abrdn is merging several of its funds after it undertook a "comprehensive review" of its fund range, according to investor letters. 

The mergers are:

  • abrdn Multi-Manager Ethical Portfolio into abrdn MyFolio Sustainable V
  • abrdn Global Strategic Bond into abrdn Strategic Bond
  • abrdn UK Opportunities into abrdn UK Mid-Cap Equity
  • abrdn Corporate Bond into abrdn Sterling Corporate Bond

The changes are all effective 24 February.

The merger of the multi-manager ethical portfolio will mean about 65% of the portfolio will need to be realigned, the cost of which will be paid by the fund, which is estimated to be 0.39% of the fund's current value.

As a result of the merger, the effective ongoing charges figure will reduce from 1.35% to 0.5%.

The merger of the global strategic bond fund will see 10% of the portfolio realigned, costing 0.03% of the fund's current value. The effective ongoing charges figure will reduce from 0.68% to 0.55%.

The abrdn UK opportunities fund will need to realign 9% of its portfolio at a cost of 0.4% of the fund's current value. Its OCF will drop from 0.89% to 0.74%.

The merger of the corporate bond funds will see the merging fund realign 10% of its portfolio at a cost of 0.03%. The effective OCF will drop from 0.5% to 0.49%.

The mergers were subject to shareholder approval which was gained on 1 February. Each will suspend dealings on 23 February with new shares issued in the continuing fund the next day.

In August last year, abrdn said it had reviewed around 550 funds and "concluded that 20% with an AUM of approximately £7bn were subscale, inefficient or not aligned with our core strengths."

It said it would look to close and merge funds over 100 funds to remove duplication and this work would continue into the first half of 2023.

A spokesperson from abrdn said: "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."