Aberdeen Funds
02/27/2026 | Press release | Distributed by Public on 02/27/2026 15:45
Summary Prospectus by Investment Company (Form 497K)
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abrdn Funds: Summary Prospectus |
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abrdn Real Estate Fund |
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February 28, 2026 |
Before you invest, you may want to review the Fund's Prospectus, which contains more information about the Fund and its risks. You can find the Fund's Prospectus, Statement of Additional Information, shareholder reports and other information about the Fund online at https://www.aberdeeninvestments.com/us/literature. You can also get this information at no cost by e-mailing a request to [email protected], calling (866) 667-9231 or asking your financial advisor. The Fund's Prospectus and Statement of Additional Information, both dated February 28, 2026, as may be supplemented, and the independent registered public accounting firm's report and financial statements in the Fund's Form N-CSR, dated October 31, 2025, are incorporated by reference into this summary prospectus.
Fund Tickers
Class A - AIAGX ■ Institutional Class - AIGYX
Objective
The abrdn Real Estate Fund (the "Real Estate Fund" or the "Fund") seeks a high level of current income. Capital appreciation is a secondary objective.
Fees and Expenses of the Fund
This table describes the fees and expenses that you may pay when you buy, hold and sell shares of the Real Estate Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in abrdn Funds. More information about these and other discounts is available from your financial advisor and in the "Reduction and Waiver of Class A and Class A1 Sales Charges" and "Broker-Defined Sales Charge Waiver Policies" sections on pages 112 and 152 of the Fund's prospectus, respectively, and in the "Additional Information on Purchases and Sales - Waiver of Class A and Class A1 Sales Charges" and "Reduction of Sales Charges" sections on pages 104 and 105 of the Fund's Statement of Additional Information, respectively. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and example below.
|
Shareholder Fees (fees paid directly from your investment) |
Class A Shares |
Institutional Class Shares |
|
Maximum Sales Charge (Load) imposed upon purchases (as a percentage of offering price) |
5.75
%
|
None |
|
Maximum Deferred Sales Charge (Load) (as a percentage of offering or sale price, whichever is less) |
1.00
%
(1)
|
None |
|
Small Account Fee(2) |
$20 |
$20 |
|
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) |
||
|
Management Fees |
0.80
%
|
0.80
%
|
|
Distribution and/or Service (12b-1) Fees |
0.25
%
|
None |
|
Other Expenses |
0.59
%
|
0.58
%
|
|
Total Annual Fund Operating Expenses |
1.64
%
|
1.38
%
|
|
Less: Amount of Fee Limitations/Expense Reimbursements(3) |
0.40
%
|
0.39
%
|
|
Total Annual Fund Operating Expenses After Fee Limitations/Expense Reimbursements |
1.24
%
|
0.99
%
|
| (1) | Unless you are otherwise eligible to purchase Class A shares without a sales charge, a contingent deferred sales charge (CDSC) of up to 1.00% will be charged on Class A shares redeemed within 18 months of purchase if you paid no sales charge on the original purchase and a finder's fee was paid. |
| (2) | Accounts with balances below $1,000 are generally subject to a $5 quarterly fee (with an annual maximum of $20 per account). Shares from such accounts are redeemed each quarter to cover the fee, which is returned to the Fund to offset small account expenses. |
| (3) | abrdn Funds (the "Trust") and abrdn Inc. (the "Adviser") have entered into a written contract limiting operating expenses to 0.99% for Class A shares and 1.24% for Institutional Class shares. This contractual limitation may not be terminated without the approval of the Independent Trustees before February 28, 2027. This limit includes Rule 12b-1 Fees, but excludes certain expenses, including any interest, brokerage commissions, expenses incurred indirectly by the Fund as a result of investments in other investment companies and pooled investment vehicles ("acquired fund fees and expenses" or "AFFE") (but includes AFFE for affiliated investment vehicles managed by the Adviser), and extraordinary expenses. The Trust is authorized to reimburse the Adviser for management fees previously limited and/or for expenses previously paid by the Adviser, provided, however, that any reimbursements must be paid at a date not more than three years after the date when the Adviser limited the fees or reimbursed the expenses and the reimbursements do not cause a Class to exceed the lesser of the applicable expense limitation in the contract at the time the fees were limited or expenses are paid or the applicable expense limitation in effect at the time the expenses are being recouped by the Adviser. |
Fund Summary - abrdn Real Estate Fund 1
Fund Summary - abrdn Real Estate Fund
Example
This Example is intended to help you compare the cost of investing in the Real Estate Fund with the cost of investing in other funds.
