Latest news with #aberdeen
The Independent
21-03-2025
- Business
- The Independent
Heathrow closure to cost UK economy up to £4.8m in lost tourism
A fire that shut down Heathrow airport due to a major power outage will cost the UK economy millions of pounds - even as flights resume on Friday night. Some 1,351 flights were either cancelled or forced to land elsewhere, affecting thousands of tourists and many businesses, even beyond the airlines who suffered the first impact on Friday morning. While putting a precise figure on the impact of such an unexpected occurrence is difficult, the usual flow of inbound passengers to the airport provide scope for at least some guidance of the damage which might be done, as Oxford Economics told The Independent. 'In terms of what's at stake, at the conservative end, we estimate a potential loss of tourism revenue amounting to £4.8 million per day,' economist Stephen Rooney said. 'We can estimate this loss based on typical inbound arrivals volumes that come to the UK through Heathrow and the average daily spend of those travelling.' Mr Rooney said more than a third of international arrivals to the UK come through Heathrow: 'We can therefore use this figure to size the potential loss of arrivals in volumes terms.' He said factors such as travellers spending more money while stuck in the UK, and updates about resumed flights, would mitigate the economic effects. However, there are likely to be further costs to the economy outside lost tourism. 'These estimates do not touch on the potential loss of earnings of airport and airline staff, lost income for airport retail and numerous other ancillary services such as airport taxis. Including that, the impact would obviously be more significant,' Mr Rooney said. Insurance payouts, lost money for affected passengers and other costs to airlines involved would further inflate the damage of the day. Sree Kochugovindan, senior research economist at global investment company aberdeen, said even if such events are rare and unpredictable, they will still always have an impact on the state of the nation's economy. The major disruption comes days before Rachel Reeves delivers her Spring Statement during a critical juncture for the UK economy. 'The short-term disruption is immense, with thousands of local homes and business affected. Heathrow is a major hub for passengers and cargo transport, including high value, time sensitive and perishable goods. Near-term impacts for airlines and businesses reliant on cargo are likely significant but temporary,' Ms Kochugovindan said. He said it was a wake-up call for the importance of reinforcing and modernising critical infrastructure. 'However, a weaker economy and higher gilt yields have eroded the chancellor's fiscal headroom [for public spending] since the August budget [ahead of the] Spring Statement next week,' he said.
Zawya
14-03-2025
- Business
- Zawya
GROW with Singlife and aberdeen Launch New Exclusive Share Class of Global Income Bond Fund to Deliver Sustainable Payouts Amid Market Volatility
Globally diversified portfolio of crossover bonds aims to deliver attractive yields for investors SINGAPORE - Media OutReach Newswire - 14 March 2025 - GROW with Singlife ("GROW"), the integrated investment platform under leading homegrown financial services company Singlife, in partnership with aberdeen Investments ("aberdeen"), today launches a new share class of the abrdn SICAV II – Global Income Bond Fund (the "Fund"). Currently exclusive to GROW on its platform, the A Gross Inc Hedged SGD offers investors a compelling Yield to Worst of 6.5% (USD hedged)[1], comprising appealing monthly payouts with potential capital appreciation. Finding a sweet spot between investment-grade bonds and high-quality high-yield debt, the Fund invests substantially in global multi-sector bonds rated BBB (the lowest investment-grade rating) and BB (the highest high-yield rating). This dual-market approach appeals to both conservative investors seeking stability and those pursuing higher returns. With a globally diversified portfolio spanning investment-grade, high-yield, government, and emerging markets bonds, the Fund offers attractive yield potential while maintaining moderate credit risk, making it a compelling long-term solution for income-focused investors. The launch comes at a pivotal time in the market. With inflation easing across most global markets and central banks expected to begin rate-cutting cycles, returns from short-term cash management instruments such as fixed deposits and money market funds have declined, making them less appealing to investors looking for higher yields. In such an environment, fixed income investments are gaining attention for their ability to provide higher yields and more sustainable returns. According to Morningstar, a leading global investment research firm, fixed income funds saw record inflows of USD1 trillion in 2024, trumping all other asset classes. Tim Wong, Head of Product at GROW with Singlife, said: "As part of our commitment to provide advisers and their clients access to innovative and high-quality investment opportunities, we are proud to partner with aberdeen for the launch of an exclusive share class of the abrdn SICAV II – Global Income Bond Fund. With rising life expectancy and increasing cost of living, many investors are looking for ways to secure reliable income to support their retirement goals. This Fund represents a compelling option for those seeking attractive, stable income solutions with controlled risks." As Singapore's population ages and life expectancy continues to rise, the need for reliable retirement income is becoming increasingly critical. A 65-year-old today requires an estimated $685,000 to fund 20 years of retirement, or approximately $2,856[2] per month, covering basic expenses. With stable and attractive payouts to support long-term financial