Aberdeen looks to future with share buyback
One of the longest running listed investment companies, theAberdeenLeaders Fund (ALR), has announced a share buyback ahead of the payment of a one cent dividend to unitholders.
The fund invests in blue chip stocks within theASX50 index and will issue a prospectus this months with bonus options set to replace the current listed options.
The group will buy back more than 5.9 million shares over the 12 month purchase period, which equates to 10 per cent of the issued shares with the group stating the discount to NTA enhances its value for shareholders who continue to hold the shares.
The Aberdeen Leaders Fund has been operating since 1987 and currently has 3000 registered shareholders according to Aberdeen Asset Management director Charlie McCrae.
He says while the fund has moved off the radar in 2003 it has repositioned and is set to post strong positive performance this year.
According to McCrae the vehicle returned 12 per cent for the six months to the end of December and has paid two dividends of a cent each and is on track to pay regular quarterly dividends.
McCrae says existing LICs have been lost in the noise surrounding new players entering the market but the group was working hard to promote the internal gearing facility of the Leaders fund to self-managed super fund advisers and clients.
AUTHOR
Jason Spits
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