While the move is still subject to approval by the Financial Services Authority, the fund – with just £5m in assets under management – is expected to be closed on 31 October as “it is not in the interests of our investors to let the fund continue”.
The manager, Habib Subjally who is also head of global equities, and his team will concentrate on the firm’s other global equity offerings, the main retail one of which is the £35m Global Opportunities Fund.
Investors in the Global Growth Fund have all received letters giving them the option to either redeem their cash or switch into another First State fund, including Global Opportunities.
Global Growth was launched in March 1999 and has returned 26.3% since then. More recently, it is down -3.4% in three years, -2.6% in the past 12 months and has returned -11.5% in the past three months.
