First state global emerging markets "soft closed"

elantan

Hi all,

Got an email for H&L re the above fund, it appears ( although I may have it wrong) that its been soft closed, I have been informed I can still make monthly deposits into it and that I will still receive the discount but that it has been closed to new investors

I was wondering if maybe its time to just let that fund work away in the background ( there is little over £1k in it ... so its not a huge amount) and maybe take out another emerging markets type fund ( will need to have a wee look at them obviously)

I don't feel the need at this stage to pull out of the fund but feel that maybe it's not a great idea to keep ploughing £100 a month into it

Does that sound sensible ?

Linton

In my view "soft closing" is not a reason to stop investing. Soft closing means that the manager believes his fund his growing in size to the point where he could have difficulty finding shares that meet the fund's criteria in which to invest extra money. It is more often found with "Small Companies" funds - there arent enough Small Companies shares around to satisfy all the people who would like to buy the fund without distorting the market. If a very big fund tries to buy shares in a very small company the price will immediately rise possibly to the point where the investment no longer looks sensible.

The fund should still continue to perform. One of my Small Companies funds soft closed, from memory, 2-3 years ago. It has increased in value more than 50% since then.

Suggest you continue to pay in but monitor performance against the other options.

elantan

Thanks

I had read that the reason for soft closing was to do with the size of the fund etc... I spose I should've really realised that my paltry £100 a month wouldn't really affect a fund the size of 4000 odd million:rotfl::rotfl::rotfl:

Will continue to pay into it till maybe next ISA year then just let it work away in the background

Thanks

mf78

I'm in that too, theres been rumours for a while that it was going to soft close. I haven't heard anything via Sippdeal about it though.

takesyourchances

Also in this fund myself and got the email from HL, have another £100 dripping in on the 7th and plan to keep to drip feeding and holding the fund. The recent drops I see as buying chances for the long term.

badger09

elantan wrote: »

Thanks

I had read that the reason for soft closing was to do with the size of the fund etc... I spose I should've really realised that my paltry £100 a month wouldn't really affect a fund the size of 4000 odd million:rotfl::rotfl::rotfl:

Will continue to pay into it till maybe next ISA year then just let it work away in the background

Thanks

Every little helps

droopsnoot

I also have this via Nationwide IPS in an ISA and got a letter last month from them, I have left my drip-feed running into it for now. I did wonder what the difference is between getting money in every month from me vs. getting money in from a new investor. It's my only fund of this type and I've only been paying in for about three months, so early days yet.