Exclusive: Aberdeen rebut FT story claiming the business is for sale


#1

Originally published at: http://whichinvestmenttrust.com/exclusive-aberdeen-rebut-ft-story-claiming-the-business-is-for-sale/
Responding to questions from our readers, Aberdeen’s Singapore based team rebutted the recent story in the FT which claimed Aberdeen boss Martin Gilbert was quietly touting the business around the city and speculated about investment bank buyers. I spoke to Patrick Corfe, in Aberdeen’s Singapore office, who is in charge of marketing for Asia, a…


#2

I recognise that it would be virtually impossible for anyone from Aberdeen to have said ‘yes’ to the takeover question - perhaps only if matters had proceeded to such an extent that the potential for causing problems would have been greater by saying ‘no’. However, the robustness of the rebuttal has to be noted. Of interest, though, is the reference to the splits crisis and Aberdeen’s subsequent developments since then.

What the situation does help to highlight, once again, is one of the major benefits of closed-end funds over their open-ended cousins: namely, the ability of the company board to change the management of the IT shoud it deem this to be in the best interests of shareholders. Thinking hypothetically, if any of the Singapore (or elsewhere) personnel did leave then the Board would have the option of retaining their skills by transferring the management to their new company. Or to somewhere quite seperate, or retaining the existing management company - as happened not too long ago with Edinburgh IT.

Also of interest of Ms Cheong’s comments. It is always beneficial to be able to read the views of those who have on-the-ground knowledge and experience. And, for some reason, I tend to have more confidence in the views of those in the investment management industry who are able to recognise the potential for short-term difficulties rather than those of the eternal rose-tinted optimists (probably because I am a miserable so-and-so at heart… :skull:)


#3

I thought they were refreshingly frank and I was surprised by that @arkwelder It wasn’t the usual marketing blurb nonsense.

I agree with your point about investment trust boards, it is feature of them that I like best of all, not playing discounts and all that nonsense, it’s having something else you can call upon if/when things start to go wrong.

.I liked and agree with the point Flavia made about you know Hong Kong and Singapore being damaged short term when interest rates rise in America but then eventually investors will realise these countries are basically ok. I hadn’t given that any thought but I bet she’s right there.