The fund had daily liquidity unit pricing to meet the demand from retail investors, however, the investment manager felt this pricing constrained the fund’s strategy, AMP Capital Investors senior investment specialist David Dix said. “We felt that the liquidity requirements were no longer appropriate for the fund going forward. Offering daily unit pricing and the liquidity requirements that came with that constrained the fund’s strategy,” Dix said.
About 10 per cent of the fund comes from retail investors. Investors with $5 million will have the option of remaining in the fund.
Investments from other investors with less than $5 million will be redeemed by 15 February 2010.
The fund, however, will remain open for wholesale clients. “We felt that our wholesale clients have a better liquidity match with the fund,” Dix said.
Research firm Morningstar withdrew its recommendation of the strategy following the fund’s closure to retail investors.
