Aberdeen Asset Management, one of the hardest hit split capital investment trust managers, has been ...
Aberdeen Asset Management, one of the hardest hit split capital investment trust managers, has been forced to call an extraordinary general meeting on 21 May for its High Income Trust.
The move comes as a result of section 142 of the Companies Act, which requires an EGM when the value of a company's assets has fallen to less than half the called up share capital.
The split cap trust's share price has fallen from 66p to 2.25p during the past 12 months and it currently trades on a premium of more than 680% to its net asset value (NAV) - this despite the current low share price.
The NAV was 35p on 1 May.
Aberdeen announced in late March this year that it would waive fees on the management of the High Income Trust because of its poor performance.
In other investment trust news, analysts at stockbroker Gerrard are recommending investors switch out of JP Morgan Fleming's American Investment Trust, despite the lack of directly comparable substitutes.
The analysts say that there is no reason for the trust's recent share price premium to the NAV; in fact it historically traded at a discount of between 5%-15% before late 2000 and the current share price is pricing in performance that they feel is unlikely to occurr.
The message may already be reaching investors, however, as the share price slipped yesterday by more than 19p to 687p, a marginal discount to the 689.74p NAV published on 3 May.
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