The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then sell all of your shares at the end of those periods. It assumes a 5% return each year and that the Fund's operating expenses remain the same (taking into account the contractual limitation until its expiration). Although your actual costs may be higher or lower, based on these assumptions your costs would be:
|
1 Year |
3 Years |
5 Years |
10 Years |
|
|
Class A Shares |
$694 |
$1,026 |
$1,380 |
$2,375 |
|
Institutional Class Shares |
$101 |
$399 |
$718 |
$1,624 |
Portfolio Turnover
The Real Estate Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 41% of the average value of its portfolio.
Principal Strategies
As a non-fundamental policy, under normal circumstances, the Real Estate Fund invests 80% of its net assets (plus the amount of any borrowings for investment purposes) in the securities of issuers which (i) are principally engaged in the real estate industry, (ii) are principally engaged in real estate financing or (iii) control real estate assets with an aggregate estimated value equal to no less than 50% of such issuer's assets. These companies include, but are not limited to, real estate investment trusts ("REITs"), real estate operating companies and homebuilders, and companies with a majority of real estate holdings, such as hotel and entertainment companies. "Principally engaged" in the real estate industry or in real estate financing means that a majority of a company's revenues are derived from the real estate industry or from real estate financing, respectively, or that the company is classified as a "real estate" company under the Standard & Poor's Global Industry Classification System (GICS). To "control" real estate assets means to own such assets.
The Fund concentrates its investments in the securities of companies engaged principally in the real estate industry and may invest all of its assets in such securities; however, the Fund may temporarily invest less than 25% of its net assets in such securities during periods of adverse economic conditions in the real estate industry.
In addition to common stocks and REITs, securities in which the Fund may invest include preferred stocks and rights and warrants.
The Fund may invest up to 35% of its net assets in foreign securities. The Fund may invest in companies of any market capitalization.
The Adviser emphasizes investments in the equity securities of companies which it believes have the potential to grow their earnings at faster than normal rates and thus offer the potential for higher dividends and capital growth in the future.
In managing the assets of the Fund, the Adviser invests primarily in the equity securities of companies offering high dividend yields and which the Adviser believes offer strong prospects for capital growth. In selecting investments, a focus of the Adviser is to identify investment opportunities where dividends are well supported by the underlying assets and earnings of a company.
The Adviser considers and evaluates ESG (Environmental, Social and Governance) factors as part of the investment analysis process. The Adviser considers the most material potential ESG risks and opportunities impacting issuers, alongside other non-ESG factors. The relevance of ESG factors to the investment process varies across issuers. Not every ESG factor may be identified or evaluated for every investment. ESG characteristics are not the only factors considered and, as a result, the issuers in which the Fund invests may not be issuers with favorable ESG characteristics or high ESG ratings. As ESG information is just one investment consideration, ESG considerations generally are not solely determinative in any investment decision made by the Adviser.
The Fund is "non-diversified." This means that, as compared to mutual funds which are diversified, the Fund may invest a greater percentage of its total assets in the securities of a single issuer. As a result, the Fund may hold larger positions in a relatively small number of stocks as compared to many other mutual funds.
Principal Risks
The Real Estate Fund cannot guarantee that it will achieve its investment objective.
2 Fund Summary - abrdn Real Estate Fund
Fund Summary - abrdn Real Estate Fund
As with any fund, the value of the Fund's investments - and therefore, the value of Fund shares - may fluctuate. The following is a list of the principal risks of investing in the Fund (in alphabetical order after the first seven risks).
