Henderson soft-closing two UK absolute return funds

Henderson Global Investors is to soft-close its two UK absolute return funds at the end of next month.

The £368m Henderson UK absolute return open-ended fund and the £325.93m Henderson Gartmore UK absolute return Sicav, will both close on November 30.

Both funds are managed by Ben Wallace and Luke Newman. Henderson says it has had to close the funds due to substantial net inflows. It adds that the move is being made to protect the interests of existing investors and to avoid potential performance dilution.

From soft closure, no concessionary terms will be available to new investments into the funds and the full 5 per cent initial charge will apply to such new investments. Existing regular savers will not be affected by the move.

At the inception of the strategy in 2005, the capacity was set at around $2bn (£1.7bn) and the company says this target is in sight.

Bestinvest senior investment adviser Adrian Lowcock says: “The funds have been quite popular in an area that has had mixed performance. It is right to soft-close them. The managers are more comfortable soft-closing them now rather than overshooting. That is a better thing for existing investors.”