abrdn has proposed a merger of a range of its funds as part of plans to cut costs and simplify its offering, Portfolio Adviser has learned.
The firm notified shareholders of the proposals on 4 January. The funds set to merge are:
- – abrdn Corporate Bond Fund with the abrdn Sterling Corporate Bond Fund
- – abrdn Global Strategic Bond Fund with the abrdn Strategic Bond Fund
- – abrdn Multi-Manager Ethical Portfolio with the abrdn MyFolio Sustainable V Fund
- – abrdn UK Opportunities Equity Fund with the abrdn UK Mid-Cap Equity Fund
Back in August, abrdn chief executive Stephen Bird said the firm will close or merge ‘non-core, subscale, or duplicative’ funds in a bid to cut £75m ($91.3m) in net costs by 2024.
An abrdn spokesperson told Portfolio Adviser: “As outlined last year, we are in the process of merging or closing over 100 funds which are subscale or not aligned with our core capabilities.
“The consolidation programme is reducing duplication, simplifying our product offering, freeing up resources and will deliver a product set that is better aligned to our key strengths and to client demands. We have already made good progress and expect the work to complete over the coming months,” they added.
The shareholders of each merging fund will vote to approve the action on 1 February.
If approved, each will then suspend dealings on 23 February, with new shares being issued in the continuing fund the next business day.
This story first appeared on our sister publication, Portfolio Adviser.
