Funds run by Odey Asset Management and its affiliate have been facing an uncertain future after many partners started to shun the firm since new allegations of sexual assault surfaced against its founder. But they are still open for business on some retail platforms.
From UK’s largest fund-selling platform Hargreaves Lansdown Plc to AJ Bell Plc and Bestinvest, mom-and-pop investors can buy the funds, even as the money manager bleeds assets and is exploring options to hive them and their employees off.
The call made by these platforms contrasts with a decision by their peer, Fidelity International’s Personal Investing Platform, to stop investments into two Odey funds available for sale on its system last week. Hargreaves Lansdown, AJ Bell and Bestinvest said they have no plans to restrict cash going into these vehicles and that they will leave the choice to investors.
At AJ Bell, the funds are not part of its packaged solutions, while at the other two, they aren’t part of their coverage or rated products, according to representatives for the firms. Platforms reserve the right to restrict funds, but doing so is typically considered an unusual move.
Hargreaves Lansdown’s spokesman Danny Cox said in an email that if the funds were part of the firm’s coverage, they would provide an update to clients.
“This is a fast moving situation with a number of relevant parts,” a representative for AJ Bell said in an email. “There is an FCA investigation and Odey is reportedly looking at moving funds and people to other asset managers. We are monitoring all of that closely.”
On the other hand, Fidelity said in a statement on its website on June 13 that it decided to restrict new investments into the two Odey funds “in the best interests of our customers.”
Investors have been withdrawing capital from Odey and its affiliate Brook Asset Management since the June 8 Financial Times investigation into Crispin Odey’s alleged treatment of women over a 25-year period. The accusations followed similar complaints in the two years since he was acquitted of an assault charge in British courts. Two women came forward to Bloomberg News, another went to the Times of London newspaper. Later, more appeared in a Tortoise Media podcast.
Over the past two weeks, the London-based asset manager has ousted its founder from the partnership, shuttered one fund and suspended four others.
Funds run by the firm have seen their assets plunge as much as 40% since the crisis erupted, according to the latest available data reported by 12 funds and tracked by Bloomberg. All but one — Brook Global Emerging Market — have seen their performance decline during the period.
