Norwich Union is to close its Japan, Oriental Growth and Cash Deposit funds with combined external a...
Norwich Union is to close its Japan, Oriental Growth and Cash Deposit funds with combined external assets of £9.2m.
The group is looking to focus on what it claims are its key strengths: UK equities, fixed income and property.
Although the three retail funds look bigger because they have some internal life fund assets, in terms of external money, there is only £2.7m in Japan, £4.4m in Oriental Growth and £2.1m in the Cash Deposit trust.
James Bowers, head of proposition development at Morley Fund Managers, said: 'The small size of these funds makes them less viable than they once were. We are not expecting a strong growth in demand in the future. We are taking the proactive stance of pruning back the range as appropriate.'
Investors will have the opportunity to invest in other Norwich Union funds or can cash in their investment. Morley also has Sicav funds in these areas, where investor assets can be redirected.
'This means that if investors want to stay invested in the same asset class, there will be the opportunity for them to do so through another vehicle,' Bowers said.
He added it was unlikely that other funds would be closed. Likewise, there are unlikely to be redundancies as a result of the closures as managers will still operate funds in other areas. The management of the Japanese portfolio was outsourced to Fukoku, a Japanese fund manager operation, several months ago while cash deposits and oriental assets are managed within Morley.
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