abrdn shuts Strategic Investment Allocation fund

Once held £1bn in AUM

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...