BlackRock has decided to close its £6 million Japan Fund due to its small size, following a recent review.

In a letter to financial advisers, Tony Stenning managing director at BlackRock Fund Managers, said the fund's small size made it uneconomic to manage

He said, 'We have not taken this decision lightly, however the Fund has been in virtually continual decline - in terms of asset size - throughout this decade.

'Indeed, the highest level of assets under management was reached back in March 2000 when the Fund was around £126 million in size.

'The Fund hasn’t been anywhere near this level for a number of years and we have sadly concluded that given its size it is unlikely to attract new investors.'

The managing director said the firm had discussed merging the fund with another BlackRock product with trustee Royal Bank of Scotland, but did not have another fund with a similar investment objective.

He said its FTSE Japan index-tracking passive fund BlackRock Japan Equity Tracker Fund was considered as an alternative.

'The Financial Services Authority has agreed that we can begin winding up the fund and that they will revoke the fund's authorisation when this has been completed,' he added.

The firm said investors could switch into an other BlackRock fund, which would be free from a preliminary charge. It said it would refund a preliminary charge for any units purchased between 1 June 2010 and 2 September 2010.