Aberdeen Asset Management is to close down one of the worst performing funds in the market, the £1.3...
Aberdeen Asset Management is to close down one of the worst performing funds in the market, the £1.3bn Fund of Investment Trusts, managed by head of closed-end funds Chris Fishwick.
It has returned -72.3% over the 12 months to 4 November, offer to bid, compared to a UK equity income sector average of '18.8%, to rank last in a field of 82.
The fund, which invested in income shares of split-capital trusts, will be merged with the Aberdeen Fixed Interest unit trust, on 6 December, almost a year after the original scheduled date. It sold the last of its income share holdings last week and now holds a portfolio comprised of around 63% UK bonds and 32% UK gilts with the remainder in cash.
Gary Marshall, managing director of Aberdeen Unit Trust Managers, said the delay to the merger timetable was due to difficulties in liquidating the portfolio of income shares.
The merger process began in early 2001 when Aberdeen was reviewing its product range after the acquisition of Murray Johnstone.
Marshall said the fund had failed to grow in size since launch as it was both too low yielding and offered too little in the way of growth prospects to attract investors.
The merger was expected to be completed on 7 December 2001 after unitholders approved the proposal in September, but 'just after we got approval for the merger, the asset class fell apart,' Marshall said.
The collapse of the split-capital sector left Aberdeen unable to sell the rapidly deteriorating assets, a problem that was finally resolved in October by Aberdeen plc buying out the bulk of the remaining income shares, some 40% of the portfolio.
As first reported in Investment Mid Week Jonathan Polin has resigned from as managing director for sales of Aberdeen Unit Trust Managers to join HSBC.
He will be replaced at Aberdeen by Nigel Storer, who has been promoted from sales director to head of retail sales for UK and Europe.
Aberdeen has also promoted head of sales for Asia Christopher Ellyatt to head of institutional sales and marketing, replacing Stuart Dunbar, who is joining Baillie Gifford as marketing manager.
Partner Insight: For Blackfinch, the arrival of its IHT portfolio services was a 'natural evolution' in the group's offering and points to an established track record of returning cash to investors.
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