JP Morgan Asset Management (JPMAM) is closing two underperforming funds, including a commodities fund run by Neil Gregson, which has suffered sizeable losses following the sell-off in the mining sector.
The group is liquidating Gregson’s GBP3.6 million global mining fund under pending FCA approval, and the GBP9 million balanced total return fund run by Talib Sheikh, reported Investment week.
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The alarming performance from mining stocks has seen the fund, which was launched in January 2011 to shed 13.9% of its value in 2012, as the issues about slowing growth in China led to savage falls in commodities prices, reported Morningstar.
Gregson will continue to run the GBP1.2 billion natural resources fund, which has also been hit by the same sell-off, and is down 15.3% in 2012.
The balanced total return fund has also fared badly, sitting bottom quartile in the 40-85% shares sector over one, three and five years.
JPMAM spokesperson said: "The funds are being liquidated as part of a comprehensive, strategic review of the overall JP Morgan fund range, in which we sought to simplify and improve our offering, ensuring that shareholders have access to a broadly diversified and innovative product range."
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