Asset manager Abrdn (ABDN) is closing its investment trust saving plans in December, offering customers the option to redeem, transfer to Interactive Investor (ii) or to another share-dealing platform. However, across several forums customers have complained about poor communication and instructions from the group.

The plans, which closed to new investment from 29 June, allowed customers to invest in Abrdn investment trusts without having to use a stock broker. 

Abrdn has asked investors in its investment trust share plan, ISA and investment plan for children to complete an online consent form by 31 October. They have three options, they can transfer to Interactive Investor, which Abrdn bought for £1.5bn last year, transfer to another platform, or sell their investment.

If investors do not respond by 5 December, Abrdn will automatically transfer their investments to Interactive.

Investors moving to Interactive will be charged an ongoing monthly subscription fee, which their plans did not have. The platform is offering a fee-free period of six months after which they will pay the standard monthly rate of £4.99-£19.99.

While the transfer to Interactive, or any other platform, will not be charged a withdrawal fee, once transferred if holders decide to sell their investments, on each transaction they will pay £10 plus £12 VAT on share plans and children’s plans, and £15 plus £18 VAT for ISAs.

Abrdn would not disclose how many trust savings plans there are, how much money is in them or how many holders they have. However, they are significant owners of Abrdn’s 20-strong trust range. For example, half-year results from Abrdn’s Dunedin Income Growth (DIG ) last week revealed over 20% of its shares are held in the regular savings plans.

‘The board continues to monitor this change,’ wrote chair David Barron. ‘We would stress this has no impact on those holders’ ability to receive communications from the company, to vote and attend general meetings in person or to re-invest dividends.’

A number of other Abrdn-run trusts, including Abrdn UK Smaller Companies (AUSC ) and Murray Income (MINT ), have made mention of the closure of the plans in their reports, but have not revealed how much of their shares are held in them.

The closure of Abrdn’s scheme means just there is just one saving scheme left, offered by Columbia Threadneedle, according to the Association of Investment Companies website.

It comes in a year of rapid consolidation of Abrdn’s investment trust range. Abrdn Latin American Income is in the process of being liquidated, while Abrdn Smaller Companies Income (ASCI ) has announced a merger with stable mate Shires Income (SHRS ), as has Abrdn New Dawn (ABD ) with Abrdn’s Asia Dragon (DGN ), while Abrdn Japan (AJIT ) is merging with rival Nippon Active Value (NAVF ) and Abrdn Diversified Income Growth (ADIG ) is mulling its options following a strategic review.

Communication problems

In forums across Citywire and MoneySavingExpert customers have raised concerns and issues about the transfer process.

In a Citywire Forum one user said the withdrawal fee was unfair. ‘It is Abrdn’s choice to close the share plan so they should not charge for withdrawals,’ the investor wrote.

Investors have also taken to MoneySavingExpert voicing queries and problems. Several had returned forms with their option of sale requested but heard nothing and only when they checked it had been recieved they were told they also need to provide sale instruction.

One investor said he called to ask for a sale instruction form when he had not had confirmation from Abrdn but was told there were none and just to write to them with the instructions.

‘It’s all a bit of a shambles and I have raised a complaint to see if that helps to get things resolved,’ one share plan holder wrote. 

Abrdn declined to comment. 

In the notification sent to shareholder Abrdn stated they needed ‘a clear instruction signed by all account holders’ if they wanted to sell their investments.