Standard Life and Aberdeen merger – our view

 

 

The proposed merger will create an investment business with £660 billion under administration, of which £580 billion is assets under management, making the
group the largest active asset manager in the UK.

Aberdeen shareholders will own approximately 33 per cent with Standard Life shareholders owning roughly 67 per cent of the combined group on a diluted basis.

It has been agreed that the combined group will
be headquartered in Scotland and will include, and operate under, branding drawn from both organisations.

Our view? Here.

graph

Our quarterly investment update

The third quarter of 2016 saw the global economy continue to trundle along the ‘lower for longer’ rate and growth environment. The majority of major financial markets posted strong returns, commodity and property markets being the only exception. The quarter started quietly but we witnessed some bumps in the road during its last month.

For the full investment briefing, click here.

Exposure to currency risk after the referendum vote

The biggest and most sustained financial impact of the Brexit vote has been within gilt markets (where yields have fallen to historic lows) and currency markets over the two months since the referendum.

Sterling is likely to remain volatile for the foreseeable future as economic data is released and announcements about Britain’s future trading relationships are made.

In the absence of any scheme-specific circumstances, trustees should be hedging their currency risk by 50 per cent.

Click here for the full briefing note.