Impax Asset Management is winding up its UK-based £7.6m IFSL environmental leaders fund after its small size has led to high internal fees hitting performance.
The group says it has applied to the FSA to close the fund and expects the winding up to complete by October 7.
It says it was appointed to manage Skandia Investment Management’s £74m ethical fund in early July and the fund is identical except for an additional ethical screen.
Investors should move into that fund to benefit from the economies of scale that come from its larger size, Impax says.
The group says the environmental leaders fund’s total expense ratios hit 2.5 per cent in recent months due to its small size, making the Skandia fund a better alternative.
The fund was launched in March 2008 under the management of Bruce Jenkyn-Jones and Simon Gottelier.
The market-listed asset manager also runs a Dublin-based ethical Oeic fund and two investment trusts in the space.