View more on these topics

Aberdeen unit trust has default holdings

Fifty of the holdings in Aberdeen Asset Management&#39s high-yield bond unit trust have defaulted or are close to default.

In addition to its Argentinian bond holdings, the unit trust also has exposure to split caps through holdings in Aberdeen preferred income and the real estate opportunities trust, which it formerly managed. Aberdeen has told IFAs that defaults are only to be expected and that the fund had outperformed its benchmark over one, three and six years. It says it is working to recover value in the long term.

The news opens a new area of difficulties in addition to the fund manager&#39s woes with technology funds and split caps. Also this week, it announced its intention to sell off its valuable property investment management arm and a board level shake-up.

Aberdeen Unit Trust Managers head of fixed interest Rod Davidson says: “While we have acknowledged that the high-yield bond sector has been extremely volatile over the past two years, this is perhaps not the right time for investors to lock in negative returns by redrawing their investments. At Aberdeen over the last 12 months, we have taken steps to enhance the investment process.”

Bates Investment Services head of research James Dalby says: “Personally, I would move out of the fund into a 50/50 fund with another management company. It is not very good for sentiment that it has exposure to split caps.”

•Property flotation, p12


FSA acts against accountants

The FSA has taken action in the High Court against two accountancy firms it believes have been running unlawful investment schemes which have taken more than £11.6m from UK investors.The regulator has been granted interim injunctions against Dobb White & Co and Morris White & Co, and the two partners of both firms, Mr Shinder […]

How many courses?

The Diary wants to find out who has been to the most IMA dinnersOne person, who, for reasons of chivalry will remain nameless, is understood to have been to the investment houses&#39 tea party for the last 19 years – albeit in its various UTA and Autif guises.If you or anyone you know can beat […]

UK/US language barrier problem for homebuyers

Specialist overseas lender British Mortgage Abroad says while many UK residents dream of owning a home in Florida, language and culture may be a barrier.An online survey of 250 British people by BMA, part of Abbey National&#39s First National Bank, carried out last month found British understanding of 40 commonly used American words is low.It […]

Ditch stakeholder pensions and bring back profits

Following my questioning of Norwich Union&#39s ability to predict the length of time before they can make a profit out of a stakeholder pension (Money Marketing, August 29), it has not taken long for them to decide that they will never make a profit out of some of these policies (Money Marketing, October 31).I don&#39t […]

State of the markets: UK equity income

Artemis Income Fund manager Nick Shenton discusses the state of the UK equity income market with journalist Alexis Xydias. With the first three months of 2015 showing strong returns for both the Artemis Income Fund and UK markets generally, Nick Shenton discusses the fund’s top contributors – including overseas holdings Novartis and Bayer – and […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm