Nałożenie kar pieniężnych na AgioFunds TFI SA

The Polish Financial Supervision Authority (KNF) has issued a press release to inform of the imposition of two fines on AgioFunds Towarzystwo Funduszy Inwestycyjnych SA in connection with the valuation of certain bonds of the Abelia Capital Closed Investment Fund, a fund managed and administered by AgioFunds SA
In detail, the company was fined a total of PLN 3,200,000 for not adequately valuing three separate bonds which were part of the investment portfolio of the Abelia Capital Closed Investment Fund, leading to wrong net asset values of the fund on numerous occasions. Specifically, AgioFunds SA applied a write-down to the bonds without reasonable grounds for doing so, simply based on the statements of the issuers that they may no longer pay any interest on the bonds from the fourth quarter of 2017. This lead to reduced NAVs and reduced unit share prices which investors obtained when returning their shares.
The failure to adequately assess the value of the bonds and thus the net asset value of the fund constitutes a violation of § 23 of the regulation on the accounting for investment funds in connection with Article 131 of the Act of 27 May 2004 about investment funds and management of alternative funds.