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Andrew McCaffery, Aberdeen, interview

01 September 2014

Andrew McCaffery is convinced that the traditionally long-only asset manager will attract a market-mirroring amount of alternative investment, discovers Paul Golden

Read more: Aberdeen long strategy alternative investment

Aberdeen’s foray into alternatives has been an eventful one. As recently as late 2012 investors were diverting cash away from its alternative investment strategies, but the acquisition of the Scottish Widows Investment Partnership doubled its alternatives assets under management (AuM) to approximately $20bn and global head of alternatives, Andrew McCaffery, has set a target of more than doubling that figure by 2019.

Earlier this year, Aberdeen’s alternatives business became a separate unit with a multi-manager approach to researching and investing in hedge funds/liquid alternative strategies; private equity funds and co-investments; and property funds. A fourth desk is responsible for direct investment into infrastructure projects.

"Alternatives is a key part of Aberdeen’s future," says McCaffery, who was previously global head of hedge funds. "We recognise that the growth of allocations to alternative investments and strategies is likely to outpace liquid assets over the next five to 10 years....