Friday, 22 May 2015
Last updated 3 hours ago
Apr 15 2011 | 2:03pm ET
Wells Fargo Advisors is recommending its clients redeem their holdings in the Frontier Funds, a series of hedge fund-like mutual funds managed by Denver, Colorado-based Equinox Investment Management.
WFA spokesman Tony Mattera told FINalternatives that Frontier Funds “was among the list of funds that Wells Fargo Advisors financial advisors were able to recommend to clients but it is no longer, and we did recommend the redemption of these funds.”
In a letter to clients on March 30, 2011, Wells Fargo Advisors explained that the Frontier funds had been under a “hold” status since October 2010, awaiting assessment by a WFA due diligence team. The hold was part of a “comprehensive reassessment of the managed futures offerings made available through Wells Fargo Advisors (WFA), during which some potential issues were identified.”
These issues, says the letter, included “inconsistent application and documentation of the stated investment due diligence process, potential risks associated with self-administering fund operations, potential liquidity and concentrated credit risk stemming from the firm's cash management practices, and potential risks associated with the utilization of total return swaps in select series to obtain certain commodity trading advisor (CTA) exposures, amongst others.”
Equinox, says the letter, “carefully considered these findings and has sought to make corresponding changes in its practices” but the efforts weren’t enough for the due diligence team which recommended that WFA clients redeem assets held in the Frontier Funds.
A call to Equinox for comment was not returned.
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…