Capital Group has decided to pull the plug on the Luxembourg-domiciled version of its Asia Pacific ex. Japan equity fund after seeing limited future demand for the fund, Citywire Selector understands.
According to a shareholder note, the Capital Group Asia Pacific ex Japan Equity fund is set to be liquidated on 18 December. It was formally launched in December 2006.
‘The reason for closing this sub-fund is that the Capital Group Asia Pacific ex. Japan Equity Fund (LUX) does not appear to be well aligned to current or future demand from investors,’ it said in a statement.
‘These are both globally diversified funds that include exposure to Asian markets through a combination of locally domiciled Asian companies and multinational companies domiciled outside Asia, but which derive a proportion of their revenues from their businesses in the Asia ex. Japan region.’
The New Perspective fund was launched in October 2015 and has accrued $2.2 billion in assets, while the New World fund was launched as a Ucits vehicle last October and now stands at $1.31 billion in assets.
The Capital Group Asia Pacific ex. Japan Equity fund returned 17.5% in US dollar terms over the three years to the end of October 2017. This compares with a 24.5% rise by its Citywire-assigned benchmark, the MSCI AC Asia Pacific ex Japan TR USD, over the same period.