JP Morgan Asset Management is set to close Citywire + rated manager Stephen Chang’s Asia local currency debt fund after it failed to attract a sufficient level of capital, Citywire Selector has learned.
In a shareholder note, the asset manager said it would close the JPM Asia Local Currency Debt fund on April 8 2016.
The Luxembourg-domiciled fund was launched in March 2010 and Chang, who is head of the Asian fixed income team at JP Morgan, has managed the fund since its inception. Chang will continue to manage the JP Morgan Asia Pacific Income fund for the asset manager.
According to the shareholder note, the assets in the fund are below the $30 million liquidation threshold as outlined in its prospectus, which had led to the decision to close the fund.
Commenting on the closure, a spokesperson for the company said: ‘JP Morgan Asset Management has notified shareholders of its intent to liquidate the JP Morgan Funds – Asia Local Currency Debt fund. The fund has $22 million in assets under management as of the end of February and the board sees limited prospects for future growth.'
‘JP Morgan Asset Management remains focused on a strong and diversified range of Asian debt investment capabilities, with now over $8 billion dedicated Asian fixed income portfolios under management, including the $2.1 billion JPMorgan Funds – Asia Total Return Bond fund and the recently launched JPMorgan Funds – China Bond Fund, which gives investors access to the onshore China bond market.
The JPM Asia Local Currency Debt fund lost 8.4% in US dollar terms over the three years to the end of February 2016. This compares to a fall of 8.29% by its Citywire-assigned benchmark, the Barclays Asia Local Curr Diversified TR, over the same period.