Stephen Bird stepped into the role of CEO at Standard Life Aberdeen in 2020, he was well aware of the challenges ahead. The company hadn’t lived up to its potential following the merger that formed it in 2017.
The bird was also concerned that Standard Life Aberdeen had lost a deal to manage £100 billion of pension money for Lloyds Banking Group. However, he saw the asset manager as having “deep competence and good people.”
The CEO’s turnaround plan for the FTSE 100 asset manager involves a daring rebrand, robot funds, and growth-driving acquisitions. Here’s an overview of the progress to date.
Table of Contents
How Stephen Bird Began Reversing abrdn’s Fortunes
Standard Life Aberdeen enlisted Bird to help radically transform the company. The banker has a reputation for achieving exceptional outcomes in complicated financial markets. He also has experience with business transformation during competitive change and technological disruption.
With Bird’s expertise, Standard Life Aberdeen began reversing its fortunes. He started by conducting a thorough review of the company’s operations. Following a restructure of the executive team, Bird then outlined a strategy for long-term growth. This strategy involved halting declining revenues, slowing the outflow of funds, and initiating a drive to cut costs.
Bird engaged in discussions with the company’s primary investors to mitigate further issues. These discussions resulted in the sale of the Standard Life brand to Phoenix Group in early 2021. Phoenix had already acquired the company’s UK and European insurance business in 2018.
The sale coincided with negotiations for a 10-year partnership between Phoenix and Standard Life Aberdeen. Renewing ties with the asset manager’s largest partner was a key aspect of Bird’s new strategy. He explains that reaffirming the relationship eliminated the risk of losing other clients.
Stephen Bird Leads Major Rebrand
A few months after Bird concluded the divestment of the Standard Life brand, he unveiled a major initiative for the company. The CEO had identified that Standard Life Aberdeen’s confused branding was holding the company back. In spring 2021, the company rebranded to abrdn, merging five disparate entities into one forward-facing brand.
This move boosted the company’s image: abrdn is now the second most recognized asset manager in the world. Under Bird’s guidance, abrdn has a new, distinct framework consisting of three growth vectors:
- Investments: Creating investment solutions spanning global markets.
- Adviser: Providing innovative platform technology to support UK financial advisers and wealth managers.
- Personal: Offering a suite of services to assist people in the UK with their saving and investment needs.
Together, these vectors manage assets worth approximately £500 billion on behalf of clients.
Bird also saw another growth opportunity for the company. Expanding into the UK wealth management market, abrdn could provide advice on complex issues like tax and pensions.
Stephen Bird’s Acquisitions Drive Revenue Growth
In 2021, abrdn bought interactive investor (ii) from U.S. private equity firm JC Flowers for £1.5 billion. At the time, the asset manager called the acquisition a “transformative deal” for its Personal vector. In 2022, Bird said the move would prove itself to be “an inspired buy.”
abrdn saw it as a complement to its existing wealth and financial planning capabilities. The company also hoped the subscription-based direct investing platform would “diversify and grow [abrdn’s] revenues.”
When abrdn released its 2022 full-year results in early 2023, figures showed that it had grown revenue by 20%.
Bird also spearheaded abrdn’s purchase of a controlling stake in warehouse manager Tritax. Since the deal, Tritax has grown by a third.
On top of this, in 2022, abrdn acquired Finimize. The financial insights app has streamlined how abrdn communicates about markets and investments.
abrdn’s Resilient Performance Despite Challenging Market Conditions
The first full year under Bird’s leadership was a step in the right direction for abrdn. Delivering on the company’s growth strategy, abrdn’s 2021 annual results revealed that revenues had grown for the first time in four years.
It’s no secret that asset management companies struggled in 2022. Markets plunged as global central banks increased interest rates to battle soaring inflation. As a result, many listed investment companies suffered share price falls.
Investment groups like abrdn had a particularly hard time last year. As the company depends on ad valorem fees for a large part of its revenues, its top line shrunk as the market slumped. Despite this, abrdn’s Adviser vector produced a healthy 4% growth in sales in 2022.
Bird emphasizes that his turnaround plan is a long-term project, and he stands by his strategy.
About Stephen Bird
Stephen Bird is a highly accomplished financial executive. His leadership roles in the finance sector have given him a wealth of experience in fostering growth for clients.
Bird has held management positions at British Steel and GE Capital, where Bird served as the director of UK operations. He is also the former CEO of global consumer banking at Citigroup and the former chief executive for Citigroup’s Asia Pacific business.
The abrdn CEO is a member of:
- The Investment Association’s board of directors.
- The Confederation of British Industry’s President’s Committee.
- The Financial Services Growth and Development Board in Scotland.
Bird is an honorary fellow of Cardiff University, where he obtained an MBA in Economics and Finance.
Learn more about abrdn CEO Stephen Bird.
