Legal & General is to close its £222m L&G Global Macro Themes fund following a review of its range.
Ben Gill, the fund’s manager, did not run any other mandates and has left the firm as a result.
The fund has seen its assets under management decline by 61 per cent between 31 December 2012 and 31 January 2014, according to FE Analytics.
L&G Global Macro Themes has returned 4.68 per cent over five years to 6 March, while the IMA Specialist sector it sits in has produced a return of 62.87 per cent.
The fund has lost 18.54 per cent over three years, compared with the peer group’s 4.31 per cent average loss.
An L&G spokeswoman says: “The intention to close was notified in the fund manager’s annual report for 2013.
“A submission to seek to wind up the fund has been approved by the Financial Conduct Authority and all external investors have been written to outlining their options.”
Equilibrium Asset Management investment manager Mike Deverell says: “£222m is still a reasonable size and it is strange they decided to close it.
“With funds in the Specialist sector, it is a bit difficult to compare them because this sector is a mishmash of different funds. It can also be a vicious circle for these funds with outflows and underperformance.”
He adds: “But I struggle to think of anything that would return just 1 per cent a year. You would make more in cash.”