Fidelity to merge Japan Smaller Companies fund with £450m Japan strategy

‘Uneconomic to operate’

clock • 1 min read

Fidelity International will merge its £68m Fidelity Japan Smaller Companies fund with its £453m Japan fund due to dwindling assets.

According to a letter to shareholders seen by Investment Week, the fund's assets have more than halved over the past five years due to outflows, making the fund "uneconomic" to operate. The proposed merger, which was approved by shareholders last week, would provide "enhanced economies of scale" to the Japan fund, which is managed by Min Zeng. The Japan fund invests in Japanese companies of all sizes, while the Japan Smaller Companies strategy focuses on small to mid-cap Japanese companies. Fidelity hires veteran manger duo following Jeremy Podger's retirement Fidelity Japan fun...

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