The abrdn European High Yield Bond fund has been merged into abrdn High Yield Bond. abrdn High Yield Bond is the “continuing” fund and, henceforth, we will feature this fund on our Recommended list.

Following shareholder approval, abrdn Fund Managers Ltd (abrdn) has taken this action in response to a review of the firm’s entire fund range.  Given the similarities in the investment objectives, policies and risk/return profiles of these two funds, the decision was taken to merge them, bringing the benefit of economies of scale.  For information, abrdn High Yield Bond is a sub-fund of abrdn OEIC II, whereas abrdn European High Yield Bond was a sub-fund of abrdn OEIC I.

There is no change to the investment universe, where the focus continues to be primarily sterling and euro denominated high yield bonds.  Of note is the use of a different benchmark (ICE BofAML GBP/Euro Fixed & Floating High Yield Non Financial 3% Constrained (hedged to GBP), rather than BofAML European Currency High Yield Constrained (Hedged)) but this is not expected to alter the risk/return outcome for shareholders.

Furthermore, Ben Pakenham, previously the manager of abrdn European High Yield Bond, is the manager of abrdn High Yield Bond and runs the fund using the same investment approach.  Mr Pakenham is Head of European High Yield and Global Loans at abrdn.  For further information, please see our fund page.