Aberdeen Asset Management has announced that they are to merge away both of their UK and European Opportunities funds. Both of the funds are relatively small and the move will see £42.7 million moving from UK Opportunities to Aberdeen’s £124 million UK Growth fund. That fund will then be renamed Aberdeen UK Equity. The £238.6 million European fund will also see a moderate £5.8 million increase in
assets when Aberdeen European Opportunities is merged in to it. Aberdeen expects the changes to the funds to be completed by 12 March.
Aberdeen UK Growth is rated Standard by Morningstar and the UK Opportunities fund was rated Inferior; although it follows the same investment process we believe the additional expenses incurred on the fund were unwarranted. The merger of the two funds will not affect our rating. The process in use on UK Growth will be transferred to the newly formed Aberdeen UK Equity and its rating will remain at Standard.
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