Wealth Manager - the site for professional investment managers

Register for full access to Citywire’s Fund Manager database, news and analysis. Registration is free and only takes a minute.

Aberdeen's Gilbert shrugs off emerging market concerns

Aberdeen's Gilbert shrugs off emerging market concerns

Aberdeen Asset Management's chief executive Martin Gilbert has shrugged off share price weakness, as investors' continue to shy away from volatile emerging markets.

'Aberdeen is regarded as a leading emerging markets house globally. So it is understandable that when there is negative sentiment towards developing economies the share price of companies like Aberdeen is sometimes affected,' he told Wealth Manager

'Am I concerned about our exposure to emerging markets? No, we are long-term investors on behalf of our clients and also as a business our strategy is focused on the next five, 10, 20 years not short-term trends.'

Aberdeen  revealed last week that it suffered net outflows of £4.4 billion in the last three months of 2013, compared with net outflows of £3.6 billion in the third quarter. Aberdeen has a strong proposition and presence in emerging markets, a region that underperformed in 2013 due to a combination of tapering fears, a growth slowdown and a slump in commodity prices. This has weighed on the asset manager's shares, which have fallen a little over 15% since the beginning of the year. The shares were trading at to 423.9 pence on Thursday at 8:20.

But the chief executive dismissed the idea that the business should rethink its allocation bias in the face of market weakness.

'I'm proud of our reputation as an emerging markets manager. We are a financially strong company and are well positioned on behalf of our clients to benefit from the continuing structural growth story of emerging markets,' Gilbert said. 

When asked where the company would look for inflows, Gilbert said 'ironically, fixed income could be an interesting area this year'.

He acknowledged that although the '30-year bull market in fixed income is coming to an end,' he urges investors not to sell out of the asset class completely but rather diversify into areas like high yield and short duration.

Gilbert added that Aberdeen's £550 million acquistion of Scottish Widows Investment Partnership (Swip) was progressing 'as expected,' with the transaction to be completed within the first quarter, subject to regulatory approval.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Inside ETFs: Why the US bull-run still has legs

Inside ETFs: Why the US bull-run still has legs

Global equities suffered a sharp sell-off in the third quarter but exchange traded fund investors are continuing to back the US to outperform in 2015

Play Paul Niven: I won't rip up the Foreign & Colonial Trust history book

Paul Niven: I won't rip up the Foreign & Colonial Trust history book

The newly appointed manager of the Foreign & Colonial trust talks about his plans for UK's oldest investment company.

Play Dangerous daisy chains, Black Friday blues and Uber valuations

Dangerous daisy chains, Black Friday blues and Uber valuations

This week’s Investment Pulse looks at the domino effect in European banks, America’s disappointing Black Friday and how much Uber is really worth.

Your Business: Cover Star Club

Manchester wealth firm hires Coutts director for London launch

Manchester wealth firm hires Coutts director for London launch

Former Coutts director Tony Robinson has joined Chartered Wealth Management to head the company’s newly opened London office.

Wealth Manager on Twitter