Lack of demand closes two 7IM funds

Lack of demand closes two 7IM funds

Seven Investment Management will close its two equity value funds, because of a “lack of demand”.

The investment manager will close both its UK and European Equity Value funds at the end of April following a review of its fund range.

A spokesperson for 7IM said: “At 7IM we regularly review our fund ranges as part of our commitment to offering investors the best range of investment opportunities. 

Article continues after advert

“Following a recent review, we have decided to close the funds, primarily due to lack of demand.”

The £13m UK Equity Value fund has seen outflows of £227m over the six months to February, with £182m redeemed in February of this year alone, according to Morningstar estimates.

Data on the European Equity Value fund was unavailable but FE estimates show the fund lost fewer assets than its UK counterpart.

The UK Equity Value fund has lost 30 per cent over the past year, according to FE Analytics, although this is only slightly worse than the IA UK All Companies Sector which lost 28 per cent over the same time period.

This performance is primarily down to a sharp drop in both the sector’s and the fund’s performance over the past few weeks given the economic uncertainty caused by the coronavirus crisis.

The pandemic has toppled global markets and the FTSE 100 has lost 30 per cent since the start of the year.

The £113m European Equity Value fund has not fared much better, losing 23 per cent over the past 12 months. The fund trailed behind its sector slightly, with its peers in the IA Europe excluding UK Sector losing 17 per cent over the year.

The fund’s performance has also tumbled since the coronavirus crisis hit Europe in February.


What do you think about the issues raised by this story? Email us on fa.letters@ft.com to let us know.