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.