Notification of change to the underlying fund of R128 abrdn SICAV I Indian Equity (USD)

09 Jun 2025

R128 abrdn SICAV I Indian Equity (USD) (the “ILP sub-fund”)

We have been notified by the Board of Directors of abrdn SICAV I (the “Company”) of a change to the underlying fund of the ILP sub-fund, 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 ILP sub-fund is to seek long term total return to be achieved by investing in Indian securities. The underlying fund of the ILP sub-fund 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 ILP sub-fund 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 ILP sub-fund 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 ILP sub-fund 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 ILP sub-fund. 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 ILP sub-fund 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 ILP sub-fund 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 ILP sub-fund 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 ILP sub-fund 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 ILP sub-fund.

There will be no material changes to the risk profile of underlying fund of the ILP sub-fund, or of the manner in which it is being managed. 

This change 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.

We have contacted impacted policyholders and their financial advisers to notify them of the change; primarily by e-shot, with letters sent by post where we do not hold a valid email, and to those who prefer to receive letters by post. A sample of the client communication can be found opposite.

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