It was “recent.” It was “limited”. And it resulted in “no material impact” on the net asset value of BlueBay Asset Management’s emerging market total return fund.
Yes, the portfolio manager of the fund in question has resigned “following a breach of internal valuation policy.” But it needs to be stressed here that there is no connection between this breach and the fact that BlueBay’s EM fund is down 53 per cent year-to-date. Neither is there any connection between Mr Treacher’s departure and BlueBay’s decision on Thursday to shutter its EM fund.
A 36 per cent fall in BlueBay’s share price to 63p had nothing whatsoever to do with Mr Treacher’s departure or the poor EM investment fund performance or the closure of the fund.
Indeed, BlueBay’s chief executive Hugh Willis confirmed on Thursday that neither Mr Treacher’s departure, nor the rotten performance record, nor the fund closure, “affect in any way our commitment to emerging markets - which remains a core area of specialization for the Company“.
Any other interpretation would be wrong and misleading and Treacherous.
This FT Alphaville post appears as a matter of best practice disclosure only. Any suggestion that the reputation of one individual is being destroyed so as to divert attention from the fact that BlueBay investors have lost substantially all their money would be both inaccurate and irresponsible.
The FSA is investigating. But that’s just a technicality.
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