GLG Partners will close three of its fixed income funds later in the year, it has emerged, following the departure of the funds' manager.
GLG Partners will close three of its fixed income funds later in the year, it has emerged, following the departure of the funds’ manager.
Earlier today rival investment manager Schroders announced it had hired Gareth Isaac for its London fixed income team, who will join the firm in October 2011.
His departure left a gap in the management of three of GLG’s fixed income funds: GLG Gilt Fund, GLG Core Plus Sterling Bond Fund and GLG Total Return Bond Fund.
Co-manager of the GLG Global Corporate Bond and Treasury Plus Funds Christophe Akel will take over interim management of the three funds. He has worked for GLG since 2005 and used to manage European distressed debt.
But the funds will close this year “due to their sub-scale nature”, said a spokesperson.
“Investors in all three funds will be offered the option of switching into alternative funds in our UK ICVC range without incurring a charge,” the spokesperson added.
Over a five year time horizon, the GLG Gilt fund has performed close to but above the UK IMA Gilt benchmark, with that gap widening since April 2009.
The GLG Core Plus Sterling Bond has meanwhile performed above the IMA Sterling Corporate Bond benchmark since late 2007, with performance improving steadily since October 2009.
GLG’s Total Return Bond fund has had a volatile performance against the IMA Absolute Return benchmark over five years, with performance since early this year below the benchmark.