RAB Capital is to close its £2.8m European dynamic fund as it is no longer economically viable to run.
European dynamic is a Dublin-domiciled Ucits III Oeic launched in 2003. It is structured as a sub-fund of RAB Investment Funds.
The fund, which has an absolute return mandate, had been a strong performer until the summer of 2008. The credit crunch saw the fund suffer as the managers’ investment in financials fell badly and an over exposure to the mining sector also had an impact. The fund fell 54.2 per cent in 2008 alone.
The managerial pairing of Simon Acton and Alex Codrington began to invest more cautiously and failed to capitalise on the market recovery last year. The pair resigned in October 2009 with Julian Barrell taking over the management of the fund.
RAB Capital was unavailable for comment.