InvestmentsFeb 17 2015

Gabelli trust raises less than half its £250m target

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Gabelli trust raises less than half its £250m target

Gabelli Asset Management has failed to hit the fund raising target for its flagship US equity investment trust which paved its entry into the UK retail market.

The US asset manager had hoped to raise £250m for its Gabelli Value Plus+ Trust but today announced it had only attracted £101m.

North America-focused trusts have recently struggled to get off the ground, such as a potential F&C Barrow Hanley US trust that was pulled in 2012 when it failed to raise enough money.

And analysts had predicted the Gabelli trust would struggle to hit its ambitious £250m target.

The shares are now expected to be listed on February 19, at which time the trust will officially commence trading.

The trust, whose chairman is Andrew Bell, also chairman of the Association of Investment Companies, will have a concentrated portfolio of 40 to 60 stocks investing across the US market.

Gabelli currently has $46.8bn in assets under management, mainly in the US where it runs 11 closed-ended funds and 15 open-ended funds.