Advisers have questioned JPMorgan Asset Management’s decision to soft-close its £2.7 billion Luxembourg-domiciled global natural resources fund without looking at future asset flows into the £2.5 billion onshore version.
Last month, Money Marketing, Fund Strategy’s sister publication, revealed that as of December 10, 2010, all future investment into the global fund is restricted to existing investors only. It is understood the portfolio management team has expressed concern that if assets continue to grow, it could affect the management of the fund and force a hard closure.
The flagship JPM Natural Resources fund has been managed by Ian Henderson since 2000 and operates a similar strategy to the offshore version.
Andy Merricks, head of investments at Skerritt Consultants, says: “I take it as a hint that something may happen with the UK version. We may see a new version created with a similar strategy.” (article continues below)
Ben Yearsley, investment manager at Hargreaves Lansdown, says: “Maybe they think if more assets are to come into the range, it would be best that they come into the UK as it is their only real big seller in the market.”
Mike Parsons, head of UK retail sales at JPM, says: “We chose to slow assets into the Sicav as these assets tend to come in great quantities from a small number of organisations. The UK offering remains open.”