Three hedge funds managed by a company ordered to cease investment activity by the Irish Financial Services Regulatory Authority have been voluntarily delisted from the stock exchange in Dublin, the exchange said.
The Avenir, Mespil and 4XiM CMP funds had €15 million in assets when they were deslisted on Tuesday at the request of Broadstone Fund Managment. The company - a unit of Broadstone Capital Group of Mespil Road in Dublin - was directed to cease all investment and advice activity after the discovery of serious regulatory issues in its affairs.
"Those funds had been delisted yesterday at the request of the sponsor," said Tom Healy, chief executive of the Irish Stock Exchange. He was not personally aware of the delistings when contacted on Tuesday evening by The Irish Times. The exchange had not been informed at that time of the regulator's direction on Broadstone, he said.
The regulator has said that there is no threat to the integrity of client funds held by Broadstone Fund Management.
The group's founder, Gerry O'Neill, said investors will be told before the end of the month what will happen to their money. "All investors have been informed and we're awaiting instructions from the fund administrator, JP Morgan Tranaut," he said.
The regulator's spokesman said the direction on Broadstone Fund Management came into force at 5pm on Monday and not Tuesday, as reported yesterday.
A similar direction on another Broadstone unit, Harvest Global Asset Management, was due to come into force at 5pm on Tuesday. However, the regulator lifted that direction shortly before that deadline after Broadsone sold the Harvest Global Asset Management to its top managers.
Harvest Global Asset Management does not manage hedge funds. It manages some €150 million in pension and other investment funds for groups such as Irish Life and New Ireland.
Mr O'Neill, a former head of fixed income trading at ABN Amro in Dublin, said he was unable to say what will happen to the Broadstone group. "The board has been advised not to comment," he said.
In addition to Mr O'Neill, the group's directors are: David Murray of Sandycove, Dublin; Kevin Daly of Denver in the US; and Andrew Michael Wynn of London. John O'Sullivan of Rathfarnham, Dublin, is secretary.
