Scottish Provident is to withdraw £9.5bn worth of assets from Aberdeen Asset Management from the end...
Scottish Provident is to withdraw £9.5bn worth of assets from Aberdeen Asset Management from the end of March, six months earlier than expected.
The assets, including £2bn to be taken out of Aberdeen's unit trusts, represent almost a quarter of Aberdeen's current assets under management. They were originally to be withdrawn from the end of September 2002.
Aberdeen said the redemption will not result in a cost burden on remaining unitholders within the retail funds as Scottish Provident units are being redeemed at a special cancellation price. The company said it did not believe the performance of the funds in question would be affected.
The transfer of assets will be staggered from 31 March and mid-July to further minimise the impact on funds.
The transfer will wipe out 5% of Aberdeen's revenue, according to Gary Marshall, sales and marketing director at Aberdeen. He added that Aberdeen's revenues for the financial year 2001/2 would be unaffected by the transfer as Abbey National had agreed to pay some £9m worth of management fees, which would have been due under the original contract.
The majority of the assets in question form part of Scottish Provident's with-profits fund which was closed to business last year following Abbey National's £2bn takeover of the group.
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