Aberdeen Government Markets Income Fund · NYSE:MGF
Aberdeen Government Markets Income Fund — Aberdeen Group — Investor Day (June 2025)
47 slides from Aberdeen Government Markets Income Fund's investor day presentation, Jun 26, 2025
Slide 1: ii Investor Spotlight
ii Investor Spotlight 26 June 2025
Slide 2: Meet the team
ii Investor Spotlight Meet the team Jason Windsor Richard Wilson John Tumilty CEO, Aberdeen Group plc CEO, ii & COO, COO, ii Aberdeen Group plc Alex Larkman Chris Crooks Deborah Byard CSO, ii CTO, ii CFO, ii 2
Slide 3: Agenda
ii Investor Spotlight Time Presenter Agenda 11.00 - 11.15 Introduction Jason Windsor 11.15 - 11.45 Winning Richard Wilson Why we win – operating model & Alex Larkman & Chris 11.45 - 12.05 culture Crooks 12.05 - 12.25 Why we win – execution & delivery John Tumilty 12.25 -12.45 Q&A All 12.45 - 13.30 L
Slide 4: Welcome & Introduction
Welcome & Introduction Jason Windsor 4
Slide 5: ii is pivotal to the Group's ambition
Welcome & Introduction ii is pivotal to the Group’s ambition: To be the UK’s leading Wealth & Investments group Our Purpose interactive Adviser investor Enabling our clients to be better investors Advised investing Self-directed investing platform and trading platform £74bn AUA Our Ambition £78bn AU
Slide 6: My perspectives on ii
Welcome & Introduction My perspectives on ii A winning business with sustainable growth Exceptional customer experience with a compelling price point High quality technology and high calibre talent An efficient business model that drives competitive advantage A core part of the Group providing skill
Slide 7: ii Winning
ii Winning Richard Wilson 7
Slide 8: ii is a leading D2C platform with clear strengths
ii Winning ii is a leading D2C platform with clear strengths Selected key strengths… …with positive market recognition ✓ UK’s #2 D2C platform by AUA, and #1 net Best SIPP 4 flows (FY24) years in a row ✓ Structural price advantage through subscription-based model ✓ Compelling and innovative offering:
Slide 9: Strategic priorities
ii Winning Our ambition and priorities Ambition To be the UK’s #1 D2C platform (AUA) Strategic priorities Broadening and Driving further Increasing automation 1 2 3 deepening proposition customer engagement and efficiency Improved digital Continuous ii Advice experience investment in data and techno
Slide 10: Consistent organic growth in ii since acquisition by Aberdeen
ii Winning Consistent organic growth in ii since acquisition by Aberdeen Total Customers AUA 2022 2024 2022 2024 +9% +37% 402k 439k £54bn £74bn SIPP Customers Market Share AUA* 52k +57% 81k 19.1% +90 bps 20.0% Net Flows Adjusted Operating Profit £3.6bn +69% £6.1bn £94m +33% £124m 10 *Source: Compeer
Slide 11: The market: ii approach to select segments
ii Winning The market: ii approach to select segments D2C market is competitive but fragmented with ongoing tailwinds Overall addressable wealth est. £5.1tn. D2C Platforms evolving to act as distribution channel offering proprietary NS&I funds, model portfolios and inv. solutions Private Banking 5%
Slide 12: D2C market is consolidating. Scale will win.
