Prudential to close Maximum Income Trust

Prudential is closing its money market Maximum Income Trust next month after large investors planned to redeem their holdings.

Originally launched by Scottish Amicable Unit Trust Managers in January 1990, the fund is managed by M&G's Ben Lord and had £300m of assets at end 2009. The group says the vast majority of the fund has been owned by a number of corporate investors for several years. "These investors recently notified us of their intention to sell their holdings, and as a result the trust will be of insufficient size to provide the level of diversification we would expect a fund of this nature to have nor will it be possible to manage it cost-effectively," Pru says. Prudential is offering switches i...