Aberdeen set to drop out of FTSE 100
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Aberdeen Asset Management is cutting the fees on three of its funds, just as reports surface that the firm could be relegated from the FTSE 100 this month after seeing its market value more than halve since the shares peaked at 507p last April.
They closed down 0.5p at 241.4p yesterday, valuing the business at £3.18bn.
The London Stock Exchange said Aberdeen would probably drop out of the blue-chip index after the market closes tomorrow.
Meanwhile, in letters sent to investors, the asset manager said it will cut fees on the £166m World Emerging Markets Equity fund, the £1bn UK Enhanced Equity fund and the £1.1bn Foundation Growth fund.
The annual management charge on the class A shares of the World Emerging Markets Equity fund will reduce from 1 per cent to 0.40 per cent, while the class B share fees will drop from 0.50 per cent to 0.40 per cent.
The annual management charge for the UK Enhanced Equity fund will reduce from 1 per cent to 0.20 per cent, and on the Foundation Growth fund it will drop from 1 per cent to 0.15 per cent.
The changes will be effective from 1 April.
Aberdeen states in its correspondence that the reductions reflect “the investment strategy and current market environment in which the fund operates”.
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