Abrdn, the third-largest manager of investment trusts in the UK, announced that it will reinvest an amount equal to six months’ worth of management fees into all of its UK-listed investment companies.
The move, which is subject to regulatory approval, will cover 17 trusts across equity, real estate and multi-asset classes, and is expected to amount to more than £30m.
The firm said the initiative reflects its confidence in the value of its investment trust range and its commitment to the sector, especially during a challenging time for closed-ended funds. It also aims to align its interests more closely with existing shareholders and to set an industry standard for best practice.
Christian Pittard, Abrdn’s head of listed funds, said: “We strongly believe in the significant underlying value of our investment trust range. This initiative underpins our firm commitment and long-term optimism in both the investment company business and the value of the underlying assets in Abrdn’s range.
“We also believe this initiative across the full range is good practice during a time of particular challenge for the UK’s closed-ended fund sector and builds upon similar practices seen at an individual trust level, both at Abrdn and elsewhere.”
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