M&G Investments is set to close down its Global Real Estate Securities fund following a review sparked by manager Gillian Tiltman’s exit last year.
After Ms Tiltman had left to join Neuberger Berman in August 2014, M&G had launched a review of the fund.
The firm announced today that the review had found the fund “is not commercially viable in the long-term and therefore closure is in the interests of existing fund shareholders”.
Gary Cotton, chief executive of equities, said: “The M&G Global Real Estate Securities fund has failed to attract the level of interest we expected from external investors.
“Gillian’s departure triggered outflows so it has become increasingly difficult to manage the fund in a cost-effective way.”
Between the end of July 2014 and January 2015, the fund suffered a 35 per cent drop in assets, from £134.6m, as investors sold out.
The fund will be wound down on May 22, until which time it will continue to be managed by Richard O’Connor, who took over when Ms Tiltman left.
As well as the closing fund, Mr O’Connor also manages the M&G Index Tracker fund and the M&G Fund of Investment Trust Shares fund.
M&G said shareholders in the Global Real Estate Securities fund have been given the option of redeeming their shares or switching to an alternative M&G fund