The NAV, which was to be independently calculated and declared by [the directors], was fundamental to the applicants` initial investment decisions, decisions to invest additional resources, and decisions to maintain investments over time. The number of shares the applicants received in exchange for their investment amounts depended on the calculations of the NAV [of the trustees]. The applicants` subsequent reported profits also reversed [the trustees`] calculations. Therefore, the applicants necessarily based themselves on the calculations of THE NAV [the administrator]. [5] According to some fund managers, any task necessary to maintain the fund that does not fall within one of the two categories mentioned above could be considered fund management and could be a candidate for outsourcing. This list is not exhaustive and, in particular, when a fund manager has decided to outsource some of these tasks to an external entity, some or all of the Fund`s administrative activities can be characterized as “fund management.” Specific activities that are definitely outside the management of the fund are those directly related to the marketing and development of a collective capital system: Anwar v. Fairfield Greenwich (SDNY) is the main case related to the responsibility of fund managers for non-compliance with their NAV obligations. [3] [4] This was a consolidated proceeding against the defendants, the complainants of investors whose investments in the Bernard Madoff Ponzi system were lost, who provided audit and hedge fund management services. The defendants were companies and individuals related to, among others, The Fairfield Greenwich Group, Citco Group Ltd (Citco) and GlobeOp Financial Services. [3] [4] Investors accused the accused of collecting hundreds of millions of dollars in fees for their services, while ignoring warning signs that should have drawn attention to the existence of Madoff`s fraud. The complainants claimed that they had lost $7.5 billion. [3] [4] The management of the fund is the name of the activities carried out to support the process of implementing a collective investment system, whether it is a traditional investment fund, a hedge fund, a pension fund, an investment fund or an intermediary.
The “credit crisis” of the early 2010s had a significant impact on fund management service providers.