security, the abrdn SICAV II – Global Income Bond Fund offers a sustainable solution for investors. Natalie Tan, Head of Wholesale Southeast Asia at aberdeen Investments, said: "We are thrilled to partner with GROW with Singlife to introduce a new share class of the abrdn SICAV II – Global Income Bond Fund to investors. This Fund reflects aberdeen's commitment to help investors navigate market transitions with innovative solutions that aims to achieve sustainable, long-term returns. Looking at the existing landscape, the current bond yields across nearly all major fixed income sub-asset classes well exceed their 10-year averages, presenting an enticing entry point for fixed income investors. With a globally diversified portfolio of bonds, this Fund will be a valuable addition to any income-focused portfolio, offering the potential for high-yield returns at investment-grade risk levels." The Fund has a strong history of delivering consistent income and competitive performance. Over the past decade, it has consistently ranked among the top performers in its category, according to Morningstar. As of December 2024, the Fund is in the top 25% in terms of performance over the last one, five, and seven years within its category. This demonstrates its ability to generate attractive, risk-adjusted returns across different market conditions, making it a reliable choice for income-focused investors. GROW officially introduced the abrdn SICAV II – Global Income Bond Fund, A Gross Inc Hedged SGD, at a launch event at Marina One, attended by industry leaders and financial advisers. Investors can contact their Financial Adviser Representatives or visit to learn more. [1] Source: aberdeen Investments, 31/12/2024, USD Yield to Worst (USD Hedged) is the weighted average yield of all the bonds in the fund's portfolio. It represents the expected rate of return if the investment is held until all the bonds in the portfolio mature. It also evaluates the lowest possible yield without defaults. It represents the worst-case scenario for yield, assuming the bond is called or retired early by the issuer. The figure also captures the effect of non-USD exposure being hedged back to the base currency (USD). Yield to Worst is not a representation of a distribution yield. [2] Singlife's Financial Freedom Index 2024. Hashtag: #GROWwithSinglife The issuer is solely responsible for the content of this announcement. About GROW with Singlife GROW with Singlife is an integrated investment platform under the Singlife Group, a leading homegrown financial services company. GROW's platform offers an integrated investment solution that combines intuitive technology with tailored services, and a progressive range of products, alongside insights, tools, and support, to enable advisers to provide more meaningful and impactful advice to their clients. We are committed to supporting our employees, financial advisers, and end clients with care, consideration, and compassion at every step of their financial life journey. About aberdeen aberdeen is a global investment company that helps clients and customers plan, save and invest for the future. Our purpose is to enable our clients to be better investors. aberdeen manages and administers £511.4bn of assets for clients (as at 31 December 2024). Our strategy is to deliver client-led growth. We are structured around three businesses – Investments, Adviser and Personal – focused on their changing needs. The capabilities in our investments business are built on the strength of our insight – generated from wide-ranging research, worldwide investment expertise and local market knowledge. Our teams collaborate across regions, asset classes and specialisms, connecting diverse perspectives and working with clients to identify investment opportunities that suit their needs. As at 31 December 2024, our investments business manages £369.7bn on behalf of clients - including insurance companies, sovereign wealth funds, independent wealth managers, pension funds, platforms, banks and family offices. About Singlife Singlife is a leading homegrown financial services company that offers consumers a better way to financial freedom. We are headquartered in Singapore with a presence in the Philippines. Singlife meets diverse customer needs by offering a comprehensive suite of insurance products, including life and health, general insurance and investments, employee benefits and financial advisory solutions. We achieve this through a differentiated, open-architecture distribution model and Singapore's largest network of financial advisers. A pioneer in the digital insurtech space, we offer digital solutions accessible through the Singlife App and GROW with Singlife, an investment platform. We are a key player in the employee benefits solutions space and are the exclusive insurance provider for the Ministry of Defence, Ministry of Home Affairs and Public Officers Group Insurance Scheme. We're also one of three government-approved long-term care insurance providers in Singapore. We take our commitment to achieving Net Zero seriously and are an official signatory of the United Nations Principles for Sustainable Insurance and the United Nations-supported Principles for Responsible Investment. Singlife was formed from the merger of Aviva Singapore and Singlife, originally an insurtech start up, in January 2022. Singlife is now a wholly owned subsidiary of Sumitomo Life, who acquired Singlife in 2024. We have over S$14 billion in assets as of 31 December 2023 and are rated "A" and "Baa1" by Fitch and Moody's respectively. Sumitomo Life was established in 1907 and is one of Japan's largest life insurance companies, with over US$300 billion in assets as of 31 March 2024. Navigator Investment Services
The Independent
11-03-2025
- Business
- The Independent
What could turn around the stock market collapse - and where are the hidden winners?
