Escheatment / Abandoned Property

Each state has laws that require financial institutions to turn over abandoned property to the state. The process of turning over abandoned property to the states is called escheatment.

Depending upon the state in which your account is registered, abandoned property may be defined as one or more of the following categories:

• Inactivity Only – The account is considered abandoned if there is not contact on the account during the timeframe, or dormancy period, established by the state.
• Returned Post Office (RPO) Only – The account is considered abandoned solely because the address on the account has been deemed undeliverable by the United States Postal Service.
• Returned to Post Office (RPO) and Inactivity – The account is considered abandoned because there has been no contact made on the account and the address has been deemed undeliverable by the United States Postal Service.
• Returned Post Office (RPO) or Inactivity – The account is considered abandoned because there has been no contact made on the account or the address has been deemed undeliverable by the United States Postal Service.

The state in which your account is registered is usually the state of the owner’s last known address.

State inactivity laws have been in place for many years. However some states are becoming more aggressive by enforcing their inactivity provisions or reducing dormancy periods, requiring financial institutions to turn over shareowner’s assets sooner. These regulations require account owners, including mutual fund shareholders, to make contact with their fund companies on a regular basis. What constitutes contact and how frequently the contact must occur varies depending on the state in which the account is registered and the type of assets or type of account. Generally, property is considered abandoned after a period of 3 – 5 years of inactivity or “no contact”.

Generally, property is considered abandoned after a period of 3 – 5 years of inactivity or “no contact”. However, unclaimed property laws and regulations are dynamic and often change with short notice. Please see your State Treasurer’s website for more information regarding state abandoned, or unclaimed property laws.

Abandoned property accounts with foreign registrations are required to be turned over to the state where the mutual fund is established. The Aberdeen Funds are established in Delaware while the Aberdeen Investment Funds are established in Massachusetts. If you have a foreign registration on your account and you received an escheatment notice from Aberdeen Funds, it will be subject to escheatment under the requirements of Delaware or Massachusetts.

Although each State may have different laws and regulations for considering when an account is deemed active, we accept the following actions to maintain an active status:

• Log into your Aberdeen Funds account online at www.aberdeeninvestments.com – account log-in is required
• Call our automated phone system, which is available 24 hours a day, 7 days a week, at 1-866-667-9231 and check your account balance or update any needed information for your account.
• Contact one of our Client Service Representatives on our toll-free number. Our hours are Monday – Friday from 8 a.m. to 9 p.m., ET.

If you only want to make contact for your account, you can simply write a short note requesting that Aberdeen make a note on your account that contact has been made.

We suggest that you contact us at least annually, however the applicable state law for your state will dictate the frequency.

Unfortunately, state regulations do not consider automatic investment or redemption plans to count as contact on your account. If this is your only investment activity, you will need to establish contact by one of the methods (Refer to the list above).

If you do not contact us within the time period specified in the state in which your account is registered, we may be required to escheat your account(s) and turn your financial assets over to the applicable state of your account registration. We will do everything we can to get in contact with you before sending your funds to the state including sending letters and if possible, attempting to contact you by phone.

The easiest way to maintain contact with us is to access your account(s) online by logging into your account(s) through our website annually or by speaking to one of our Client Service Representatives by calling 1-866-667-9231 Monday through Friday from 8 a.m. to 9 p.m., ET. If you are calling before or after business hours, you can access your account using our automated voice response system.

For Non-Foreign accounts, if your account is escheated, your full account balance will be turned over to the state of your last known address. The assets will be frozen as of the date of escheatment. You will then need to contact the state to which your account is escheated to establish your ownership of the funds and request that the funds be returned to you. If your account is escheated, please see your State Treasurer’s website for information on recovering escheated financial assets or unclaimed property. For Foreign accounts, it will be the state in which the fund they invested in is incorporated. (Either Delaware or Massachusetts) Please note; it is likely that there may be a fee accessed by the state in order to claim the assets.

Please see your State Treasurer’s website for more information regarding state abandoned, or unclaimed, property laws.