Neptune plans to close two income portfolios and will remove income share classes on several other funds at the end of next month.
The portfolio, run by Neptune chief executive Robin Geffen (pictured), has seen lower demand than anticipated and its small size it is not viable to run, the group said. It expects to receive FCA approval to close the fund by 24 February 2014.
Neptune launched the Monthly Income fund in December 2012. In the year to 30 January 2014, it returned 23.3%, compared to a sector average of 16.9%, according to FE. As of 29 January, the fund held less £1m in AUM.
Along with the Monthly Income fund, Neptune will close the UK Higher Income fund, run by George Boyd-Bowman.
It will also close the Balanced fund B Accumulation unit class, the Emerging Markets fund – A Income shares and Emerging Markets fund – B Income shares.
In addition, Neptune’s Cautious Managed fund A Income share class will no longer be available to investors from 28 February 2014.
The group said in a statement: "Neptune regularly reviews its fund range to ensure it meets the requirements of investors. These funds have attracted lower-than-expected investor demand and the costs associated with running the portfolios mean it is no longer in the interest of shareholders to continue offering them."
The costs of winding up the funds will be borne by the group, which is offering investors free switching into another Neptune fund.