ii Winning D2C market is consolidating. Scale will win. Top 5 D2C Providers have 61% of market D2C service AUA Cust Avg AUA % AUA • There are now c.100 D2C providers but the top 5 have 61% of Hargreaves Lansdown £161.2bn 1,923k £84k 29.18% market AUA. Interactive Investor £73.8bn 13.35% 439k £168k F
Slide 13: Potential audience of 9-15m investors
ii Winning 1) Potential audience of Targeted new segments Core customer base today 9-15m investors • Current core audience is “Engaged” investors. • Growth opportunity to target two groups of less confident investors: • “Planners” - Those planning for the future. They value expert support. (primary
Slide 14: ii is well positioned to drive growth through 4 key drivers
ii Winning ii is well positioned to drive growth through 4 key drivers Broadening our products & services to target less confident investors & 1 more sophisticated traders Evolving our flat fee pricing model – a transparent & competitive 2 proposition driving growth in high value pensions 3 Building
Slide 15: Propositions
ii Winning 1) ii’s proposition is evolving to broaden target market - less confident investors through Managed Products and simple, online advice & advanced traders through ii 360 ii is broadening its offering: Audience - Engagement • Guided journeys into managed products (Managed SIPP in H2) Lower
Slide 16: Evolving our flat fee pricing model
ii Winning 2) Evolving our flat fee pricing model - a transparent & competitive proposition driving growth in high value pensions • Fixed monthly subscription & trading fees to suit your style of investing • Represents best value for money for investors above £15k for ISAs and SIPPs1 • No exit fees
Slide 17: Pensions present opportunity for asset and revenue growth
ii Winning 2) Pensions present opportunity for asset and revenue growth Market share of pensions in D2C has grown significantly For ii, SIPPs contribute over 3x revenue of an ISA or GIA, multi- product customers 8x. Total SIPPs(k) 2020-24 SIPP AUA (£bn) 2020-24 1000 9% 10% • % customers holding GIA/
Slide 18: Brand investment has significantly improved awareness
ii Winning 3) Brand investment has significantly improved awareness - more to do to beat key competitors • Effective investment through the funnel on awareness through to marketing / incentives. 29% • “Always on” drum-beat of brand investment. • Significant gains in prompted 18% awareness year on ye
Slide 19: ii - set up for M&A opportunities
ii Winning 4) ii - set up for M&A opportunities Proven playbook Customer focused, retaining the value • Proven M&A playbook which 3rd parties follow, refined over • Primary focus on supporting clients through acquisition journey, multiple deals communication, clarity and control are critical • Very
Slide 20: Why we win: Operating model & culture
Why we win Operating model & culture Alex Larkman & Chris Crooks 20
Slide 21: Building loyalty & advocacy through service excellence
Why we win Building loyalty & advocacy through service excellence Exceptional service Proactive management Reliable and fast Trustpilot score of 4.7; recognised Robust complaints management; Service consistency during peak across industry for outstanding market leading closure time & 23% periods thr
Slide 22: Stable, secure, customer-led platform underpinned by fintech focus
Why we win Stable, secure, customer-led platform underpinned by fintech focus ii is a technology driven organisation with an underlying principle that we own the customer experience through digital-first journeys underpinned by data-driven decision making Consistent service availability over 99.95%
Slide 23: Our People and Culture
Why we win Our People and Culture Deep capabilities Succession planning Healthy tension Best-in-class tech & developer Building our own talent pipelines Promoting debate & challenge to skills; commercial delivery and through career pathways, early drive strong risk management CX excellence. Continuo
Slide 24: Why we win: Execution and Delivery
Why we win Execution and Delivery John Tumilty 24
Slide 25: Ability to execute change – a strong proposition pipeline
Why we win Ability to execute change – a strong proposition pipeline 2025 proposition pipeline • Strong culture – delivery focussed but protective of business • Planning a way forward • Continuous improvement – small changes and new features added to existing services • Execution of big projects – n
Slide 26: Service transformation
Why we win Service transformation Data, data, data. Continued Investment and Usage • Personalised communications for Recommend ii. (This approach contributed to a 94% increase in referrals in 2024 compared to 2023). • Understanding customers. A retention calculator based on customer engagement is us
Slide 27: Improved digital experience
Why we win Improved digital experience • Public Site: re-vamp has improved customer conversion rates (Hot prospect to new client conversion rate is 5.11% in Q1 25 vs 2.74% in Q1 24) • Digital Channels: continuous improvement (web navigation, app Account Opening, SIPP transfer journeys, task lists) •
Slide 28: ii Community
