JB Were a victim of success
JB Were Investment Management has been a victim of its own success, electing to close its small caps fund to retail and wholesale investors to protect its returns.
Yesterday, the group announced it would close its retail and wholesale emerging leaders funds to new investors on the expiration of current prospectuses. The retail fund, which began in November 1994, is scheduled to close on October 21. The wholesale fund, which began in September 1997, will close on November 16.
The $230 million retail fund has been the top performer in small caps over the past year.
JB Were head of retail Jim McKay says the decision to close the funds is a result of the small to mid size market in Australia being very limited.
“At the moment we are more interested at looking after existing investors. They can continue with the funds, with us providing conditions to outperform as we go forward,” he says.
McKay says existing unitholders will not be affected by the funds closure. The portfolio management team that currently manages the emerging leaders funds will continue to manage the funds.
“We are not launching another fund and we view this as a long-term condition, with no plans to reopen the fund,” he says.
The main focus for the group now is the launch of a retail version of its Australian Equities wholesale Fund; a diversified portfolio that invests in quality industrial and resource companies listed on the Australian Stock Exchange. All of JBWere’s Australian equities funds are actively managed by its portfolio management team, focusing on fundamental research to identify undervalued securities.
JBWere Investment Management continues to expand rapidly with assets under management in excess of $3.1 billion.
Recommended for you
The month of April enjoyed four back-to-back weeks of growth in financial adviser numbers, with this past week seeing a net rise of five.
ASIC has permanently banned a former Perth adviser after he made “materially misleading” statements to induce investors.
The Financial Services and Credit Panel has made a written order to a relevant provider after it gave advice regarding non-concessional contributions.
With the election taking place on Saturday (3 May), Adviser Ratings examines how the two major parties could shape the advice industry in the future.
