Neptune Investment Management is considering closing four funds – including three in the Max Alpha range – after seeing weaker-than-expected demand for the products.
Subject to FSA approval, the asset manager plans to close Felix Wintle’s (picutred) £1.8m Neptune US Max Alpha fund, Rob Burnett’s £600,000 Neptune European Max Alpha fund and Chris Taylor’s £400,000 Neptune Japan Max Alpha fund, as well as Taylor’s £3.8m Neptune Green Planet fund.
“Neptune regularly reviews its fund range to ensure it meets the requirements of investors,” the group says.
“These funds have attracted lower than expected investor demand. We believe that the costs associated with running these smaller portfolios mean that it is no longer in the interest of current shareholders to continue offering them.”
A letter informing of the proposed closures has been sent to investors in the funds, who have the option of switching into another Neptune fund or selling their holdings, which will be carried out free of charge.
The asset manager, not the funds themselves, will cover any termination costs.
The three Max Alpha funds in question have performed better than their respective peer groups since launch, with Wintle’s Neptune US Max Alpha fund ranked first quartile since December 2008.
Burnett’s Neptune European Max Alpha fund and Taylor’s Neptune Japan Max Alpha fund both rank second quartile since their launches in December 2007 and December 2009 respectively.
However, Taylor’s Neptune Green Planet fund is fourth quartile in the IMA Specialist sector since its launch in December 2006.