From June 30, the fund house said it has decided to close LionGlobal Asia Infrastructure Fund and LionGlobal Aspac Recovery Fund and has accordingly given a three months notice to unit holders.
The Asia infrastructure fund with assets worth SGD 12.1m has an expense ratio 1.85% as of 30 June 2013. Similarly, the Aspac Recovery fund managing assets worth SGD 7.5m as of January-end had expense ratio of 2.25% on 30 June 2013.
“We believe that at such a high expense ratio, the fund will not provide a favourable rate of return to its unit holders and it would be prejudicial to your interests as a unit holder to continue operating. Therefore, we believe that it is in the interest of unit holders to terminate the fund,” the fund house said in a notification.
Investors have been given an option to switch into LionGlobal Asia Pacific Fund, LGlobal Funds – Asian High Dividend Equity or any other funds managed by the fund house until 13 June, without any levy of switching charges. Unit holders can also opt for realisation of fund proceeds until 30 June.
Alternatively, investors can opt to stay invested in the schemes, wherein they need not take any action and they would receive redemption proceeds on fund termination.
From 30 April, the investment manager will not accept any new subscription or switching into these two funds.
Lion Global Investors is 70% owned by Great Eastern Holdings, a subsidiary of OCBC Bank, and 30% owned by Orient Holdings, a wholly-owned subsidiary of OCBC Bank.
The fund house manages assets worth S$30.8bn ($24.4bn) as at 31 December 2013.
