Macquarie Group’s asset management unit has pulled the plug on its listed Asian equities business, leading to the closure of some funds.
An investor note from Zenith, obtained by Dataroom, said the ratings house had been notified “of the termination of Macquarie’s Asian listed equities business unit due to a deterioration of its commercial outlook”.
Zenith said the decision included the termination of the Macquarie Asia New Stars No. 1 Fund.
“After 20 September 2022, applications and redemptions were no longer accepted and management fees were no longer charged, with a return of capital expected to be distributed to investors,” the ratings house informed investors.
“Macquarie has advised that proceeds are likely to be paid over several instalments as it may take an extended period to determine the final net asset value of the unit trust.
“Despite the longevity of the Macquarie Asia New Stars No. 1 Fund being a key concern, we remain disappointed with the termination of the product, as we held a high opinion of the experienced investment team.”
The Asia listed equities business – within Macquarie’s asset management arm – is understood to represent a small proportion of what the company manages in Asia across that business. A handful of staff are impacted by the decision, but some may be redeployed.
The closure of the listed Asia equities business is ringfenced from Macquarie’s broader equities and trading operations, which sit within the investment banking unit Macquarie Capital, and are not impacted.
The Macquarie Asia New Stars No. 1 Fund has had a challenging period with returns printing at minus 20.4 per cent for the year ended August 31.
Separately, Macquarie’s former head of investments for Asia listed equities Samuel Le Cornu parted ways with the firm in 2018. He then co-founded asset management firm Stonehorn Global Partners.
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