First State to ditch global resources fund and team in December
First State Investments has written to investors of the First State Global Resources fund at the end of July to announce the liquidation of the strategy and of the dedicated unit next 11 December 2018.
The company said that for the last 20 years, it has had “an investment team specifically focused on listed global mining and energy stocks.”
“This team has managed the Fund for the last 15 years. However, the group believes that this asset class is becoming ever more specialised, with some investors increasingly using other means to gain investment exposure to these sectors, and has therefore taken a decision to exit its Global Resources capability.”
Last year saw Joanne Warner, former head of Global Resources, leaving First State. She had been replaced by Tal Lomnitzer and Todd Warren.
Assets of the First State Global Resources fund have fallen significantly to $75.7m (€66.3m) as of 31 July 2018 from $579m (€507.9m) in February. First State announced its intentions to wind up its global resources business last February but the company did not give any termination date for the fund at that time.