Edinburgh Portfolio is preparing to contact unitholders in the Portfolio Japan fund to offer them a ...
Edinburgh Portfolio is preparing to contact unitholders in the Portfolio Japan fund to offer them a free switch into the Edinburgh Tokyo unit trust.
The £8.4m Portfolio Japan vehicle, which has a fund of funds structure, is seen as being too small to be viable.
While no final decision has been taken, managing director Paul Talbot told Investment Week he was '90% certain' the Japan fund would close in the not-too-distant future.
Should this occur, he continued, the group would put the fund into liquidation rather than retain the shell structure.
Two of Portfolio's funds have even fewer assets ' Technology has just £1.8m while Managed Recovery has £0.5m.
Talbot said: 'We're very happy with the technology fund. Over the foreseeable future, it will continue to operate as it's doing very well in a difficult market.
'We feel that when investors eventually turn back to technology, the fund of funds option is likely to prove very attractive to them.'
Referring to the Managed fund, he said its future was not quite so clear. The fund was launched a few months ago as a value option and, while assets under management had not grown as quickly as hoped, Talbot said that it was the top-performing fund in its sector.
He added: 'We're reviewing the situation at the moment but no decision on its future has yet been taken. However, I feel that if it's not broke, why fix it? That said, we obviously can't continue to offer a fund that investors don't want.'
Harry Morgan, managing director of the Edinburgh Portfolio's private client business, said the training of the sales force in Portfolio products would be completed by the end of the year. Up to 12 Portfolio employees have also been made redundant, predominantly in the support areas of administration, finance and marketing.
Talbot said: 'All of these functions are being centralised in Scotland and those who are being made redundant either did not wish to move to Scotland or had no position to go to.'
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