Janus Henderson will close its UK Strategic Income unit trust on 2 July due to concerns its assets under management (AUM), which stood at £10.8m as of 31 December 2017, meant it was "no longer viable".
In a 30 April letter to investors in the vehicle, which is managed by Janus Henderson's multi-asset team, head of client services at Martyn Bailey said: "The trust is being closed because we believe its small size no longer makes it viable.
"The AUM of the trust…makes it challenging to achieve the desired level of portfolio diversification.
"It is also unlikely that the trust will be able to attract significant levels of new inflows.
"We therefore believe the trust will have limited opportunity to grow at a rate that would maximise returns for investors or continue to make it feasible from a commercial viewpoint."
Bailey added the Financial Conduct Authority had agreed to the trust's closure and deemed it was unnecessary to seek investor approval.
Janus Henderson informed investors dealing in the fund will cease from 12pm on 29 June, to allow for commencement of closure the following business day.
The firm added investors must decide whether to switch to another fund or trust, redeem prior to the closure date or do nothing, opting to receive pro-rata proceeds from the liquidation of the trust as of 2 July.
The unit trust has seen returns of -1.6%, 16.1 and 34.6% over one, three and five years to 15 May respectively, according to FE.
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