Majedie soft-closes UK Income fund

Majedie soft-closes UK Income fund

Majedie Asset Management has soft-closed its £1.5bn UK Income fund to new investors.

The group confirmed that existing investors will be able to add to their existing holdings, and said it will follow its “normal policy” of recycling outflows should these emerge.

The fund, run by Chris Reid and Yuri Khodjamirian, has grown quickly in recent months, attracting about £500m in net new assets in the past year.

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Rob Harris, chief executive officer of Majedie, said: “For over a decade we have committed to limiting capacity in our various strategies to allow for unconstrained decision making and to protect performance, which can suffer when funds grow too large.

“It is of course a tribute to the UK Income team’s hard work that the fund has attracted such strong investor support and they can now concentrate on continuing to deliver for existing clients.”

The firm recently proposed lifting the restriction on the number of holdings the fund can hold, in order to ameliorate liquidity issues.

The vehicle currently has a concentrated portfolio of approximately 40-60 holdings, as stipulated by its investment policy. However, the board has proposed to remove this requirement, saying it has become “unduly restrictive”.

Since launch in December 2011 the fund has strongly outperformed the FTSE All-Share index. It has returned 95.6 per cent, compared to the index return of 37.6 per cent, according to Majedie.