abrdn

The turnaround has started, but execution is everything.

Aberdeen has gone through some broad swaths of change following the departure of CEO Stephen Bird in May 2024. In March 2025, the firm rebranded from Abrdn to Aberdeen as the so-called "disemvoweling" had continued to prove a distraction. Meanwhile, Bird's tenure marked some poor results for the group as the investment division suffered from poor performance and outflows. While the legacy of Bird's big-picture strategy (selling off noncore parts of the business, streamlining the focus, and embarking on an ambitious cost-cutting plan) has yielded strong results at the corporate level, the turnaround has stumbled versus expectations. Bird was replaced by his CFO Jason Windsor, who was only appointed to that role in late 2023, although he is a familiar face in the industry, having been the CFO at Aviva and Persimmon Homes.

Windsor doesn't emphasize a vastly different strategic agenda than Bird, focusing on core strengths and finishing off the cost-cutting plan, which has started to bear fruit. The overall firm returned to profitability in 2024, and this continued in 2025 despite continued outflows from the investments division. Aside from issues around execution, talent retention is a top priority for Windsor. A return to profitability and better bonus funding might lead to results here, given that these issues are firmly related to the problems around flows and performance. Still, though, we need time to develop our view of Windsor's stewardship.

Change hasn't been limited to the leadership, and several asset-class heads departed over the past couple of years, including some notable stalwarts, such as the retirement of emerging-market veteran Hugh Young and several other senior members of the emerging-market and Asia team. Compared with prior years, overall turnover on the investment team has fallen dramatically. Aberdeen structures its investment teams as large pods, so departures can be filled with bench strength, in addition to having a comanager structure across the entire range.

Overall, the firm remains one of the UK’s largest asset managers, and the scale and breadth of its resources are significant. Despite recent turnover, the firm has shown an ability to attract and retain talent over the long term in select franchises and deliver market-leading products. While recent developments are positive, there remains a good deal of uncertainty, not least of which is the success of the new leadership. The firm retains its Parent Pillar of Average.

Note: This share class' Parent Pillar rating is analyst-driven, as its Branding Name, abrdn (Branding Name ID: BN00000N6Y), is covered by Morningstar Manager Research.