HSBC Global Asset Management UK is closing its the HSBC MSCI EM Far East UCITS ETF (HMFD) owing to a lack of investor demand.
The total net asset value of the ETF has fallen to $33m, below HSBC's threshold of $50m, at which it has the discretion to terminate a fund.
HSBC said it considers it "unlikely" that the total net assets of the fund would increase sufficiently in the future to justify the continuation of the fund.
The fund will close next month on 6 July 2022 and will redeem all shares to investors.
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It was first launched in 2010, investing in emerging markets and aimed to replicate the performance of the MSCI EM Far East index, which measures the largest companies in China, Indonesia, Korea, Malaysia, the Philippines, Taiwan and Thailand.
The fund's three largest holdings were in Taiwan Semiconductor Manufacturing Company, Tencent and Samsung Electronics, as of the end of last month.
The Asian equity fund had been managed by HSBC's Index and Systematic Equity Portfolio Management Team and has management fees of 60bps.
