24th May 2017 – Old Mutual Global Investors has announced that it has closed the Old Mutual UK Dynamic Equity fund to new investments with immediate effect.
The fund, which invests in medium and smaller-sized UK companies, now has £539 million in assets under management and Old Mutual is concerned that, if it were to grow further, it could compromise performance in future.
When funds that invest in smaller companies get too big, they can be forced to put the money to use by buying more companies they don't necessarily like as much, or even buying larger companies. This can mean that performance is impacted negatively.
Existing investors in the fund have no need to take any action, but they do need to know that, should they redeem any holdings, they will not be able to buy them back for the foreseeable future.