The AMF estimates the exposure of French funds that invested in Irish and Luxembourg funds affected by the Madoff affair at approximately €500 million so far.
While the consequences for these investors are certainly prejudicial at the individual level, this figure must be seen in relation to the total of €1.4 trillion under management in French funds. Further, only one hundred or so of the 11,000 authorised funds are concerned.
In all, 92% of the exposure is concentrated in funds that are not marketed to retail investors:- 66% of the risk concerns funds aimed at high net-worth clients;
- 26% concerns funds sold to institutional investors and a limited clientele.
The AMF has asked all management companies whose funds are concerned by this affair to immediately inform their clients individually and to disseminate the information on their website.
The AMF points out that, to date, it has no evidence that any French funds are directly affected by the Madoff affair because, for example, they have placed their assets in custody with an involved company.
The AMF has posted a Q&A on its website to explain the situation to French investors.