Top equity funds near capacity as ‘great rotation' raises inflows

The ‘great rotation' out of fixed income and into equities is pushing funds' assets towards maximum capacity, which could result in top-performing funds soft-closing in the coming months.

Investment Week understands Richard Pease’s £510m Henderson European Special Situations fund has reached full capacity and the group may announce plans to stem flows shortly. The portfolio has a mid- and small-cap bias, with 75% of assets invested further down the market-cap spectrum. Pease (pictured) has previously told a number of his fund backers the group will cap the portfolio at £500m to protect existing investors. At the end of May, the fund had £393m under management, but during the last seven months assets have swelled to £510m following renewed investor interest in Europe...