Dublin-based Castlestone Management plc has announced that it is to close its four listed funds and liquidate the business as net asset value of the funds has deteriorated “below a minimum viable amount”.

The news follows on from two months of trouble at the firm following the recent fund suspensions and Financial Services Authority raids, thought the firm stressed that the decision to close the funds was unrelated to these issues.

The firm made the announcement to the Irish Stock Exchange yesterday evening (9 August), confirming that it would be terminating all of its listed funds, comprising the Aliquot Commodity (UCITS), Aliquot Agriculture (UCITS), Intelligent Portfolio (UCITS) Asset Allocation, and Aliquot Precious Metals (UCITS) funds.

The business will subsequently be liquidated through a member’s voluntary winding-up.

Funds will be terminated with effect from 10:00am tomorrow (11 August), but the company said that sales of shares will cease immediately to allow for “orderly realisation of the assets of the company and funds, the calculation of termination expenses and the prompt repayment to shareholders”.

In its statement the company said: “The directors have made such determination following due and proper consideration of issues affecting the funds including current market conditions, that the net asset value of the funds is currently below a minimum viable amount and that it is in the best interests of the relevant shareholders to terminate the funds”.

Speculation has surrounded the firm since June, when three of the firm’s funds – the Aliquot Commodity, Aliquot Agriculture and Intelligent Portfolio Asset Allocation funds – were suspended to subscriptions for ten days, with the group coming under criticism for not providing an official explanation for the suspensions.

The firm was later the subject of further speculation after several key staff, including its head of compliance, resigned in early July. Later that same month the FSA raided two of the firms offices in London and the office of its auditor in Chicester, as part of an investigation that Castlestone described as being of a “purely regulatory nature”.

The statement said that the closure of the Dublin-based listed business has been taken in isolation and does not impact on any other element of the Castlestone Management Limited business.

The group also confirmed that it will continue to operate its British Virgin Islands fund range, which is advised by Castlestone Management Inc.