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Aberdeen All Asia trust proposes Japan remit and £100m C share offer
by James Phillipps on Sep 11, 2013 at 08:40
The board of Aberdeen All Asia is proposing to convert the investment trust into a Japanese equity vehicle and is aiming to grow the company through a £100 million C share issue.
The £51.2 million trust admits its relatively small size is deterring larger investors and said the change in mandate has been supported by shareholders it has consulted who between them own 30.6% of its share capital.
Up to 100 million C shares will be issued at a price of 100p, under the proposals.
‘The board has sought shareholder views on the prospect of refining the company’s investment mandate to focus entirely on Japanese investments as a way of strengthening the appeal of the company and increasing the potential for substantial growth,’ the board said in a statement.
Aberdeen All Asia, as the name suggests, currently has an Asia Pacific including Japan remit, but believes the turnaround in the Japanese stock market represents an opportunity, but added that around 50% of its exposure would be hedged back into sterling.
The trust is also proposing a simplification of its charging structure, moving to a basic annual fee of 0.95% of assets up to £50 million and 0.75% on assets above that. Under the current arrangement, Aberdeen charges an annual fee of 0.75% with a performance fee of up to 15%.
The Aberdeen All Asia trust has returned 17.1% over 12 months and is currently trading on a discount to net asset value of -7.3%.
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