https://www.sec.gov/Archives/edgar/data/1413594/000110465920107770/a20-31134_1497.htm497 1 a20-31134_1497.htm 497
ABERDEEN FOCUSED U.S. EQUITY FUND
IMPORTANT NOTICE REGARDING CHANGE IN INVESTMENT POLICY
This notice is to inform you that at a meeting held on September 16, 2020, the Board of Trustees (the “Board”) of Aberdeen Funds (the “Trust”) approved a change in the name of Aberdeen Focused U.S. Equity Fund (the “Fund”), a series of the Trust, and certain other changes. Such changes will take effect on or about December 1, 2020 (the “Effective Date”).
As of the Effective Date, the Fund’s name will be “Aberdeen U.S. Sustainable Leaders Smaller Companies Fund”. In connection with the Fund’s name change, the Fund’s policy of investing at least 80% of the value of its net assets, plus any borrowings for investment purposes, in equity securities issued by U.S. companies will change to a policy of investing at least 80% of the value of its net assets, plus any borrowings for investment purposes, in equity securities issued by smaller U.S. companies that meet the Adviser’s sustainability criteria. Such securities include equity securities issued by smaller U.S. companies that the Adviser deems to have sound or improving prospects and which demonstrate that they are current or emerging sustainable leaders through their management of environmental, social and governance (“ESG”) risks and opportunities in accordance with the Adviser’s criteria.
More information regarding these changes is included in the Supplement to the Fund’s Prospectus, which is included with this notice. Shareholders will receive an amended and restated Summary Prospectus for the Fund following the Effective Date.
Dated: September 23, 2020
ABERDEEN FUNDS
(the “Trust”)
Aberdeen Focused U.S. Equity Fund
(the “Fund”)
Supplement dated September 23, 2020 to the Fund’s Statutory Prospectus dated February 28, 2020, as supplemented to date
On September 16, 2020, the Board of Trustees (the “Board”) of the Trust approved a change in the Fund’s name, from the Aberdeen Focused U.S. Equity Fund to the Aberdeen U.S. Sustainable Leaders Smaller Companies Fund (“U.S. Sustainable Leaders Smaller Companies Fund”), and a change to the Fund’s principal investment strategies, 80% investment policy and expense limitation agreement, with such changes to take effect as of the date of effectiveness of an amendment to the Trust’s registration statement, which is anticipated to be on or about December 1, 2020 (the “Effective Date”).
As described in further detail below, as of the Effective Date, the Fund will change from a focused U.S. equities strategy investing 80% of its net assets, plus any borrowings for investment purposes, in equity securities issued by U.S. companies to a smaller companies sustainable leaders strategy investing 80% of its net assets, plus any borrowings for investment purposes, in equity securities issued by smaller U.S. companies that meet the Adviser’s sustainability criteria. Such securities include equity securities issued by smaller U.S. companies that the Adviser deems to have sound or improving prospects and which demonstrate that they are current or emerging sustainable leaders through their management of environmental, social and governance (“ESG”) risks and opportunities in accordance with the Adviser’s criteria.
Starting on the Effective Date, the Fund’s portfolio management team will transition the Fund’s portfolio in line with its amended investment strategy. In connection therewith, the Fund expects to experience portfolio turnover, which will result in higher than normal transaction costs to shareholders, which are currently estimated to be approximately 0.12% of the value of each shareholder’s investment. It is currently anticipated that any capital gains generated will be offset by capital losses. These estimates are subject to change depending on market conditions at the time the sales and purchases are made and the size of the Fund.
As of the Effective Date, the expiration date of Fund’s expense limitation agreement will be extended from February 29, 2021 to February 28, 2022.
Shareholders will receive an amended and restated Summary Prospectus for the Fund following the Effective Date.