A dramatic fall in US stocks on Monday means many of the world's biggest companies are suddenly far cheaper to buy than they were a week ago, as investors worry about a possible recession. The benchmark S&P 500 - the index of some of the US's biggest publicly listed organisations - fell around 2.7 per cent across the day, with the tech-heavy Nasdaq stock market dropped a full four per cent, its worst day in three years. That sharp drop will spread elsewhere, not just in share price terms but in investor confidence levels and concerns over the abilities of companies to do business and complete sales in the United States. So what might halt the decline and which companies have survived so far? What has happened to the US stock market - and what about elsewhere? The S&P 500 is down almost 7.5 percent across the last month and ripples have already been felt. In Asia, overnight trading saw benchmarks take a nosedive, with Japan down 1.7 per cent, Australia almost one per cent down and more. Meanwhile in Europe, as of 11am GMT on Tuesday, trading was mostly flat on both the London Stock Exchange for the FTSE 100 (-0.15 per cent) and France's CAC 40 (+0.16 per cent) - but Germany's DAX had risen 0.4 per cent. The resilience of the European markets is potentially due to the fact there are fewer highly valued tech companies and more solid staples such as consumer goods and banks - plus valuations were lower to begin with. Over in America, large parts of the reason for the stock market decline have been the words and actions of president Donald Trump. What sparked the sell-off and how low could it go? Mr Trump announcing tariffs - as well as regularly delaying, postponing or overriding them - has caused uncertainty over which businesses will thrive and which will struggle to sell once tariffs are added to the costs of their goods and services. In turn, reciprocal tariffs and political uncertainty - changes in government in Germany and Canada for example - contribute to the overall instability, which affects investor confidence. When that confidence level is low, one approach is to remove money from riskier assets - such as stocks and shares - and that sell-off can send prices lower. Investment and asset managers at aberdeen are now pricing in just a 15 per cent chance that Mr Trump focuses on 'market-friendly aspects of his agenda', instead expecting to see more tariffs - though Lizzy Galbraith, aberdeen's political economist, still sees the 'fundamentals of the economy as sound'. The expectation there is that there will be 'growth and inflation headwinds to the US economy'. In terms of the stock market itself, investment director at AJ Bell, Russ Mould, was more blunt: 'There is an old saying that 'stocks go up the escalator and come down in the elevator,' and like most sayings there is more than a grain of truth in it – we seem to be seeing another example right now,' he told The Independent. 'Mr Trump is determined to 'Make America Great Again' but so far as investors are concerned, America is already great. The S&P 500 and the major indices have outperformed their international counterparts to such a degree that the S&P500 represents more than 60 per cent of global stock market capitalisation. 'Throw in the history of presidents offering support during prior episodes of market strife, all the way back to the LTCM hedge fund crisis of 1998, and you can see why investors were bullish to the point of complacency as they expected a further smooth ride up that escalator. 'And that's where the elevator comes in, should high valuations and high expectations meet any unexpected problems.' Is a rebound likely any time soon? It's not just comments from the president which can impact individual stock prices of course. When valuations are high and investor confidence is flying, the slightest miss in reported earnings or unexpected negative news - such as the DeepSeek furore earlier this year - can send sky-high prices tumbling in short order. But for a wider market correction, it's often uncertainty of that strong economic growth which is behind it. Therefore, to halt or reverse a decline, in this case it might need political guidance on what happens next - but the Trump administration looks more concerned with national debt than market performance right now, added Mr Mould. 'You can see why, given the $36tn (£27tn) federal debt and $1.1tn (£850bn) annual interest bill, a sum that gobbles up a fifth of the tax take. 'That's why the administration is looking for revenue (tariffs, more jobs and output at home) and spending cuts (smaller government). In this respect, the plan is working, as the yield on benchmark 10-year Treasuries is down since 5 November, in contrast to the modest increase seen in the yield on 10-year Gilts in the UK and big leaps in Government borrowing costs in Japan and Germany.' Ultimately, the stock market essentially functions by sorting itself out - at least in an ideal world of efficiency - price-wise, so when the bottom is hit, it's because that's the point investors believe risk to be removed once more. Whether this is a correction or start of a longer recession will only be shown in time, of course. The hidden winners so far - and should investors buy the dip? Not everyone has seen their shares fall of course. Bad news for many is still an opportunity for some. We've seen above how Europe has so far initially avoided such a stock market drop, while individual companies - on this continent and Stateside - have seen rises. The $156bn (£120bn) energy company NextEra rose 4.5 per cent, financial services exchange CME Group rose three per cent, pharmaceuticals organisation Bristol-Myers Squibb Company was up 3.3 per cent. Picking short-term individual winners at a time like this is not for the faint of heart, but looking at the longer term, should, or will, investors be tempted to look at drops of significant levels in prices - Tesla down 15 per cent Monday alone, Coinbase down 17 per cent, RobinHood 19 per cent and more - and think individual companies might be ripe for jumping back into? In other words, is this buy the dip territory? 