The Citizen (KZN)

CFA Institute clears Cobus Kellermann

- Patrick Cairns

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 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.

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