Capita to outline future of Cru funds by end of month

Capita is hoping to present investors in the suspended Arch Cru fund range with both the results of the review of underlying assets and a recommendation for the future of the funds by the end of this month.

According to the latest report from the Arch Cru funds investor committee, Capita said it was now working on three options from an original list of 11 for the future of the funds, and is hoping to recommend one by the end of the month. But Capita cautioned that it would take at least three months from proposing a new structure to implementing it, the report claims.

Cru is meanwhile likely to run a series of roadshows for advisers in the event of a proposed restructure of the funds.

The report also claims that Capita would like to be in a position to offer investors a ‘substantive update’ on the review of underlying assets in the fund range, but cautioned that the date could not be confirmed ‘due to the work that still needs to be completed’.

One of the ‘big four’ accountancy firms is conducting the review, and is being provided access to information on the underlying assets of the Channel Islands-listed cell companies that make up the funds. Capita is also being provided with ‘certain details’ as the review, of an estimated 350 assets in the 23 cell companies, progresses, the report states.

Capita has meanwhile urged the directors of the Channel-Islands listed cell companies to ‘provide full disclosure of the underlying assets’ according to the report. Auditors Moore Stephens are currently conducting their audit of March year end accounts for the cells. The reports are due in September, but Capita has urged them to accelerate the process.

Cru managing director Marc Ainscough has claimed in a letter to advisers that the company has opened ‘informal discussions’ with former Arch chief investment officer Michael Derks about replacing Arch as manager of the Arch Cru funds.

‘It may be possible to structure an arrangement whereby investors can continue to benefit from his skills and insight if, say, he would be willing to assume a role alongside Cru as an expert on a formal Joint Investment Committee perhaps alongside an established multi manager research house,’ he said.