The potential merger between Aberdeen Asset Management and Standard Life will give the combined firm the scale to compete effectively in the US.
On 6 March both firms announced that an agreement had been reached and they were recommending the deal to shareholders. It is expected the combined firm would run around £660bn in assets.
Speaking at the Pensions and Lifetime Savings Association Investment conference, Aberdeen Asset Management chief executive Martin Gilbert said the merger means the new firm can offer a wider range of products to clients on a global basis.
"We want the full range of products so we can compete in the US," he said. "Obviously the Asian and European markets are also very important but the US market still accounts for a major proportion of assets under management."
He continued saying that scale is important to succeeding in the asset management world with firms looking to either be small boutiques or large firms.
"Scale is important and I think asset managers either want to be small or big - they don't want to fall in between," he said. "We are both good asset managers in our own right but by coming together we offer more to our clients. We have both been seen as one trick ponies with Standard Life being best known for GARS while we are known for emerging markets so together we can offer something broader."
However, he added that there is still more work to be done as the combined firm will still "only be the 18th or 19th largest globally."
In the event of a formal merger Gilbert will share the CEO role with his Standard Life counterpart Keith Skeoch.
When asked how the arrangement would work Gilbert said: "In the financial services industry co-CEOs are very common. We are both very different characters and we have complementary strengths. Also there is a lot for us both to do and so I am very positive that this will work out well."
In this live blog, Professional Pensions' sister title Investment Week collates all the breaking market news, analysis and opinion on equity, bond and currency movements as well as the impact of trade wars, tightening monetary policy and the Brexit negotiations....
Ross Trustees has secured investment backing from private equity investor LDC, as it prepares to capitalise on growing demand for professional trustee services.
Lee Sanders says the fast and adaptive market response to the crisis of 2020 has shown how much the financial system has improved upon the credit market liquidity issues that were at the heart of the 2008 global financial crisis (GFC).
The stabilisation of US economic growth amid unprecedented fiscal and monetary stimulus has raised questions about the likelihood of inflation returning. Global Head of Fixed Income, Jim Cielinski, and Global Bonds Portfolio Manager, Andy Mulliner, explain...