Standard Life Investments star manager Harry Nimmo says his soft-closed £1.2bn UK Smaller Companies fund will not reopen “anytime soon” as he plans on growing international funds.
Nimmo’s 19-year old smaller cap fund soft-closed in August 2011 after soaring inflows pushed its assets up to £1.3bn and the fund group moved to protect the interests of existing shareholders. The fund reopened to Hargreaves Lansdown in 2014 but remained closed to other advisers and distributors.
Since then the fund has seen outflows of £600m. Nimmo told Fund Strategy in the last two years, performance has been “reasonable although not spectacular” but inflows have been stronger on SLI’s international small cap strategies.
He says: “[For the UK fund] we had good years in 2014 and 2015, the markets have gone up a lot and that has counteracted the outflows we’ve seen.
“Given that £600m has flooded out, we are not planning to completely open the fund anytime soon. Our strategy now is to grow our international funds with our £600m European Smaller Companies and £370m Global Smaller Companies funds. It is in these two areas that we’ve seen strong money flows in the last year.”