The £2bn Evenlode Income fund is to introduce a 5 per cent initial charge for all new investors into the fund, with the aim of discouraging new money coming into the high-performing fund.
The Evenlode Income fund has returned 66 per cent over the past five years to 7 March, compared with 44 per cent for the average fund in the IA UK All Companies sector in the same time period.
The fund manager, Hugh Yarrow, said the reason for the additional charge, which is known in the industry as "soft closing" is to protect existing investors in the fund, who will not have to pay the additional charge.
Mr Yarrow said the purpose of soft closing the fund is to allow him and co-manager Ben Peters to maintain the same investment process as they have followed to date.
They believe if the assets in the fund become too large they won't be able to invest in the same way, which would hurt performance for existing investors.
The changes take effect from 1 May.
david.thorpe@ft.com
