BT fund to wind up

It's the end of the road for a BT multi-asset fund managed by Pendal after 52 years, as investor demand ebbs out.

The BT Institutional Diversified Balanced PST was managed by Stuart Eliot and invested in local and global shares, fixed interest, listed property, and alternatives.

The fund is set to be terminated on April 30.

Pendal head of multi-asset Michael Blayney said it regularly updates its product range based on marketplace changes.

"Balanced Pooled Superannuation Trust (PST) products were a very popular investment vehicle for smaller regulated superannuation funds in the 1990s and early 2000s as they allowed these smaller funds to invest in well-diversified portfolios, with the additional burden of accounting and provisioning for and payment of investment taxation taken care of by the product provider," Blayney said.

"With the consolidation in the superannuation industry over the past 30 years demand for these products has fallen in line with the decline in the number of these smaller regulated funds.

"The product category has declined in popularity because the natural customer base has largely disappeared."

The fund has been around since January 1968 and closed to new investors in 2012. Total funds under management at the end of last year sat at $29 million.

A recent review from the trustee (Westpac Securities Administration) concluded that given the small number of investors and low FUM following the 2012 stop to new investors; it was in the members' best interest to terminate it.

The wind up is expected to be completed and distributions paid in May.

The fund delivered an annualised post-fee return of 5.62% over five years to December end, compared to the benchmark's 7.82% over the same period.

Read more: PendalBT Institutional Diversified Balanced PSTStuart EliotWestpac Securities Administration
Link to something VmAskVeD