Abrdn adds £600m assets as it acquires four funds

Abrdn CEO Stephen Bird

Edinburgh-based investment giant Abrdn plc announced that its US subsidiary, Abrdn Inc, has entered into an agreement with First Trust Advisors L.P. to acquire the assets of four closed-end funds, adding assets under management of £600 million.

As of June 30, Abrdn manages and administers £495.7 billion of assets for clients, and its investments business manages £368 billion on behalf of clients – including insurance companies, sovereign wealth funds, independent wealth managers, pension funds, platforms, banks and family offices.

“Subject to approval by the shareholders of the respective funds, the four closed-end funds will be reorganised into existing Abrdn funds,” said Abrdn.

“The transaction will also further strengthen our closed-end fund business, which currently has £23.8bn in AUM in US and UK listed closed-end funds, making Abrdn the third largest manager of closed-end funds in the world.”

The acquired funds are: the Macquarie/First Trust Global Infrastructure/Utilities Dividend & Income Fund; the First Trust High Income Long/Short Fund; the First Trust/Abrdn Global Opportunity Income Fund; and the First Trust Specialty Finance and Financial Opportunities Fund.

Abrdn CEO Stephen Bird said: “The acquisition of these four closed-end funds is another clear statement of intent from Abrdn, as we continue to focus on the areas of investing where we have global scale and competitive advantage.

“We are already the third-largest manager of closed-end funds globally, and this marks the third acquisition we have done in this space over the past 12 months.

“By consolidating these funds into existing Abrdn funds, we bring economies of scale.

“And we are adding approximately £0.6bn of assets under management to the group in a perpetual capital structure, and in asset classes where we already have strength.

“This transaction represents further disciplined allocation of shareholder capital that is fully aligned to our strategy.”

First Trust is a Chicago based investment firm established in 1991 with $190 billion of assets under management in ETFs, mutual funds, and CEFs. The firm is a private partnership.