First State Investments have today announced that they are to close their Global Resources capability, which includes a number of strategies managed by the team and both the UK OEIC and Irish VCC versions of the First State Global Resources fund. As such we regret to announce that we have removed the 'A' rating of the First State Global Resources fund.

Given the evolution of the investment market, First State Investments no longer believes that this strategy is commercially viable over the long term. It is currently under discussion as to whether this will result in the sale of the entire Global Resources franchise, or if it will instead be wound up. The managers, Todd Warren and Tal Lomnitzer, will continue to run the fund whilst a final exit strategy is decided.

However, as there is clearly no commitment from the firm for this strategy our continued support of the fund is now untenable and we therefore feel we can no longer recommend this investment to clients.