Maia Capital partner Simon Mungall will join the company to continue running the funds and the firm is in discussions with Vincent Ropers to join the team.
Remaining joint partners Chris Ralph and Jason Collins will be leaving Maia with immediate effect.
The Maia brand will be wound down and the growth, balanced and cautious multi-manager funds will be brought in-house with immediate effect.
Ignis says it has been very difficult raising assets for Maia as they launched at the beginning of the credit crisis just under two years ago.
The firm says to raise assets in such an environment would have required some exceptional performance from launch but performance was “a little lack lustre.”
An Ignis spokesman says: “Whilst recent performance has improved, exceptionally difficult market conditions and poor investor sentiment have been the major obstacles to asset growth.
“Relative fund performance has also contributed to the slow gathering of assets from launch. These combined factors put unsustainable pressure on margins for both businesses as a joint venture operation.”
Maia’s multi-manager balanced fund fell 25.3 per cent since launch in October 2007 to June 19 2009.
Maia’s three funds have £104m combined assets under management of which approximately £10m is external funds and the remainder is internal seed capital which Ignis provided at launch.
Due to the split fee structure of the tie-up, Ignis says the entity has become economically not viable for both parties and as such has been wound down and brought in-house.
Ignis sales and marketing director Jonathan Polin says: “We remain committed to multi-manager and have every confidence that under Simon Mungall’s stewardship Ignis’s multi-manager funds will continue their improved performance.
“Our other boutique partnerships continue to go from strength to strength and we will be looking to add further partnerships in the very near future.”