INVESCO announced it would close its struggling Singapore mutual funds in an effort to sell its international funds directly to local investors, Reuters reports.
The company sent a letter to unit holders that it will shut its 10 mutual funds in September and offer six new Luxembourg-based funds next week. Investors of record will be given the option to switch to the new funds, the letter said.
"We decided that theres a cheaper way to offer similar investments to investors," said Mah Yeok Fun, managing director of INVESCO Asset Management Singapore.
The move comes on the heels of its joint venture with AIM Investments to merge 20 mutual funds in order to pare costs. INVESCO will offer Singapore investors access to larger Luxembourg-based funds and get rid of its local-end structure, in which it offered feeder funds. Feeder funds are made up of offshore fund assets but are registered in Singapore.
Total assets of the nine equity and one bond fund were a paltry $45.8 million, according to Denver-based fund tracking firm Lipper.