The Spanish National Securities Market Commission has temporaly suspended the suscription and redemption of holdings in the two funds Annapurna and Esfera Renta Variable Internacional.
The suspension, requested by the Spanish manager Esfera Capital Management, is explained by the high exposure of the funds’ assets to certain securities in relation to their lack of liquidity.
Annapurna fund had just over 32% of its exposure to liquid assets while Esfera Renta Variable International had just over 29.15%.
To make the decision, the CNMV has also taken into account that seven Sicavs managed by Esfera Capital, which also had a significant exposure to the same illiquid securities. These Sicavs also requested the suspension of their quotation.
The seven Sicavs are Alfagón 1, Busbac 1994, Geiser Investments 2000, Gestio Plus 2000, Global Stock Picking, Sagitari 2000 and Sigma Activa.
According to the CNMV, Esfera Capital is evaluating – at its request – some potential solutions allowed by the current legislation to resume operations as soon as possible.