Lower expenses are sorely needed – Abrdn’s costs have been over 80% of its income, higher than peers. A PwC report last year also predicted 16% of existing asset and wealth managers would either go out of business or be bought up by bigger groups by 2027 because of high interest rates and pressure on fees. With Bird’s shares off 25% since July, he ought to be looking for a buyer.
Yet Abrdn still trades at 15 times earnings for the next 12 months, while Schroders (SDR.L) and Legal & General (LGEN.L) are at 12 and 9 times. Its valuation has long implied minimal value to the asset management arm. And Bird’s Interactive Investor business, a direct-to-consumer platform acquired in 2021, has been undermined by a UK regulatory clampdown on the scope of managers to trouser some of the proceeds earned on customers’ cash balances. It’s not obvious who that appeals to. (By Pamela Barbaglia)
Follow @Breakingviews on X
Capital Calls – More concise insights on global finance:
SAP shows early signs of tough new AI reality read more
Disney’s innovative thinking can go beyond VR read more
Sanofi’s latest M&A gambit is suitably cautious read more
Microsoft Russian hack leaves too much unanswered read more
New Worldline investor bolsters French accent read more
