“Multi-asset management is getting more popular,” Gilbert said. “We are planning to grow that business, from the £50bn we currently have in that area.”
It is an area where clients can more directly involved with the managers.
“Clients are looking for dynamic returns. In the multi-asset business we get to know clients directly.”
Another area Gilbert sees prospects ahead is emerging markets. This side of the business is “growing well” for Aberdeen, which has around £12-13m in assets under management in this area. June proved to be a relatively flat month after significant outflows earlier on in the year.
“We got hammered in November 2013 to February 2014, with massive outflows on macro level. Bits are now coming back in. Flows we saw in June are neutral, they have gone from outflows to being neutral.”
Addressing lingering concerns on emerging markets, he said a key strategy is to diversify and is optimistic about passive management and ETF products – although he concedes Aberdeen is up against tough competition from Ashmore.
“Consultants are telling us not to be too big in EM. That’s why we are diversifying our products. Simple index-linked products are the most suitable for the retail side in EM. Investors are able to channel ETFs very quickly and it’s a way for hedge fund to take macro bet.”
Commenting on the £550m deal taking over Scottish Widows Investment Partnership (SWIP), Gilbert said the integration with is going well.
In June, Aberdeen said it had migrated all equity funds and mandates run by SWIP, totalling £2.9bn assets.
“We had key reasons to acquire SWIP. The longer-term closed book side of the SWIP business was in steady decline. We have modelled this on a flat income, over a period of time the decline will flatten,” he said.
“We acquired the firm to reduce our reliance on a few products, to build out the fixed income space, and to acquire SWIP’s property business.”
The property side of SWIP features the biggest property product –the SWIP Property Trust- in the UK at £3bn. Around 30% are held in liquid assets rather than direct property to protect against a run in the property sector.
“SWIP has been poor on equities,” Gilbert said. It wasn’t a great surprise for him that high-alpha equity team manager William Low left SWIP with a team and joined Nikko Asset Management earlier this week.
“By comparison Standard Life and M&G are good in equities, which is rare,” he added.
