Threadneedle to close Japanese small-cap fund

Threadneedle is to close its £12m Japanese Smaller Companies fund due to its uneconomical size and "limited demand" for the strategy.

The group has notified investors that dealing in the fund will be suspended as of 25 July. Run by Sarah Williams, the portfolio has lagged other funds in the Japanese Smaller Companies sector in recent years. Resurgent Japanese equity markets have posted strong gains over the past 12 months as policymakers implement an ambitious stimulus programme, but investors have remained cautious over the potential for small-cap companies. The IMA's Japan Smaller Companies sector will be home to just five funds following the Threadneedle closure. The trade body expects more offshore funds to join...