What would you like to ask of Aberdeen's Singapore based management team?


#1

I am in Singapore to meet Aberdeen Asset Management’s local investment team headed by Hugh Young.

Aberdeen manage an extensive and expanding range of investment trusts within and outwith the region that they’ve recently expanded via the acquisition of investment trust manager Advanced Emerging Capital.

Hugh Young has agreed to take questions from you. You can ask anything you like but please be polite.

Please record your questions below…


Aberdeen: Is one of the largest investment trust managers about to be gobbled up
#2

Thank you @dice for the opportunity to ask of questions from Hugh Young. I have a lot o my savings with some Aberdeen trusts like Murray International, Murray income, Edinburgh Dragon, Asian Smaller Companies, New Dawn and Asian Income.

It is very important for me that I hear Mr Young’s view on how the US rising interest rates will affect especially the Asian and emerging markets investments. I am not that bothered about the effect for a month, or 2, 3, 6, 12 months but will it affect thongs badly for the long term?

I am a bit concerned I have a lot of money in Asia so I would lie to know more about it’s long term future.

Thanks you Sir.


#3

I’d like to ask him how Asia is shaping up for an income investor like myself looking for the diversity that the region gives me.

I have Aberdeen Asia Income and I’m considering the Henderson Far East Income but I expect a lot of Drawdown investors would be interested to learn more about Mr Young’s view and experience on finding sources of income, the sustainability, and what the trends are over there. Are companies increasingly paying decent returns to shareholders, is it patchy, unreliable etc.


#4

Aberdeen funds and ITs have not been doing very well of late, what is the reason for this? It is because their investment style doesn’t match this stage in the cycle or is it something else?


#5

What is Mister Young and Aberdeen’s opinion on how China is performing? Are they with the views expressed by the Henderson Asia Income manager that the stock market has got it all wrong and China is doing okay or do they think it is something to avoid?

I’m confused about China after reading about the Henderson managers views so I’d like to know what Aberdeen think about it as well.


#6

@dicem, would be useful to know your deadline to which our questions need to be submitted - just in case we think of something else in the meantime!

+++

  1. My main question is one which is unlikely to be answered: would the Singapore team consider splitting from the parent company in the event of a takeover of Aberdeen by a larger concern?

  2. A while back, Aberdeen were looking to launch an investment company whose fishing pool would have been global emerging markets smaller companies - similar to an existing OEIC. Has any further thought been given to this, or is it still on the backburner for now?

  3. Does the team view the prospect of US interest rate rises as being reflected in current prices, or are they still a shock to come? i.e. what are the possibilities that FE/EM markets will rise once the ‘bad news’ is out of the way?

  4. Following on from (3), which areas do the team think will be least affected by interest rate rises? e.g. income stocks; smaller companies; growth stocks; local currency debt; Far East vs. Latin America vs. Europe, Africa etc;

  5. Are there any sectors/areas which are more likely to be negatively affected by rises in interest rates?

  6. Which types of companies/sectors/areas are likely to benefit from China’s transition to more of a consumer/service-oriented economy?

  7. Is there much local concern about how events in the South China Sea could play out? And are there any views about a likely positive resolution?


#7

Some good questions there @arkwelder but I’m not sure fund managers are equipped to answer questions about geopolitics.

What’s happening in the South China Seas is fascinating and has the ability to completely destabilise the whole region including China which is why I don;t think China will push things too far, I don’t think they want to watch their economy suffering that badly too.

It’s a bit like the cold war that my old country Poland went through all those years ago, I don’t think China wishes to go back there.


#8

I’m meeting Aberdeen at 2pm on Monday @arkwelder but that’s Singapore time which is 6am UK time.

There’ll be a small article appearing tomorrow.

Thanks for your questions and you’re welcome to post more.

Also, I’d like to encourage you and anyone else reading this to share this on social media/forums elsewhere if you use any. It would be great to engage as many people as possible. Aberdeen is probably the major player in Asia and it is an important region for all of us who invest there.

Thanks


#9

How can Aberdeen be confident of the accounts mainland Chinese companies offer and if they can’ take them at face value do they need to to undertake further work themselves to properly understand the businesses they’re looking at,


#10

Originally published at: http://whichinvestmenttrust.com/aberdeen-is-one-of-the-largest-investment-trust-managers-about-to-be-gobbled-up/
A report in the Financial Times suggest the group is looking for a buyer for the highly acquisitive business and manager of a large number of investment trusts. Aberdeen Trust as it was once known, was formed when Martin Gilbert, the current chief executive, led a management buyout of a single investment trust with £50…


#11

Me and a few colleagues in my office looked at this this afternoon, we’re all in an investment club in the office, and one in particular is a fan of Hugh Young.

Looking through the list of questions most things are covered, especially @arkwelder who was very greedy with the questions, you’re too smart Mr Arky (can’t be your real name ha!).

Looking forward to reading what he says though.

The one thought we all had though was it would be good if you could do a video interview with him. Not a long boring one but a short one on Youtube.


#12

What parts of Asia and of emerging markets do you like right now from an investment perspective and please explian why and if you think these are long term situations or short term tactical investment opportunities?

Also I agree with @sandradore that it would be nice if you did a little video interview. You don it on almost any decent mobile phone like your iPhone. I have videoed events and added them to Youtube using just my phone.

I will probably read the article you write about this too but I think I would like to see him being interviewed as well.

Thanks


#13

Many of the most pertinent questions have been asked by others but I’d be interested to learn of Mr Young and co invest in any of their investment trust range (if they’re able to do so from Singapore) and if he and they do which one’s do they own.

Secondly, you should do a video interview, on a mobile phone or a professional set up. I can’t think of a reason why you wouldn’t want to do that but I can think and of many reasons why you should.


#14

@dicem Few questions from me

  • Do they their IT ongoing charges are reasonable given recent performance and the trend towards lower charges across the board. I notice that both Schroder Oriental Income (SOI) has lower charges than Aberdeen Asian Income (AAIF) and Pacific Assets (PAC) has lower charges than Asian Smaller Companies (AAS).
  • Despite god long term performance, returns over the last 3 years have been poor relative to the sector. is their preference for Singapore and Malaysia based on their Singapore location? and has this influenced returns?
  • Generally AAM doesn’t seem keen on China - yet despite the recent downturn in the China stock-market their relative performance is poor - any views?
  • What do AAM think about the planned proposals for the Silk Road investments which have had a lot of media coverage, will this change their views on China or bring new countries/companies into their investment landscape?

#15

Thanks for all your questions, they are fantastic.

I think it too late to spring a video interview on Aberdeen, though I agree it is a good idea and one I wish I’d thought of earlier.

Thanks, Dice


#16

My real name is Spot… :stuck_out_tongue_winking_eye: