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Henderson and Bellpenny to end £27m fund deal

A £27m fund set up by Henderson to be distributed exclusively by Bellpenny advisers is to close after it did not attract sufficient inflows.

The Avellemy fund, set up in 2012, currently has £27.3m assets under management.

In a letter to platforms, seen by Money Marketing, Henderson says: “For any fund to be most effective over the long term, it needs to be of significant size in terms of AUM.

“Based on the current AUM of the funds and the fact we believe it is unlikely the funds will attract significant levels of new inflows we believe the Avellemy Oeic will be unable to grow at a rate that would either continue to make it feasible from a commercial viewpoint or enable it to maximise returns for investors.

“The FCA have agreed we can terminate the funds for the reasons stated above.”

The letter says the funds will be terminated on 19 September and any remaining funds will be returned to clients.

But Bellpenny chief executive Kevin Ronaldson says Bellpenny has made a “strategic decision” to end the arrangement.

He says: “Bellpenny has grown significantly since this arrangement was set up and we believe it is in our clients’ best interests to move to a discretionary fund manager arrangement. This will allow us to pass on cost savings to clients as the annual charges will be lower.”

He says Bellpenny is applying for discretionary investment permissions and has appointed an investment manager to manage the funds.

Bellpenny has written to advisers about the closure of the fund this week and will write to clients next week.

Ronaldson says: “We will advise clients to switch their investments to the new fund range, providing it is still suitable for them. We expect that almost all, if not all, clients will do so.

“However, any client which has not taken action by 19 September will have their money returned to them.”

Ronaldson says there was no AUM target for the fund.

Henderson declined to comment further. 


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