BNY Mellon Global Funds is set to close its £8.7 million (US$14 million) Vietnam India & China fund after losing almost 43% over the past three years.

Managed by Hong Kong-based Hamon Asset Management, the fund will be closed around 6 December after the fund became too small following its losses, Fundweb has reported.

The BNY Mellon Global Funds (BNY MGF) board and Hamon Asset Management have concluded that the small size of the sub-fund may be preventing it from achieving the economies of scale in ongoing operating costs that would serve the interests of investors in the sub-fund.

The five-year-old Vietnam India & China fund aimed for long-term capital growth by investing in listed and private companies in South East Asia.

At first, its performance soared well above the Equity Asia Pacific ex Japan sector before peaking just before Christmas 2010. However, the returns began to fall early 2011 and are now significantly below the sector average.