Aberdeen Asset Management [see profile]
is acquiring two funds from
Credit Suisse Asset Management [see profile]
On June 30, the Credit Suisse fund board approved a proposal to reorganize the Credit Suisse Large Cap Blend I Fund
and Large Cap Blend II Fund
into the Aberdeen U.S. Equity I Fund
and Aberdeen U.S. Equity II Fund
"The Reorganizations are being proposed, in part, because Credit Suisse Asset Management, LLC, each Acquired Fund's investment adviser, has determined that managing benchmark-driven, long-only and short-extension quantitative equity strategies is no longer consistent with its overall business strategy. The Acquired Funds' investment strategies are included in these categories," according to an SEC filing
The reorganization is subject to the approval of the shareholders of the two Credit Suisse funds.
Sought for comment on the decision, a Credit Suisse spokeswoman wrote in an e-mailed statement: "We decided to exit the funds as part of our strategy to focus on our
core competencies and on products where we can achieve scale. We remain
committed to the retail mutual fund business and franchise. For example,
we continue to grow the Credit Suisse Floating Rate High Income Fund and
Credit Suisse Commodity Return Strategy Fund."
In connection with the proposed reorganization, Aberdeen filed papers
with the SEC stating that the Aberdeen fund board had given the green light
to the reorganization of the Aberdeen U.S. Equity Fund into the Aberdeen U.S. Equity I Fund.
The latter fund, according to the filing, is a shell fund with an investment objective and strategy identical to the U.S. Equity Fund.
"The Reorganization is being proposed in connection with the reorganization of Credit Suisse Large Cap Blend Fund, Inc. (the “Credit Suisse Fund”) into the U.S. Equity I Fund (the “Credit Suisse Reorganization”)," Aberdeen's filing read.
The filing went on to state that the "reorganization involving the U.S. Equity Fund has been approved by the Board to seek to realize economies of scale by combining the assets of the U.S. Equity Fund with the post-Credit Suisse Reorganization assets of the U.S. Equity I Fund. Since the Reorganization has only been proposed in connection with the proposed Credit Suisse Reorganization, the Reorganization is contingent on the consummation of the reorganization of Credit Suisse Fund into the U.S. Equity I Fund."
An Aberdeen spokesperson declined to comment on the transaction as it is subject to a proxy solicitation.
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