Legg Mason has shut two small-cap funds managed by its subsidiary Royce Associates.
Both funds – Legg Mason Royce European Smaller Companies and Legg Mason Royce Global Smaller Companies – contained less than £5 million at the time of their closures.
‘The redemption of the Legg Mason Royce European Smaller Companies fund and Legg Mason Royce Global Smaller Companies fund was due to their size not being sufficiently large to allow for efficient portfolio management,’ a spokesperson for Legg Mason told Wealth Manager.
‘As a result, the directors determined that it was not in the best interest of the investors to continue their operation.’
Both portfolios were run by David Nadel. The European fund returned 16.6% in 2013 compared with 32.5% from the MSCI AC Europe Small Cap index, while the global fund generated 1.2% versus 23.1% from the MSCI World Small Cap index.
Royce still manages its flagship £830 million Legg Mason Royce US Small Cap Opportunity fund, which it has communicated will soft-close this year.
Headed by Citywire + rated William Hench (pictured), the fund returned 40.5% in 2013 compared with 38.8% from its benchmark Russell 2000 index.