After a surge of retrievals inflamed by the news, the fund group had lodged a notice of its objective to appoint administrators, City Financial has temporarily paused dealing on its £183 million Absolute Equity fund.

In a written document to the clients, the fund group informed the issues of its financial problems had increased up to the level of client retrievals significantly, which strike a critical point on Monday.

The Chief executive of City Financial Robert Hain told in the letter, “ Redemptions reached a level where the authorized corporate director believed the fund would not be able to fulfill such redemptions without causing significant loss of value to both the redeeming and remaining investors”.

Proceedings in the best interests of clients, the decision to temporarily block the fund was taken. He added, “ We consider that to raise liquidity at any cost i.e at the diminished value of assets, is not in the best interests of all shareholders.”

The Chief executive of City Financial Robert Hain emphasized hassles on the business, the fund of the group ‘continue to operate as usual’.He added, “Our Ucits funds operate as entirely separate legal entities and assets are segregated and held by the independent depository on behalf of the underlying fund investors. ”

He told the suspension of dealing in the Absolute Equity fund was ‘temporary’ and managers David Crawford and Ade Roberts were still free to purchase and shell stocks ‘whilst raising liquidity to meet those redemptions received in an orderly manner ’.

News of the temporary interruption is the latest stunning move in a downcasted few years for the investors in the fund, which plunged 38% over the last 12 months, the largest loss of any fund in the UK.

Related Articles
Next Story
Going Viral
Luxembourg PM Mocks Boris Johnson At Press Meet After His No-Show

Luxembourg PM Mocks Boris Johnson At Press Meet After His No-Show

by Susmita September 17, 2019
Ahead of Monday Brexit talks, British Prime Minister Boris Johnson claimed that he was like the Incredible Hulk, who gets stronger when he gets angrier. Hundreds of demonstrators showed their disapproval through Luxembourg City's medieval streets over his plans to steer the country out of the European Union on Oct. 31. The protests were so strong that Johnson canceled his half of a planned news conference alongside Luxembourg Prime Minister...