Fixed Income  

Threadneedle fails to drum up interest in ABS trust

Threadneedle has shelved plans to launch an investment trust investing in asset-backed securities (ABS) after it missed its fundraising target.

The company initially announced plans for the trust - which was to be run by specialist ABS manager Henry Cooke - last month and aimed to raise £200m before listing the trust.

A spokesperson for Threadneedle said: “Following market testing we have concluded that there is insufficient investor demand to support the planned ABS vehicle at this time. We continue to believe there is an opportunity for clients in the sector, and may revisit at a later date.”

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TwentyFour Asset Management launched an asset-backed securities trust in March this year and is currently seeking to raise a further £30m-£50m by October 31.