West Perth-based fund manager NWQ Capital Management has been suspended by the financial services watchdog from providing financial services or raising money for two of its funds.
West Perth-based fund manager NWQ Capital Management has been suspended from providing financial services or raising money for two of its funds until late January, with the financial services watchdog claiming a failure to have sufficient net assets to meet the conditions of its licence to operate.
Established by Jonathan Horton in 2008 as a specialist equity hedge fund of funds investor, NWQ listed former Reserve Bank governor Glenn Stevens as a member of its investment committee and had an estimated $250 million in funds under management.
ASIC said the suspension related to two funds, the NWQ Global Markets Fund and the NWQ Diversified Equity Fund.
NWQ's Fiduciary Fund, which was not listed as a subject of the suspension, has been in operation for 10 years and was its single focus for much of that time.
In more recent times NWQ had widened its offering, opening an offshore US fund and New York office in 2017, an ESG-focused fund in partnership with US hedge fund group Titan Advisors in 2020, and launching an Australian diversified equity fund in May.
The Australian Securities and Investments Commission said NWQ's Australian financial services licence was suspended until January 25 next year. ASIC records show the licence was suspended on Tuesday.
"ASIC suspended the licence because NWQ failed to maintain financial requirements required of an AFS licence holder by not having sufficient net assets to meet the conditions of its licence," the regulator stated in a media release.
"NWQ provides portfolio management services and is the trustee of two wholesale unregistered managed investment schemes, the NWQ Global Markets Fund and the NWQ Diversified Equity Fund."
"The licence suspension means that NWQ cannot provide financial services including issuing any new interests in the schemes."
"However, it may continue to provide financial services that are necessary for, or incidental to the day-to-day operation, winding-up or appointment of a replacement trustee to the schemes."
ASIC said NWQ had held an AFS licence since January 2008.
Mr Stevens is listed as a member of NWQ's five-member investment committee on its website, however his personal LinkedIn profile showed he ceased to be a member of the committee in March, after almost six years in the role.
Other investment committee members listed are: Mr Horton, former Deutsche Bank executive Stephen Kennedy, former GESB chief investment officer Sharon Hicks and NWQ managing director research and former Regal Funds chief operating officer Stephen Baldwin.
