Columbia Threadneedle will close its CT Diversified Monthly Income fund and CT Multi-Manager Investment Trust fund on 20 May 2024, owing to a “continuing decline in assets”.
Investors will have the chance to switch to any other UK range Columbia Threadneedle fund until noon on 17 May, or sell shares until that time. If no action is taken, shares will be automatically redeemed.
See also: Rob Burdett to exit Columbia Threadneedle
In a Q&A document sent to investors, Columbia Threadneedle wrote: “The funds have experienced a continuing decline in assets and failed to attract significant new investment during the last five years which we now consider is likely to negatively impact both the performance of the fund and the costs of operating the fund.
“For these reasons, it is unlikely that the funds will attract new investors in the future. Without additional investment, the funds will become unviable as the decreasing size will make the funds difficult to run efficiently. Furthermore, the charges [investors] pay, known as the ‘Ongoing Charges Figure’ will increase. On this basis, we believe that, overall, the closure of the funds is in the best interests of investors.”
See also: Columbia Threadneedle Fund Watch: 39 funds achieve top-quartile gains over three years
Columbia Threadneedle said while there will be no termination costs for investors, the switching or selling of shares could have implications for capital gains tax.
This article was written for our sister title Portfolio Adviser
