Aetna fund range purchased in 1998 is to be reduced from 24 funds to 20
Aberdeen Asset Management is finishing an overhaul of its entire Luxembourg range, adding three funds, merging others and taking the total number down from 24 to 20.
One new fund will be the Sovereign High Yield, to be run by Julian Adams. It will absorb a number of existing funds: High Yield Bond, US Dollar Bond and Canadian Dollar Bond.
Adams has run a similar portfolio from Aberdeen's Guernsey base for around two years and the company hopes his track record will sell the product.
Andrew Elder, head of emerging markets, will run the new Frontier Markets fund investing in EMEA equities, which will be effectively seeded by the remains of the $6m Emerging European fund, which was regarded as having too narrow an investment mandate to be viable.
The $3m European managed bond fund is to be added to the $24m European High Yield Bond fund, run by Paul Reed.
This is despite worries caused by the increase in default rates.
'It is a little bit counter intuitive,' admitted Gary Marshall, group sales and marketing director. 'Clearly there have been problems with credit but people are attracted to Europe and new issuance is a still a strong story.'
Another new fund will be created out of two existing European portfolios, the dollar-denominated European Equity fund (ex-UK) and the euro-denominated European multinational fund (including UK). They are to be merged into a single, pan-European, euro-denominatedproduct. Despite having a new mandate, it will retain the name of one of the old funds, European Equity, and will be managed by Adrian Fowler.
There are currently two US funds, one small cap, run by Alex Ingham worth $6m, and one large cap, worth $21m run by Rupert Della-Porta. The smaller is now to be merged into the larger.
Marshall said: 'We were not seeing enough demand for the small-cap fund and our credibility is not as good in this area. We have got a good US team, but in the large-cap arena.'
This coincides with Ingham moving to the US to continue analysis of small to mid-cap firms on the ground.
Investors in funds being merged have the opportunity to pull out if they wish. Marshall said he hoped investors would remain with the merged portfolios.
Some kind of overhaul has been on the cards since Aberdeen bought the Luxembourg range from Aetna in 1998. Despite adding several funds to the range, the company has never got round to a full-scale reshuffle.
'Up to now, we never got our teeth into it,' said Marshall. 'And so there were still some products with limited viability.'
Spent 56 years at Schroders
Warns on profits
Hargreave Hale seeking legal advice