Fund firm that HASN’T done well from the election of Donald Trump

INVESTORS rushed to pull funds out of Aberdeen Asset Management after Donald Trump won the US election.

Aberdeen has a strong focus on emerging markets, and chief executive Martin Gilbert warned that Trump’s victory had sparked fresh problems in the risky sector.

‘Sentiment in emerging markets had improved dramatically – and then we had the Trump election,’ he said. ‘While I think it will be good for the global economy, it has certainly hit sentiment in emerging markets.

‘It’s not a disaster or anything like that, it’s just we’re being more cautious now.’

It follows a year in which profits at the firm dropped 37.3pc to £221.9m. Aberdeen notched up outflows of £32.8bn during the 12 months to September 30, although total assets under management grew 10pc to £312.1bn.

Trump’s victory was greeted first with a stampede for safety, which saw risky sectors ditched. But there has since been a spike in the dollar and US stocks as traders bet on interest rate rises, tax cuts and an infrastructure spending spree. This picture of improving returns, coupled with risks lower than in the developing world, makes America more attractive to investors.

There are also fears that Trump could put up trade barriers that might hit emerging markets, even to the extent of building a wall along the Mexican border. However, Gilbert said the worst predictions were overblown.

‘Trump will be a borrow-andinvest sort of president,’ he said. ‘He’s a property guy, their instinct is to build, and I hope he will.’