Fidelity International will close its Asia Pacific property fund end of next month, Citywire Asia has learnt.
The Fidelity Funds - Asia Pacific Property strategy, which manages about $11 million in assets, is registered for sale in Hong Kong, Singapore and Korea.
In a letter to its shareholders, Fidelity said it decided on the closure because the fund is no longer cost efficient to run. Moreover, the size of the fund continues to be small and is not expected to grow in the near future.
Launched in 2007, the Fidelity Funds - Asia Pacific Property strategy is managed by Citywire A-rated Akihiko Murai and returned 5.3% over the past one year.
It invests primarily in securities of companies that are principally engaged in the real estate industry and other real estate related investments in the Asia Pacific region, including Australia, Japan and New Zealand.
As of end-August, about 34.9% of the fund’s portfolio was invested in Japan, and approximately 28.4% in Hong Kong.