Redwheel continues to rationalise sustainable fund range

Redwheel is to merge away its top-quartile performing UK Climate Engagement fund due to a lack of investor demand, following two closures of funds linked to sustainable investment last year.

A note seen by our sister title Portfolio Adviser said the Redwheel UK Climate Engagement fund will merge into the group’s UK Value fund on 26 February. The UK Climate Engagement fund was run by John Teahan (pictured), while the £62.2m UK Value fund is led by Nick Purves and Ian Lance.

The UK Climate Engagement fund had £33.6m in assets as at 29 January 2026, according to FE fundinfo. In terms of performance, it ranked top quartile over one, three and five years. Over five years to 1 February, it returned 109.1%, compared to the FO Equity – UK average gain of 43.9%.

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Redwheel confirmed Teahan will continue to lead company engagement for the Redwheel value & income strategies.

A statement said: “We periodically review our fund range and may make changes where we identify opportunities. The merger of the Redwheel UK Climate Engagement fund and Redwheel UK Value fund will support greater efficiency and help enable long-term growth for the combined fund.”

In July last year, Redwheel decided to close its Global Climate Engagement fund due to a lack of investor demand, and the group has also confirmed the Redwheel Changing Planet fund closed in 2025.

The company statement continued: “When we review our fund range we may also close funds when we see a lack of investor demand. The Redwheel Changing Planet fund, previously Redwheel Clean Economy, closed in 2025 and the investment team previously running Redwheel Changing Planet continues to run the Redwheel Biodiversity fund.”

The Redwheel Biodiversity fund has $20.3m in assets, and is run by Amanda O’Toole and Sebastien Bidault, who both joined the firm in 2023.

This article first appeared on Portfolio Adviser