Thames River is closing its Irish-domiciled absolute return fund after struggling to attract new inflows.
The fund launched in January 2010 and stood at £45m at the end of September.
Thames River says the decision to close the fund, which is managed by head of multi-alternative Ken Kinsey-Quick and assistant fund manager James Rous, is in the best interests of the fund and investors.
The portfolio will be liquidated as soon as possible. All shares will be redeemed on November 18 and will be closed to new subscriptions.
Investors electing for cash will receive the proceeds within five working days of the final net asset value calculation. Investors will also be able to transfer their holdings to other funds.
In its recent report, Standard & Poor’s described the fund’s performance as “disappointing” but it kept its AA rating.
A Thames River spokesman says: “Since launch, the fund has not grown in size and there is no evidence of substantial interest on the horizon.”
Chelsea Financial Services head of investment products Matthew Woodbridge says: “We are going to see a lot more consolidation in the absolute return sector. There are too many funds chasing too little money.”