Neptune has confirmed plans to shut the £3.5m Neptune Monthly Income fund run by Robin Geffen and the £0.2m Neptune UK Higher Income fund co-managed by George Boyd-Bowman and Ian Sealey.
In a statement the company said: “These funds have attracted lower-than-expected investor demand and the costs associated with running the portfolios mean it is no longer in the interest of shareholders to continue offering them.”
The Monthly Income fund was launched in December 2012, and in spite of its small size has performed well with a return of 21.58 per cent for the 12 months to January 30, according to FE Analytics. This beat both the IMA UK Equity Income sector average of 15.8 per cent and the FTSE All-Share return of 9.8 per cent.
In contrast the UK Higher Income fund, launched in September 2010, has struggled. In the same 12 months it returned 7.6 per cent compared with the IMA UK Equity & Bond Income sector average of 10.5 per cent.
Neptune added that it will cover all termination costs related to the closures, and that investors in the funds have the option to switch into another Neptune product free of charge.