From 1 May the minimum initial investment size for new investors will be £50m, firm said, in an effort to ensure that the fund stays nimble.
Gary Kirk, founding partner and portfolio manager explains that current liquidity conditions combined with its high-conviction portfolio made up of a concentrated number of issuers mean the fund is constrained by overall size.
“By restricting inflows into the Dynamic Bond Fund ahead of reaching capacity, we aim to maintain performance, as well as providing a buffer for existing investors so they can carry on using the fund as they have been,” he said.
While it did not put a specific number to that constraint, a spokesperson for the firm said this is not a multi-billion pound fund. The fund currently has around £325m in assets under management following strong inflows over the last 12 months.
Chief Executive Mark Holman said: “Restricting inflows will enable the managers to carry on managing the fund in a truly strategic manner without compromising liquidity, quality or conviction.”
Holman added that the group is planning a new global unconstrained bond fund for launch later in the year.
