Aberdeen Investments has struck a deal to take over the management of nine closed ended funds worth £1.5bn from long established US fund manager MFS.

Aberdeen says the deal, announced today, will strengthen its position as the fifth largest global manager of closed ended funds (CEFs).

The deal will involve a series of mergers and reorganisations.

Nine MFS funds, in addition to one existing Aberdeen closed end fund, will be consolidated into two active closed end funds.

Aberdeen says that both new combined funds will benefit from “significant scale” and create a “springboard for potential future growth.”

No details have been given of any financial transactions related to the deal.

As part of the deal:

-     Four MFS municipal bond CEFs and one Aberdeen Municipal bond CEF will be consolidated to create a c.$1bn AUM (c £750m) municipal bond fund

-     Five MFS taxable fixed income funds will be merged to create a c.$1.4bn AUM (c£1,052bn) multi-sector fixed income CEF (including private credit)

Aberdeen says the deal provides consolidation in the sector and will help ensure that larger funds will benefit from economies of scale and offer greater liquidity for investors.

No staff or corporate entities will transfer as part of the transaction and the acquisition is income accretive from year one, Aberdeen says. The deal remains subject to approval by the shareholders of the respective funds.

Jason Windsor, Aberdeen Group CEO, said: “We are delighted to add further scale to our US closed end fund platform, with this highly synergistic acquisition.  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."

Christian Pittard, head of closed end funds and managing director, corporate finance, Aberdeen Investments, said: "This is an exciting opportunity to bring our institutional skills and leadership in fixed income and private credit to US retail investors through a liquid, closed end fund structure.

“The enlarged funds will come with real scale and will focus on areas of deep expertise for Aberdeen where we see clear potential for further growth. MFS pioneered US mutual funds back in 1924, and we are proud they have chosen Aberdeen for this agreement."

Both new funds will be managed by Aberdeen's global head of fixed income, Jonathan Mondillo. 

The multi-sector fund will mark Aberdeen's first move in the US into this part of the market.

The deal is Aberdeen's 10th US CEF acquisition since 2000. In 2024 Aberdeen executed one of the largest mergers seen in the sector with BBOX and UKCM.

Aberdeen currently manages c.£21.4bn in closed end funds. (data from Morningstar as of 12/11/25, excludes this transaction). Overall Aberdeen Investments manages £382bn for clients.

MFS was formerly known as Massachusetts Financial Services. It was established in 1924 and has a track record dating back over 100 years. It has been described as one of the global pioneers of mutual funds.