JPM Asset Management is set to close Citywire + rated manager Stephen Chang’s renminbi bond fund after it failed to gain sufficient inflows, Citywire Global has learned.
In a shareholder note, the asset manager said it intended to liquidate the JPM Renminbi Bond fund on February 16.
It was originally launched as a Luxembourg-domiciled fund in October 2012 and has been overseen by Chang, who is head of Asian fixed income at JPM, since its inception.
According to the note, the fund had consistently been below the $30 million liquidation threshold outlined in its prospectus, which had prompted the decision to close the fund.
According to the latest available data, the fund had $15.6 million in assets as of January 19 2015, which is down from $16.1 million at the end of 2014.
JPM declined to comment on the closure.
The JPM Renminbi Bond fund returned 2.3% in Chinese yuan terms over the 12 months to the end of December 2014. This is while the average manager in the Bonds – Chinese Yuan sector returned 3.49% over the same period.