F&C has closed its Indian Investment Company, an open-ended fund launched in 1993, after it became subscale.
At its liquidation, the fund contained assets of £6 million. ‘As it didn’t have critical mass, we felt winding the company up was the right thing to do for its shareholders,’ a spokesperson for F&C told Wealth Manager.
Managed by Sam Mahtani since inception, the fund’s performance had been dull of late. Through the three years to the end of 2013, it lost 31% while the MSCI India index dropped by 23.9% in dollar terms.
Mahtani pursued a high-conviction approach, with his five largest holdings accounting for 50% of the portfolio. His largest position was a 12.5% weighting to Tata Consultancy Services, with financials as his principal sector exposure.
He remains as director of emerging-market equities at F&C, where he continues to run the £38 million F&C Global Emerging Markets Portfolio fund. This too is overweight India, which represents 12% of the portfolio compared with less than 7% of the fund’s MSCI Emerging Markets benchmark. Mahtani has recently added to the fund’s stakes in ITC, Cairn and HDFC Bank.
Over the three years to the end of 2013, the fund lost 14.9% compared with a decline of 6.1% from its benchmark index in dollar terms.