Aberdeen agrees to take over management of £1.5bn in closed-end funds from MFS

Aberdeen Investments has reached an agreement with MFS to acquire the management of closed-end fund assets totalling £1.5bn, subject to shareholder approval, through a consolidation of existing funds

Aberdeen Investments has agreed to acquire the management of closed-end fund assets totalling £1.5bn from MFS, in a transaction that will consolidate several existing funds into two vehicles, the company said.

Under the agreement, nine MFS closed-end funds and one existing Aberdeen closed-end fund will be reorganised through a series of mergers to create two active closed-end funds. The transaction remains subject to approval by shareholders of the respective funds.

Four MFS municipal bond closed-end funds and one Aberdeen municipal bond closed-end fund will be consolidated into a municipal bond fund with assets of approximately $1bn. Five MFS taxable fixed income funds will be merged to create a multi-sector fixed income closed-end fund with assets of around $1.4bn, including exposure to private credit.

Aberdeen said no staff or corporate entities would transfer as part of the transaction and that the acquisition is expected to be income accretive from the first year.

Jason Windsor, chief executive of Aberdeen Group, 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 Investment 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 of corporate finance at 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 funds will be managed by Jonathan Mondillo, Aberdeen’s global head of fixed income. Aberdeen said the multi-sector fund will represent its first entry into this segment of the US market and will invest across different bond sectors, including private credit.

Aberdeen said it currently manages approximately £21.4bn in closed-end funds, making it the fifth-largest manager of closed-end funds globally, according to Morningstar data as of 11 December 2025. The company said this is its tenth US closed-end fund acquisition since 2000.

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