Aberdeen names first head of Asia Pacific multi-asset

It’s all go at Aberdeen Asset Management with the firm announcing the appointment of its first head of Asia Pacific strategy and asset allocation, while also welcoming a ratings upgrade for Indonesia.

The company announced Peter Elston, who has been an Asian investment strategist at Aberdeen for the past four years, has been handed the newly-created role within the multi-asset team.

Elston will work closely with members of both Aberdeen’s Asian equity and fixed income teams, who will continue to manage to underlying assets classes, which form the foundation of the firm’s multi-asset mandates.

In his new role, Elston will report to Asian investment veteran Hugh Young, head of Aberdeen’s Asian business in Singapore, and Mike Turner, head of global strategy and asset allocation at the firm’s base in Edinburgh.

Commenting on the appointment, Elston said: ‘The case for broad investment exposure to Asia is a simple and compelling one. Aberdeen already has strong track records in the key underlying asset classes of Asian equity, fixed income and property around which we will continue to grow multi-asset products.’

Indonesia

The appointment comes on the same day as Indonesia was recognised by credit ratings agency Moody’s as an investment grade country. A move which Aberdeen’s head of fixed income in Asia Pacific, Anthony Michael, said was long overdue.

‘Our Asian fixed income portfolios are overweight Indonesian bonds (both external and local currency denominated) and the Indonesian rupiah,’ said Michael.

‘We are particularly encouraged by the administration's formidable efforts to promote much needed infrastructure investment and, importantly, reducing obstacles to and actively encouraging foreign direct investment. These are acknowledged by Moody's and reinforce our optimism for investments in Indonesia.’

Michael said burgeoning domestic demand, coupled with increased levels of foreign capital, are strong indicators of the growing attractiveness of Indonesia – particularly in comparison to sovereign opportunities in Europe.

‘In our view global investors continue to remain underweight the Asian region's fixed income markets and despite recent volatility, particularly in the local currency sovereign markets, Asia's positive longer term structural fundamentals should continue to support positive risk adjusted returns over the medium term,’ he said.