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Neptune closes two income funds
by Robert St George on Jan 31, 2014 at 10:31
Two recently launched Neptune income funds are to close, the firm has confirmed.
Subject to approval from the Financial Conduct Authority, the £3.5 million Monthly Income and the £0.2 million UK Higher Income funds will be wound up. The former launched in December 2012 and the latter in September 2010.
‘These funds have attracted lower-than-expected investor demand and the costs associated with running the portfolios mean it is no longer in the interest of shareholders to continue offering them,’ Neptune stated.
The group added that the termination costs incurred would be covered by Neptune and not paid by the funds themselves. Investors in the funds will have the option to switch into another fund managed by Neptune or to sell their holding, which will be carried out free of charge.
Monthly Income, managed by Robin Geffen, has returned 29% since inception compared with 16.5% from the FTSE All Share. UK Higher Income, co-managed by George Boyd-Bowman and Ian Sealey, has returned 32.5% over the past three years compared with 37% from its IMA UK Equity & Bond Income sector.
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