Fund manager Sanditon to wind up, with two funds moving to Crux

Two of the company’s funds will be transferred to be managed by Crux Asset Management.

Funds and Investment Trusts October 22, 2019 by Tom Bailey

Sanditon Asset Management Group is closing down after the investment company’s board concluded that it was “unlikely to grow profitably over the next few years.”

The asset management company was launched in 2013 and runs several UK and Europe focused investment funds.

Two of the company’s funds will be transferred to be managed by Crux Asset Management.

However, the current managers of the funds will not be moving to Crux alongside the funds.

Instead, the European Opportunities fund will be managed by Richard Pease and James Milne, supported by Roland Grender. The fund’s strategy and mandate will remain the same. The UK Opportunities Fund will be managed by Jamie Ward.

According to Rupert Tyer, Sanditon’s chief executive: “Once the board of Sanditon had made the decision that they were unlikely to grow profitably over the next few years, our sole focus was to find an efficient and timely solution to ensure that investors were not disadvantaged in any way.”

David Tyerman chief executive of Thesis Unit Trust Management, the authorised corporate director for Sanditon, described the transfer of the two funds to Crux as “a no-cost, seamless transition from one management group to another.”

The fate of the rest of Sanditon’s funds is not yet clear.

Sanditon Investment Trust, the company’s closed-ended trust, looks likely to be wound up. In a letter to shareholders, posted on the London Stock Exchange website, the board of the trust urged shareholders to vote to liquidate the trust.

Performance has been poor. Over the past five years the value focused trust has returned 14.4%. In comparison, the UK All Companies sector returned 37% over the same time period.

The company’s other two funds, TM UK Select Fund and TM Euro Select Fund, both employ long and short strategies. Sanditon and the authorised corporate director have remained tight-lipped regarding who will take over the funds, but have “communicated to investors directly” regarding the “alternative arrangements for the funds”.

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