Aberdeen Japan abandons £100m expansion as smaller issuers struggle

A number of smaller investment trusts have been forced to cancel expansion plans as larger vehicles continue to dominate the market.

After Threadneedle scrapped the launch of a mooted £200m trust investing in asset-backed securities last month, Aberdeen Japan has abandoned plans for a new C-share issue owing to insufficient demand. Aberdeen Japan, which changed from an all-Asia mandate on 7 October, had planned to issue £100m in new shares following the move. The failure to attract new investment leaves the fund in a difficult position, according to Numis. “We believe the new mandate is more attractive to investors, but the fund remains sub-scale and needs to grow to ensure its long-term survival,” said head of inv...