Quantum Asset Management is the latest group to close its doors to business.
The group announced it would no longer be acting as an asset manager to the UK Absolute Income fund or structured investment plans from June 2.
Mark Mathias, the former chief executive officer of Quantum, has moved to Thames River Capital with Joel Amsellem, fund manager, and the UK Absolute Income fund.
All responsibilities for the structured products range were passed to Keydata Investments before that firm went into administration.
Quantum AM, formerly Dawnay Day Quantum, is best known for its commodity-related structured products. Mathias carried out a management buyout from Dawnay Day, its parent group, which also called in administrators last year.
Amsellem says Mathias will work on a temporary basis at Thames River for a few months to oversee the transition of the UK Absolute Income fund and work on other projects in the quantitative division. Amsellem has joined on a permanent basis to run the fund.
Little is known of what will happen to the Quantum structured investments as a result of Keydata being placed into administration.
Quantum’s statement says: “Keydata have acted as the plan manager for these investments since their launch. They remain in place. They will continue to hold your investments, provide information on valuations, holdings, early redemptions as well as regular statements.”
The Financial Services Authority (FSA) issued a statement on June 8 declaring Keydata insolvent and appointing PricewaterhouseCoopers (PwC) as administrators.
A statement from Dan Schwarzmann, joint administrator at PwC, says several Keydata products did not meet Isa regulations. Tax liabilities arising from non-compliance problems were a factor that led to the FSA’s application to bring in administrators.
Although PwC has been unable to confirm all investors’ assets are safe, it says it is has had about 30 expressions of interest from potential buyers of the business. It hopes to complete a sale by the end of this week. “This will bring some much-needed certainty to the thousands of investors, IFAs, staff of the company and other impacted stakeholders,” says Schwarzmann.
Amsellem joins Thames River