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Close joins move into special sits

Close Fund Management is the latest manager to enter the special situations fray with the launch of a concentrated UK smaller companies portfolio.

Close special situations will be managed by Justin Jordan and invest in between 35 and 45 Aim-quoted and fully listed small-cap firms.

The move follows announcements by Norwich Union and Dalton Strategic Partnership that they are to introduce similar vehicles next month.

Interest in special situations funds has spiralled since Fidelity revealed it is to split its flagship 6.5bn special situations fund in 2007.

The Close fund will be benchmarked against the Hoare Govett smaller companies index. It has an initial charge of 5 per cent and a 1.5 per cent annual management fee. Minimum investment is 1,000 or 100 a month.

Jordan says: “We believe UK smaller companies are an under-researched universe offering stronger growth than large companies. We expect to see another year of robust GDP growth, stable interest rates and reasonable valuations, all of which provide a positive outlook for UK equities.”

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