Odey AM to close Swan as subsidiary Brook AM gates Developed Markets fund

Odey Asset Management has suspended the Swan fund as it begins the process of closing the vehicle, while subsidiary Brook Asset Management has suspended redemption requests for the Developed Markets fund.

In a letter to shareholders yesterday (12 June), the board of directors said it had decided that following the removal of Crispin Odey as member of Odey AM, it is "in the best interests of shareholders" to close the fund, with proceeds from the liquidation returned to shareholders. 

The company has also gated the Brook Developed Markets fund following a surge of redemption requests, which Odey AM said had exceeded 10% of net asset value.

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"The board believes that applying the redemption gate is in the best interests of all shareholders and will facilitate the management of the redemption requests received in respect of the sub-fund," it said. 

The Odey Swan fund holds €117m in assets under management, according to the company's website, while the Developed Markets fund holds €205m. 

Odey AM will redeem all shares from the Swan fund outstanding no later than the dealing day falling on 4 September 2023. The effective date may be brought forward, but no earlier than 10 July 2023.

The Swan fund has also temporarily suspended the issue, conversion and redemption of shares to facilitate "the orderly wind down" of the fund, effective from 12 June. 

The Swan fund was formally co-managed by Crispin Odey and Freddie Neave but Odey was dropped as manager on 11 June.

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Requests for redemption of the Brook Developed Markets fund received on 12 June will be reduced pro rata, the company said. 

Shares that had not been redeemed will be treated as if a request for redemption has been made in respect of each subsequent dealing day until all shares have been redeemed. 

The suspension and closure comes after the Odey executive committee removed Crispin Odey as a member of the partnership on 10 June and redistributed management of his funds across the remaining team, in the wake of sexual misconduct allegations against the founder.

Yesterday, Odey AM denied it was intending to gate any funds.

Odey Asset Management has been approached for comment.