Why we win ii Community • Social trading platform launched in October 2024 • 20,000+ members already and growing fast • Excellent customer engagement with weekly users checking the app 12 times per week on average and spending 36 minutes on the app, both well above industry average • 4.5 App store r
Slide 29: Managed Products
Why we win Managed Products • New Managed ISA product launched May 2024 giving Market leader on price ii offers the lowest annual cost for a £20k customers access to expertly managed investment Managed ISA vs. key competitors portfolios, allowing them to save time and invest with confidence • Uses A
Slide 30: ii 360
Why we win ii 360 • Ultimate trading experience for sophisticated investors • Best-in-class desktop – full market access (IG, CMC without the leverage) • Pilot later this year – currently in beta 30
Slide 31: ii Advice
Why we win ii Advice • Straightforward retirement planning, through accumulation and decumulation • Market leading price benefiting from ii’s flat-fee model • Digitised service with access to an adviser via video chat where needed • Soft launching later in 2025 31
Slide 32: Q&A
Q&A 32
Slide 33: Winning business model
Winning business model Deborah Byard 33
Slide 34: Simple, resilient and scalable financial model
Winning business model Simple, resilient and scalable financial model Customers AUA High quality, diversified and predictable revenue base 1 2 3 FX transactions x average Customers x average fee Trades x average commission Cash AUA x net yields margin Subscription fees Trading revenue FX revenue Tre
Slide 35: Customers & AUA – strong organic growth
Winning business model Customers & AUA – strong organic growth Customers #k AUA & Net Flows £bn organic growth of 8% per annum; Jarvis c. 25k organic growth of c10%+ per annum with +c.25k customers from Jarvis customers 100 net flows of c.10% of AUA 12 74 90 80 10 62 8 54 70 60 6.1 50 6 402 407 439
Slide 36: Revenue outlook supported by increasing quality of our customer base
Winning business model Revenue outlook supported by increasing quality of our customer base Strong growth in ‘organic’ customers Organic growth is bringing younger customers <45 45-65 >65 Assimilated 11% 31% 46% Organic 47% 22% 43% 43% 19% CAGR in organically acquired of new customers since customer
Slide 37: Summary of recent revenue trends and drivers
Winning business model Summary of recent revenue trends and drivers Revenue excl. Marketing Incentives £m Treasury 21% 2022 2023 2024 Ave Cash Balances £bn £5.97 £5.68 £6.02 Ave Net Margin % 1.2% 2.4% 2.3% 39% Ave Cash/Ave AUA % 11% 10% 9% Trading 2022 2023 2024 Total Retail Trades # 4.3m 4.0m 5.1m
Slide 38: Subscription revenue underpinned by customer growth and differentiated pricing
Winning business model 1 Subscription revenue - Underpinned by customer growth and differentiated pricing model Customer numbers (k) Growth to date Looking ahead 440 430 • In 2022 customer attrition was still • Organic customer growth 420 impacted by run off from M&A expected at c. 8% p.a. with focu
Slide 39: Trading revenue – customer engagement, platform functionality, volatility
Winning business model 2 Trading revenue – Supported by greater customer engagement, improving platform functionality, and market volatility Trading volumes and avg. fee per trade Growth to date Looking ahead 1.6 16.0 1.4 14.0 • More engaged customers who • We expect DARTs to normalise in Ave Revenu
Slide 40: Treasury income – A resilient income stream
Winning business model 3 Treasury income – A resilient income stream supported by growth in SIPP customers Client cash and avg. net margin Growth to date Looking ahead 7.0 3.0% • Build up of net treasury income • Margin expected to be 200 – Ave Net Margin annualised % 2.5% across 2022 as base rates
Slide 41: Efficient operating model, with investment to support future growth
Winning business model Efficient operating model, with investment to support future growth • Increased investment in brand and marketing - driving up brand awareness • Continuous investment in proposition & tech development - no 'tech debt' build up Cost Breakdown £m Cost /AUMA (bps) 19 18 41 Note:
Slide 42: Driving positive operating leverage whilst maintaining investment
Winning business model Driving positive operating leverage whilst maintaining investment to support longer term sustainable growth Momentum for future positive operating leverage with revenue growth at a relatively low marginal cost. 42 Note: financials & metrics include ii D2C platform only
Slide 43: Winning longer term
Winning longer term Richard Wilson 43
Slide 44: Our ambition is to be the UK's #1 D2C platform
Winning longer term Our ambition is to be the UK's #1 D2C platform On track to deliver our 2026 targets: • Customer growth 8% p.a • Cost / AUMA ratio < 20bps Continuing to grow via 4 levers: Why we will ‘win’ : Broadening our products & services to target less 1 confident investors & more sophistica
Slide 45: Q&A
Q&A 45
Slide 46: Appendix
Appendix 46
Slide 47: Financials: segment split between ii and Financial Planning
Appendix Financials : segment split between ii and Financial Planning 47 Note: 2022 ii financials reflect the full year rather than the 7 months from the date of Aberdeen acquisition