A $310 billion asset manager has closed two of its actively managed Australian equity funds.
The Nikko AM Australian Share Value Fund and Nikko AM Australian Share Fund were terminated on 21 September 2018.
Nikko Asset Management Australia said the closures enabled it to "consolidate the product range into a more efficient structure."
Investors impacted by the closures were given the opportunity to switch to the Nikko AM Australian Share Wholesale Fund.
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The fund manager told investors it stopped receiving applications for units after 2pm (Sydney time) on 20 September 2018.
As responsible entity for the two funds, Nikko Asset Management Australia said in a statement it "regularly conducts reviews to ensure that the products we provide our clients are competitive and sustainable."
The Nikko AM Australian Share Value Fund launched in August 1987, benchmarked against the S&P/ASX 200 Accumulation Index.
Investors with a minimum $2000 could invest in the fund that allocated proceeds mainly in financials, materials and energy stocks.
The latest fund update showed ANZ, NAB, Woodside, Westpac, Iluka Resources, Wesfarmers and Oil Search were among its top holdings. The fund was $17.52 million in size.
It charged management fees of 1.99% per annum. It underperformed the benchmark over the last year by 3.49%; over 20 years it outperformed by 0.03%.
Launched in November 1995, the Nikko AM Australian Share Fund had a similar investment purpose but charged lower management fees of 1.35% per annum. The fund was $77.52 million in size.
Brad Potter and Jason Kim were portfolio managers of the funds.