First State Investments will soft-close five specialist Asia Pacific and global emerging market funds to “protect the interests of existing investors”.
The £229m First State Asia Pacific sustainability, £293m First State Indian subcontinent, £161m First State global emerging markets sustainability, £117m First State Latin America and £623m First State Greater China Growth funds are the affected products.
From January 1 2012, the initial charges 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.
Gary Withers, the regional managing director for Europe, the Middle East and Africa at First State, says: “Having monitored the situation carefully, we believe that 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 £5.7 billion First State Asia Pacific Leaders and the £1.9 billion First State Global Emerging Markets Leaders funds, which do not invest in smaller stocks, are unaffected by the soft-closures, the asset manager adds.