abrdn to pour six months' worth of management fees into UK investment trust range
The asset manager said it expects the total amount invested to exceed £30m.
Subject to regulations and obligations, the asset manager said it expects that the total amount invested will exceed £30m, and that investments will be made as and when the relevant management fees are received.
The average investment trust discount hit 16.9% at the end of October, a level not seen since the Global Financial Crisis, according to the Association of Investment Companies. Although the average discount has narrowed to 12.3% as of 30 November, abrdn said headwinds remain for the sector.
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Christian Pittard, abrdn's head of listed funds, said the initiative across the full range was «good practice» during a «time of particular challenge» for the UK's closed-end fund sector, and builds upon similar practices seen at an individual trust level at abrdn and elsewhere.
«While there has been much narrative on potential buying opportunities in the sector, we also want to align ourselves more closely with existing shareholders of the funds we manage,» he said.
«This initiative demonstrates our strong advocacy for the integrity of the UK's listed investment trust sector, with its unique structure and independent boards of directors to represent shareholder interests.»
abrdn noted, that while some asset managers already reinvest a proportion of the management fee back into their trusts, doing this across the full range is an «industry first».
The firm already has an ongoing obligation to reinvest management fees into its two Tritax funds (25% for Tritax Big Box REIT and 10% for Tritax EuroBox), with the initiative announced today being in addition to those existing arrangements.
abrd
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