Austock Asset Management has closed its Austock High Yield Fund due to a rise in redemptions and poor future prospects.
According to Standard & Poor's (S&P) Fund Services analyst Anthony Karaminas, the recent rise in redemption requests had increased the fund's exposure to illiquid securities.
"The Austock Asset Management directors hold the opinion that the fund's prospects of attracting new investors are poor, in light of the fund's recent performance," Karaminas said.
S&P has withdrawn its three-star rating on the fund at the request of Austock Asset Management.
The fund was also recommended by Zenith Investment Partners. The rating was removed on June 10. "We removed the rating when we found out that the fund was going to be closed," a Zenith Investment Partners spokesperson said.
As part a strategy to simplify its business Austock Group sold Austock Asset Management to Martin Ryan, one of the founders of Austock in 1991 for a consideration of 3.2 million Austock shares.
In February, netwealth added the Austock High Yield Fund to its netwealth Investment Platform.
