Miton to close Jane’s Total Return fund

Jane David Miton 2014Miton is closing David Jane’s Total Return fund as it has dropped to £6.1m in assets under management and is not economically viable.

The fund group said: “The level of assets under management within the fund will no longer be sufficient to make the fund economically viable on an ongoing basis and it is in the best interests of the investors of the fund to seek to close the fund.”

Investors in the CF Miton Total Return fund, which was launched in 2006, will be offered a free switch into any other Capita fund or the chance to redeem their cash.

The fund targeted a return of three-month Libor plus 3 per cent, but has underperformed over most time periods.

Over five years the fund delivered 7.9 per cent compared to the 19.8 per cent return of the benchmark. Over the past year it has delivered a loss of 2.03 per cent compared to a 3.58 per cent gain from the benchmark.

In the first month of the year the fund fell 1 per cent, with Jane saying that market volatility had hit the portfolio.

“Contributors were limited to bonds, particularly our exposure to UK and overseas corporate bonds. All other asset classes detracted, including our exposure to convertibles, equities and alternative investments,” he said in January’s fund commentary.