Alliance Trust Investments head of fixed income Rod Davidson is leaving the manager, as it closes its Dynamic Bond fund.
Davidson is exiting the firm after five years at the head of the fixed income business. Stuart Steven will take over his role.
Alliance Trust Investments will also close its Dynamic Bond fund after the assets in the fund dropped in size to £4m, following Alliance Trust redeeming around £9m from the fund. Earlier this year Alliance Trust revealed it was reducing its fixed income holdings.
An Alliance Trust Investments spokesperson says: “Absent the trust’s investment, the Dynamic Bond Fund reduced in size to just over £4m and has therefore been deemed no longer economically viable.”
The fund will close on 25 February 2016, following FCA approval.
Alliance Trust Investments says the closure will not impact the Monthly Income Bond Fund and the Sustainable Future Corporate Bond Fund, which “continue to perform strongly and attract capital”.
Alliance Trust has also withdrawn around £35m from the £300m Monthly Income Bond fund so far this year, and has £65m still invested in the fund that it plans to redeem. However, the trust plans to withdraw the remaining money over time, as third-party inflows come in.