EquitiesMay 15 2013

Alliance Trust Investments to close European and US funds

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ByBradley Gerrard

Alliance Trust Investments has said it is set to close its European and North American Equity funds and is in “consultation” with the teams which run the mandates.

Ed Troughton, managing director at Alliance Trust Investments, said during the past year the company has retructured its investment team to focus its business on areas of “competitive strength”, including fixed income, global equities and sustainable and responsible investments.

“North American and European equities are not areas that we see as core within our offering and hence we have taken the decision to close these funds,” Mr Troughton said.

“We are in consultation with the members of each team as to their future with the company.

“All clients have been contacted and informed of our plans and will be given the chance to either exit the fund in question free of charge or be offered another choice within the ATI fund range.”

The North American fund, run by Matthew Strachan, has delivered a third quartile return of 31.5 per cent in the three years to May 14 compared to the IMA North America sector average of 32.7 per cent, according to FE Analytics.

However, the European Equity fund has fared better having delivered a top quartile return of 35.4 per cent in three years compared to the IMA Europe excluding UK sector average of 30.2 per cent, the data provider added.

The funds are likely to be closed by June 30.