CFA Institute clears Cobus Kellermann

International body says it will be taking no disciplinary action.
After more than two years the investigation has been closed. Picture: Shutterstock

The CFA Institute has informed Cobus Kellermann that it has closed its investigation into his conduct. It has also told him that it will be taking no disciplinary action against him.

The Institute, which is has its headquarters in the USA, sets professional standards for investment managers and is the custodian of the Certified Financial Analyst (CFA) designation.

Its investigation into Kellermann began in March 2015 when allegations of fraud were made against Belvedere Management and related companies. Kellermann and David Cosgrove were equal partners of Stonewood Holdings, which was the controlling shareholder of Belvedere and a number of other financial services companies in Mauritius and Guernsey.

Kellermann was also alleged to have mishandled the Strategic Growth Fund during his time as portfolio manager. The fund was suspended in 2013 as it did not have sufficient liquid assets to meet redemptions.

Financial regulators in Guernsey, Mauritius and South Africa were all involved in the matter. However, earlier this year the Guernsey Financial Services Commission ended its investigation and noted that it would be taking no action against Kellermann or Cosgrove.

After more than two years, the CFA Institute has now concluded its process as well. In a letter addressed to Kellermann earlier this month, the organisation’s head of compliance and enforcement, Jeffrey K Stith wrote:

“After a careful review of the information available to us, Professional Conduct has decided to close its investigation and take no disciplinary action. We reserve the right to reopen the matter if we learn of any new or different information in the future.”

In documents seen by Moneyweb, the CFA Institute had requested extensive information from Kellermann relating to a number of companies and funds linked either to him or Stonewood Holdings. These included businesses in Guernsey, Mauritius and South Africa.

Their interest covered Belvedere Management, Four Elements PCC, Lancelot Global PCC, The Two Seasons PCC, RDL Management, Lancelot Management and United Asset Management, which was the investment advisor to the Strategic Growth Fund.

Moneyweb requested further detail from the CFA regarding the investigation and the decision to end it. However it refused to disclose any details.

Brett Ferguson, an investigator for compliance and enforcement would only say: “Our confidentiality policy prevents us from commenting on matters unless and until a public sanction has been imposed.”



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Wonder what Alec Hogg and David Marchand will be saying about this? I can see the lawyers tallying up the damages claims….

….and don’t forget the management at DE VERE investment group, stating the uncovered the fraud (and not part of Kellerman’s scheme).

People in glass houses…..

I wonder what action the FSB Enforcement division will be taking, and against whom in 2018?

Where was Mr Marchand on Steinhoff?

We needed you then Dave but maybe Steinhoff too big for a mickey mouse.

Just hope that CFA institute has more ethics than SAICA and that their investigation has merit and not a cover-up.

With this decision on Kellermann, they’re clearly as incompetent as the FAIS Enforcement Division. Ethics is in short supply in this industry!

Alec Hogg has to do some soul searching and stop being the agent of some interest groups. He is still spinning some good yarns that are not altogether true and some time devoid of truth altogether. I wonder if some disgruntled SNH shareholders will sue him too after the advice given in his column concerning SNH …

End of comments.





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