Hermes is to close its £213m UK Small and Mid Cap Companies fund after its main shareholder decided to transfer their holding to another of the firm’s portfolios.
The fund house is to close the fund in February 2016 after the shareholder opted to switch into another one of its small and mid cap products.
David Stormont, who has managed the UK Small and Mid Cap Companies fund since co-manager John Leahy left Hermes at the start of the year, will provide investment input on the Global Small Cap Equity fund, run by Hamish Galpin, following the move.
A Hermes spokesperson said: “Whilst the fund has performed well since its inception, we have been notified by the main shareholder that they wish to transfer their holding into one of our other small and mid cap strategies.
“Following this transfer, the fund will fall below a level at which it can be considered cost effective for shareholders to continue operating.”
Over three years the UK Small and Mid Cap Companies fund has returned 66.3 per cent, according to FE Analytics, compared to 58.1 per cent from the Investment Association’s UK Smaller Companies sector.
In August EFG Asset Management subsidiary New Capital announced it had hired Mr Leahy, who worked for Hermes for 16 years, to run a new UK equity fund.
