Allianz Global Investors has closed the £10.2m Allianz UK Corporate Bond fund as it had failed to reach critical size.
The company stated: “The fund is no longer commercially viable and is constrained in its efforts to meet its investment objective and policy.”
Managed by Ketish Pothalingam since 2009, the group said it was difficult to maintain a diversified portfolio, while the small assets under management figure also meant transaction costs for trading were high and negatively affecting both the fund and shareholders.
Allianz said it had considered merging the fund but had concluded this “would be inappropriate due to the particular investment objective of the fund”.
Following confirmation from the FCA dealing in the shares of the fund were suspended on May 18 with the underlying investments to be liquidated.
