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Kellermann update: Investors in MET portfolio to get their money back

Guernsey regulator finally approves payment, and investors will see no capital losses.

After nearly two years, investors in the MET Global Diversified Feeder Fund will finally be able to access their money. This was one of the funds caught up in the allegations around Cobus Kellermann and David Cosgrove.

MET Collective Investments applied to the Financial Services Board (FSB) in June 2015 to have all repurchases from the portfolio suspended, following actions taken by the Guernsey Financial Services Commission (GFSC). However, MET Collective Investments confirmed this week that money will soon be available for distribution to investors, subject to the company’s normal operational, legal and regulatory requirements.

At June 3 2015, the portfolio’s net asset value was R224 836 614.40 and MET Collective Investments is currently in the process of calculating the growth on this amount after all costs have been taken into account. The company told Moneyweb that it is confident that investors will receive capital growth on their investments of about 10% over the period.

The MET Global Diversified Feeder Fund invested into the Armstrong Global Diversified Fund, a unit trust structure housed in the Trinity Global Fund in Guernsey. This was one of four mutual fund companies in Guernsey with links to Cosgrove and Kellermann that drew scrutiny in early 2015.

The Armstrong Global Diversified Fund was placed in liquidation and some of the money had already become available last year. Last week, the trustees in Guernsey, Royal Bank of Canada (RBC), confirmed that the GFSC had given clearance to release the remainder.

“We have kept constant contact with the liquidators and trustees in Guernsey during this process,”  MET Collective Investments’ CEO Etienne Gouws told Moneyweb. “On Thursday last week, the trustees notified us that regulatory approval was received and they will be making the hard currency proceeds available.”

The good news for investors is that no capital losses have been suffered. Despite the effects of the costs of liquidation and exchange rate movements, the net asset value being paid out is higher than it was when the portfolio was suspended.

MET Collective Investments did continue to charge a management fee during this period, as it continued to be responsible for oversight and facilitating the successful retrieval of the money for investors. The company also incurred  costs itself, such as direct legal fees of £24 577.50 for the period.

“Investors are not bearing any additional costs over and above the MET Collective Investments management fee and other associated fees,” Gouws explained. “We have been asked why we continued to charge management fees, but while we were not actively managing the portfolio, it was still under our license and we were still ultimately responsible for it. It was an ongoing risk for the company.”

While investors can rightly question why the whole process has taken so long, Gouws says that he remains confident that the regulators involved were acting in what they deemed to be the best interests of investors. The process was also outside of the control of anyone in South Africa.

“The main delay was caused by the regulatory and legal process in Guernsey,” Gouws explained. “It took many interactions, follow-ups and briefing of legal counsel in Guernsey before the first 87% was released by RBC. Due to various further events happening in Guernsey, the disinvestment of the remaining portfolios was delayed. All of this was not within the control of MET Collective Investments or the South African regulator.”

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I didn’t follow the whole story in detail. Was Kellerman guilty of any wrong doing or not?

Good question? Where is the FSB in all of this now that all the money in SA is accounted for? (Its like 2 years later, not even to mention @alechogg who cried wolf and all kinds of conversations about smoking guns…)

Regulators in numerous jurisdictions have taken action against various Belvedere entities, with more to come. Kellermann and Cosgrove were an integral part of the deVere network until a few years ago, and you don’t have to go very far to see what that network has done to investors over more than a decade, just look at recent articles on this website.

Investigations are still ongoing in a number of jurisdictions, including in South Africa by the FSB. The Trinity Global Fund was however the only fund that housed FSB-approved funds, and so was the one with most direct interest to South African investors.

One may well ask.

Methinks that there may be a number of experts desperately waiting for the ‘ponzi scheme’ to be real to save their reputations?

So the fund was liquidated and the investors are getting their money back.
Wonder what OffshoreAlert, one David M and “Belvedere Buster” have to say about this, seeing that it does not seem to have been a Ponzi scheme after all.

OffshoreAlert never reported about the MET Global Diversified Feeder Fund. Not once. Ever. OffshoreAlert did, however, report about the various fraudulent acts of Belvedere Management, which comprised dozens of companies, most or all of which have been closed down by regulators subsequent to OffshoreAlert’s article. Among the allegations made by OffshoreAlert was that Belvedere’s Cayman Islands-based Kijani Commodity Fund (part of Brighton SPC) was a Ponzi scheme. Kijani subsequently went into receivership/liquidation and the receivers confirmed that it was indeed a Ponzi scheme and that at least US$83 million of investors’ funds had been misappropriated. Revealingly, Patrick Cairns did not report about this, despite being alerted to it by OffshoreAlert. As should be obvious to readers of MoneyWeb, Patrick prefers stories that show Kellermann and Cosgrove in a flattering light, no matter how inaccurate and silly they are.

I wonder what that nice chappie David Marchant from OffshoreAlert has to say about this?So much for the “largest Ponzi scheme SA has ever known.”

Capital back and 10% growth.

Maybe not great but a MUCH MUCH better return than Nedbank Managed Fund and many other dogs in SA. All that waste (GBP 24577.50) caused by what appears to be unfounded accusations?

Is this the ponzi scheme that caused all the angst raised by that offshore alert guy?

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