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UK asset manager Abrdn has rebranded itself as Aberdeen after it was widely ridiculed for removing most of the vowels from its name under previous chief executive Stephen Bird.
Jason Windsor, who became chief executive of Abrdn last year, said on Tuesday that the FTSE 250 company would switch its name, which he described as “a pragmatic decision marking a new phase for the organisation, as we focus on delivering for our customers, people and shareholders”.
Bird, who stepped down from his role last May, opted to rename the company as Abrdn in 2021. The group had previously been called Standard Life Aberdeen following the merger of two asset managers in 2017.
The rebrand by Bird was widely mocked and Tuesday’s decision comes just weeks after Windsor said the group would continue with the name, despite much ridicule.
The company said Tuesday’s move would end “distractions”. Under the change, the company spells its new name with a lower case “a”.
The fund group also announced that it would start a search for a new chair to replace Sir Douglas Flint, who took on the role at the start of 2019.
The announcements came as the group swung back to profit last year, reporting a pre-tax profit of £251mn for 2024, compared with a loss of £6mn for the previous year, as customers pulled less money from its funds and investment returns improved.
The improved results follow a turbulent few years for the midsized asset manager, during which it has twice been ejected from the FTSE 100 share index and embarked on a large cost reduction programme, resulting in job cuts and fund closures.
But signs of a turnaround are starting to emerge. Customers pulled a net £1.1bn from its funds last year, down from £17.6bn in 2023. The group’s investment returns improved, with more funds beating their benchmarks. Total assets under management rose 3 per cent to £511bn over the year.
The fund manager said it had struck a deal to release value from the company’s defined benefit pension surplus, freeing up £35mn a year from July, which it said would provide “a significant annual boost to capital generation”.
Windsor has also set new financial targets for next year to “reflect the increasing momentum of the group”. These include delivering at least £300mn in adjusted operating profit and net capital generation of about £300mn.
The asset manager is among a group of midsized UK fund companies that have come under pressure from the rising costs of regulation and ongoing outflows from equity funds — especially those holding UK stocks — as investors shift their money to cheaper passive investments.
Windsor, a former banker focused on dealmaking, has said in the past that he had no plans to make further acquisitions, following his predecessor’s purchase of investment site Interactive Investor for £1.5bn in 2021.
The chief executive has sold or is looking to offload peripheral business divisions, such as its financial planning arm. Windsor added that the fund manager was “on track” to cut at least £150mn in costs by the end of 2025.
Rae Maile, an analyst at Panmure Liberum, wrote to clients: “The market has not believed in aberdeen (yes, the ee’s are back) either in the ability to get costs out or to have a strategy for growth. That view is challenged today.”
Aberdeen’s shares rose 11 per cent in early trading on Tuesday.
