abrdn is set to close the Strategic Investment Allocation fund on 24 August due to dwindling assets and poor performance.
In a letter to investors seen by Investment Week, the firm said the fund has declined significantly in size in recent years, from £1bn to the current level of approximately £62.1m as at 20 June. The Edinburgh-based asset manager also noted the fund has not delivered the intended target performance for investors and it expects outflows and reduction in net asset value to continue. abrdn calls time on MyFolio Monthly Income range "Small funds face a number of operating difficulties as they are unable to benefit from economies of scale," abrdn wrote in the letter. "This may lead...
To continue reading this article...
Join Investment Week for free
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes