Adelaide Managed Funds, an associate of Bendigo and Adelaide bank, yesterday recommended that unit-holders in one of its funds, Asset Backed Yield Trust, reject an offer for their units.The offer has come from India Equities Fund Ltd, a listed investment company, which announced on Friday that it was making an unconditional cash takeover offer for Asset Backed Yield Trust.India Equities was listed on the Australian Securities Exchange in 2007 with the aim of giving investors exposure to a portfolio of listed public companies in India, a concept ditched last year. At an extraordinary general meeting in July shareholders in India Equities approved a sell-down of the investment portfolio and a return of capital. Since then the company has taken on new directors, one of whom is now also a director of RHG Group, another specialist manager of financial assets.Asset Backed Yield Trust posted a net asset backing of 5.5 cents per unit on December 7, when its unit price traded at 4.4 cents a unit.India's move is an opportunistic play. Its offer is for 4.8 cents per unit - a 12.7 per cent discount to NTA.In September, Asset Backed Yield Trusts' unit-holders approved a plan to delist from the ASX.