Aberdeen Asset Management has raised £100m from one of its largest investors to strengthen its balance sheet and to seed new fund launches.
The shares will be issued to Japan’s, Mitsubishi UFJ Trust and Banking Corporation (MUTB) which has a stake of 17 per cent in the fund manager.
The preference shares will count towards Aberdeen’s Tier 1 Capital and will convert into ordinary shares if the capital ratio falls below 5.125 per cent.
It entitles MUTB to a fixed annual dividend of five per cent, but no voting rights. The dividend will be non-cumulative and payable at Aberdeen’s discretion.
“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,” said Martin Gilbert, Aberdeen Asset Management chief executive.
He added: “Last year’s acquisition of Scottish Widows Investment Partnership has provided us with a broader range of capabilities, which we aim to develop further.”
Aberdeen, best known for its Asia Pacific expertise, said the issue would give the firm additional seed capital for the launch of new funds.