Schroders has acted to staunch flows into its catastrophe-bond fund less than a year after its launch.
The Schroder GAIA Cat Bond fund has already passed £470 million of assets since inception in October 2013, and the firm has now closed it to new subscriptions.
‘The fund may reopen in the future when the manager believes that new inflows will not affect performance,’ Schroders stated.
The strategy has returned 20% since launch in August 2011, which incorporates the time before Schroders added it to its Ucits-compliant GAIA platform, with positive returns in 97% of months through that period.
‘This closure reflects Schroders’ commitment to maintain the integrity our funds, to aim to protect performance for existing investors and deliver the fund’s objectives,’ a spokesperson for Schroders told Wealth Manager.
Schroders also manages two other insurance-linked strategies, the Schroder IF Core ILS fund and the Secquaero ILS fund, which both remain open to institutional investors.
Separately, Schroders has shut its US Equity Alpha fund. The £20 million fund was managed by Joanna Shatney until April this year, and then by Matt Ward and Alan Straus. Over the past three years it returned 40.2%, compared with 51% from the S&P 500 index.
It has now been merged into the £478 million Schroder US Large Cap fund, which Shatney also handed over to Ward and Straus in April. It has returned 46.2% over the past three years.
In November last year Schroders shut another of Shatney’s funds, US Alpha Plus; it had launched two years earlier but attracted only £7 million.
A spokesperson for Schroders said US Equity Alpha had been closed because it was ‘too small to be managed cost effectively and is unlikely to grow in the near future’.