Market Risk - Deteriorating market conditions might cause a general weakness in the market that reduces the prices, or yield, of securities in those markets in which the Fund invests.
Issuer Risk - The value of a security may decline for reasons directly related to the issuer, such as management performance, financial leverage and reduced demand for the issuer's goods or services.
Equity Securities Risk - The stock or other security of a company may not perform as well as expected, and may decrease in value, because of factors related to the company (such as poorer than expected earnings or certain management decisions), to the industry in which the company is engaged (such as a reduction in the demand for products or services in a particular industry), or to the market as a whole (such as periods of market volatility or instability, or general and prolonged periods of economic decline).
Active Management Risk - The Fund is subject to the risk that the Adviser or Sub-adviser may make poor security selections. The Adviser or Sub-adviser and their portfolio managers apply their own investment techniques and risk analyses in making investment decisions for the Fund and there can be no guarantee that these decisions will achieve the desired results for the Fund. In addition, the Adviser or the Sub-adviser may select securities that underperform the relevant market or other funds with similar investment objectives and strategies.
REIT and Real Estate Risk - Investment in REITs and real estate involves the risks that are associated with direct ownership of real estate and with the real estate industry in general. These risks include: declines in the value of real estate; risks related to local economic conditions, overbuilding and increased competition; increases in property taxes and operating expenses; changes in zoning laws; casualty or condemnation losses; variations in rental income, neighborhood values or the appeal of properties to tenants; changes in interest rates and changes in general economic and market conditions. REITs' share prices may decline because of adverse developments affecting the real estate industry including changes in interest rates. The returns from REITs may trail returns from the overall market. Additionally, there is always a risk that a given REIT will fail to qualify for favorable tax treatment. REITs may be leveraged, which increases risk. Certain REITs charge management fees, which may result in layering the management fee paid by the fund.
Concentration Risk - The Fund's strategy of concentrating in companies in a specific industry or sector, or closely related group of industries or sectors, means that its performance will be closely tied to the performance of a particular market segment. The Fund's concentration in these companies may present more risks than if it were broadly diversified over numerous industries and sectors of the economy. A downturn in these companies would have a larger impact on the Fund than on a mutual fund that does not concentrate in such companies. At times, the performance of these companies will lag the performance of other industries or the broader market as a whole.
Dividend Strategy Risk - There is no guarantee that the issuers of the stocks held by the Fund will declare dividends in the future or that, if dividends are declared, they will remain at their current levels or increase over time. The Fund's emphasis on dividend paying stocks could cause the Fund to underperform similar funds that invest without consideration of a company's track record of paying dividends or ability to pay dividends in the future. Dividend-paying stocks may not participate in a broad market advance to the same degree as other stocks, and a sharp rise in interest rates or economic downturn could cause a company to unexpectedly reduce or eliminate its dividend.
Cybersecurity Risk - Cybersecurity incidents may allow an unauthorized party to gain access to Fund assets, customer data (including private shareholder information), or proprietary information, or cause the Fund, the Adviser and/or its service providers (including, but not limited to, Fund accountants, custodians, sub-custodians, transfer agents and financial intermediaries) to suffer data breaches, data corruption or lose operational functionality.
ESG Integration Risk - To the extent ESG factors are used to evaluate investments, the consideration of such factors may adversely affect the Fund's performance. Not every ESG factor may be identified or evaluated for every investment. ESG characteristics are not the only factors considered and, as a result, the issuers in which the Fund invests may not be issuers with favorable ESG characteristics or high ESG ratings. The application of ESG factors may result in the Fund performing differently than its benchmark index and other funds in its peer group that do not consider ESG factors or consider different ESG factors.
Foreign Currency Exposure Risk - The value of foreign currencies relative to the U.S. Dollar fluctuates in response to market, economic, political, regulatory, geopolitical or other conditions. A decline in the value of a foreign currency versus the U.S. Dollar reduces the value in U.S. Dollars of investments denominated in that foreign currency. This risk may impact the Fund more greatly to the extent the Fund does not hedge its currency risk, or hedging techniques used by the Adviser are unsuccessful.
