Aberdeen Group PLC

Aberdeen Group PLC (LSE: ABDN) is an FTSE 250 listed investment company based in the United Kingdom. It operates through three segments: Investments, Advisor, and Other. The Investments segment encompasses its global asset management business, offering investment solutions to Institutional, Retail Wealth, and Insurance Partners clients. Additionally, the company provides platform services for wealth managers and financial advisers through its UK financial advisory division. This Report covers the Key Recommendation Rationale, Conclusion, and Recommendation on the stock.

Key Recommendation Rationale – Sell at GBX 179.30

• Resistance near Current levels: ABDN’s stock price crossed the Resistance (R1) which was stated in the previous report on 04 Mar 2025 therefore, there could be a possibility that the stock might consolidate or decline from the current levels, considering overstretched valuation. Considering the market conditions and the price action, it is prudent to exit from the stock.
• Decline in Assets under Management & Administration (AUMA): Aberdeen reported a ~2.2% quarter-on-quarter decline in AUMA to £500.1 bn in Q1 FY25, down from £511.4 bn in Q4 FY24. This reduction was primarily attributed to unfavourable market conditions coupled with net outflows across the Investments and Adviser segments.
• Decline in Institutional & Retail Wealth: Aberdeen reported a ~4.1% quarter-on-quarter decline in Institutional & Retail Wealth segment to £204.8 bn in Q1 FY25, down from £210.5 bn in Q4 FY24, primarily reflecting negative market movements during the period.
• Decline in Asset Under Management (AUM): The company reported a decline of ~3% in AUM to £359.6 bn in Q1 FY25 as compared to £369.7 bn in Q4 FY24. This reduction stemmed from combined effects of net client withdrawals and unfavourable market performance.

Valuation Methodology: Price/ Earnings Approach

Share Price Chart  

One-Year Technical Price Chart (as of June 03, 2025). Source: REFINITIV, Analysis: Kalkine Group

Conclusion

The company’s Q1 FY25 results highlight a negative trend in asset performance, with declines across all major categories. AUMA dropped ~2.2% to £500.1 bn, mainly due to adverse market conditions and outflows in the Investment and Adviser segment. Institutional & Retail Wealth saw a steeper decline of ~4.1% to £204.8 bn, also impacted by weaker markets. Additionally, overall, AUM decreased ~3% to £359.6 bn, driven by both net outflows and market softness. These declines reflect weakening investor sentiment, challenges in retaining client assets, and potential pressure on future revenue growth. ABDN appears overvalued. For conducting the valuation, the following peers have been considered: Jupiter Fund Management PLC (LSE: JUP), Intermediate Capital Group PLC (LSE: ICG), etc.

Given its current trading levels, the recent strategic investments and partnerships, relative valuation, and associated risks, it is prudent to exit the stock at the current levels. Hence, a ‘Sell’ recommendation is given on the stock at the Current Market Price of GBX 179.30 as of 03 June 2025, 10:10 AM, GMT+1.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 03 June 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level which the stock is expected to reach as per the relative valuation method and/or technical analysis taking into consideration both short-term and long-term scenario.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’