Fidelity Investments is to liquidate its dedicated Korea equity fund after a prolonged period of underperformance on the $122 million fund, Citywire Selector has learned.
In a shareholder letter seen by Citywire Selector, the company said the Fidelity Funds – Korea fund has underperformed its reference index on annualised basis since January 2011.
Given this poor return, the firm said it would be liquidating the Luxembourg-domiciled fund on at the end of August.
Meeyoung Kim has overseen the fund since succeeding Taewoo Kim in November 2014. The fund was originally launched in 1995 and has also been managed at various stages by David Urquhart and Agus Tandiono.
Commenting on the closure a spokesperson for Fidelity said: 'We regularly review our fund range globally to ensure it continues to meet the demands of the marketplace. Following the decision of the Fidelity Funds Board, the FF – Korea Fund will close on 24 August 2017.'
Fidelity was unable to comment on whether Kim would stay with the firm following the closure of the fund.
On a three-year total return basis, the Fidelity Funds – Korea fund has lost 3.8% in US dollar terms, which compares to an 8% rise by the MSCI Korea TR USD, its Citywire-assigned benchmark, over the same timeframe.