Welcome to the latest edition of The Bulletin.

Since I last wrote to you, the activities of Saba Capital Management, a US activist hedge fund, have been generating headlines in the investment trust universe. Over time, Saba had built sizeable stakes in several leading investment trusts whose shares were trading at wide discounts to their Net Asset Value, so represented attractive arbitrage opportunities for Saba. At the tail-end of 2024, Saba requisitioned general meetings at seven trusts, with a proposal to replace incumbent boards. Although all seven votes ultimately failed at the initial general meetings, Saba’s actions have helped remind the industry of the need for trusts to remain focused on acting in the best interests of shareholders.

Although Aberdeen investment trusts were not amongst those targeted in Saba’s campaign, as an investment house we are well aware of the need to deliver long-term value to shareholders. We also recognise the need to keep shareholders fully informed and empowered to vote on matters relating to their trusts, be these routine or strategic issues; indeed, this is an issue where Aberdeen’s platform business interactive investor has made huge strides forward in recent years.

In this edition of The Bulletin, we are pleased to share Jonathan Davis’s insights on the impact of the Saba campaign. Jonathan is Editor of the annual Investment Trusts Handbook and host of the award-winning Money Makers podcast. Our cover story considers the impact of President Trump’s shifting tariff regime from the perspective of Murray International’s investment managers, Martin Connaghan and Samantha Fitzpatrick. We also feature an interview with Sarika Patel, Chair of abrdn Equity Income Trust on the prospects for UK equities – is there finally light at the end of the tunnel? As well as this, you will find a range of contributions from abrdn investment managers plus perspectives from several external contributors.

Awards and anniversaries

In a year of quite unparalleled geopolitical uncertainty and stock market volatility, it has been satisfying to see Aberdeen and several of its investment trusts receiving awards recognition:

The Association of Investment Companies (AIC) recognised both abrdn Asia Focus (AAS) and abrdn UK Smaller Companies Growth Trust (UKSC) as “ISA millionaires’”, in a compelling demonstration of how investment trusts’ can deliver impressively strong performance over the long term. Had investors invested their full ISA allowance annually into AAS from 1999 to 2024, this would have generated a tax-free pot of £1,792,184, whilst for AUSC the equivalent figure would have been £1,129,455.

The AIC listed Aberdeen Equity Income Trust, Murray Income Trust and Murray International Trust as 'Dividend Heroes', in recognition of their delivering over 20 consecutive years of dividend growth.

abrdn UK Smaller Companies Growth Trust won the coveted 'UK Smaller Companies – Active' category at the AJ Bell Investment Awards 2024, as voted for by AJ Bell platform investors.

Aberdeen was named 'Best Investment Trust Manager' and ‘Best Fund Manager’ at the UK Investor Magazine Awards 2024, whilst Murray Income Trust was named Best Equity Income Trust. These awards provide an opportunity for investors to applaud excellence from investment providers serving private clients across the UK.

We value these achievements as they raise awareness for the relevant trusts, and stand to generate additional shareholder demand, to the potential benefit of all investors.

In other news, two of our Asian trusts celebrate significant milestones this year. abrdn Asia Focus reaches its 30th anniversary (having launched in October 1995) while Aberdeen Asian Income celebrates 20 years (December 2005). Both trusts have always sought to harness the potential of Asia by taking a long-term view of companies and looking to find those that can deliver returns well into the future. We acknowledge the intelligent and thorough stock selection that has always been crucial to both trusts’ approach in Asia.

Tax-efficient investment opportunities for 2025/26

The 2025/26 tax year is well underway. With it comes another opportunity to take advantage of tax-efficient investment opportunities available to eligible UK investors. This includes up to £20,000 in a Stocks & Shares Individual Savings Account (ISA). Or, for those saving for retirement, a Self-Invested Personal Pension (SIPP), where you can invest all your earnings into a SIPP, subject to a maximum of £60,000 per tax year. All of Aberdeen’s Investment Trusts are eligible for both ISAs and SIPPs, available through interactive investor and other platforms. I invite you to look at our range of trusts, plus details on how to invest, on pages 22 to 23.

The 2025/26 tax year is well underway. With it comes another opportunity to take advantage of tax-efficient investment opportunities available to eligible UK investors. This includes up to £20,000 in a Stocks & Shares Individual Savings Account (ISA). Or, for those saving for retirement, a Self-Invested Personal Pension (SIPP), where you can invest all your earnings into a SIPP, subject to a maximum of £60,000 per tax year. All of Aberdeen’s Investment Trusts are eligible for both ISAs and SIPPs, available through interactive investor and other platforms. I invite you to look at our range of trusts, plus details on how to invest, on pages 22 to 23.

Change of name, but business as usual

In March, we announced a change of name for our investment management business, from abrdn plc to Aberdeen Group plc. This change has no impact on the management of your investment trusts nor their strategies. However, it does mean that individual investment trust boards may recommend changing name at the next routine opportunity, to ensure alignment with the investment manager. For trusts proposing such a change, resolutions will be put forward at AGMs as required. An early adopter was abrdn Asian Income Fund Limited which became Aberdeen Asian Income Fund Limited on 1 June 2025.

Looking forward

I hope you enjoy this latest edition of The Bulletin. We are keen to canvass opinion on whether there is demand for a hard copy, printed version of this publication, which would be sent to you by post. If you would find this useful, please do let us know by emailing us at trusts@aberdeenplc.com. We will consider all responses carefully. Thank you for your ongoing support. 

Read the latest factsheet for abrdn Asia Focus here.

Read the latest factsheet for abrdn UK Smaller Companies Growth Trust here. 

Read the latest factsheet for Murray Income Trust here.

Read the latest factsheet for Murray International here. 

Important information

Risk factors you should consider prior to investing:

Other important information:

Issued by abrdn Fund Managers Limited, registered in England and Wales (740118) at 280 Bishopsgate, London, EC2M 4AG, authorised and regulated by the Financial Conduct Authority in the UK.