Majedie Asset Management has closed its UK Income Fund to new investors as the strategy, including mandates alongside the fund, has reached £1.5 billion (€2 billion).
The independent manager launched the UK income strategy about three years ago and the firm, which is based in the UK and manages £11 billion, says it previously committed to limit capacity at the £1.5 billion threshold.
The move is in line with Majedie’s broader policy of limiting capacity in its strategies when asset size become too big.
Capacity has been limited at a level which “Majedie judges will allow for carefully managed inflows over time”, the firm says.
Majedie says it will “recycle any outflows” as appropriate, but will otherwise not seek to establish new client relationships. Existing investors in the fund will be able to add to their mandates on request.
The fund, which is managed by Chris Reid and Yuri Khodjamirian, has returned 19.4% per annum net of fees and with dividends reinvested since inception in December 2011. This compares to 8.8% per annum for the FTSE All-Share Index, as at September 30, 2015.
Rob Harris, chief executive officer of Majedie, says: “For over a decade we have committed to limiting capacity in our various strategies to allow for unconstrained decision making and to protect performance, which can suffer when funds grow too large.”
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