Threadneedle shuts money market fund

Threadneedle is closing its UK Money Securities fund after it experienced huge losses and redemptions since the start of the credit crunch in summer 2007.

The fund, managed by Paul Witchalls, saw its assets fall from around £520m in May 2007 to around £127m now, according to the firm, which says it has received approval from shareholders and the FSA to begin closure proceedings. Threadneedle says it will not compensate investors for capital losses sustained during investment in the fund, which is expected to close on 14 December, although it will pay for most costs associated with its closure. UK Money Securities invested in a wide range of cash and money market securities and its investment strategy over the past five years has include...