First State closes Global Growth fund

First State is set to close Habib Subjally’s £5m Global Growth fund at the end of October, as it failed to attract enough assets.

Letters have been sent to investors informing them the fund is to be wound down. The proposed closure date is 31 October.

First State is urging existing investors to reallocate their capital into the group's £35m Global Opportunities fund, also managed by Subjally.

"Despite the fund objective and policy being continually met over the life of the Fund, it has not attracted enough investment to allow it to be managed as a viable proposition for our investors," said the group.

"It is not in the interests of our investors to let the fund continue."

The fund's performance over three years has been unspectacular, with the portfolio sitting in the third quartile of the IMA Global sector, falling 5% compared to the peer group average return of 5.1%, according to Morningstar.

The closures follows First State's announcement last week that it plans to soft-close Martin Lau's £624m Greater China Growth fund as well as four other emerging markets offerings.