Painful splits for Aberdeen

TROUBLED fund manager Aberdeen Asset Management will reveal the damage inflicted by its involvement in the beleaguered split-capital trust sector when it unveils half-year results on Monday.

Analysts say profits have already been hit by the collapse in fund values, by Aberdeen waiving fees charged to manage some investment trusts, and by the loss of sales because of bad publicity.

One analyst said: 'We are starting to see the fall-out. All analysts have been cutting their profit forecasts. The full impact will not come until next year when profits could be down 20%.'

Aberdeen was the biggest investor in Gartmore's Monthly Income Trust, which collapsed last week. Many Aberdeen funds and unit trusts held stakes in the Gartmore trust, which is being gradually wound up after it became clear that shareholders would never be paid promised returns.