The firm said the termination of the £2.8m Henderson Japan Absolute Return Fund on 20 September was due to its small size, which makes it "challenging to achieve cost effectively the desired level of diversification".
Since it is unlikely to be able to attract significant levels of new inflows, Henderson said it believes the fund would be unable to maximise investor returns or be feasible from a commercial viewpoint.
For this reason, the FSA has agreed the group can terminate the fund without investors’ approval.
Meanwhile, Henderson has proposed a merger of the £41.4m Gartmore Long Term Balanced Fund with the Henderson Diversified Growth Fund, and written to investors to seek approval.
It said the objective of both funds is to seek long-term returns by predominantly investing in other funds, but added the Henderson Diversified Growth Fund invests across a broader asset mix and can also invest in funds that are not managed in-house.
"We believe this broader asset mix combined with more dynamic asset allocation has the potential to deliver attractive long-term returns with potentially lower volatility.
Bill McQuaker, head of multi-asset at Henderson, and Chris Paine will co-manage the newly merged funds.
Finally, the Henderson Equity Income Trust and Henderson UK Equity Income Fund are to be merged into the latter fund with, a move the firm has detailed to institutional investors since there were no direct retail investors in the Equity Income Trust.
