SVM is set to merge its struggling Global Opportunities fund into the SVM World Equity fund due to its small size.
The SVM Global Opportunities fund, run by SVM founder and chief executive Colin McLean, was a fund of investment trusts that had the worst performance of any fund in the IMA Global sector in the past one and three years, according to FE Analytics.
The fund, which was identified on Investment Adviser’s 2014 list of ‘Red Flag Funds’, had lost investors 16.3 per cent in the past five years compared to the IMA Global sector average return of 80.1 per cent.
The fund had fallen in size to £3.6m and SVM said it had been “hampered by a lack of liquidity in its underlying assets”.
An SVM spokesperson said: “This made it difficult to deliver strong performance over a sustained period of time and the fund is no longer commercially viable.
The company added it was proposing to merge the fund into the £33.6m SVM World Equity fund, which is managed by Neil Veitch.
The World Equity fund, which was launched in December 2010, has generated top quartile returns in the IMA Global sector in the past three years.
Mr McLean still remains as co-manager on two other SVM products.
