Aberdeen is merging some of its UK and European funds in a bid to improve efficiency.
The £42m UK opportunities fund will be merged with the £119m UK growth fund and renamed the Aberdeen UK equ-ity fund.
The firm is also merging its £5.4m European opportunities fund with the £224m European growth and renaming it European equity.
The move will see the total expense ratios fall on both funds, with UK opps falling from 1.9 to 1.63 per cent following the merger and the Euro opps TER falling from 1.9 to 1.65 per cent. All the funds will continue to be managed by the pan-European equities team.
Both the UK and European opportunities funds are fourth quartile in their respective sectors over three years.
A spokesman for Aberdeen says: “We believe that the mer-ger of these two relatively small funds into their bigger sister funds will result in more efficient portfolio management and operations over time, benefiting shareholders by providing potential economies of scale and ultimately, lower expenses.”
Chelsea Financial Services managing director Darius McDer mott says: “It makes sense to merge small funds, particularly if they are starting to be duplicated across fund ranges and do not offer any specific attractions.”