Aberdeen Asset Management is a preeminent multinational investment organisation that has a proven track record of successfully executing in competitive markets. Aberdeen has a strong reputation for excellence in different investment strategies across equities, fixed income, solutions and property. This was evident when Aberdeen was awarded the Best European Asset Management Company at the 8th European Funds Trophy in March 2014. Aberdeen's solid foundation, with assets under management of £331.2 billion (following the acquisition of Scottish Widows Investment Partnership (SWIP), making the largest European fund manager), provides an excellent opportunity to purchase an undervalued company. With majority of the assets in emerging markets, Aberdeen remains upbeat about Asia's prospects and believes long-tem value can still be found. Singapore has a stable political environment and is home to many well-run businesses, with high standards of corporate governance and scope to expand across the region. Aberdeen also prefers companies in Hong Kong rather than Mainland China as the former has better standards of accounting and transparency.
Many analysts considered Aberdeen's price to drop after the purchase SWIP. However I saw this as the perfect opportunity to buy especially since Scotland was in talks of separating from the United Kingdom. In addition Glasgow has the highest 'sick' rate in the United Kingdom, thus vastly increasing client usage of SWIP. Fear of SWIP purchase drove the share price of Aberdeen even lower. In addition to this, immediately after the purchase, Martin Gilbert sold many personal shares, which many analysts saw as a sign of disbelieve in the company and the purchase of SWIP. However, I believe such actions of insider selling is not an automatic sign of trouble and may be a result of personal problems and cannot solely be assigned to disbelieve in purchases made.
While many analysts downgraded ADN stock from buy to sell, I believed the stock was heavily undervalued and presented a wonderful opportunity to invest. I believe owning a stock essentially owns a business and therefore using very complex technical analysis techniques to predict short-term results are of no interest to us. I therefore have the fortitude to hold steady during any short-term market gyrations.