Fund Closures

Every now and again, fund management companies decide they do not want any more money invested in a particular fund and take the decision to 'close' it to new investments. This shouldn't be confused with a fund company deciding the fund should cease to exist – they simply don't want the fund to get any bigger.

What is a fund closure?

Most of the time, fund companies will 'soft close' a fund. The definition of a soft-closure can vary, and it may just be that companies like Chelsea are asked to take the fund off their selection tables so that fewer people invest in the fund. However, in the majority of cases, it is when new investors cannot invest in the fund and a 'prohibitive' initial charge and/or a much higher minimum investment (a sum of money out of reach of most retail investors) is introduced to dissuade investors putting more money into the fund. The exception is usually monthly savings, which are allowed to continue without an initial charge, if they are already set up. 

What is hard closure?

Occasionally a fund will be hard-closed. This is when no  investments at all are taken and often, the fund is removed from fund platforms altogether.

Why are funds closed?

Fund companies take these actions because they believe that if the fund gets any bigger, it will impact on the investment process and performance may be compromised. So these actions are taken to protect existing investors. The important thing to remember is that if you are already invested in the fund, there is no need to panic. The fund company is acting in your interests. Funds which are closed can be reopened at a later date.

The table below highlights fund closures, within the last year or so, on some of the most widely-held funds or where the manager has a prominent profile. It is not an exhaustive list.

Fund Fund Group Type of closure
Aberdeen Emerging Markets Aberdeen Fund Managers Ltd Soft
Aberdeen Global Emerging Markets Equity Aberdeen Global Services S.A. Soft
Aberdeen Global Emerging Markets Smaller Companies Aberdeen Global Services S.A. Soft
Aviva Investors US Equity Income Aviva Investors UK Fd Serv Ltd Soft
Fidelity UK Smaller Companies Fidelity Investment Funds Soft
GAM Star China GAM Fund Management Ltd Soft
Hermes Asia ex-Japan Equity Hermes Soft
Majedie UK Income Majedie Soft
Old Mutual UK Dynamic Equity Old Mutual Soft
Stewart Investors Asia Pacific Stewart Investors Soft
Stewart Investors Asia Pacific Sustainability Stewart Investors Soft
Stewart Investors Global Emerging Market Leaders Stewart Investors Soft
Stewart Investors Indian Subcontinent Stewart Investors Soft
Stewart Investors Latin America Stewart Investors Soft