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 Big City Bright Future

Big City Bright Future

Big City Bright Future, the brainchild of BlackRock, is a three-week work experience programme for school leavers looking to forge a career in the City.

Play Kames' Ennett: Trump good for US high yield, but beware Europe

Kames' Ennett: Trump good for US high yield, but beware Europe

Kames Capital’s head of high yield David Ennett believes the changing political landscape will be a positive for the US, but negative for Europe in 2017.

Play Philip Milburn: why inflation won't run out of control

Philip Milburn: why inflation won't run out of control

Kames bond fund manager views inflation as more of 'scare' than a 'problem' and is positioning his portfolios accordingly.

Read More
Your Business: Cover Star Club

Profile: change is the only constant for Quilter Cheviot

Profile: change is the only constant for Quilter Cheviot

This is not the first time we have profiled David Miller, but at the time of his previous appearance his company looked very different.

Wealth Manager on Twitter