Fund manager Aberdeen Group plc has announced the purchase of the management of £1.5bn of closed end fund (CEF) assets from MFS, marking the UK company's 10th US CEF acquisition since 2000.
The deal "further cement[s] Aberdeen's position as the fifth largest asset manager of CEFs globally", said the company, which currently manages £21.4bn in CEFs.
The agreement includes a series of fund mergers and reorganisations: four MFS municipal bond CEFs and one Aberdeen municipal bond CEF will be consolidated to create a municipal bond fund with $1bn in assets under management; while five MFS taxable fixed income funds will be merged to create a $1.4bn multi-sector fixed income CEF (including private credit).
Consolidating the funds means they will benefit from economies of scale and offer greater liquidity for investors, Aberdeen said.
While the deal is subject to approval by the shareholders of the respective funds, the company expects the acquisition to be income accretive after the first year.
"We are delighted to add further scale to our US closed end fund platform, with this highly synergistic acquisition," said Aberdeen chief executive Jason Windsor.
"As we implement our strategy to become the UK's leading Wealth and Investments group we will continue to invest in areas of strength where we see significant room for growth."