A fund managed by multi-asset veteran Mark Harris is set to be wound down at the end of the summer.
A letter to shareholders stated that Epic Diversified Income is no longer considered to be commercially viable due to its small size and recent market conditions.
The fund, which is only £5mn in size, is managed by Mark Harris who is a director and fund manager at Epic Investment Partners.
He joined the company in 2019 from City Financial where he headed up the multi-asset team. Before that he ran the multi-asset team at Eden Asset Management.
Harris previously worked at Henderson following its acquisition of New Star Asset Management, leading a team of six managing more than £2bn in assets across a range of funds.
In the letter dated July 4 Matthew Brennan, who is head of investment management oversight at the fund's administrator Valu-Trac, said: “Following consideration of other available options, we believe that termination will protect investors from suffering the effects of increased ongoing charges in the event of other shareholders exercising their right to redeem and ensure an orderly wind-down is possible and so allow monies to be returned to investors in a controlled fashion.
“We therefore believe that the termination of the sub-fund is in the best interests of investors.”
The costs of the termination, which are expected to be around £8,000 excluding VAT plus accountancy costs of more than £5,000, will be covered by the fund.
The process of winding down is expected to start on September 11 and shareholders will be given three options on what to do.
They will be able to redeem their investment, switch it to another fund or do nothing which will see shares redeemed in cash on termination.
The fund, which invests primarily in fixed income adopting a fund of funds approach, was launched in March 2014 and performance has dropped in recent months.
The latest data from October 2022 shows the fund lost 28 per cent over the past year.
tara.o'connor@ft.com
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