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Fidelity soft-closes AAA-rated manager’s fund

Fidelity soft-closes AAA-rated manager’s fund

Fidelity has closed an Asian equity fund to new investors after strong inflows led to an increase in assets under management, Citywire Selector has learned.

The Fidelity Funds – Asian Smaller Companies fund has been managed Citywire AAA-rated Nitin Bajaj since September 2013.

A spokesperson for the company confirmed that the fund had £437 million (€504 million) in assets under management as of 31 January.

According to a letter to shareholders see by Citywire Selector, Fidelity will maintain a pipeline queue for existing investors who wish to make additional investment in the fund.

Marketing for the fund has ceased, but if Fidelity is approached by new investors it may add them to the queue.

Commenting on the closure, a spokesperson for the company said: ‘Fidelity Funds - Asian Smaller Companies Fund has experienced strong interest from a broad range of professional investors on the back of strong performance.  This is a positive affirmation of Nitin’s process to invest in high quality smaller companies with a value bias.

‘We are keen to ensure that the rapid growth in the fund’s assets since April 2016 does not limit our ability to compound client money at our desired rate of return, and with it, the strong performance track record that it had achieved.  Therefore, we have decided to soft-close the fund.’

Over three years to the end of February 2017 the Fidelity Funds – Asian Smaller Companies fund returned 24.94% in US dollar terms.

This compares to a rise of 4.47% by its Citywire-assigned benchmark, the MSCI AC Asia Pacific ex Japan Small Cap TR USD, over the same time frame.

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