'Lack of new investor interest' forces BlackRock to shut $22m China Flexible Equity fund
The fund will be liquidated on 7 November 2023.
The strategy was launched in October 2017 and, according to the company, its net asset value was $22.3m as of 4 September 2023.
The decision to close the fund stemmed from a «lack of new investor interest», BGF chair Denise Voss said in the letter, adding the company does not expect to raise significant subscriptions in the near future.
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She explained that continuing to manage the fund at its current size would result in higher investment costs, which the firm said is «not in the best interests of shareholders».
As a result, BlackRock has stopped further subscriptions to the fund from 24 August 2023. However, outstanding subscriptions from existing regular savers shareholders will be accepted until 31 October 2023, as long as they were agreed prior to 24 August.
BlackRock said shareholders now have three options: switch their shareholding to another of its funds, free of charge; redeem their investments before the liquidation date of 7 November 2023; or have their holdings automatically redeemed when the fund is liquidated.
BlackRock declined to comment further on the closure of the fund.
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