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(Fundsupermart.com) Aberdeen plans to rename its Global MNC Fund to Aberdeen Global - World Equity Fund because of its proposed change to the investment objectives. The change is expected to take effect from 30 June 2003. Aberdeen says the move is prompted by several factors. It says:

"The Managers believe that the current economic climate, characterised by low nominal growth, will continue for some time because the excesses of the last investment boom remain and will take time to unwind. This may result in limited corporate expansion and depressed profit growth. Multinational companies, particularly those that have high levels of gearing and fixed costs, may be particularly affected."

"Further, market valuations of many such companies are stretched by historical standards, leaving margin for disappointment. The proposed change in investment objective and focus of the Sub-Fund will allow the existing portfolio of the Sub-Fund to become more diversified by expanding the investment universe outside global multinationals. Consequently this will enable the Managers to seek investment opportunities in equities other than multinational companies, which may provide more attractive returns. The Managers are of the view that this will be in line with the Sub-Fund's aim to achieve long-term capital growth."

"The Managers further contend that persisting with investment into global multinational companies exclusively poses a potential problem in that there is no hard and fast definition of a multinational company. While multinational companies are generally understood to be large with international operations, size and diversification are not precise yardsticks. For instance, many of today's international companies have pursued expansion by outsourcing key functions including the franchising of distribution, particularly those in services and IT. In the post-industrial economy, traditional ideas of multinational companies are open to question."

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Update On Aberdeen Global MNC Fund

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