Standard & Poor's (S&P) has placed both Basis Capital's Yield and Aust Rim Opportunity Funds on hold following a lack of communication over recent losses.
"S&P has been unable to secure a meeting with the management of Basis Capital, and to date our phone conversations with the manager have not provided the level of insight we require," S&P fund analyst David Erdonmez said.
Basis Yield Alpha Fund last week informed its investors it had lost around 14 per cent in June, while its Basis Pac-Rim Fund dropped 9.2 per cent.
Basis said the falls took place after bond dealers suddenly marked down the value of the securities, which it said were otherwise fundamentally sound.
