Henderson to soft close UK absolute returns 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, 2011.

Both funds are managed by Ben Wallace and Luke Newman. The firm said they have had to close the funds due to substantial net inflows. It added that the move is being made in order to protect the interests of existing investors and to seek to avoid potential performance dilution.
From soft-close, 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. The firm has ceased marketing the strategy to new investors.   
At the inception of the strategy in 2005 the capacity was set at around $2bn to ensure the managers were able to invest only in opportunities that directly fitted the strategy’s investment objective to provide a positive return over the long term whether markets go up or down.The firm said this target is in sight and subsequently have decided to soft-close the funds.