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Aberdeen looks to growth

Looking at the disadvantages of the trust Keen says: “Investment is

restricted to Aberdeen fund range and are reliant on selling holdings

at potentially the wrong time to fund purchase of unquoted portfolio.

High-risk investment, heavily focussed on management skill of Bill

Nixon – good record but question mark if he leaves.” He also feels

that the three year minimum term that is necessary to take advantage

of tax relief is a disadvantage, as it locks the investor in to the


Wilson says it may be some time before any gains are realised and

that the trust is not suitable for clients looking for income.

Mycroft adds: "It is risky in modern conditions, shares may be

difficult to sell and there could be changes in legislation in the future,

the status of trusts might not be maintained and there are no

guarantees of companies ability."

Considering Aberdeen Asset Manager&#39s reputation Wilson says:

"Excellent reputation, severley dented because of its high profile

in technology stocks."

Mycroft feels that the general track record is as good as any other

leading investment house. Keen says: "Good reputation in IFA

market with a good range of funds and expanding funds under


Turning to the investment past performance record of the company

Mycroft says: "The past performance of the fund managers as a

general rule has been quite satisfactory but it must be borne in mind

that past performance is no guarantee for the future."

Keen feels that, historically, it has a good reputation in technology

and small cap funds, but this has been tainted by the poor

performance of funds such as technology and income and the global

tech fund. He also says it is difficult to quantify the performance given

the vast range of products, some of which have performed well and

some badly.

Wilson calls the past performance: "Acceptable in all but its

technology markets. Overall the performance record has been


When asked which trust will provide the main competition Keen

mentions: "Northern 3 VCT and I also think there may be more

secure VCTs launched."

Wilson feels that any other VCT that is well presented will be a

competitor. Mycroft lists: "Electra Kingsway, Unicorn Aim,

Northern VCT 3 and Quester."

On the subject of whether the charges for the trust are fair and

reasonable Wilson says: "Charges are in line with other VCT

offerings. I feel they are higher than necessary for straight forward

investment charges and managers."

Keen feels that they are: "Standard for sector." Mycroft

says the charges do not appear to be unreasonable.

Considering whether the commission is fair and reasonable Mycroft

says that it is: "Reasonable in line with overall market


Keen calls it standard, while Wilson says: "On a par with other

offerings. Not great, but fair and adequate."

Moving on to the product literature the panel has a difference of

opinion. Mycroft calls it excellent, Keen calls it standard and Wilson

says: "Effective but rather subdued. Product is designed for the

more adventurous investor, and perhaps a brighter, more interesting

approach would be more appropriate.

Summing up Mycroft says: "It&#39s the type of investment to meet its

market conditions such as the opportunity for capital growth and, at

the same time, for being an attractive tax shelter."

Wilson says: "Good product, one of several presently on offer. I

expect this to be well subscribed and hopefully do well in the longer



Network set up to promote SRI across Europe

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The Daley Update

Edinburgh Fund Managers has appointed Mark Harris as the new head of investment management for its multi-manager business, Edinburgh Portfolio. Harris joins from HSBC Asset Management, where he has worked in the funds of funds business since 1995 and was responsible for around £600m of assets. He will take responsibility for Edinburgh Portfolio&#39s nine funds […]

Decisive action will bring back growth

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Treasury to consult on annuities

The Treasury will unveil a consultation on annuity reform in 2003 with the aim of increasing competition although it says competition has already been promoted by the open market option.But so far details of the scope of the consultation do not yet include plans to change the compulsory purchase at age 75.The pre-budget document states: […]

Seeking quality in uncertain markets

By Ewan McAlpine, Senior Client Portfolio Manager In uncertain times, investors naturally seek safety. But in fixed income markets, what does that really mean? Ewan McAlpine outlines the approach RLAM’s Fixed Income Team will be adopting across its credit funds in response to potentially volatile markets this year. Click here for full article


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