The Dublin dollar share class could be closed to new investors upon reaching $1.5bn in assets to protect existing investors against liquidity issues, often faced by small cap funds that become too large to maintain the investment strategy.
The 300-position fund, run by William Hench and his team is managed used a diversified, value-driven approach investing in small and micro caps.
Adam Gent, head of UK sales at Legg Mason said no decision was made but it was an option under consideration.
He said: “No decision has been made yet on whether the Legg Mason Royce US Small Cap Opportunity Fund will be soft closed. The fund currently stands at $1.3bn and Bill has a great track record so we are conscious of doing all we can to maintain the purity of that investment performance for existing investors.
According to FE Analytics, over five years the fund has delivered 311.1% against its offshore benchmark peer group of 214.9%.
