abrdn shutters American Income Equity fund due to largest investor withdrawal

Too small to run

abrdn plans to close its £170m American Income Equity fund following the withdrawal of its largest shareholder withdrawing, leading to a significant drop in assets under management.

The investor was an internal client, who reallocated their assets to other abrdn funds. It was then decided that it would be in the "best interests" of other investors to close the fund. Profits drop 62% across abrdn investment arm as performance slides further A spokesperson for the company said: "Small funds face a number of operating difficulties as they are unable to benefit from economies of scale. This can lead to problems in buying and selling assets at a reasonable price, which in turn may lead to compromised investment performance and proportionally higher costs, to the detri...