Bennelong Funds Management (BFM) will liquidate its $30 million Bennelong Security Global Investors (SGI) Global Equities Fund and return all assets to investors.
The product was first suspended on 10 February after the termination of BFM’s distribution and investment management agreements with United States-based fund manager SGI.
BFM yesterday revealed SGI decided to shut its global equities office following a business review by parent company Security Benefit, following its acquisition by a Guggenheim Partners-led group of investors.
“Following an efficient review of the trust’s position and consideration of the uncertainty surrounding the SGI team’s dissolution, it was deemed that the most prudent course of action would be to terminate the fund and return the assets to investors promptly,” BFM chief executive Jarrod Brown said.
“While SGI is obligated to manage the fund until early August, Bennelong as responsible entity has made the decision to liquidate and return all assets to the underlying investors.”
Brown said BFM would search for a new global equities partner following the closure of SGI’s global equities office.
“Whilst we’re obviously disappointed our relationship with SGI is coming to an end, our search for new, quality global equities managers is well progressed,” he said.
“We recognise the market is continually changing and that to remain successful, you must be vigilant in looking for new opportunities. As a consequence, we’re always talking to best-of-breed managers and exploring opportunities to expand our suite of capabilities.”
The Bennelong SGI Global Equities fund has added 5.69 per cent since its inception in April 2009.
The SGI global equities team included portfolio managers David Whittall, Scott Klimo, Mark Kress and Yon Perullo.
