Funds Hub

Money managers under the microscope

Shadow of Madoff

April 14, 2009

It’s hard enough for fund firms to get investors to put money into markets when stocks are so volatile, but it seems they’re also still having to wrestle with the bad publicity from U.S. financier Bernard Madoff’s giant fraud.

rtr23ea9Ashraf Mohamed, portfolio manager and head of Islamic funds at investment firm Stanlib in South Africa, told the London leg of the Reuters Islamic Banking and Finance Summit that investors are still nervous of another Madoff.

“All they are doing right now is saying we want to make sure there isn’t any risk. One comment is ‘let’s make sure we don’t have another Bernie Madoff situation’,” Mohamed said.

However, he doesn’t seem too worried about a repeat of the massive Ponzi scheme.

“My take is that it’s all hit the fan,” he said. “You don’t need to concern yourself with assets being inflated (or) with people trying to deceive you because that’s come and gone.”

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