The fund, first launched in 2010, will fold on 27 December this year with investors invited to cash in their holdings over the next month.
It will remain exposed to market movements until 20 December, or until all investors have entered redemption requests, Polar said in a notice posted on Monday.
The fund has struggled to offer returns since its inception and has underperformed the average fund in the Investment Assocation Global Emerging Market sector over one, three and five years according to FE Analytics.
Under co-managers Ming Kemp and William Calvert the fund has returned 37.07% over the last five years, significantly lower than the sector’s average return of 51.84% over the same period.
The move to close it seems to be a “proactive approach” by Polar Capital, according to AJ Bell’s head of fund selection, Ryan Hughes.
“It’s small, and looking at its track record its struggling to show how it is adding value, it’s matched the performance of the IA sector and struggled over the last year,” Hughes said.
He added: “At a time when the regulator is trying to make sure active funds are offering value for money this is a fund house asking are we market leading?”
“When you look at the assets under management it’s gone up a bit over the last five years but it’s market growth, it’s not cash flows from investors,” Hughes added. “It’s a proactive approach I wish more companies would follow.”
Polar said the immediate suspension of dealing would enable it to wind down activity efficiently.
The statement read: “Shareholders remaining in the fund as at the termination date will receive pro rata to the number of shares held by them net cash proceeds derived from the realisation of the investments of the fund and any cash then forming part of the fund so far as the same are available for the purpose of such distribution.”
The fund will de-list from the London Stock Exchange on or around the termination date of 27 December.
