Abrdn’s US subsidiary acquired the assets of four closed-ended funds from First Trust Advisors LP in a deal that will add £600m to its assets under management.
The portfolios will be incorporated into existing funds within Abrdn. The Macquarie/First Trust Global Infrastructure/Utilities Dividend & Income fund will be incorporated into the Abrdn Global Infrastructure Income fund, the First Trust High Income Long/Short fund and the First Trust/Abrdn Global Opportunity Income Fund will join the Abrdn Income Credit Strategies fund, and the First Trust Specialty Finance and Financial Opportunities fund will fold into the Abrdn Total Dynamic Dividend fund.
Stephen Bird, Abrdn CEO, said: “The acquisition of these four closed-ended 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-ended funds globally, and this marks the third acquisition we have done in this space over the past 12 months.”
As of July 2023, Abrdn held £23.8bn in closed-ended funds. The company expects its deal with First Trust, which will add to this number, to go through by the first quarter of 2024.
“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.”
In August, Abrdn fell from the FTSE 100 to the FTSE 250, with the investment branch dropping by 66% and the fund flows decreasing 83%.