abrdn sells its Emerging Market Local Currency Bond fund
In a letter to investors, abrdn said the Aberdeen Standard SICAV I – Emerging Markets Local Currency Bond fund will close by December 7, with liquidation of assets beginning on or around November 23.
abrdn attributed the decision to close the fund to low inflows since its launch, as well as a gradual decline in net asset value over the years, which led to it no longer being considered commercially viable. .
The fund, which launched in 2010, currently has 58 holdings and Brett Diment is currently listed as the lead manager.
There is a small holding of illiquid assets in the fund due to the Russian invasion of Ukraine, which was 7.2% of the fund when the invasion began, currently depreciated to zero, which may be distributed to investors at a later date.
The company’s much larger $500 million fund for local-currency emerging markets debt will continue to operate, and a company spokesperson said there will be no changes to the management team. emerging market debt.
The move is part of a broader push toward “fund rationalization,” reducing the number of similar funds in the company’s slate, which was set during abrn’s interim results in August.