Schroders has shut two funds stuck in out-of-favour asset classes.
The Schroder ISF Brazilian Equity fund launched in September 2011, but held less than £10 million at the time of its closure.
Managed by Eduardo Carlier since June 2012, the fund had lost 21.8% since inception, compared with a 12% decline in its benchmark MSCI Brazil 10/40 index.
The Schroder ISF Global Resources Equity fund, which was originally launched in May 2010, has also been closed. It too contained less than £10 million when it was liquidated.
The Global Resources fund was managed by Giles Money, who took it over from Sam Catalano in October 2012 after Catalano’s departure for Nomura. Since inception it had lost 11.9% while its composite MSCI World Materials/World Energy index had gained 16.3%.
‘This is part of an ongoing process in which we look at our fund range and address funds that have become unviable or for which we are no longer seeing sufficient client demand,’ said a spokesperson for Schroders, adding that the two funds affected were ‘too small to be managed cost effectively and are unlikely to grow in the near future’.
Alongside co-manager Simon Webber, Money continues to run the on and offshore versions of the Schroder Global Climate Change funds, which together hold almost £180 million. The onshore vehicle has returned 42.6% since its launch in September 2007, compared with 43.2% from its benchmark MSCI World index.