RL360 reviews Aberdeen UK Opportunities Fund merger

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Fund Merger - Aberdeen UK Opportunities Fund

Aberdeen Asset Management has advised that it will be merging its UK Opportunities Fund into its UK Equity Fund on 10 July 2015.

Impacts on
these products

Why is Aberdeen merging the fund? 

The merger represents the next step in a process of product range rationalisation being implemented by Aberdeen following their purchase of Scottish Widows Investment Partnership Group Limited (SWIP) from Lloyds Banking Group plc. 


The purpose of rationalising the range of Aberdeen funds and former SWIP funds is to generate efficiencies in the management and marketing of products. This includes reducing the number of umbrella investment companies containing different sub-funds, as well as merging funds that pursue similar investment strategies. Aberdeen believe that the implementation of the merger will ultimately benefit shareholders over time as a result. 


Comparison of the merging and the receiving fund The investment objectives and policies of the merging fund and the receiving fund are similar in that both aim to provide capital growth through investment in UK securities. The risk profiles are also substantially similar. Full details can be viewed in the shareholder merger proposal notification opposite. 


What happens now? 

We have written to Oracle, Paragon and Quantum policyholders to notify them of the merger. Where there is an appointed investment adviser on the policy, the investment adviser will receive this correspondence instead. Samples of these letters can be viewed opposite. Servicing advisers will receive a copy of the letter for their records. 


The Aberdeen UK Equity Fund has now been added to the Oracle, Paragon and Quantum fund range as a new fund option. 


The merging fund has been removed from the Oracle, Paragon and Quantum product ranges with immediate effect, and we will longer accept any new, non contractual, investments into the fund. Just prior to the merger we will switch existing investors holdings from the merging fund into the receiving fund. We will also redirect regular premiums into this fund, where applicable. 


Alternative fund choices 

If policyholders, or appointed investment advisers, are not happy with their holding being transferred into the Aberdeen UK Equity Fund they can choose to switch into any other fund available free of charge. 


They can provide alternative instructions either by submitting a completed Fund switch instruction form, or if registered a registered user of our Online Service Centre and fund switching facility, conducting a switch and premium redirection online. All switches are free of charge.