CF Arch Cru Investment Funds – Suspension continuation 3 April 2009 :
CF Arch Cru Specialist Portfolio and CF Arch Cru Investment Portfolio (sub-funds of CF Arch Cru Investment Funds, an Investment Company with Variable Capital) (the "Funds")
Capita Financial Managers Limited (“CFM”) as the Authorised Corporate Director of CF Arch Cru Investment Funds (“the Funds”) wrote to shareholders on 13 March 2009 to advise that dealings in shares of the Funds were suspended with immediate effect. During the suspension no requests to redeem, purchase or transfer shares in the Funds would be accepted.
Dealings in the Funds were suspended because there was significant illiquidity in the assets of the Funds. Following discussions with Arch Financial Products LLP, the delegated Investment Manager for the Funds, we had concluded that the illiquidity was not considered to be temporary and it was therefore considered to be in the best interests of all shareholders for dealings in the Funds to be suspended.
When we wrote to shareholders on 13 March 2009 to inform them of the suspension, the Fund’s prospectus required that the suspension of dealing must not exceed 28 days, and that any extension to this would require the approval of the Financial Services Authority (“FSA”). We have now amended the prospectus of the Funds to align it with new provisions contained within the FSA handbook.
The prospectus of the Funds now requires that CFM and the Depositary formally review the suspension at least every 28 days and to inform the FSA of the review and any change to the information given to Shareholders. In keeping with this requirement we have reviewed whether the exceptional circumstances that gave rise to the suspension of dealing have changed or ceased. Following discussions with Arch Financial Products LLP, the delegated Investment Manager of the Funds, and an examination of the latest asset liquidity position of the Funds, we have concluded that there have been no significant improvements in the liquidity of the assets of the Funds and so, in our opinion, suspension remains in the best interests of all shareholders.
After consultation with the Depositary of the Fund we are of the opinion that it will be necessary for the suspension to continue beyond 9 April 2009, being the 28th day of suspension. This decision has been advised to the FSA.
We are currently:
- Conducting a detailed review of the assets of the Funds
- Conducting a detailed assessment of the liquidity of the underlying assets of the Funds; and
- Considering options for optimising the position of shareholders in the Funds.
We are also conducting a similar exercise in relation to the sub-funds of CF Arch Cru Diversified Funds.
Given that we will wish to take account of the conclusions of this work before determining how best to proceed in the interests of shareholders, we are of the opinion that it is likely that the suspension will need to be extended to at least the end of May 2009. We will, however, continue to keep shareholders informed appropriately of progress and, to the extent possible, the likely further duration of the suspension. If, in the meantime, there is a material change in the circumstances that led to the suspension, then we shall of course consider whether to activate a resumption of dealings in the Funds. We shall write to shareholders at that point to inform them of any such planned resumption.
The interests of all shareholders in the Funds are of paramount importance to us and we are working with our delegate investment manager, Arch Financial Products LLP, and specialist advisers to ensure that our actions best serve those interests.
Please contact us on 0845 6080958 or alternatively email us at technical.services@capitafinancial.com with any questions regarding the suspension of dealings in the Funds.