Standard Life Investments is preparing to close six manager of manager funds due to a lack of demand.
The six Oeic sub funds include the £84.7m European Equity Manager of Manager, £20m Japanese Equity Manager of Manager, £123m North American Equity Manager of Manager, £33m Pacific Basin Equity Manager of Manager, £40m UK Bond Manager of Manager and £124m UK Equity Manager of Manager funds.
The range was launched in February 2006 and is run by US-based Wilshire Associates.
The funds, which have £425m of assets, are set to close in May.
A Standard Life Investments spokeswoman says the funds were designed for investors looking for exposure to a range of investment managers who are selected for their investment expertise.
She says: “Since these funds were launched, markets have changed and there is no longer the demand for the underlying funds that was originally anticipated, so the decision has been made to close the sub-funds for clients of Standard Life Investments and realise their investments.
“This decision is entirely in line with our strategic priority as providers of innovative fund solutions and will allow us to redeploy resource and expertise into areas that will support our strategic business objectives.”
Chelsea Financial Services managing director Darius McDermott says: “Manager of manager funds are becoming less prevalent as a strategy in this day and age and the market appears to be dominated by the three big players in the shape of Skandia, SEI and Russell, all of which have a significant market share. I expect Standard Life wants to concentrate on its existing MyFolio fund range which has been more popular with investors.”