Aberdeen in double fund merger

Stockmarket-Stock-Market-Dice-Gamble-Investment-700.jpgAberdeen Asset Management is merging two of its Dublin-domiciled bond funds into its Luxembourg-based high yield fund and emerging market debt vehicles as part of a rationalisation of the range.

The £41.5m Dublin-domiciled Aberdeen Select Global Sovereign Bond fund will be merged into the $1.5bn Global Select Emerging Markets Bond fund.

Meanwhile, the £110.9m Select International Bond fund will be merged into the firm’s €908.6m Global Select Euro High Yield Bond fund.

The changes will be effective from 22 July.

In a letter to shareholders, the company says: “The merger is part of a rationalisation of the range of Aberdeen-managed funds that is being undertaken with the aim of generating efficiencies in the management and marketing of products.

“This includes merging funds that pursue similar investment strategies. Aberdeen pursues the optimisation of its product range by regularly reviewing the existing product ranges according to investment strategy, fund size, economies of scale and cost efficiency.

“The merger aims to consolidate the assets under management and render the products more commercially viable.”

The investment process of the funds will not change as a result of the merger, Aberdeen says, and the firm will cover all associated costs.

An Aberdeen spokesman says: “The project will see these two Dublin-domiciled funds merged into equivalent larger funds which are part of our flagship Luxembourg-domiciled fund range – Aberdeen Global.”