Edinburgh Portfolio is to close its £200,000 Japanese fund of funds as it is too small to be commerc...
Edinburgh Portfolio is to close its £200,000 Japanese fund of funds as it is too small to be commercially viable.
Paul Talbot, managing director of Edinburgh Portfolio, said the continued unpopularity of Japan among investors meant it was unlikely the fund could be saved.
'The amount of money invested is quite small, we don't foresee a lot of new money will be heading for Japan in the near future and so on pure commercial grounds to run a fund of that size doesn't make any sort of logical sense,' he said.
Edinburgh Japan Portfolio was around £400,000 in size when it was acquired from Wise Speake four years ago as one of a number of country-specific funds of funds. 'With market falls and redemptions it is now under £200,000 in size and it has never really got off the ground because Japan has not been flavour of the month for such a long time,' Talbot said.
The fund has returned -23.1% after charges over the 12 months to 13 January, compared to an average -21.4% in the Japan sector, to rank 49 in a field of 73. It is the smallest fund in the sector.
The group is also assessing the future of its £800,000 technology fund of funds.
'It is doing rather well in terms of its peers but there are question marks over whether individual technology funds are going to survive,' Talbot said.
A final decision on the Japan fund is due in the spring, while no action will be taken on the technology fund until the second half of the year, he added.
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