Link Fund Solutions has commenced the process of winding up the LF Odey Portfolio fund, it said in an investor letter seen by International Investment's sister brand Investment Week.
LFS, which is the authorised corporate director of the fund, said that after careful consideration and with agreement from BNY Mellon as depositary of the company, it will not reopen the fund and will terminate it "as soon as practicable".
Cash will be returned to shareholders at the earliest opportunity, it added.
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LFS explained the decision to suspend the fund on 15 June was taken to "protect shareholders" following high redemption requests, which would have impacted Odey Asset Management's ability to manage the fund according to its strategy.
The letter stated: "After further discussion with the investment manager [Odey AM], the ACD has concluded that due to the level of expected redemptions the investment manager is aware of should the fund reopen, and there being no reasonable expectation of foreseeable growth for the fund, it is now in the best interests of all shareholders for the fund to be terminated by way of an orderly realisation of the fund's assets."
LFS has made an application to the Financial Conduct Authority to terminate the fund, with the final valuation point set for 10 July and initial distribution expected for mid-July.
It will also retain around £13,000 from the property of the fund to "meet any outstanding liabilities", LFS added.
As a result, any fees payable to Odey AM and LFS will be waived from 1 July.
The LF Odey Portfolio is the second fund to be wound up alongside the Odey Swan fund.
