Wealth - Bulletin

Boutique multimanager Crosby Forsyth will close seven funds of funds from which investors have requested to pull over 80% in assets, according to a statement published yesterday, which said the withdrawals reflect redemptions across the industry in the face of turbulent markets.

The Forsyth Global Thematic, North America, Global Emerging Markets, Global Balanced, Global Bond, and Greater Europe funds are all set to close, as is the Forsyth Lodsworth Global Emerging Markets Debt fund.

In a statement published today, the firm said: 'Current market conditions are proving extremely challenging for the asset management industry. Across most sectors, funds are facing increased levels of redemptions in volatile, uncertain markets in which liquidity is scarce.'

The seven funds have received redemption requests for about 81% of their total net asset value, meaning that the net asset value of each of the funds is expected to fall below $10m (ˆ7m) or ˆ10m ($14m)- depending on the fund's base currency - by October 10.

The level of assets means the funds are no longer economically viable according to their directors, and market conditions make it unlikely that inflows will offset redemptions. The company decided to wind down the funds, which it expects to be complete by around November 7.

Crosby did not return calls for comment.

The decision to close the funds reflects difficult conditions for asset managers, but also comes in the face of many European asset managers deciding to keep funds running despite their small size.

Research by Lipper found that over a quarter of all retail funds on offer to European investors hold below ˆ10m in assets.