Aberdeen International Fund PLC Aberdeen Accumulation Fund ...

Q&As
1 Why is Aberdeen proposing this
Aberdeen believes that, by amalgamating Aberdeen
International and Aberdeen Accumulation fund ranges into
Aberdeen Global, shareholders will benefit from being part
of a large and diverse fund range, based in one of the
world’s leading financial centres, Luxembourg.
2 Who will bear the costs of these mergers
All the administrative costs for the fund mergers will be
met by Aberdeen Asset Managers Ltd. However, portfolio
reconstruction costs (if any) will be borne by the funds on
the basis that larger portfolios typically deliver lower unit
costs and greater fund trading ‘clout’ – to the ultimate
benefit of investors.
3 Will the charges rise on my investments following
the merger
The initial and annual charges on Aberdeen Global’s
sterling denominated accumulation shares will be in line
with those currently levied on the Aberdeen International
and Aberdeen Accumulation sub-funds.
Sub-funds of Aberdeen International, Aberdeen
Accumulation and Aberdeen Global carry other expenses
e.g. audit fees, brokers’ commission, custody fees and
registrar fees. It is difficult to make a precise comparison
of the effect of these expenses between Aberdeen Global
and Aberdeen International and Aberdeen Accumulation due
to some differences in the basis of calculation, the fact that
both the fund size and the level of expenses vary from time
to time, and the fact that accurate assessments can only
be made annually on the basis of fully audited information
which is therefore historic. To ensure shareholders will not
be disadvantaged it has been agreed with Aberdeen that
the total expense ratio which will be levied against the
share classes created as a result of amalgamation will be
strictly capped by Aberdeen International Fund Managers
Ltd to ensure that it does not exceed the published total
expense ratio applying in respect of the Aberdeen
International and Aberdeen Accumulation sub-funds (with
the exception of Aberdeen International India Opportunities
Fund*) immediately prior to amalgamation.
The charge ‘cap’ is intended to give investors some
re-assurance over the period of anticipated fund mergers
and it will apply until 30 September 2006.
4 Will I still have the same regulatory protections
as I do now
Aberdeen Global is domiciled in Luxembourg and investors
should note that all the regulatory protections provided by
local regulatory authorities may not apply. Investors should
consult their financial advisers for further information in
this area.
5 Will the investment objectives of the funds remain
the same
In broad and practical terms it will remain the same
although the wording of the objective may be slightly
changed to comply with Luxembourg regulations.
6 Will fund managers be changing
It is the intention that all continuing funds will retain
existing managers and investment teams.
7 Will my tax position change
Issues relating to the personal taxation of investors tax
resident in the UK are addressed in the accompanying
Scheme of Arrangement.
8 What happens if I did not sign the Proxy Form
As the Extraordinary Resolution was passed at the Meeting
and the conditions were met, the Scheme will become
effective, and binding on all Shareholders, whether or not
they voted in favour, or voted at all.
9 What is the proposed integration date of the
sub-funds
The integration of the sub-funds is scheduled to take place
on 24 March 2006, following which investors will receive
confirmation of their new holdings.
* The planned amalgamation represents the only practical option for
existing shareholders of the Aberdeen India Opportunities Fund to retain
the valuable Indian tax benefits (exemption from short term capital
gains tax at 11.22%) which will shortly cease to be available in the
current fund structure as a result of changes to certain regulations.
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A Summary