'That's a brave question after a massive bull run, fuelled by meme stocks, SPACs, a boom in one-day options, levered ETFs and heaven knows what else, including a crypto player buying a banana for $6.2 million as art and then eating it,' cautions AJ Bell's Mr Mould. 'You don't see that at the bottom of markets. Some risk off and earnest contemplation may be no bad thing.' On the other hand, there's no getting away from the fact that in terms of share price measured against the usual metrics of earnings and so on, companies are cheaper now than they were only a few weeks ago - if, importantly, that earlier rate of doing business - earnings, revenue, costs and so on - was to be maintained. 'Business models have not changed. Price has and mood follows price, on the way up and on the way down. It will be interesting to see if this emboldens the bears and short-sellers who have been largely hibernating or run out of town for the last five years,' Mr Mould added.
New York Times
07-03-2025
- Business
- New York Times
When Corporate Rebranding Goes Wrong
Hw cn brnds sty cl? Nt by drpping vwls, one of Britain's biggest investment firms concluded this week, when it announced it was adding back the 'e's' to its name four years after dropping them. The 200-year-old company is now called aberdeen group, effectively reversing a decision to rebrand as abrdn in 2021 in a bid to pitch itself as a 'modern, agile, digitally-enabled brand.' The decision four years ago was widely ridiculed. James Windsor, who took over as chief executive last year, said on Tuesday that it was time to 'remove distractions' — less than two months after saying he had no plans to change the name. Corporate rebrands can be critical to signifying a strategy shift but they also come with risks when companies veer too far from their purpose. Aberdeen's vowel-dropping rebrand was just the latest example of a company reversing course after a new name failed to lift its performance or its reputation with customers. The Perils of Chasing Trends Removing vowels from brand names or using a name with a deliberately misspelled word was not uncommon in the 2000s, especially among trendy technology companies. Businesses including Grindr, Flickr, Tumblr and even twttr, as Twitter (now X) was initially called, embraced the aesthetic. But today, that style can look out of date and embarrassing, said Laura Bailey, a senior lecturer in linguistics at the University of Kent. Often, when companies try to appear trendy, 'by the time they get to it, it's been around for too long,' Dr. Bailey said. 'It's like your parents doing it — it doesn't seem right.' When it comes to financial companies, she added, another aspect to consider is: Do these businesses want to be cool, or should they go for a name that projects security and responsibility? A History of Rebranding Misses (and Some Hits) Over the years, there have been several failed rebranding efforts. In 2009, PepsiCo U-turned less than two months after Tropicana, its juice brand at the time, introduced new packaging that featured a glass of orange juice instead of its famous orange with a straw poking out of it. Angry customers described the new look as 'ugly' and resembling 'a generic bargain brand.' A year later, Gap took even less time to reverse course after unveiling a widely panned new logo for its stores that dropped the famous white lettering on a blue background that the brand had used for decades. The retailer took about a week to go back to its original rendering. 'OK,' the company said in a statement. 'We've heard loud and clear that you don't like the new logo.' Britain's Post Office in 2001 was widely mocked when it renamed itself Consignia. The chairman, Neville Bain, said at the time that the new name would reflect that the office delivered much more than mail. Consignia lasted for about a year before the Post Office name was restored. Some corporate rebrands have been effective. In 2012, Kraft Foods chose Mondelez International as the new name for its snacking business — which includes brands such as Oreos and Philadelphia cream cheese — from nearly 2,000 names suggested by employees. 'Mondelez' was an invented word that combined 'monde,' the French word for 'world,' and 'delez,' a made-up word intended to suggest 'delicious.' So, 'delicious world.' In 2001, Andersen Consulting became Accenture after splitting from Arthur Andersen, the accounting firm. The new name was chosen from 5,500 options, which were whittled down to 500 and then 10 before the firm eventually went with Accenture 'because it implies accent on the future,' The New York Times reported at the time. Despite some skepticism, the brand has endured and the company has grown into a consulting behemoth with a stock market capitalization of about $215 billion. Are Lowercase Letters a Good Thing? Aberdeen has not completely gone back to its original name, choosing to keep its logo all lowercase. That puts it in line with a trend of teenagers not using capital letters when texting, Dr. Bailey noted. 'It seems more friendly, or nicer,' she said, adding that companies sometimes try to change their names to be more informal to project a personal image, rather than that of a big corporation. Still, they risk setting themselves up for another scenario in which their name will look out of date in a year, she added.
