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UPDATED: Macquarie-owned Brook pulls the plug

Macquarie-owned fund manager Brook Asset Management is shutting down.

Portfolio manager Andrew South confirmed the situation but told NBR ONLINE he couldn't comment.

All media inquiries were initially directed to One Plus One Communications.

Just after midday, Macquarie's Sydney-based head of public relations, Laura Bramwell, told NBR ONLINE the investment bank would not comment.

Brook's prospectus amendment registered with the Companies Office yesterday – for units in its Brook Alpha, Brook Tasman, Walter Scott Global Share, Brook Premium Share and Brook Income funds – says: “This prospectus ... will be withdrawn on 3 April 2014 and will not be renewed. From that date no further offers will be made and no member of the public will be able to subscribe for new units.”

Brook was set up by Devon Fund Group principal Paul Glass with Simon Botherway and the remaining half was sold to Macquarie Group in 2007.

Messrs Glass and Botherway left the following year and Brook suffered further when Mr Glass acquired Devon Funds Management from Goldman Sachs and lured three key Brook staff – executive director Mel Firmin and portfolio managers Chris Gaskin and Slade Robertson.

That sparked a legal spat which was only settled in 2012.

The once high-flying boutique investment house shed investment funds in 2011, following further staff departures and poor returns, going from $1 billion funds under management to under $100 million.

dwilliams@nbr.co.nz

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Comments and questions
3

Suspect Mr Glass will have a lot more trouble finding a buyer this time around.

But it does illustrate the folly of buying a business where the 'value' can just pack its bags and walk out the front door.

The simple beauty of "caveat emptor". And what of restraint of trade?
Indeed, how simple are the M boys at the M bank?

Transfer of wealth from Australia to NZ. When you think of the millions taken by Macquarie from its EPIC fund, only proper M loses its shirt in NZ to NZers.