Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

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%.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Mark Barnett - part 2: why I'm not buying Lloyds

Mark Barnett - part 2: why I'm not buying Lloyds

In the second part of our exclusive video interview, Barnett explains why he has no intention of buying Lloyds, and where he sees the greatest income opportunities.

Play Wealth managers reveal the best investment ideas of the year

Wealth managers reveal the best investment ideas of the year

From robotics to impact investing, wealth managers share the best ideas they have heard this year.

Play Baillie Gifford's Earnshaw on Xi Jinping's 'new era'

Baillie Gifford's Earnshaw on Xi Jinping's 'new era'

Sophie Earnshaw talks through what Xi Jinping's 'new era' means for investors. and why Chinese tech offers some of best growth stocks in the world.

Read More
Your Business: Cover Star Club

Profile: JM Finn on why the future is with financial planners

Profile: JM Finn on why the future is with financial planners

There is a lot of work on pension consolidation and Sipps have been a big driver there, says JM Finn chief executive

Wealth Manager on Twitter