Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner.

Aberdeen’s Gilbert feeling positive despite Trump slump

Martin Gilbert
Martin Gilbert

The election of President Donald Trump stalled “significant” investments for Aberdeen Asset Management in its most recent quarter.

But the fund manager’s chief executive Martin Gilbert said the firm remained convinced of its strategy of investing in emerging markets where sentiment has been hit as a result of the outcome of the US presidential election.

Revealing a 3% fall in assets under management in the quarter to £302.7billion to its shareholders at a meeting in Aberdeen yesterday, Mr Gilbert said the firm’s asset pickers were “mentally tough” enough to resist critics of the firm’s strategy.

A day after the UK parliament voted overwhelmingly to permit the government to press ahead with starting negotiations to withdraw from Europe, Mr Gilbert added that Brexit was “not a big thing” for Scotland’s estimated £1trillion asset management industry.

Analysts noted the firm reported its 15th consecutive quarter of net outflows for the firm – amounting £104.6billion of funds moved out from Aberdeen’s control.

Nevertheless Mr Gilbert was philosophical about the impact of the Trump presidency and optimistic about sentiment going Aberdeen’s way.

He said: “It is ironic isn’t it? Everyone else was quite happy with him being elected in the fund management world, except people who are invested in emerging markets.
“It has definitely hit confidence in emerging markets, but I think they will return. We are OK.

“It hasn’t been good for us in the last quarter.

“We were doing really well until then in performance terms.

“Sentiment was just coming back to emerging markets.

“One of the things we were seeing was people were just about to put significant amounts in just before the election.

“In our business you have to stick with your philosophy process.

“I have a saying: you mustn’t cut at the point of maximum pain

“You just have to stick with what you believe in.

“Our fund managers are mentally tough guys. They are very good.

“We have a strong balance sheet. We have fee income approaching £1billion.

“I’m very positive on the outlook.”

He added that asset management was a “major industry” in Scotland that was unlikely to be affected by Brexit.

He said: “We all tend to have operations in Luxembourg or Dublin. It is not a big thing for asset managers.”

In its update yesterday, Aberdeen revealed that it was hit by net outflows of £10.5billion which was offset by good investment performance adding £3.3billion. A further £2.2billion reduction in its asset pot was a result of rationalising its US fixed income business by withdrawing from low margin mandates.

The company expects investors to shift at least another £1billion from its management this year.

Already a subscriber? Sign in

[[title]]

[[text]]