Citywire - For Professional Investors

Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration only takes a minute.

Mirabaud soft-closes Swiss small-cap fund on capacity concerns

Mirabaud soft-closes Swiss small-cap fund on capacity concerns

Mirabaud Asset Management is to soft-close its Equities Swiss Small & Mid fund as it is fast-approaching its CHF1 billion (£774 million) maximum capacity.

The fund, managed by Citywire A-rated Paul Schibli (pictured) and Patrick Huber, reached CHF950 million on 14 March, prompting the move to protect existing investors, which comes into effect tomorrow.

Existing investors will still be able to make additional investments.

Speaking to Citywire Switzerland in September 2016 Paul Schibli, who is also head of Swiss equities at the firm, said it was the right time to switch to value stocks. 

‘Investors got the deflation story wrong. We think that in terms of global growth we are going to see a brighter picture in 2017, especially for cyclical names and financials,’ he said.

Commenting on the soft-closure of the fund, Paul Boughton, head of sales and marketing UK and Northern Europe, said: ‘It is crucial for us to maintain the level of outperformance versus benchmarks that investors expect from us and to protect their long term interests.

'This includes slowing the inflows into funds if we feel that we operate in a limited capacity sector and that these inflows could have counterproductive effects on performance generation, thus on long term client satisfaction.’

He added: ‘Should the fund’s assets continue to grow at the current pace, the board of directors will then consider hard closing the fund.

‘No investors will then be able to invest, until such day when the situation is evaluated again, based on market and liquidity conditions.’

The fund has a strong long-term track record and over 10 years to the end of February has returned 90%, compared to the sector average return of 62.6%.  

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.