HSBC Global Asset Management has announced it is hard-closing its HSBC GIF Asia ex Japan Equity Smaller Companies fund to new subscriptions from all investors.
The fund, with assets of $1.3 billion, is managed by Elina Fung and Alex Kwan, and invests in the bottom 25 percent of companies by market capitalisation.
Challenging Environment
HSBC Global Asset Management (HSBCGAM) says periods of volatility have resulted in challenging liquidity conditions and the move is in the best interests of existing investors. It notes that if assets under management (AUM) falls below the hard close threshold the decision may be reversed.
«As liquidity is generally much lower for companies in the small cap universe compared to the overall market, investment opportunities can become more limited as subscriptions to the fund increase,» said Stephen Kam, Senior Product Specialist, Asian Equities, HSBC Global Asset Management.
An HSBCGAM spokesperson confirmed to finews.asia that the move is effective from 10 May.
