Columbia Threadneedle is closing its Target Return fund on 28 February due to dwindling assets.
The fund launched in April 2006 and has been managed by Matthew Cobon, head of interest rates and currency EMEA, since February 2012. Over one year the fund has returned 6.5 per cent according to FE data.
Investors have the option of switching into another Threadneedle fund free of charge until 12 noon on 27 February; selling the fund before the suspension or taking no action in which case the proceeds from their shares will be sent to them.
In a letter to advisers, Gary Collins, co-head of distribution EMEA says: “The fund has fallen to a size, £13.3m, which makes is economically unviable to manage and following a review we identified that it is unlikely to attract new investors in the future. We therefore believe the closure of the fund is in the best interests of investors.”