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Columbia Threadneedle to close target return fund

Columbia Threadneedle to close target return fund

Columbia Threadneedle Investments has announced that the firm will close the Threadneedle Target Return Fund on February 28.

The fund is managed by Matthew Cobon, head of interest rates and currency at the firm, and available for accredited investors in Singapore.

Dealing in the fund will be suspended from 12pm on February 27, and the termination process, which takes approximately one month, will begin on February 28.

According to the asset manager, the fund has fallen to a size of about $16.4 million (£13.3 million), which makes it economically unviable to manage.

Following a review, the firm decided to close the fund as it was unlikely to attract new investors in the future.

In terms of fund shutdown dealing, investors have three options to choose from during the entire process starting from December 29, 2016.

Firstly, investors who are currently holding this fund can switch their investment into another Threadneedle fund(s) up until 12pm on February 27, free of charge.

Secondly, investors can sell their investment before the fund is suspended.

Lastly, if investors take no action, then those shares will be redeemed and the proceeds will be sent back to investors.

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