Massachusetts' Galvin to probe 'unprecedented decision' by Third Avenue fund

Massachusetts' Galvin to probe 'unprecedented decision' by Third Avenue fund
Massachusetts' Securities Division sent out a subpoena Monday to look into the fund closure and liquidation plan.
JAN 07, 2016
Massachusetts said it's investigating the closure of the Third Avenue Focused Credit Fund. The Massachusetts Securities Division sent out a subpoena today to probe the fund closure and the liquidation plan, according to a statement by Secretary of the Commonwealth William F. Galvin on Monday. “My office is opening this investigation to determine when and how this decision was made and to determine the extent of Massachusetts investors who have been impacted by this unprecedented decision on the part of fund management,” Mr. Galvin said in the statement. Third Avenue officials were not immediately available to comment. (More: Will Third Avenue's woes spread to bond ETFs?) “We had money in that Third Avenue fund, but sold out of it this summer after it got to $3.5 billion and they wouldn't close it to new investors,” said Bradley Alford, chief investment officer at Alpha Capital Management. “I don't know how they can just stop redemptions, and I'm concerned about the message it will send to retail investors,” he said. “This is disastrous in the credit world, and retail investors will be panicking.” Jeff Benjamin contributed reporting to this story.

Latest News

Independent contractor formerly associated with MML Investors Services charged with running Ponzi
Independent contractor formerly associated with MML Investors Services charged with running Ponzi

Trevor Uhls was charged with wire fraud and money laundering in a criminal complaint filed in U.S. District Court for the Western District of Missouri.

Osaic adds $367M multigenerational team from Ameriprise in Iowa
Osaic adds $367M multigenerational team from Ameriprise in Iowa

The multigenerational Cedar Rapids firm is joining through a key OSJ as recruiting competition heats up across the wealth space.

IRS floats eligible investment rules for Trump Accounts
IRS floats eligible investment rules for Trump Accounts

New Treasury guidance sets fee caps, defines index-tracking rules, and bars ESG-linked funds from the tax-deferred accounts for minors

Carson Group adds $405M Northwestern Mutual team in Atlanta
Carson Group adds $405M Northwestern Mutual team in Atlanta

Yari Capital's move to Carson continues a run of additions for the $62 billion firm, days after it hired a veteran recruiter from Osaic.

Wealth Enhancement inks 'coming home' deal with Oklahoma RIA
Wealth Enhancement inks 'coming home' deal with Oklahoma RIA

Servo Wealth Management's $210 million book brings the Minneapolis consolidator's total client assets further past $160 billion.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income