Van Eyk acts to protect investors’ interests
Concerns over the market illiquidity of one of the underlying managers that hold the van Eyk Blueprint International Share Fund (VBI) has led to the temporary suspension of applications and redemptions for the fund.
Announcing the suspension last night, van Eyk said the move was made to "protect investor's interests".
"Contrary to our expectations, the underlying manager, Artefact Partners, elected to invest in a portfolio that was not in line with VBI's strategy and objectives," a spokesperson for van Eyk said.
"The investment in Artefact Partners, constituting approximately 32 per cent of the assets of VBI, is not ‘liquid'. Accordingly, VBI has ceased to be a liquid scheme as defined by the Corporations Act.
"As a result, van Eyk and Macquarie Investment Management Limited, the Responsible Entity of VBI, have determined that it is in the best interest of investors to temporarily suspend pricing, applications and redemptions."
Three other funds in the Blueprint Series, with an exposure to the VDI, have also been affected by the suspension.
The funds are the van Eyk Blueprint Capital Stable Fund (VBC), van Eyk Blueprint Balanced Fund (VBB) and the van Eyk Blueprint High Growth Fund (VBG).
"The exposure of these funds to VBI in addition to their existing exposures has resulted in these funds also ceasing to be liquid schemes as defined by the Corporations Act", the spokesperson said.
"The majority of assets in these funds remain liquid and they continue to be invested in accordance with the terms of the Product Disclosure Statements and constitutions of the funds."
AUTHOR
Nicholas O'Donoghue
Recommended for you
Australian fund managers are actively seeking to launch Cayman versions of their funds to attract offshore flows, with Regal Partners set to launch its latest offering this month.
As private markets gain traction in Australia but only a limited pool of talent is available, three recruiters explore whether fund managers should consider looking overseas to find top talent.
With an explosion of private credit managers appearing in the market, two alternatives experts believe a consolidation is needed to maintain the quality of the sector.
Bentham Asset Management has become the latest fund manager to expand its distribution team as it reports increased interest in its credit strategies.