Foreign Securities Risk - Foreign countries in which the Fund may invest may have markets that are less liquid, less regulated and more volatile than U.S. markets. The value of the Fund's investments may decline because of factors such as unfavorable or unsuccessful government actions, reduction of government or central bank support and political or
Fund Summary - abrdn Real Estate Fund 3
Fund Summary - abrdn Real Estate Fund
financial instability. To the extent the Fund focuses its investments in a single country or only a few countries in a particular geographic region, economic, political, regulatory or other conditions affecting such country or region may have a greater impact on Fund performance relative to a more geographically diversified Fund.
Mid-Cap Securities Risk - Securities of medium-sized companies tend to be more volatile and less liquid than securities of larger companies.
Non-Diversified Fund Risk - The Fund's performance may be more volatile than a diversified fund because it may invest a greater percentage of its total assets in the securities of a single issuer.
Small-Cap Securities Risk - Securities of smaller companies are usually less stable in price and less liquid than those of larger, more established companies. Therefore, they generally involve greater risk. Small-cap companies may have limited product lines or markets, be less financially secure than larger companies, or depend on a small number of key personnel. If adverse developments occur, such as due to management changes or product failure, the Fund's investment in a small-cap company may lose substantial value.
Valuation Risk - The price that the Fund could receive upon the sale of any particular portfolio investment may differ from the Fund's valuation of the investment, particularly for securities that trade in thin or volatile markets or that are valued using a fair valuation methodology or a price provided by an independent pricing service. As a result, the price received upon the sale of an investment may be less than the value ascribed by the Fund, and the Fund could realize a greater than expected loss or lesser than expected gain upon the sale of the investment. The Fund's ability to value its investments may also be impacted by technological issues and/or errors by pricing services or other third-party service providers.
If the value of the Fund's investments decreases, you may lose money.
For additional information regarding the above identified risks, see "Fund Details: Additional Information about Investments, Investment Techniques and Risks" in the prospectus.
Performance
The bar chart and table below can help you evaluate potential risks of the Real Estate Fund. The bar chart shows how the Fund's annual total returns for Institutional Class shares have varied from year to year.
The table following the bar chart compares the Fund's performance over time with those of a broad measure of market performance and an additional index that more closely reflects the Fund's investment strategy. Returns in the table reflect the maximum applicable sales charges. The table compares the Fund's average annual total returns to the returns of the S&P 500® Index, a broad-based securities index, and the MSCI US REIT Index. Remember, however, that past performance (before and after taxes) is not necessarily indicative of how the Fund will perform in the future. For updated performance information, please visit https://www.aberdeeninvestments.com/en-us/investor/funds/view-all-funds or call 866-667-9231.
The returns presented for the Fund for periods prior to May 7, 2018 reflect the performance of a predecessor fund (the "Predecessor Fund"), which was a registered investment company. The Fund adopted the performance of the Predecessor Fund as the result of a reorganization that occurred as of the close of business on May 4, 2018, in which the Fund acquired all of the assets, subject to the liabilities, of the Predecessor Fund. The Fund and the Predecessor Fund have substantially similar investment objectives and strategies.
Returns of the Predecessor Fund have not been adjusted to reflect the expenses applicable to the respective classes of the Fund.
abrdn Inc. and abrdn Investments Limited began advising and sub-advising, respectively, the Fund immediately following the closing of the reorganization. Performance prior to this date reflects the performance of an unaffiliated investment adviser.
4 Fund Summary - abrdn Real Estate Fund
Fund Summary - abrdn Real Estate Fund
Annual Total Returns - Institutional Class Shares
(Years Ended Dec. 31)
Highest Return: 17.03% - 1st quarter 2019
Lowest Return: -25.28% - 1st quarter 2020
After-tax returns are shown in the following table for Institutional Class shares only and will vary for other classes. After-tax returns are calculated using the historical highest individual federal marginal income tax rates in effect and do not reflect the impact of state and local taxes. Your actual after-tax return depends on your personal tax situation and may differ from what is shown here. After-tax returns are not relevant to investors in tax-deferred arrangements, such as individual retirement accounts, 401(k) plans or certain other employer-sponsored retirement plans.
