New Standard Life Aberdeen CEO on Passive Investment Shift

The video discusses the current market challenges, including Brexit and COVID-19, and the impact of a successful vaccine on investment strategies. It explores the debate between active and passive management, highlighting the importance of providing a full suite of solutions to clients. The discussion also covers growth strategies, including mergers and acquisitions, and the role of technology in asset management.

What factors are contributing to the current market optimism?

• A strong dollar and low interest rates

• The successful vaccine and potential fiscal stimulus

• Brexit uncertainty and rising COVID-19 cases

• Decreasing central bank support

What is the expected impact of a weaker dollar on emerging markets?

• It will lead to increased inflation

• It will be detrimental to their growth

• It will have no impact

• It will be beneficial for their growth

Why is active management facing challenges despite the current market environment?

• Limited access to emerging markets

• Lack of investment opportunities

• High competition from passive funds

• Inconsistent growth rates and pandemic responses

Which countries have shown better performance in handling the pandemic and equity markets?

• United States, United Kingdom, and Germany

• China, South Korea, and Taiwan

• Australia, Canada, and Japan

• India, Brazil, and Russia

What is the main reason for combining active and passive investment strategies?

• To reduce management costs

• To meet client demands for a comprehensive solution

• To focus solely on sustainable investments

• To avoid competition with major firms like Vanguard

What role does technology play in the future of investment management?

• It is not considered important

• It helps in better data consumption and investment decisions

• It is used to replace fund managers

• It is only useful for passive strategies

How does the company plan to achieve scale in the investment business?

• By reducing the number of clients

• By focusing only on organic growth

• Through a combination of organic growth and strategic acquisitions

• By merging with a major competitor