cru Investment Management has suspended dealing in its entire Arch cru fund range for illiquidity reasons.
The company will turn down requests to redeem, purchase or transfer shares in the Arch Cru Specialist Portfolio, Investment Portfolio, Income fund, Balanced fund, Finance fund and Global Growth fund.
A statement on the company’s website says, “Capita Financial Managers Limited as the Authorised Corporate Director of the fund has today obtained the agreement of the funds’ depositary (which is responsible for the safe keeping of the assets of the Funds) to suspend dealing in shares in the funds, with immediate effect and until further notice.
“After consideration of all relevant circumstances relating to the funds’ assets, we have, in conjunction with Arch Financial Products, the delegated investment manager, come to the conclusion that current market conditions have led to the significant illiquidity of the assets of the funds and in light of this we consider it is in the interests of all shareholders in the funds to suspend the issue, cancellation, sale, redemption and transfer of shares in the funds.”
The suspension is necessary, says the firm, to prevent a “fire sale of the underlying assets of the funds”, creating losses for investors.
cru says it will keep shareholders informed about the suspension and its likely duration.
Fund of funds performance data