Aberdeen Asset Management boss Martin Gilbert said party leaders should move fast to form a government if tomorrow’s General Election results in a hung parliament.
“The longer it takes, the worse it’s going to be,” Gilbert said yesterday. “Markets don’t like uncertainty.”
The FTSE has brushed off fears of political instability in recent weeks with the UK’s blue-chip index trading close to record highs.
Analysts have also suggested global monetary stimulus, led by quantitative easing in the Eurozone, has helped dilute fears over the UK vote tomorrow – but a post-election leadership vacuum could prompt a wobble in sentiment if there is no decisive result.
The warning came as Aberdeen, Europe’s largest independent fund managers, reported a 25 per cent rise in underlying profits, despite a rise in investors pulling cash from funds.
The firm’s acquisition of Scottish Widows Investment Partnership (Swip) helped propel profits to £270.2m for the six months ending March while revenues also rose 20 per cent, but outflows marched on.
Investors withdrew £11.3bn during the period, more than the £8.8bn they pulled in the same period last year.
“The business is in good shape,” Gilbert said. “We’re getting hit at the macro level but I’m hopeful emerging markets will come back into fashion.”