Bennelong Funds Management (Bennelong) and Security Global Investors (SGI) have severed business ties after terminating a management agreement and suspending fund investment and redemptions on two funds.
The termination has prompted Standard & Poor's Fund Services (S&P) to place one of the funds, the Bennelong SGI Global Equities Fund, on hold.
"We will provide further updates as more information from Bennelong becomes available," S&P Fund Services analyst Tom Mills said.
Investment and redemptions in the Bennelong SGI Global Equities Fund and the Bennelong SGI Global Equities Hedged Fund were suspended late last week, a Bennelong company statement said.
"(Investment and redemptions) were suspended on the 10th of February 2011, due to the termination of Bennelong Funds Management's distribution and investment management agreements by global asset manager, SGI," the statement said.
"At present, the suspension is expected to continue for a period of 21 days, during which time Bennelong, as the responsible entity for each of the funds, will consider the future of the funds and take whatever steps are required to protect the interests of the investors in the funds.
"We are currently restricted from providing further detail, but will ensure that all stakeholders are informed accordingly over the coming days."
