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Aberdeen suspends two more split-cap trusts

Aberdeen Asset Management has suspended two more of its split-cap investment trusts, leaving investors unlikely to see any ret-urn on their money.

The boards of Aberdeen&#39s high-income trust and leveraged income fund suspended trading last week.

The news comes only a week after its media & income trust was put into liquidation.

Seven splits from across the industry have now been suspended or liquidated since the split-cap crisis started.

Aberdeen insists its trusts have run into difficulty because of the gearing and bank debt they are exposed to and not because of the cross-holdings in other splits.

But some IFAs say it is convenient for managers to blame their creditors when it has been poor management which is responsible.

Aberdeen managing director Gary Marshall says: “Suspension means there is uncertainty about the financial liquidity of the companies. The moves could resort to a restructuring of some kind. Media & income only had very small cross-holdings while the other two are fund of funds which means crossholdings are fundamental.”

Simpsons of Brighton partner Andrew Merricks says: “Not all split-caps are bad investments but the industry has been given a bad name by the likes of Aberdeen. It is all very well blaming the gearing but if you are a professional manager, you cannot blame the bank and the borrowing.”


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