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Christmas comes early for culled Turkey fund

Christmas comes early for culled Turkey fund

Charlemagne has shut its 10-year-old Turkey fund after it became uneconomical to run.

‘The directors wish to advise that regrettably the investment manager believes that it is no longer economically viable to continue to pursue the Magna Turkey fund’s investment objective,’ the firm told investors.

‘The investment manager has advised that the level of the Magna Turkey fund’s total expense ratio has reached an unacceptable level,’ the fund’s directors added.

They commented too that the fund was unlikely to ‘reach a sustainable size to reduce the expense ratio in the short or medium term’, so had decided to liquidate the fund.

The Magna Turkey fund launched in 2004, but currently has less than £5 million of assets under management. According to its key investor information document, the fund’s ongoing charge was 4.78% in 2013 for the R sterling share class.

Managed by Stefan Herz, the fund has lost 9.5% over the past three years compared with an average return of 8.6% from its Citywire peer group.

Charlemagne is offering investors the opportunity to switch their holding in Magna Turkey into its other funds free of charge.

This range includes the £25 million Magna MENA fund, which is managed by Citywire AAA-rated Akhilesh Baveja.

This fund has returned 47.2% over the past three years, a top-decile performance in its sector for the period when the average fund has generated 23.5%.

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Profile: The opportunity set that attracted Brett Williams to wealth management

Profile: The opportunity set that attracted Brett Williams to wealth management

Brett Williams is best known for helping to build some of the biggest platforms in the IFA market.He made the move over to wealth management to head SEI’s UK business earlier this year in the belief that this is where the best opportunities now lie.

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