Nigel Legge calls time on Vinculum

Former Liontrust chief executive Nigel Legge has shut down his quantitative equity boutique Vinculum just two years after it launched its first fund having failed to raise sufficient assets.

In a letter to investors Peter Hugh Smith, chief executive of Vinculum’s authorised corporate director Way Fund Partners, said the FP Vinculum Global Equity fund had remained “very small, to the point where [we] believe that it is no longer economically viable”.

He also refered to the “intention to close the company” as well as the fund.

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The FP Vinculum Global Equity fund was launched in January 2012 and was closed last month with less than £3m in assets. It gained roughly 17 per cent in that time, compared with a 39 per cent rise in the MSCI World index, according to FE Analytics.

Vinculum promoted itself as an alternative to the existing fund management model, promising to take no annual management fee and instead charging only a 20 per cent performance fee on a quarterly basis when its fund outperformed the MSCI World index. A 0.25 per cent charge was paid to the fund’s administrator annually.

Mr Legge and head of marketing Douglas Thursby-Pelham are no longer authorised by the FCA and both now listed as ‘inactive’ on the regulator’s register. According to accounts filed with Companies House, Vinculum made a loss of more than £500,000 in its financial years 2011-12 and 2012-13.

Mr Legge left Liontrust in May 2010 before establishing Vinculum in 2011.