BNY Mellon is closing the offshore version of its Absolute Insight fund following a spate of outflows.
The Ucits fund, which is a sub-fund of BNY Mellon Global funds, will be closed on 1 December. The onshore Nurs fund will not be affected.
A spokesperson for BNY Mellon says: “Following redemptions, the size of the fund now prevents it from achieving the economies of scale in ongoing operating costs and hinders it from accessing certain opportunities relevant to its investment strategy. As a result, the decision has been taken to close this fund.”
BNY Mellon has also reduced the maximum dilution adjustment across the BNY Mellon Global funds. Dilution adjustments are charged when large investors buy into or sell out of the fund to cover dealing costs and protect existing shareholders.
The maximum dilution adjustment has been lowered to 2 per cent from 3 per cent of the relevant sub-fund’s net asset value following a review that found the historical dilution adjustment of over 2 per cent was never utilized.
“We decided to reflect this in the prospectus to ensure investor expectations are based on what occurs in practice,” a spokesperson says. “There will be no change to how the dilution adjustment is applied or operates and we anticipate this lower maximum will have no impact on investors.”