is ready to liquidate its sole mutual fund. And, yes, it is closing locking the doors on its investment advisory firm also. With just $24 million of AUM, the fund lacks enough assets to keep open, according to Rigel's board.
Rigel's board made the news official on Wednesday last week in a filing with the SEC
. In the filing, the board explained that the Rigel U.S. Equity Large Cap Growth Fund
after deciding that "the fund is not likely to reach sufficient size to become economically viable in the foreseeable future."
Meanwhile, Pensions & Investments
' Douglas Appell broke the word
that the Seattle-based growth equity manager sent a letter to its clients announcing that the firm will close on June 30.
According to Google Finance, Rigel's fund held $24.98 million as of close on Friday, and P&I claims that, according to eVestment Alliance, Rigel's overall assets fell from $2.3 billion at the end of 2007 to $516 million on March 31, 2010.
Given that Rigel itself is shutting down, adopting its mutual fund would've made for a tough adoption.
Since 2003, CalPERS
and Strategic Investment Group
(a CalPERS consultant) have held a minority stake in Rigel. In 2006, that stake stood at 25 percent.
Neil Anderson, Managing Editor
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