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Columbia Threadneedle to shut three funds in overhaul

Columbia Threadneedle is planning to shut three funds which are ‘no-longer economically viable’ by 22 March and merge four more into its managed fund range.

Columbia Threadneedle to shut three funds in overhaul

Columbia Threadneedle is planning to close three funds which are ‘no-longer economically viable’ by 22 March and merge four more into its managed fund range.

Threadneedle Navigator Growth managed by Alex Lyle (pictured) and the Threadneedle Navigator Income trust run by Alasdair Ross have fallen in size to a level which makes them economically unviable to run, the company said.

Also to be shut is the £36.7 million Threadneedle Navigator UK Index Tracker trust.

Investors have been given the option to switch their investments to another Columbia Threadneedle fund or sell their shares. Trading of shares in the fund will be suspended on 21 March.

If investors fail to take action their shares will be redeemed for them and proceeds returned.

‘We have considered alternatives to closing the funds, but do not believe that alternative options are appropriate or in the best interests of investors,’ the company said.

Meanwhile, the fund manager announced that it would transfer assets from funds in the same range into its managed fund series following a review that found ‘considerable overlap’ between them.

The Threadneedle Navigator Adventurous Managed trust will merge into Threadneedle Managed Equity fund; the Threadneedle Navigator Balanced Managed trust will merge into the Threadneedle Managed Equity and Bond fund.

In addition, the Threadneedle Navigator Cautious Managed trust and Threadneedle Navigator Growth Managed trust will merge into  the Threadneedle Managed Bond Focused fund and the Threadneedle Managed Equity Focused fund respectively. 

While Columbia Theadneedle stressed that the value of investments would not be affected by the move, it did warn that there would be some differences such as the way certain fees and income are paid.

‘By merging the Navigator funds into the Managed funds we expect that unitholders will pay lower fees than is currently the case. The mergers will also help to simplify our fund range and reduce the overlap between our products,’ Columbia Threadneedle said.

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Alex Lyle
Alex Lyle Average Total Return:
25.26%
57/129 in Mixed Assets - Aggressive GBP (Performance over 3 years)
Alasdair Ross
Alasdair Ross Average Total Return:
23.91%
3/19 in Bonds - Euro Corporates (Performance over 3 years)
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