The Independent
05-03-2025
- Business
- The Independent
TikTok owner ByteDance's value has jumped up - how will it affect the social media app's sale?
The parent company of TikTok has offered US employees the chance to sell shares they might hold in ByteDance, a privately owned company, which could have a knock-on effect on any eventual sale of the social media app. In January, a brief TikTok ban made headlines, while Donald Trump started his presidency by suggesting the US could buy or part-buy the app, which is currently Chinese-owned. At that time, suggestions of a completed sale within a month were mentioned with Frank McCourt one noted potential buyer, as he looked at the possibility of buying TikTok without its algorithm through his Project Liberty initiative. One hurdle to overcome for that or any other bid, however, is the valuation of TikTok, given it is owned by a private company, which are notoriously difficult and inconsistent to place figures on. ByteDance have reportedly offered $189.90 per share, say Reuters, which is noted as an increase of 11 per cent on a buyback of a year ago. That would value ByteDance at $350bn (£272bn) based on previous valuation methods at different share buyback price points, but with it being a private company there is no gold standard for fixing valuations. And, on a more specific note, it provides no guidance anyway on what the company might ask in a sale of TikTok - which in January Forbes offered four different guide prices for, ranging from McCourt's $20bn (£16.4bn) bid up to $300bn (£233bn) including the algorithm. Reddit co-founder Alexis Ohanian is the latest name to have joined McCourt's attempt to buy the app, saying on X he wanted to give users ownership over their data. More than 170 million Americans use the social media app, with Trump enforcing a 75-day delay over the ban and asking vice president JD Vance to oversee the process of seeing an American, or American-owned conglomerate, buying it - which means overcoming the issue of valuing a privately owned company. The Financial Conduct Authority (FCA) this week released a report highlighting both the difficulty of doing that and of their findings to improve the consistency of the process, which included improvements when it came to revaluing businesses and documentation of potential conflicts in valuations regarding clients or potential investors. Fund managers aberdeen responded to those findings by noting the importance in remembering 'there is a difference between price and value' and pointing out that given the huge variance in complexity with different businesses, the process of placing a valuation on one alone can run into the hundreds of thousands of pounds. 'There is no single standard for how to value a private market asset - creating inconsistencies - and we would not be surprised to see the same asset valued differently in two different portfolios,' said Nalaka De Silva, aberdeen's head of private market solutions. To ascertain how ByteDance's latest share buyback therefore might impact a sale price of TikTok, The Indpendent spoke further to Mr De Silva about hurdles still to overcome and how one part of a business can be valued in isolation. 'New companies with high growth business models are typically the hardest to value, particularly outside the US. China's approach to western tech companies, and the US's position vice versa, is evolving,' he told The Independent. 'Given the level of disclosures and regulatory approvals to trade in China vs internationally, it is difficult work out what the overall growth path looks like, but TikTok has been very successful in monetising engagement with users from music, product sales and drop shipping. 'ByteDance has multiple business models from short form video content creation, news, e-commerce, gaming, AI and cloud data business - all of these are hot segments of the market at present. 'Valuation will come from the monetisation paths in each of these business lines: revenue from advertising and sales of different services. 'If we look at listed companies that have similar business lines we can try and compare them to parts of Amazon and Meta, which suggests the market is pricing strong growth in earnings from these high value segments, therefore these valuations may not seem unreasonable.' In a cautionary note, though, and echoing some thoughts on the wider public stock market at present, Mr De Silva noted there remained a 'question as to whether valuations the US tech sectors are stretched' - and that could not only impact on TikTok's price to buy it in the first place, but on potential returns further down the line.
