UK investment fund focused on British stocks has pulled its £500mln float due to lack of investor interest.
The Tellworth British Recovery & Growth investment trust just over a month ago announced plans to launch with the help of broker Numis Securities.
The fund was to have been run by Tellworth Investments, a boutique investment house, and invest principally in “UK listed companies with a significant presence in the UK”.
But fund managers Paul Marriage and John Warren pulled the launch of the investment trust after failing to attract sufficient money from investors to even reach the minimum funding of £100mln.
"While the investment proposition and investment team have been very well received by discretionary wealth managers and intermediary retail platforms the overall level of demand was insufficient to meet the minimum fund size as set out in the prospectus," it said in a statement.
Marriage and Warren saw stocks such as Hollywood Bowl, Fevertree, Renishaw, Experian, Gooch & Housego, Aveva and Codemasters as ticking the right boxes for the fund, according to reports.
Two other UK focused funds are also looking to float and take advantage of the value in smaller companies trading in London: the UK Buffettology Smaller Companies Investment Trust (BUFF) and the Schroder British Opportunities Trust.
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The Buffettology trust is aiming to raise at least £100mln, while the Schroders trust is planning to raise £250mln.