BT Investment Management (BTIM) has announced that the BT Global Return Fund (BT GRF) will be terminated effective today.
This means the fund will be closed to all new investment, its assets sold and the net proceeds, when received, returned to unitholders.
BTIM had suspended applications into and redemptions from the fund since 19 December 2008.
BTIM said winding up of the fund was in the best interest of all investors for reasons including that a substantial portion of the fund was not available to meet redemptions.
"To lift the suspension and reopen the fund for redemptions would mean that more liquid assets would be used to satisfy redemptions, leaving continuing investors with an increased exposure to less liquid assets," BTIM said.
"There is significant uncertainty as to when the current suspension of redemptions from the fund could be lifted to enable withdrawals to be paid.
"Termination of the fund, the sale of its assets and the payment of the proceeds as they are received on a pro rata basis to all investors is the fairest and fastest way of providing liquidity from the fund to all investors without disadvantaging any group of investors."
The product's underlying manager was US fund-of-hedge-funds manager Grosvenor Capital Management. BT GRF lost 28.65 per cent post-fees for the year to February.
The decision to suspend applications and withdrawals was made to protect the interest of BT GRF investors, following notification from Grosvenor of their intention to designate a portion of the less liquid assets of the Grosvenor Master Fund from which BT GRF obtains its investment exposure, BTIM said last year.
Separately, BTIM said realisation of fund assets will result in a $700 million reduction of funds under management from its 31 March balance of $30.6 billion, which is expected to occur over several years.
