Vontobel stems flows into blockbuster EM equity fund

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Vontobel Asset Management has ‘operationally closed’ its $4.8 billion emerging market equity fund run by Euro Stars A-rated manager Rajiv Jain, Citywire Global can reveal.

The process means no new money is being accepted in the Luxembourg fund, although existing clients can increase allocations if they wish to do so.

Speaking to Citywire Global, a spokesperson for Vontobel stressed this measure did not amount to a soft closure under the accepted technical definition set out by the fund's guidelines.

‘It is not a soft close. They are not open to new accounts but all the existing clients who wish to increase the money they have invested in the emerging market fund are still welcome to do so,’ said the spokesperson.

It is understood Vontobel first made an effort to slow flows into the fund 12 months ago and has since carried out a gradual process of limiting the size of the strategy over this period.

This marks the latest in a series of high profile funds to take measures in order to control inflows.

Earlier this month Aberdeen Asset Management announced a 2% initial charge on new money being invested in Devan Kaloo's emerging market equity funds.

In the middle of last year First State said it would no longer be accepting new platforms for Jonathan Asante’s First State Global Emerging Markets Select fund or Angus Tulloch’s First State Global Asia Pacific Leaders fund.

Jain announced earlier this month that he intends to hire new managers to bolster the fund management teams on Vontobel’s European and Far Eastern strategies.

The Vontobel Fund Emerging Markets Equity is currently fourth best performing EM equity fund on a three-year, total return basis. It has returned 68.07% over this period, while its Citywire benchmark, the MSCI EM (Emerging Markets) TR USD, rose 24.22%.