Investec is to merge away its European fund due to its small size.
Investec is seeking shareholder approval to merge the £26m European fund, run by Ken Hsia (pictured), into its Global Franchise offering on 4 January.
"The IMA Europe (ex UK) sector has declined in popularity and size over recent years – the sector’s funds under management have reduced from £38 billion to £26 billion in the last five years - partly reflecting the poor economic background of the region, the on-going events in the eurozone and the more attractive investment options that can be found elsewhere," Investec said in a statement.
"This has also been reflected in the size of the Investec European fund [...] we regularly review and evaluate our fund range with a view to ensuring cost efficiency for our clients and look to ensure that our range remains relevant to our clients.
"We believe the current economic circumstances relating to Europe and in particular the eurozone area generally mean that shareholders would benefit from a broader geographical investment remit."
The European equity portfolio has returned 16.6% over the three years to 6 December, ahead of the IMA Europe ex UK sector average return of 8.6%, according to Morningstar.
Global Franchise, run by Clyde Rossouw, invests in a select number of companies typically associated with global brands, specifically those with dominant intangible assets such as high customer loyalty, distribution networks or patents.
Investment Week revealed in September that Investec was launching an onshore version of Global Franchise, its $591m SICAV.
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