New Star is to convert the Aberdeen Equity Income Oeic sub-fund into a unit trust in order to bring ...
New Star is to convert the Aberdeen Equity Income Oeic sub-fund into a unit trust in order to bring the portfolio in-house.
The vehicle is the only Oeic sub-fund among the six funds New Star has now bought from Aberdeen for £86.76m.
Rob Page, marketing director at New Star, said as an Oeic sub-fund, Equity Income is still technically owned by Aberdeen, which remains the authorised corporate depository, with New Star the fund's adviser.
New Star has put a scheme of arrangement in place for the fund to be converted into a unit trust, at which point ownership will pass to New Star. The fund carries the interim name AUTM New Star Equity Income fund, but will become the New Star Equity Income unit trust upon conversion. This is expected to coincide with the transfer of the six funds' dealing and administration from Aberdeen to New Star on May 19.
Page said Equity Income's charging structure will also be altered as it is lower than Toby Thompson's existing New Star Higher Income fund due to its bond quotient, which is being sold down. Initial commission and discounts have already been stripped.
The former Aberdeen Fixed Interest, Sterling Bond, Technology and European Technology unit trusts will retain their current names.
Office of Tax Simplification review
Achievements, charity work and other happy snippets
Laughable excuses for persisting
Spent 56 years at Schroders