After seven years, M&G has dropped its absolute return bond fund, blaming a lack of interest from investors.
The investment manager closed the fund in July after admitting it was no longer commercially viable.
The fund was set up in 2016 to give investors an absolute return on their investments using fixed income securities.
However, as appetite for this kind of investment dwindled it meant it was not feasible for the company to keep the fund open, it said.
In an update, published last month, M&G said: “The fund has not generated the expected level of interest from investors and as a result has not attained the size required to make it commercially viable.
“Investor appetite for absolute return strategies has declined in recent years and we therefore believe there is little prospect for the fund’s future growth in the foreseeable future.”
The fund was closed for good on July 13 with shareholders given the option to switch to another M&G investment or sell their shares.
In August 2022, the fund was one of three put under review by M&G for underperforming.
It was managed by Wolfgang Bauer who has been with M&G since 2012.
tara.o'connor@ft.com
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