FundsNetwork and Cofunds suspended Cru funds before Capita

FundsNetwork and Cofunds suspended buying but not selling of Arch Cru's fund range on their platforms days before fund administrators Capita suspended the funds to all investors.

FundsNetwork 'soft-closed' the funds on 5 March due to 'commercial reasons' according to a spokeswoman while Cofunds suspended buying of the funds on its platform on 9 March after talking to fund managers Arch Financial Products.

But selling of the funds was still permitted until fund administrators Capita suspended the fund to all investors on 13 March.

Both platforms only placed the funds on their platforms in December last year.

Capita suspended the funds on 13 March citing illiquidity issues.

Cru is meanwhile petitioning Arch, managers of the suspended Arch Cru funds, administrators Capita and the Financial Services Authority against a fire-sale of assets.

Cru, which markets the funds, is looking to rally investors against a quick sell-off of the fund range’s assets with an online petition.

The firm, which is chaired by Jon Maguire (pictured) has admitted it is powerless over the future of the suspended funds, and that the process will be determined by Capita, Arch and the FSA.

The petition calls on the three ‘not to liquidate underlying assets held within the Arch Cru portfolios at a time when all asset classes are significantly undervalued in the current economic climate’.

‘Such a “fire sale” would damage irretrievably investor expectations.’