Group offers BES shareholders similar plan to Friends Ivory & Sime scheme
Aberdeen is writing to 500 existing shareholders of the British Empire Securities and General Investment Trust (BES) to offer them a similar plan to the Friends Ivory & Sime saving scheme, following its purchase of Ivory Sime in July.
Following the technical transfer of the trust between the two groups, Piers Currie, head of investment trusts at Aberdeen, said that the wrapper administration is being put in place. The current savings plan-holders of BES will be written to over the next two weeks with details of the new plan.
While FIS has closed its wrapper plan for new business, Currie said the aim at Aberdeen is to offer existing plan-holders of the trust a voluntary switch into an equivalent Isa and Pep saving scheme through Aberdeen.
Currie said that both Aberdeen and FIS use the same administrator for their wrapper scheme, Cogent, so it would not be logistically difficult to change wrappers.
Currie said while a plan has been decided for existing shareholders of BES, Aberdeen is working with the board of the trust to decide upon a plan for new investors who come into the trust.
The trust, managed by John Walton, is five-star rated by S&P. It is ranked first in the global growth sector over one year to 22 August 2001, returning 10.9% in share price terms, compared to the sector average of -12.1%. Over three years, it is ranked second, returning 70%, compared to the sector average of 23.3%.
The aim of the £401.6m trust is to achieve capital growth through a focused portfolio of investments, particularly in companies whose share prices stand at a discount to estimated NAV.
On 31 August 2001, the trust was trading at a discount of 10.6% and its NAV stood at 206.6p.
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