Abrdone: Can the vowel U-turn save Aberdeen?
Abrdn has re-added the vowels to its name as part of a shocking branding U-turn. But will it play a role in rebuilding the asset manager’s fortunes? Does it even matter in the grand scheme of things?
The much-mocked corporate moniker was finally retired today after years of Square Mile sniggering and, it must be said, a particularly punchy Morning Wire front page.
In April last year, the firm prompted ridicule when its chief investment officer complained it was facing “corporate bullying” over the branding.
“I understand that corporate bullying to some extent is part of the game with the press, even though it’s a little childish to keep hammering the missing vowels in our name,” said CIO Peter Branner.
As RBC analysts politely put it in a research note today, “the previous rebranding had been generally negatively received”.
However, as many analysts have noted, the problems at Aberdeen continue to run much deeper than its branding.
Why is Abrdn rebranding?
In January, new chief executive Jason Windsor defended the rebrand, stating: “The name is the name and we will be continuing with it.”
It was the first time that Windsor has directly addressed the company’s much-mocked branding since taking over the reins permanently in September.
Less than three months later, and the chief executive has admitted the name is set to be changed to remove “distractions” from the company.
“The name is there to enhance the reputation and how the group is perceived by customers and shareholders, and make it easier for us to get out and be proud about what we are and why we do it,” he said.
“I joined the group that I’ve always pronounced Aberdeen. Everybody else calls it Aberdeen and we’re not changing it. The name in my mind as a verbal expression is not changing.”
When Standard Life and Aberdeen Asset Management merged in 2017, the company was dubbed ‘Staberdeen‘ by some in the City.
As a response, the firm adopted the new name Abrdn in 2021, which was developed by branding agency Wolff Olins and cost the firm £1.5m.
In contrast, CEO Windsor said the firm “had not spent any more at all” on today’s rebrand and it had been done internally by marketing managers.
This morning’s announcement of a return to profit saw the share price jump almost 10 per cent , and it’s up by 26.5 per cent since the start of 2025. But branding matters, too, and the reintroduction of vowels has played its part in market reaction.
“Abrdn’s rebrand back to Aberdeen is a clear admission that the previous name change was a misstep,” said Jamie Elvin, director at Strive Mortgages.
More than a rebrand
The rebrand came as the company is embarking on a cost-cutting plan to save at least £150m by the end of 2025, which it said today was running ahead of schedule.
Aberdeen’s full-year results today revealed that adjusted operating profit came in at £255m last year, two per cent ahead of consensus and up from a significant loss in 2023.
This came in part thanks to adjusted operating expenses improving seven per cent from the year before, and coming in £4m below analyst expectations.
While the asset manager has addressed issues with its costs, RBC analysts argued that the “deterioration in net flows and fee margins have more than offset this”.
Revenue in its investments arm, the largest part of its business, actually fell nine per cent and came in £4m below consensus thanks to continued investor withdrawals from higher-margin products.
The RBC analysts forecast weakening revenue throughout 2025 as a result of this trend, with its emerging markets and Asia focus (which makes up 57 per cent of its equities) “likely to weigh on fund performance”.
While institutional and retail wealth net outflows managed to reverse in its latest results, the group still lost £1.1bn in investor cash last year, albeit compared to £17.6bn in 2023.
“While this is evidence of progress for abrdn’s asset management business, we await further confirmation that the turnaround is sustainable,” added RBC
Similar verdicts were reached by other analysts, with CFRA Research also keeping its ‘strong sell’ rating on Aberdeen’s stock.