Give to gain: Rebecca Maclean's day in Aberdeen

The co-manager of Dunedin Income Growth Trust (DIGIT), Rebecca Maclean, considers her experience managing funds

Aberdeen is adamant about the importance of having a diverse workforce in order to improve decision making. More than 40% of investment teams in fixed income, real assets, and equities are composed of women, according to Citywire, which ranks Aberdeen fourth among major asset managers for gender diversity.

We honored the women whose viewpoints improved investment results on International Women's Day. We asked two of our female fund managers to discuss how they approach investing, making decisions, and working together in the spirit of Give to Gain.

In this piece, Rebecca Maclean, Co-Manager of Dunedin Income Growth Trust (DIGIT), discusses how conviction, teamwork, and a long-term outlook influence her approach to investing.

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Why did you decide to become a fund manager?

I started my career in environmental consulting and responsible investing, but I entered the field later than many others. The question of whether taking environmental, social, and governance factors into account actually promoted higher long-term investment returns captivated me.

As I transitioned into asset management, I discovered that I wanted to be more involved in the fundamental decision-making process for investments and to gain a broader understanding of the factors that influence markets, including macroeconomics, corporate strategy, capital allocation, market expectations, and valuation.

There were many senior female portfolio managers at Aberdeen who demonstrated what was possible and gave me hope for the future.

Did you initially have a keen interest in the financial markets?

Since I studied experimental psychology for my undergraduate degree, I didn't initially see much of a connection to the financial markets. In reality, psychology has an impact on markets, and behavioral finance theories provide an explanation for why asset prices may deviate from fundamentals.

After that, I finished my master's degree in international relations, which covered a wide range of subjects like globalization, international political economy, conflict, and environmental crises. That demonstrated to me the importance of capital flows, how corporate strategy influences performance, and how financial markets are essential to economies.

What does your average day consist of?

Before riding my bike into the office, I usually read some corporate results, broker research, or any overnight market news flow to start my day. There will be more to process once I get there, such as any research that colleagues from the Aberdeens Equity team have produced. It is my responsibility to analyze any developments and determine how they affect the businesses we own or are thinking about.

The main focus of my day is company analysis. We usually have one or two business meetings each day. Prior to those meetings, I will take the time to examine the business, learn about its performance, analyze recent outcomes, review our investment case, and decide what we hope to achieve from the meeting. One of the best parts of the job is interacting with management teams. Being in the same room as these leaders and learning about their perspectives is a privilege. I'll be studying various markets and their business plans.

I frequently meet with Ben Ritchie, the co-manager of the Trust, in the afternoon to discuss portfolio construction. Examine and discuss possible portfolio actions, consider risk levels and positioning, and evaluate holdings' potential for valuation. We always have the best ideas in the portfolio because there is a healthy amount of capital competition. As a result of this analysis, if any trades are necessary, then make them.

My two young children and I usually get home in time for dinner, a few books, and bedtime. Although they are already shareholders in the trust, they are still too young to fully comprehend investment trusts.

Which are the most crucial abilities you require?

Reading financial accounts, analyzing models, and applying valuation techniques are just a few of the fundamental financial skills that are needed. Being able to sift through a lot of data and identify what is crucial is crucial. This is especially true in light of the current market turmoil.

It's also critical to create frameworks for analyzing businesses across various industries. An investor in a food retailer, for instance, must be concerned about inflation since it influences demand in addition to elements like space expansion or competitive positioning. We would pay more attention to a bank's capital position, loan growth, and capital distribution capabilities. I can quickly determine what is pertinent and what will increase shareholder returns thanks to this.

Investing's psychological component is frequently underestimated. Analyzing a company's prospects alone is insufficient; you also need to infer what the market believes. A company's share price may be low if it grows well but less than the market had anticipated. For this reason, a good business isn't always a good investment.

You must be able to explain and discuss complicated concepts to clients, coworkers, and occasionally the general public. Additionally, you must be open to challenging other people's ideas. If you can examine a stock idea from multiple angles and question your initial conclusions, your due diligence will be enhanced. In general, working together yields better outcomes. This entails exchanging ideas, discussing stocks with analysts and other portfolio managers, and collaborating with individuals from various departments within the company.

What are the most difficult obstacles?

Time management is difficult because there are so many conflicting priorities. Setting priorities for where to concentrate and how much time to devote to it is essential. When faced with uncertainty, making decisions and judgments can also be challenging. Even though your knowledge will never be perfect, you must develop conviction. Experience enhances this skill.

Resilience is important. Frequently, you will be mistaken. Your performance is indicated by a number on a screen, and it can be difficult to sit through poor performance. It's challenging, but crucial, to keep logic and analytical rigor above feelings.

What method do you use for company analysis?

First, we go over the basics. What are the company's business model, competitive position, financial strength, industry dynamics, and ESG considerations? There are also more subtle factors, like the caliber of the management team, which we evaluate based on their performance history and adaptability to change.

Additionally, we must make sure that a business is long-term viable. That is the lens through which we assess opportunities and risks related to sustainability. Instead of checking boxes, we want to measure long-term resilience. An evaluation of dividend sustainability is part of income strategies.

We conclude by discussing market expectations and valuation. What does a company say about its prospects? What are scenarios of upside and downside risk? We consider the implied returns, the valuation, and potential errors.

For work, what media do you watch?

I started reading the weekend FT from the back and worked my way up to the front. I also love podcasts, especially when I'm traveling or riding my bike to and from work. In addition to market and investment-related podcasts, I also listen to those about politics (Not Another One) and history (The Rest is History). CEO interviews are interesting to me (In Good Company). Then there are in-depth discussions of specialized subjects, like how AI affects the brain, bottlenecks in the semiconductor supply chain, or the spending patterns of Generation Z. Plain English is excellent for these kinds of topics.

What aspects of your work do you find fulfilling?

Meeting outstanding business executives and learning more about their companies is a privilege. I work with incredibly intelligent, fascinating, inquisitive, truth-seeking, and passionate individuals. It is impossible to get bored at this job because it is intellectually demanding and offers variety.

Working on behalf of DIGIT's shareholders and attempting to make choices that will increase the company's value is another privilege. Since the Trust is the second-oldest investment trust and has been around for more than 153 years, it carries a lot of responsibility.

Crucial details.

You should think about these risk factors before making an investment.

Investors may receive less than their initial investment if the value and income from their investments decline. Future outcomes are not predicted by past performance. Additional crucial details.

Issued by abrdn Fund Managers Limited, which is approved and overseen by the UK's Financial Conduct Authority and is registered in England and Wales (740118) at 280 Bishopsgate, London EC2M 4AG.

You can access the Dunedin Income Growth Investment Trust Key Information Document by clicking this link.

Visit www to learn more. either by signing up for updates or at aberdeeninvestments . com/DIG. Additionally, you can follow us on Facebook, LinkedIn, YouTube, and X.