Airlie calls time on Concentrated Share Fund

Airlie Funds Management will shutter its Concentrated Share Fund next week following a review.

Magellan Asset Management as responsible entity said: "Given the Fund's small size, which impacts the expense ratio charged to unitholders in the fund, as well as the modest anticipated future demand for the fund, and having considered the alternatives, we have determined that it is in the best interests of unitholders to terminate the fund."

The termination is set for June 24.

Incepted on 6 November 2012, the fund invested in Australian-listed companies and was available to wholesale investors only.

The fund is benchmarked to the S&P/ASX 300 Accumulation Index and carries a management fee of 0.95% per annum. It required a minimum investment of $500,000.

Matt Williams is the portfolio managers of the fund.

Magellan gave investors the option to invest in the Airlie Australian Share Fund - Active ETF (AASF), which mirrors the Concentrated Share Fund's investment strategy.

Airlie will manage two funds going forward, the other being the Small Companies Fund, which has $27.1 million in assets.

AASF was one of four Magellan funds that halted trading on the ASX on the morning of June 19 due to an issue that led Magellan to disclose "market making for the fund has been temporarily impacted by operational issues."

The others affected were the Infra Fund (Currency Hedged) Active ETF, Global Equities Fund (Currency Hedged) Active ETF and Global Fund Open Class Units Active ETF.

Trading resumed for the four ETFs some two hours later. Magellan confirmed that the IT issue stemmed from a third-party provider.

Editor's note: The original version of this article incorrectly referenced the Concentrated Share Fund as having $927m in assets when it had less than this amount and that it was incepted in 2018.