Digital Assets Report

Funds, Intelligence, Managers, Weekly UCITS News (Friday)

Like this article?

Castlestone shutters listed funds business

August 14, 2011
- 3:22 pm

Related Topics

Castlestone has taken the decision to shutter its listed funds business which consists of four Dublin-domiciled UCITS funds following a 9 August meeting held by company directors.

Castlestone has taken the decision to shutter its listed funds business which consists of four Dublin-domiciled UCITS funds following a 9 August meeting held by company directors. The four funds are: Aliquot Commodity, Aliquot Agriculture, Alliquot Precious Metals and Intelligent Portfolio Asset Allocation. They were wound down 11 August and despite its offices being raided by the FSA last month Castlestone said it bore no relation to the closure of the funds reported InvestmentWeek, instead blaming market conditions and media reporting of its affairs. It’s certainly been a turbulent period: in May, Irish regulators suspended subscription three of the four UCITS (Aliquot Commodity and Agriculture funds, Intelligent Portfolio Asset Allocation fund), requesting a higher level of disclosure under UCITS IV.

The Central Bank of Ireland and Irish Stock Exchange have been duly informed of the funds’ termination and assets will be liquidated and returned to investors as soon as possible. In a statement, Castlestone said: “We opened the UCITS funds when many investors were concerned about investing in traditional asset classes given what had happened in the global financial crisis. We have not experienced the expected inflows into the funds which would have resulted in the critical mass to make the funds viable over the long term.” It continued: “Following a strategic review, Castlestone concluded that the continued uncertainness and nervousness shown by investors…did not justify the continuation of the UCITS fund range on economic grounds.” Castelstone’s BVI fund range remains fully operational.

Like this article? Sign up to our free newsletter