Aberdeen Standard Investments (ASI) hosted a mid year outlook yesterday where it discussed investment opportunities around the world and its desire to merge with an American firm to build distribution.

“If not, we will have to build it ourselves,” said Martin Gilbert, CEO of Aberdeen Standard Investments.

Last year, Standard Life shareholders voted 98.6 percent in favor of merging with Aberdeen Asset Management, creating an independent asset manager with $800 billion in assets under management and 50 offices worldwide.

“The U.S. is a big focus for us because it has half the world’s wealth,” said Gilbert to a group of journalists who had gathered for lunch in Manhattan.

Since its merger, ASI has increased its asset allocation in alternatives, including private equity, funds of private equity and real estate niche products, such as student accommodations.

“They provide reasonable returns,” said Gilbert who expects the market to be more volatile for the rest of the year due to interest rate hikes in the U.S. “Perhaps there won’t be as much quantitative easing in Europe. The problem is putting the interest rates up too quickly when there’s no change in the ECB or U.S.”

Douglas Burtnick, ASI's deputy head of North American Equities, foresees two significant disruptors to the macro environment.

“Retail has been under the gun because of Amazon, which has caused retailers to be innovative so that they can be viewed as special and so that they can compete,” Burtnick said.

The second is federal Judge Richard Leon’s approval of AT&T’s $85 billion acquisition of Time Warner, which marries Time Warner's entertainment content with AT&T's cell phone and satellite distribution network.

“It’s making us check the intentions of the companies we meet as to whether they are an acquirer or acquiree,” said Burtnick.

In addition to real estate and liquid alternatives, Gilbert advises exploring investing in Australia not only because of its proximity to Asia but also due to its commodity-based economy.

“It's quite a good time to be investing in Australia because its currency weakened so much against the U.S. dollar,” Gilbert told Financial Advisor magazine. “President Trump’s new partnership with Korea will also stabilize the region.”

President Trump agreed to lift sanctions this week against North Korea, but is poised to impose tariffs on Chinese goods.

Despite rumors of a trade war and a rise in tariffs, ASI’s Australia expert doesn’t expect Australia to be impacted initially.

“We don’t see it as a big issue,” said Robert Penaloza, head of Australian Equities. “If there are other protectionist measures, then we will be implicated.”

China is an important partner of Australia, according to Penaloza.

“We need to be in lock step with what is happening there,” he said.

When it comes to emerging markets, Gilbert favors India over China while Global Equity Senior Investment Manager Martin Connaghan sees value in Mexico and Brazil.

“It’s easier to invest in India’s companies because they are well run with good corporate governance,” said Gilbert. “China is a long haul as opposed to a short haul but either way you have to be invested in China and India because there are a billion people there as well as Indonesia with its 260 million people.”