Standard Life Aberdeen CEO Favors Investment Process Over Managers

The video discusses market trends in 2019, focusing on the role of active funds and the importance of ESG in investment strategies. Aberdeen's integration of ESG since 1993 is highlighted, along with their approach to climate change. The discussion covers market bubbles, growth sectors, and liquidity management. Aberdeen's expansion in private markets, particularly in private equity and real estate, is also explored. The video concludes with the potential impact of ESG and market volatility due to geopolitical events.

What is one of the key reasons active funds are considered important according to the discussion?

• They offer lower fees compared to passive funds.

• They are essential for managing the climate transition.

• They are less risky than passive funds.

• They guarantee higher returns than passive funds.

How has Aberdeen integrated ESG into their investment process?

• By incorporating climate change considerations into asset allocation.

• By focusing solely on renewable energy investments.

• By reducing investment in emerging markets.

• By excluding all non-ESG compliant companies.

What is a significant factor in managing liquidity according to the discussion?

• Focusing on short-term gains.

• Adhering strictly to the letter of the law.

• Following the spirit of the legislation.

• Avoiding investments in tech sectors.

What is a strategic priority for Aberdeen in terms of market expansion?

• Expanding in private real estate.

• Increasing investments in public markets.

• Focusing on short-term trading.

• Reducing exposure to private equity.

What is a potential source of market volatility mentioned in the discussion?

• The decline of ESG importance.

• The rise of passive funds.

• US elections and geopolitical tensions.

• Increased investment in tech sectors.

What is the expected trend in private market allocations according to the discussion?

• An increase to 20%.

• Staying constant at 15%.

• A decrease to 5%.

• A decrease to 10%.

What is necessary to make a difference in ESG investments?

• Investing only in index funds.

• Focusing on short-term profits.

• Being vocal and engaged.

• Avoiding all non-ESG companies.