HSBC Global Asset Management (HSBC Gam) is planning to close its £17.2m UK Smaller Companies fund due to its small size.
The fund has beaten its benchmark, the FTSE Small Cap ex Investment Trusts index, in both three- and five-year periods but has underperformed the IMA UK Smaller Companies sector in that period.
A spokesperson for HSBC GAM said the product, which is managed by Nils Jungbacke, has been falling in size for much of the past three years and the company wanted to act now “to avoid a situation where it becomes more difficult to manage the fund’s assets”.
Subject to shareholder approval the fund will close on June 21. Mr Jungbacke also manages the ¥5.8bn (£37.9m) HSBC GIF Japanese Equity fund as well as US equity and Japanese equity portfolios within HSBC GAM’s Merit fund range.
