination, interactive investor's high-tech model broadens abrdn's existing personal wealth offerings, from self-directed investing to high-touch financial planning and discretionary investment management.

Optimal deployment of our capital to drive sustainable growth, returns, scale and shareholder value - the Acquisition is expected to be double-digit earnings accretive [19]

-- The Acquisition creates a leading position for the Personal vector in the high-growth UK savings market, and is expected to be double-digit earnings accretive [20] in the first full financial year following Completion.

-- The Acquisition will be funded in cash from abrdn's capital resources. Following the Acquisition, abrdn's capital position will remain strong with an indicative pro forma regulatory capital surplus (post IFPR) of c.GBP0.5 billion and in addition c.GBP2.5 billion in value from our listed investments [21] . We intend to issue Additional Tier 1 debt of c.GBP200 million to optimise our capital structure.

-- The Acquisition improves abrdn's dividend cover. The Board intends to maintain the total dividend at 14.6 pence per annum until it is covered at least 1.5 times by adjusted capital generation, at which point the Board will seek to grow the dividend in line with its assessment of the underlying medium term growth in profitability.

Further information on interactive investor

interactive investor is the leading subscription-based, digitally enabled, direct investing platform in the UK, founded in 1995. Its holding company is controlled by a fund advised by J.C. Flowers & Co., a leading private equity firm. interactive investor is the UK's largest fixed fee subscription-based investing platform, with GBP55 billion of AUA and over 400,000 customers ([22]) .

interactive investor has a strong track record of acquiring, integrating and investing in complementary platform businesses. interactive investor completed the acquisition of TD Direct Investing in 2017, Alliance Trust Savings in 2019, and Share plc in 2020. The latest acquisition was the EQi book of customers, which completed in June 2021. interactive investor is based in Manchester, with offices in London and Leeds, and has c.777 employees [23] .

The interactive investor Group generated adjusted profit before tax of GBP45.5 million and reported profit before tax of GBP41.7 million for the year ended 2020 and had gross assets of GBP636 million as at 30 June 2021.

spud

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