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Aberdeen &#39unlikely&#39 to face wave of split-cap court cases

The real estate opportunities investment trust&#39s decision to seek damages from former manager Aberdeen Asset Management is unlikely to spark a wave of legal action, according to analysts Credit Lyonnais.

The trust warned earlier this month that it intended to recover a large proportion of losses totalling £165m and would refuse to pay outstanding management fees to AAM, which it blames for exposing its portfolio so heavily to moribund split-caps.

The action, which could deliver a heavy blow to AAM&#39s chances of recovery and will see the fund manager lose around £6m per year in revenues from the cancellation of its management duties, was seen as potentially the first in a series against AAM and other split-cap managers.

But in its Trustwatch report for April, Credit Lyonnais says Reo&#39s move is unlikely to prompt other trusts to chase managers for compensation.

It says Reo, with assets of more than £400m, is unusual in that it has the financial clout to pursue a claim against AAM.

The report says: “We doubt that this heralds the start of a series of copycat actions from other splits, assuming this one ever goes to court. REO has more financial wherewithal than the average bust split and it seems likely that action will incur substantial legal fees.”


Norwich & Peterborough Building Society – Two Year Loyalty Bond

Thursday, 24 April 2003 Type: High interest account Minimum-maximum investment: £1,000-£25,000 Interest rates: 3.8% gross a year, 3.74% gross a month Term: Two years Offer period: Until further notice Withdrawal penalties: 120 day&#39s loss of interest Tel: 0845 3002511

&#39Too few divorcees use pension splitting&#39

A new pension underclass is developing because divorcees are not taking advantage of pension-splitting legislation, warns national IFA Inter-Alliance subsidiary Professional Alliance.More than 300,000 divorces have taken place since the regulations came into effect in December 2000 but fewer than 1 per cent of these have resulted in pension-sharing orders, according to figures from the […]

CII accreditation for Widows&#39 training

Scottish Widows’ Advanced Financial Planning Certificate training and development services has achieved accreditation from the Chartered Insurance Institute. The company believes that its success is owed to the address of three key standards relating to transparency, quality and member benefit. CII director general Dr Sandy Scott says: “Scottish Widows is leading the way in proactively […]

Widows launches directors&#39 business development pack

Scottish Widows is launching a new business pack to support IFAs selling executive pension policies.The pack draws out issues from the pensions Green Paper which are likely to affect the directors&#39 market.Scottish Widows marketing manager Ann Flynn says: “The director&#39s market may see some changes from 2004. We are encouraging any IFA who has executive […]


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