First State Investments is soft-closing five specialist Asia Pacific and global emerging market funds.
The funds include the £229m Asia Pacific sustainability, £293m Indian subcontinent, £161m global emerging markets sustainability, £117m Latin America and £623m Greater China growth funds.
From January 1, 2012, the initial charge of 4 per cent on the funds will become compulsory to dissuade new clients from investing. Regular savers who maintain the level of their existing contributions will not be affected by the move.
Managing director for Europe, the Middle East and Africa Gary Withers says: “Having monitored the situation carefully, we believe we are nearing the point beyond which capacity issues could start affecting performance of these funds and, more specifically, restrict their ability to invest in smaller companies.”
The £5.7bn Asia Pacific leaders and the £1.9bn global emerging markets leaders funds, which do not invest in smaller stocks, will not be affected.
Chelsea Financial Services managing director Darius McDermott says: “We are always happy to see fund managers soft-close funds when they feel the need to protect investor interest.”