AMP Capital Investors has closed its Total Return Fund to retail investors following a review of the fund's investment strategy.
The fund had daily liquidity unit pricing to meet the demands from retail investors, however, the investment manager felt that this pricing constrained the fund's strategy, according to AMP Capital Investors senior investment specialist David Dix.
"We felt that the liquidity requirements were no longer appropriate for the fund going forward. Offering daily unit pricing and the liquidity requirements that came with that constrained the fund's strategy," Dix said.
About 10 per cent of the fund comes from retail investors. Investors with $5 million will have the option of remaining in the fund.
Investments from other investors with less than $5 million will be redeemed by 15 February 2009.
The fund, however, will remain open for wholesale clients.
"We felt that our wholesale clients have a better liquidity match with the fund," Dix said.
Research firm Morningstar has withdrawn its recommendation of the strategy following the fund's closure to retail investors.
