Notification of change to the underlying fund of abrdn SICAV I Indian Equity (USD) mirror funds

09 Jun 2025

• P54 abrdn SICAV I Indian Equity (USD)
• H05 abrdn SICAV I Indian Equity (USD)*

(together the “Affected Mirror Funds”)

We have been notified by the Board of Directors of abrdn SICAV I (the “Company”) of a upcoming change to the underlying fund of the Affected Mirror Funds. This will commence with effect from 7 July 2025 (the “Effective Date”).

Change to subsidiary investment structure of underlying fund 

The investment objective of the underlying fund of the Affected Mirror Funds is to seek long term total return to be achieved by investing in Indian securities. The underlying fund of the Affected Mirror Funds currently invests in Indian securities either directly or through a wholly-owned subsidiary, Aberdeen Global Indian Equity Limited (the “Underlying Subsidiary”), which also holds Indian securities for the underlying fund. 

The Company believes it is in the best interests of shareholders of the underlying fund of the Affected Mirror Funds that investments in India will only be held directly, rather than through the Underlying Subsidiary. Consequently, the Underlying Subsidiary will divest its holdings over a period of time and the underlying fund of the Affected Mirror Funds shall buy back those holdings to hold them directly (the “Underlying Asset Transition”). At the end of the Underlying Asset Transition the Underlying Subsidiary company is intended to be liquidated. Any costs related to the liquidation will be paid by the Company.

Following the intended liquidation, the underlying fund of the Affected Mirror Funds will no longer have to pay additional expenses incurred in relation to operating the Underlying Subsidiary structure. These costs are currently included in the ongoing charges of the underlying fund of the Affected Mirror Funds. It is expected this will result in a saving of circa 0.01% a year of the underlying fund net asset value (“NAV”) for shareholders.

A change to the structure is intended to increase commercial opportunities for the underlying fund of the Affected Mirror Funds with the aim of increasing the size of the underlying fund to the benefit of all shareholders. The current arrangements are seen by certain investors as complex and are no longer market standard.

Underlying Asset Transition

The Underlying Asset Transition is expected to begin on the Effective Date and is targeted to be completed by 31 December 2025. The Company state that this will be undertaken in a number of tranches which is intended to minimise market impact and limit any risks.

There will be transactional costs incurred by the Underlying Asset Transition due to divesting the holdings in the Underlying Subsidiary and the underlying fund of the Affected Mirror Funds investing directly. There is an associated cost impact of the Underlying Asset Transition with the estimated amount (including spreads, commissions and taxes) being approximately 0.10% of the NAV of the underlying fund (as at 30 April 2025). The exact costs will be dependent on the holdings of the underlying fund of the Affected Mirror Funds and the market conditions at the time of the Underlying Asset Transition and may be higher. 

The transitional costs will be incurred and charged to the underlying fund of the Affected Mirror Funds throughout the Underlying Asset Transition. The proposed liquidation is however expected by the Company to result in an ongoing saving for shareholders of approximately 0.01% a year of the NAV of the underlying fund of the Affected Mirror Funds.

There will be no material changes to the risk profile of underlying fund of the Affected Mirror Funds, or of the manner in which it is being managed.

These changes will take effect automatically and policyholders do not need to take any action. We recommend that policyholders seek the advice of their usual financial adviser before making any investment decisions.

Should you have any questions regarding these changes, please contact the Investment Marketing Team.

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*Fund applicable to Hong Kong designated policyholders.