Inverco claims managers' autonomy over funds closure
The Spanish asset management industry body Inverco has put forward a proposal to the Spain’s Ministry of Economy consisting on the possibility of enabling fund managers to decide on the funds’ closure once they reach certain volume of assets.
The proposal aims at enabling fund managers to hard-close their funds if they see their work compromised by a very high volume of assets to manage, says Ángel Martínez-Aldama, chairman of the Spanish asset management industry body Inverco.
Usually, when a fund in Spain proves to be successful and wants to limit its assets under management, it tends either to reduce its minimum investment requirement to one share per order, or it raises this entry investment considerably in order to discourage the purchase of new shares.
Santander Asset Management announced recently it would limit the entries to the Santander Small Caps Spain fund following its 220% rise YoY, while both the Magallanes Microcaps Europe and the Magallanes Iberian Equity hard-closed after having reached €100m and €500m, respectively.
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