US-based asset manager Legg Mason has blamed illiquidity and shrinking assets for a decision to close or merge more than half of its funds domiciled in Luxembourg, as it becomes the latest investment manager to trim its product range amid the distressed global markets.

Legg Mason is shutting down seven funds worth $206m (€155m), and merging 17 funds worth $241m into other vehicles, according to a spokeswoman for the firm.