Odey AM subsidiary's LF Brook Absolute Return fund to remain suspended
'We believe it would currently not be possible for the fund to be managed in line with its investment objectives," said LFS
LFS is the authorised corporate director of the Brook Asset Management fund, a subsidiary of Odey Asset Management.
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In the letter, LFS said it decided, alongside BNY Mellon as the fund's depositary, that continuing the suspension of dealings was «the best option» and «in the interests of all investors».
The fund was originally suspended on 12 June, with the update to investors due after at least 28 days from the suspension, as set out by Financial Conduct Authority rules.
In June, LFS said the reason for suspending the fund revolved around the liquidity profile of the strategy as a result of redemptions leading up to the suspension, «combined with a lack of clarity from providers of financial services to Odey AM».
On 30 June, Odey AM announced it was in advanced talks to transfer five funds — including the LF Brook Absolute Return — to Lancaster Investment Management.
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LFS added: «Whilst our discussions with Odey AM and Lancaster IM are progressing well, […] we believe it would currently not be possible for the fund to be managed in line with its investment objectives and in a way investors would expect if the suspension was lifted at this time.
»We will continue to consider all options available to us including, but not limited to, the appointment of Lancaster or another alternate investment manager, a scheme of arrangement into another fund or a winding-up of the fund, and decide on the course of action that is in the best interests of all investors.
«Suspension will cease as
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