Average Annual Total Returns as of December 31, 2025
|
1 Year |
5 Years |
10 Years |
|
|
Class A shares - Before Taxes |
-4.10
%
|
4.24
%
|
4.73
%
|
|
Institutional Class shares - Before Taxes |
1.89
%
|
5.74
%
|
5.61
%
|
|
Institutional Class shares - After Taxes on Distributions |
0.49
%
|
3.27
%
|
2.17
%
|
|
Institutional Class shares - After Taxes on Distributions and Sales of Shares(1) |
2.11
%
|
4.08
%
|
3.56
%
|
|
S&P 500® Index(2) (reflects no deduction for fees, expenses or taxes) |
17.88
%
|
14.42
%
|
14.82
%
|
|
MSCI US REIT Index(3) (reflects no deduction for fees, expenses or taxes) |
2.95
%
|
6.58
%
|
5.71
%
|
| (1) | Under certain circumstances, the addition of the tax benefits from capital losses resulting from redemptions may cause the returns after taxes on distributions and sales of shares to be greater than the returns after taxes on distributions or the returns before taxes. |
| (2) | The S&P 500® Index is an unmanaged index considered representative of the US stock market. |
| (3) | The MSCI US REIT Index is an unmanaged index considered representative of real estate equity performance. The index is computed using the gross return, which does not withhold taxes for non-resident investors. |
Investment Adviser
abrdn Inc. (the "Adviser") serves as the Real Estate Fund's investment adviser and abrdn Investments Limited ("aIL") serves as the Fund's sub-adviser.
Fund Summary - abrdn Real Estate Fund 5
Fund Summary - abrdn Real Estate Fund
Portfolio Managers
The Fund is managed using a team-based approach, with the following team members being jointly and primarily responsible for the day-to-day management of the Fund:
|
Name |
Title |
Served on the Fund Since |
|
Jay Carlington, CFA® |
Portfolio Manager |
2018 |
|
Svitlana Gubriy |
Head of Indirect Real Assets |
2018 |
|
Bill Pekowitz |
REIT Analyst / Portfolio Manager |
2018 |
Purchase and Sale of Fund Shares
The Fund's minimum investment requirements are as follows:
|
CLASS A SHARES |
|
|
To open an account |
$1,000 |
|
To open an IRA account |
$1,000 |
|
Additional investments |
$50 |
|
To start an Automatic Investment Plan |
$1,000 |
|
Additional Investments (Automatic Investment Plan) |
$50 |
|
INSTITUTIONAL CLASS SHARES |
|
|
To open an account |
$1,000,000 |
|
Additional investments |
No Minimum |
The Fund reserves the right to apply or waive investment minimums under certain circumstances as described in the prospectus under the "Choosing a Share Class" section.
Fund shares may be redeemed on each day that the New York Stock Exchange is open. Fund shares may be sold by mail or fax, by telephone or on-line.
Tax Information
The Fund's dividends and distributions are subject to federal income taxes and will be taxed as ordinary income or capital gains, unless you are a tax-exempt investor or invest through a qualified employee benefit plan, retirement plan or other tax-deferred account, in which case your withdrawals from such account may be taxed as ordinary income.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other financial intermediary and your financial advisor to recommend the Fund over another investment. Ask your financial advisor or visit your financial intermediary's website for more information.
6 Fund Summary - abrdn Real Estate Fund
Fund Summary - abrdn Real Estate Fund
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Fund Summary - abrdn Real Estate Fund 7
Fund Summary - abrdn Real Estate Fund
8 Fund Summary - abrdn Real Estate Fund
Aberdeen Funds published this content on February 27, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on February 27, 2026 at 21:45 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]