Shareholders of the trust voted against the company’s continuation as an investment trust but later decided that it could resume but with a different remit.
As a result, management of the trust will switch to Aber-deen Asset Managers which will in turn switch the focus of the fund to India.
The objective of the trust will be to achieve long-term capital appreciation by investing in companies which are incorporated India.
The net asset performance of the trust will be benchmarked against the MSCI India index in sterling terms.
If shareholders do not agree to the proposal, then the board intends to wind up the company.
The board believes that the benefits of the proposals are that the new mandate will offer exposure to an emerging market where performance has been historically strong and where, according to Aberdeen, valuations rem-ain attractive.