Aberdeen's H1 2026: Interactive Investor Accelerates, but Adviser Flows Slip
A Strong Half, Led by Interactive Investor
Aberdeen Group delivered a solid first half, with adjusted operating profit up 21% to £151 million and net capital generation up 47% to £163 million. As CFO Siobhan Boylan put it, “Adjusted operating profit increased by 21% to GBP 151 million, and net capital generation increased by 47% to GBP 163 million.” — Siobhan Boylan, CFO · 2026-07-29 The star remains Interactive Investor, which increased profit by 22% and set a new record for net inflows. Customer numbers grew 14% to 525,000, with SIPP customers up 35% and AUA reaching £108 billion. CEO Jason Windsor highlighted, “Interactive Investor delivered another excellent result, increasing profit by 22%.” — Jason Windsor, CEO · 2026-07-29
Adviser: The Persistent Drag
If ii is the engine, Adviser is the brake. Net outflows deepened to £1.3 billion from £0.9 billion a year earlier. Management has appointed a new CEO, brought servicing in-house from FNZ, and improved service scores, but the turn to positive flows is proving elusive. Windsor acknowledged,
This is a sharp contrast to prior guidance, where management had committed to turning the corner in 2026. As recently as January 2025, Windsor stated, “I'm not going to give you a precise when do we breakeven phrase. I'm committing to doing it this year.” — A – Jason Windsor · 2025-01-21 The delay signals that structural pressure—consolidation, panel rationalization, and competition—is proving tougher than expected. Still, the team is focused on segmentation and partnership pipelines, and the net outflows are a known problem that they are actively addressing.We now expect this return to net inflows to take longer, and we'll come back with more color on this in due course.
Investments and AI: Quiet Confidence
The Investments business delivered a modest 9% profit increase to £38 million, with AUM at £398 billion. Investment performance improved markedly: 86% of assets now beat their benchmarks over three years, up from 70% target. The company is also leaning into AI as a productivity and growth lever. Windsor remarked, “AI is emerging as a meaningful enabler of growth and efficiency across our group.” — Jason Windsor, CEO · 2026-07-29 This is not entirely new; earlier this year he noted, “We have a pilot up and running in Investments to improve investment performance.” — Jason Windsor, Executive, likely CEO · 2026-03-03 But the tone suggests AI is moving from pilot to core, with Copilot Premium rolling out broadly. Still, he cautioned that the eventual impact remains uncertain.
Capital Strength and 2026 Targets
Capital generation is robust, and the dividend is now fully covered by net capital generation at 1.24x. Management confirmed plans to redeem £210 million of Tier 1 debt in December, underscoring balance-sheet strength. They remain confident in full-year 2026 targets of over £300 million adjusted operating profit and around £300 million net capital generation. The medium-term algorithm sees 5-10% annual growth in net capital generation. With ii scaling and Investments stabilizing, the key swing factor remains the Adviser turnaround—a story that will likely persist into 2027.