Notification of various changes to the underlying funds of our Aberdeen mirror funds
18 Mar 2022
We have been notified by the board of directors of Aberdeen Standard SICAV I ("Abrdn") of various changes of the underlying funds for the following FPIL mirror funds that will take effect from 11 April 2022 ("the Effective Date"). The changes will, therefore, also apply to the mirror funds.
- P33 Aberdeen Standard SICAV I All China Equity
- R11 Aberdeen Standard SICAV I Emerging Markets Smaller Companies
- P54 Aberdeen Standard SICAV I Indian Equity
Abrdn, through its investment managers, has stated that it is committed to continuously reviewing its range of funds to ensure that they continue to meet client requirements as they develop and change over time. Recently, it has identified a clear increase in client focus on Environmental, Social and Governance (“ESG”) issues and wider sustainability. Integrating ESG considerations is a key part of Abrdn’s investment process and it is looking to make changes to the underlying funds of the mirror funds to further promote the underlying funds’ ESG characteristics.
Summary of the changes from the Effective Date
The underlying funds will incorporate negative screening based on ESG factors and societal norms. In addition, securities with the highest ESG risks will be screened out via Abrdn's proprietary ESG house score along with quantitative and qualitative inputs and asset class specific screens. In line with this, the underlying funds will have some amendments made to their objectives and will have explicit ESG targets.
The underlying funds will be classified as Article 8 under the EU’s Sustainable Finance Disclosure Regulation (“SFDR”), changing from Article 6. Article 8 funds are those that promote social and/or environmental characteristics, invest in companies that follow good governance, give binding commitments but do not have a sustainable investment objective. The full changes to the objectives ansd policies will be available to view in their revised Prospectus, which will be made available after the Effective Date.
The underlying funds may utilise financial derivative instruments for hedging and/or investment purposes, or to manage foreign exchange risks, subject to the conditions and within the limits laid down by applicable laws and regulations. The net derivative exposure may be up to 50% of the net asset value of the underlying funds.
The name of the underlying fund of P33 - Aberdeen Standard SICAV I All China Equity is being updated to include its Sustainability focus; the mirror fund name will be amended to P33 - Aberdeen Standard SICAV I All China Sustainable Equity (USD) from the Effective Date.
More details of the changes can be found in our sample policyholder notification which has been issued by email or post to impacted policyholders, and also in the Aberdeen Standard SICAV I shareholder notification for the underlying funds. Both can be found opposite.