26. Aberdeen Group Plc
Managing Investments
Headquartered in Edinburgh, Aberdeen Group Plc empowers clients to achieve their financial goals by managing investments and offering wealth solutions globally. Operating in the financial services industry – specifically in asset management and wealth services – the company serves a diverse clientele, including wealth managers, financial advisers, institutional investors, and individual savers, through a mix of investment platforms and specialist funds.
Aberdeen Group generates revenue through fees charged for managing assets and providing financial services across three key growth vectors: Investments, Adviser, and Personal. The Investments division manages funds for institutional clients, such as pension schemes and charities, focusing on equities, fixed income, and sustainable investing, earning fees based on assets under management (AUM). The Adviser vector supports financial advisers with platforms like Wrap, charging fees for assets under administration, which include tools for managing client portfolios. The Personal division, bolstered by the 2022 acquisition of Interactive Investor for £1.49 billion, offers direct-to-consumer investment services, generating subscription and trading fees from over 400,000 retail customers. In 2024, the company reported a trailing 12-month revenue of £1.4 billion, though it faced £2.5 billion in net outflows as clients withdrew funds amid market uncertainty.
Strategically, Aberdeen Group is repositioning itself after a turbulent rebranding period. Originally Standard Life Aberdeen, it became abrdn in 2021 – a move widely criticised for its confusing spelling – before reverting to the Aberdeen Group Plc name in March 2025, with its trading identity simplified to “aberdeen”. The company has set targets for 2026, aiming to return to net inflows by enhancing client service and investing in its Interactive Investor brand. However, challenges persist – a 2024 restructuring saw 500 jobs cut (10% of its 5,000-strong workforce) as part of a £150 million cost-saving plan, following the sale of its European private equity business to Patria Investments for up to £100 million. Employing around 4,500 people after the cuts, Aberdeen Group faces market headwinds, including regulatory pressures and competition, while its Q1 2025 AUM update showed a decline to £494 billion.
Aberdeen Group’s focus on technology, sustainability, and client-centric platforms offers growth potential, but it must navigate economic volatility, client retention issues, and a competitive landscape to achieve its ambitious targets.
This is a baggy bureaucratic business that is operating in a mature industry marked by fee pressures and increasing costs. It looks cheap periodically and indeed at the time of writing, but to Wonder Stocks, it looks more like a value-trap. Best avoided.
Enjoyed this company summary? Discover more promising businesses in our growing collection of 500-word insights. Check out all company summaries here.
