A spokesperson said: “We have now reviewed around 550 funds and concluded that 20% with an AUM of approximately £7bn were subscale, inefficient or not aligned with our core strengths.”
abrdn confirmed the funds in question would merge or close and that the move would result in “simplified fund ranges across UK and Luxembourg domiciled funds”.
It also said that the closures and mergers would remove any duplication and simplify its product offering and free up resources.
“This programme of work will continue through the second half of this year and into the first half of 2023, resulting in a product shelf aligned to our key strengths and to client demands,” a spokesperson said.
News of the fund closures was first announced by CEO Stephen Bird on a media conference call on 9 August, which followed the firm’s half year results.
abrdn’s first half year report revealed its investments business planned net cost savings of £75m by 2024, with gross cost savings of £150m and £75m investment “in future growth and inflation”.
It said restructuring costs were expected to be up at £150m for the full year 2022, excluding corporate transaction costs.
In a chief executive’s statement Bird said: “Overall costs within the [investment] vector remain too high and a range of initiatives are underway to address this.
“We are continuing with fund rationalisation and non-core disposals. We have simplified management processes, progressed single middle office migration and transformed our equity and multi-asset solutions operations.”
He reaffirmed the group’s commitment to delivering its investment arm’s gross cost savings target over the next two years.
The wider abrdn group reported half year losses of £320m, up from £113m one year prior. AUM at its investment arm finished the period down 17% at £386bn.