A letter dated 18 March seen by International Adviser sent to shareholders by Drake Fund Advisors on behalf of Brighton SPC said the fund’s board of directors had been liaising “extensively” with the investment manager, administrator, sub-administrator and Cayman Island counsel in response to allegations that have the “potential to create a significant increase in redemption requests received, adversely affecting the liquidity of the fund”.
“The concern is that liquidity problems could potentially create a hazardous situation which disadvantages shareholders,” the letter said.
“Although the fund strongly denies the allegations made and intends to vigorously defend them, the fund feels that continuing to operate the fund without taking some kind of remedial action in the interim is inadequate and unfair.”
As a result of this, the fund, which contains several Kijani portfolios administrated by the Belvedere Management Group, has ceased to accept new subscriptions, suspended the calculation of net asset value and net asset value per share, suspended the redemption of participating shares of all classes and suspended the payment of any redemption proceeds presently due and payable until further notice.
Additionally, in a separate letter dated 20 March, the company announced that the previous directors of the fund had resigned and will be replaced by three new individuals, Richard Craddock, Martin Kelly, and Alan Ronald Dulieu.
“The new directors are in the process of being registered with the Cayman Islands Monetary Authority and expect to be appointed immediately upon such registration process being completed,” it said.
