15th Jun 2015 06:39
LONDON (Alliance News) - Aberdeen Asset Management PLC on Monday revealed plans to launch new investment funds after raising additional tier 1 capital by agreeing to issue GBP100 million of non-voting preference shares to top shareholder Mitsubishi UFJ Trust and Banking Corp.
In a statement, Aberdeen Asset Management said it is issuing the perpetual redeemable preference shares to Mitsubishi UFJ Trust and Banking Corp, which owns about 17% of the asset manager, with a view to providing seed capital for the new funds.
The logic is for the funds to be launched depending on customer demands and to grow those funds over time.
Aberdeen said its ability to grow through the launch of new funds will be bolstered if can commit higher levels of seed capital so that funds can be launched at a "level at which they will be considered credible" by larger distribution partners and advisors.
The preference shares will convert into ordinary shares if Aberdeen's common equity tier 1 ratio falls below 5.125%, with the instruments counting towards additional tier 1 capital under capital adequacy rules. Aberdeen said it will be "well placed to accommodate any future changes to applicable capital adequacy laws".
The preference shares entitle the holders to a fixed dividend of 5% per annum in priority to ordinary shareholders.
"This dividend will be non-cumulative and payable at the company's discretion," Aberdeen said.
The deal requires shareholder approval.
By Samuel Agini; [email protected]; @samuelagini
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