Columbia Threadneedle announces plans to close UK Extended Alpha fund
14 December 2023 — Columbia Threadneedle announced that it plans to close the CT UK Extended Alpha fund.
Following a continuing decline in assets, the fund’s assets under management have fallen to just £15.7 million*, and the company believes it’s “unlikely to attract new investors in the future”.
Having underperformed the benchmark over the last five years, compounded by lack of interest, the company believes the closure of the fund is in the best interest of investors.
What will happen to investments in the fund?
The fund will be unavailable to buy or sell from 19 January 2024. Any units held in the fund will be automatically sold to cash on 26 January 2024 and the proceeds will be allocated to your account as soon as Aegon are in receipt of them.
What action do you need to take?
Investors can take action before the closing date and so you may wish to consider switching the proceeds into an alternative fund(s). Should you wish to do so please either:
- Manage your account online;
- Call Chelsea on 020 7384 7300 and we will process it for you.
If you do not take any action, the proceeds from the fund will be kept in cash for you.
Unsure where to invest the proceeds?
Chelsea Financial Services does not offer any advice but you may wish to refer to your latest edition of Viewpoint. You may be interested in the award-winning VT Chelsea Managed funds on pages 6-9 or the Chelsea Core Selection on pages 10-15.
*Source: FE Analytics, at 30 November 2023
Past performance is not a reliable guide to future returns. You may not get back the amount originally invested, and tax rules can change over time. The views expressed are those of the author and fund managers and do not constitute financial advice.