Select high security fund delisted by cayman Islands stock exchange
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The Shepherds Group has shut its London office and website following the closure, suspension and delisting respectively of three of its funds.
The office was closed on 25 March while its website tells advisers and investors to write to a postal address in Essex, south-east England. Mike Abraham, chairman of Shepherds Group, did not return calls to his mobile by International Investment.
This development has come after the Select High Security fund was delisted from the Cayman Islands Stock Exchange on 11 February and Shepherds revealed it was closing the £4m Isle of Man-based Traded Endowment Policies (Tep) fund.
Richard Crawshaw, head of listing at the Cayman Islands Stock Exchange, said the "issuer was no longer suitable for listing". The Cayman Islands is an Inland Revenue-recognised stock exchange so listed funds can be included within UK self-invested personal pensions. If UK policyholders have invested in the Select High Security fund, they will have to redeem their money following the delisting. But Tom McPhail of Hargreaves Lansdown says selling the "fund may be a challenge given it has been delisted".
On 4 March, Shepherds wrote to investors about a change of manager and directors for the fund. This stated that Abraham was to retire as a non-executive director of the fund from 15 March and a new board of directors would be appointed. The other existing director is Jeremy Leach.
Shepherds added: "Once the new board has been appointed, a board meeting shall be convened and it will be proposed that the management agreement between the funds and Shepherds Investments shall be terminated with effect from 15 April and a new Caymans-based fund manager called Managing Partners Limited (MPL), which was incorporated on 6 February 2003, will be appointed as the manager to the fund.
"The manager presently makes investment decisions without the consultation of an investment adviser. It is expected that MPL will recommend to the board that Orwell Investment Management Limited (a UK-based investment manager) be appointed to act as investment adviser to the manager and to the funds with effect from 15 April 2005.
"The manager acts as the promoter to the funds. It is expected that MPL will recommend that Select, a Cayman Islands registered company (and a subsidiary of MPL), will be appointed to undertake the marketing of the funds from 31 March 2005."
Last month, Shepherds had told investors it was closing the £4m Isle of Man-based Tep fund because it was no longer economical to manage.
Shepherds had to suspend its Traded Life Policy (TLP) fund last year after the US Securities and Exchange Commission placed Mutual Benefits Corporation (MBC) into receivership and suspended its licence on 5 May 2004.
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