Nobles Crus, a struggling wine fund listed in Luxembourg, has been forced by the grand duchy’s financial regulator to bar its investors from withdrawing their money and also can no longer sell its shares after running out of cash. The decision by the Commission de Surveillance du Secteur Financier (CSSF) to “temporarily suspend all redemptions and subscriptions” in Nobles Crus came late last month after Elite Advisers, the fund’s managers, admitted they did not have enough cash on hand to meet redemptions “involving considerable sums of money”. Revelations about the fund’s illiquidity follow some of Nobles Crus’ rivals as well as valuation specialists questioning the method by which Elite Advisers calculate the month-on-month increase in the prices of the fund’s bottles. It also coincides with a fall in Nobles Crus’s assets, which slid from €109m in September of last year to €91m at the close of March. The fund revealed the news about its failure to meet redemptions in a letter sent to investors at the start of June. The note implies that a reason behind the spate of redemptions the fund endured are European-wide regulatory changes which make it impossible for Ucits funds to invest in specialised investment funds such as Nobles Crus from the start of next year.[FT]
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