Henderson Global Investors is shutting its offshore property and pan-European bond fund because of falling assets under management and a failure to hit performance targets.
The Luxembourg-domiciled Henderson Horizon Pan European Bond fund, which is managed by John Pattullo and Jenna Barnard was launched in November 2001, but is due to close on 4 March.
Assets under management in the fund stood at €10m, as at 31 January 2009. Morningstar data shows that during 2008 the European bond category was down 8.4%.
However, the Henderson Horizon Pan European Bond fund was down 13.7% during the same period. The Henderson Horizon Pan European Property Equities Alpha Plus fund, which is managed by Patrick Sumner was launched on 3 December 2007 and is set to shut on 27 March.
It has failed to capture significant investor interest and by 31 January 2009 its assets under management stood at €0.7m.
Morningstar data reveals that during January 2009 the fund was down 12.7%. By comparison, Morningstar's EPRA Europe PR EUR benchmark was down 11% during the same period.
A spokeswoman for Henderson says that during 2008 an extreme level of volatility and illiquidity within financial markets has significantly impacted investment performance. As a result, she says the two Henderson funds have not been able to yield the performance originally targeted, making them "not economically viable".
"It has been a difficult time to get new products up and running. A lot of it has to do with the state of the markets and too much volatility," she adds.
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