British Assets moves to BlackRock to take advantage of Government pension reform


#1

The board of the £480 million trust is moving from F&C to be managed by a specialist multi-asset team at BlackRock with a strong record of deliver
[See the full post at: British Assets moves to BlackRock to take advantage of Government pension reform]


#2

Strange move, I’m kind of really surprised that they did this because it pays such a high yield already.

Having said that, the management fee is shockingly low for this type of hedge fund like fund, at least in part, I know their’s plain vanilla equities too.

It’ll be an interesting one to watch but. It would be interesting to know more about how the Blackrock guys manage their existing fund, what they actually own etc, because I don’t think I understand it at all well.


#3

I have a holding in British Assets but not for the capital growth because there isn’t much but for the dividend of almost 5%. I’m a bit flabbergasted by this move to change it so dramatically to some sort of gobbledygook black box.

I’ll be voting no when I get the chance.


#4

I don’t have a shareholding in British Assets but I think the move to Blackrock looks very interesting. I was reading in the Mail a piece on Blackrocks multi asset funds and I remember thinking it would be great to have that sort of stuff in an investment trust and now they’re doing it and for an incredibly cheap 0.40% AMC.

Bring it on I say.


#5

I think it’s a great move, Blackrocks best ideas in their perion product line up for around a quarter of the price of their unit trust products.

I can see the attraction to Sean Ashfield and @charlesmarshman because of the yield but it seems to me that British Assets was at risk of getting in a spot of bother by sacrificing growth to chase yield alone.

I need to look in to it a little bit further but I think I might be a buyer of this trust under the Blackrock manager.


#6

I take on board the points made here and the linked article from @charlesmarshman but I think that on balance I’m more excited by what Blackrock are proposing.

I think it’s innovative and the investment trust sector need a little bit of that (see the Ian Sayers blog http://whichinvestmenttrust.com/ian-sayers-blog-mark-dampiers-comments-week-early/).


#7

Blackrock have not adequately explained what it is they intend to do with British Assets and my fear is they will take too much risk to try and generate returns and lose money in the long run. That’s why I’m with @charles and I’m voting no.