Spain’s Magallanes Value Investors has reopened its Iberian equity fund to investors following the fund’s loss in assets under management.
Spain-domiciled Magallanes Iberian Equity Fund has now around €227m in assets under management compared to the €250m it had reached six months ago.
The assets’ decline, due to the falls suffered by the market over the past few months, has led to the fund’s reopening as explained by Magallanes: “The closing conditions imply that when the fund’s assets are below the closing limit, new subscriptions are again allowed.”
Magallanes hard-closed its Spain-domiciled Magallanes Iberian Equity fund after the strategy reached €500m in assets under management in June.
The closure was in line with the fund’s prospectus that said that once the fund reached €250m in assets under management, participants would not be allowed to make anysubscription and each new participant would be entitled to maintain just a single share of the fund in the event of reimbursements resulting in a 5% decline of the fund’s AUM in a period equal to or less than 10 days.
The closure of Magallanes’ Iberian Equity fund seeked to protect capital and generate long term superior market returns, according to the company.
The Magallanes Iberian Equity fund is a mutual strategy that invests in a portfolio of equity securities of companies domiciled in Spain and Portugal, but may include securities listed in other OECD countries.
Magallanes is also opening its Microcaps Fund to investors, which now has some €88m in AUM, and had previously closed when it was managing over €100m in assets.