René Buehlmann

The Asian market holds significant potential for long term investors and is set to outperform the United States once the Federal Reserve pauses and starts cutting rates, according to abrdn chief executive officer of investments, Rene Buehlmann.

Buehlmann says that he anticipates a growth desynchronisation between Asia and the US will happen mid-year driven by slowing growth and moderating inflation.

“There is stronger earnings resilience in Asia and the region’s earnings for 2024 are expected to grow at twice the rate of the US.

“We believe that investors are likely to reward Asia for its robust earnings growth and lower downgrade risks, and we expect key markets such as Korea, Taiwan, India, and Japan to be the main performers in Asia,” he said.

Buehlmann said that the brightest spots he sees for opportunities in the Asian region are Japan and India.

“The Indian economy is at the initial phase of a cyclical upturn, positioning it as one of the fastest-growing countries on a global scale.

“Driven by significant reforms over the last decade, the Indian bond market has delivered substantial outperformance versus a wide range of asset classes. The Indian bond market outlook remains bright, and this is an opportune time for investors to position themselves in the market,” he said.

“For Japan, we recognise compelling top-down and bottom-up factors driving the equities market, and additionally Japanese companies prioritising profitability and capital return.

“The Tokyo Stock Exchange’s efforts to enhance corporate profitability and governance have accelerated corporate restructuring, dividend payouts, and stock buybacks, all contributing to a positive outlook,” he said.

Buehlmann also believes there remains positive signs for a market recovery in China. He believes that current valuations appear attractive, and macro indicators show that targeted policy support is yielding positive results.

“A recovery in consumption services has commenced, with the potential to broaden out as consumers normalise their savings rate.

“A re-stocking cycle is in progress, expected to gain momentum in the coming months and we are optimistic that these developments could restore both corporate and consumer confidence, potentially leading to a sharp rebound in China. 

 “We remain positive on companies that can adapt to changing regulatory frameworks and align with Chinese policy objectives, particularly in areas such as digital innovation, green technology, affordable healthcare, and improving livelihoods,” he added.

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René Buehlmann

High conviction fund manager SG Hiscock & Company (SG Hiscock) has become the wholesale distribution partner of abrdn in the Australian market, effective yesterday. The firm has also successfully completed the transfer of the abrdn Australian equity investment management business.

It follows the announcement in December last year that SG Hiscock and abrdn had entered into a strategic partnership whereby SG Hiscock would distribute abrdn’s international funds to the Australian market. The investment management of the abrdn Australian Small Companies Fund and the abrdn ex-20 Australian Equities Fund would also transfer to SG Hiscock.

SG Hiscock chief executive, Giles Croker, said the response from investors has been very supportive given the clear investment synergies between the two organisations. 

“Both SG Hiscock and abrdn have been committed to ensuring all clients continue to be looked after during this time.

“In the short term, our focus will be on integrating the transferring staff into our business and creating a unified culture that ultimately benefits our combined investor base.

“As part of the transition, business development, consultant relations, marketing and client service staff have now moved across to our firm, ensuring continuity of services, relationships, and knowledge,” he said.

The Ex-20 Australian Equities and the Australian Small Companies funds will continue to be maintained as separate funds and there will be no changes to the investment objective or investment universe.

“We’re pleased portfolio manager, Shawn Lee and assistant portfolio manager Philip Li, have transferred across to SG Hiscock to continue managing the two Australian equities funds.

“Investment continuity has been critical to the transition process, and having Shawn and Philip continuing to manage the abrdn funds will ensure a high level of integration between the teams from the outset,” he said.

René Buehlmann, chief executive – Asia Pacific at abrdn, said: “Growth in Asia Pacific is a strategic priority for abrdn, and Australia is an important part of that market. The partnership with SG Hiscock is in response to the need for greater local scale to be successful in delivering the best outcomes for Australian investors. The transfer of Australian equity strategies and key investment and wholesale distribution staff in support of that, allows abrdn to focus on providing differentiated investment solutions to Australian investors, including global and Asian sustainable products across asset classes.”

The two transferring Australian equity strategies have performed strongly over the past six months, with the Australian Small Companies Fund in particular delivering top quartile performance over the six-month period to 31 December 2022, with 5.3 per cent outperformance relative to the benchmark.

abrdn funds which SG Hiscock will now be distributing in the local market include the abrdn Global Risk Mitigation Fund, abrdn Multi-Asset Real Return Fund, abrdn Multi-Asset Income Fund, abrdn Sustainable Asian Opportunities Fund, abrdn Sustainable Emerging Opportunities Fund, abrdn Sustainable International Equities Fund, abrdn International Equity Fund, and abrdn Global Corporate Bond Fund.

SG Hiscock is a high conviction fund manager which has been operating in the Australian market for over 20 years and also has a strong distribution capability. It has in excess of $2.3 billion in Funds Under Management (FUM) in house, as well as $1.4 billion of third-party FUM via distribution relationships with some of the world’s leading fund managers, including Morgan Stanley Investment Management, LaSalle Investment Management and abrdn.

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The appointments broaden the global talent on Standard Life Aberdeen’s senior leadership team and will support the company’s ambitious growth agenda.

René joins ASI at an exciting time as the Asia Pacific business is competitively positioned to grow in some of the world’s fastest-growing savings and investments markets. René will be responsible for driving the company’s global strategy in the region as it invests to further build its franchise, accelerating growth in Asia Pacific and bringing its full breadth of global investment capabilities closer to clients.

Based in Singapore, René will join the Executive Leadership Team and report to Stephen Bird, CEO of Standard Life Aberdeen.

René brings over three decades’ experience in global wealth and asset management, corporate banking and financial markets, including 29 years with UBS. He was most recently Head of Asset Management Asia Pacific and Global Head of Wholesale Client Coverage at UBS, where he led its regional operations across seven countries and managed its global wholesale business. He has a proven track record of developing investment business in APAC across segments and distribution channels.

In his role as Chairman Asia, Hugh will continue to champion ASI’s business in the region. He will provide strategic counsel to René and retain his director positions on fund and UK investment trust boards.

Stephen Bird, CEO, Standard Life Aberdeen, commented: “The Asia Pacific region is core to Standard Life Aberdeen’s growth strategy. René’s wealth of experience in asset and wealth management, deep knowledge of key client segments and a proven record of developing a strategic business will support our growth ambition. His acute understanding of client needs and evolving investment trends will be vital, as we focus on the significant opportunities in the region and delivering a diverse array of future-fit investment solutions to our clients.” 

“Hugh has been instrumental in establishing a solid foundation for our Asia Pacific business, building a deep bench of talent and delivering quality investment outcomes, putting the region on a sustainable growth path. I want to thank him for his enormous contribution to the business over the 35 years. We are delighted that he has agreed to stay on as Chairman Asia, his counsel and strategic advice will be invaluable as René transitions into the role.”

Hugh Young said: “I am pleased to hand over leadership of our APAC business to an established leader like René. With a focused strategy, an unparalleled range of asset class capabilities and strong investment performance, the business is extremely well positioned to embark on the next stage of growth.”

René Buehlmann added: “The growing demand from clients for innovative solutions to address their investment and retirement needs, combined with Aberdeen Standard Investments’ proven Asian and global investment expertise, presents tremendous opportunities for the business. I am excited to take on this role and look forward to contributing to the company’s continued success in Asia Pacific.” 

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