Asset management giant BlackRock is set to liquidate its UK Focus fund run by Luke Chappell since inception in October 2011, InvestmentEurope has learned.
The closure of the UK equities fund will be effective on 28 September 2018. In a note sent to shareholders at the end of July, BlackRock said it has concluded to the termination of the UK-domiciled fund following a review.
BlackRock highlighted the size of the fund has reduced to around £52.7m (€59.2m) as of 20 July 2018 ant that the firm does not expect to raise subscriptions in the near future, therefore considering the UK Focus fund as no longer commercially viable.
The manager said the option of merging the fund into another had been discussed but “such a merger would be operationally and legally complex for the fund’s unitholders and the manager of the fund.”
It added six to nine months would be required to implement the merger, a period during which “it is considered likely that the fund will lose a material amount of
its remaining assets.”