Asset management firm East Capital has suspended trading on two China funds in order to change the legal structure of the portfolios and add them to its SICAV range.
The East Capital China East Asia Fund and the East Capital China Fund are closed between February 3 and February 10 in order for the legal change to take place. The funds will reopen on February 13.
The two funds will be renamed the East Capital (Lux) – China East Asia Fund and the East Capital (Lux) - China Fund.
The two newly-created sub-funds, referred to in legal documentation as ‘receiving funds’, will be added to East Capital’s SICAV range.
In a note sent to investors, East Capital said management of the portfolios will remain the same, as will the investment approach.
Explaining the rationale for the change, East Capital said: ‘An investment company with variable capital is considered a more attractive fund structure for many investors, and this increased marketability will in turn enhance the sub funds’, respectively the [two] receiving funds’, prospects of gathering additional assets and so improve the efficiency of the portfolio.’