S&P Fund Services, part of the credit rating agency Standard & Poor’s, said it has dropped ratings on a number of funds of hedge funds that it has put on review for exposure to the US Ponzi scheme fraudster, Bernard Madoff.

The following funds of funds were put on review:

Bonhote Alternative Multi-Arbitrage

Constantia Composite

Constantia Low Volatility

DGC Pendulum Ltd

Dinvest Concentrated Opportunities

Dinvest Total Return

RMF Four Seasons.

“S&P Fund Services has reviewed each of these funds on a case by case basis, focusing on the stated reasons for investing in and continuing to hold Madoff exposed vehicles, and concluded that due diligence fell short of the standard expected of a rated fund,” the firm said in a statement.

“We have therefore changed the rating of each fund to Not Rated, except for Constantia Composite and Constantia Low Volatility. We understand that the mandates of the two Constantia funds are likely to change significantly, but the group has withdrawn from our service so we will not be considering them for new fund ratings in future,” the statement added.