Tuesday, 31 May 2016
Last updated 3 days ago
Apr 1 2010 | 10:39am ET
The Bank of New York Mellon is closing the book on Ivy Asset Management, which is under investigation over investor losses in the Bernard Madoff scandal.
Most of Ivy’s employees have been laid off. BNY Mellon Asset Management is reportedly encouraging Ivy clients to move their money to one of the firm’s other two fund of hedge funds units, EACM Advisors and Mellon Global Alternative Investments.
News of Ivy’s closure comes amidst word that New York is probing the firm’s relationship with the Ponzi schemer Madoff. Ivy clients lost more than $100 million in Madoff’s scam.
New York Attorney General Andrew Cuomo has been looking into whether Ivy did not warn its investors about its concerns about Madoff’s operation, The Wall Street Journal reports. Among the Ivy clients victimized by the $65 billion fraud were several upstate New York pension funds.
Ivy’s closure was first reported by Pensions & Investments.
In January, Sean Simon, Ivy’s CEO and the son of the firm’s founder, left BNY Mellon amidst a restructuring of its fund of funds units. The firm, which BNY Mellon bought 10 years ago, had seen its assets drop from $15 billion in 2006 to just $2.5 billion today. Most of that money is managed on behalf of just a handful of large institutional investors.
At the time, BNY Mellon said the firm would conduct a “strategic review” of Ivy. Yesterday, they said that review was still ongoing.