Aberdeen to sell £100m stake for new fund launches

Aberdeen Asset Management is issuing £100m in shares to Japanese bank Mitsubishi UFJ Trust and Banking Corporation in a bid to power new fund launches.

The asset manager will issue 200 million shares with a total paid-up amount of 50 pence per share. These will convert to ordinary shares if Aberdeen’s Common Equity Tier 1 Ratio fell below 5.125 per cent.

Aberdeen Asset Management chief executive Martin Gilbert says: “In line with Aberdeen’s strategy to diversify our range of capabilities and solutions for the evolving investment environment, we have raised £100m through a preference share issue to provide additional capital to seed new products.

“Last year’s acquisition of Scottish Widows Investment Partnership has provided us with a broader range of capabilities, which we aim to develop further. To do this effectively it is important  we support new fund launches with seed money, demonstrating our commitment to them. This attractively-priced additional capital will support this increased activity whilst maintaining the strength of the balance sheet.”

Mitsubishi UFJ Trust and Banking Corporation currently holds approximately 17 per cent of Aberdeen’s ordinary shares. The shareholder will be entitled to a fixed dividend of 5 per cent per annum from the preference shares.

Aberdeen Asset Management has recently launched four multi-asset funds targeting retirees who choose to make use of new pension freedoms.