Capita extends Arch Cru suspension, says CIO

Arch has confirmed that the suspension of the Arch Cru funds will be extended until the end of May.

In a statement prepared for the Cru investor meeting in London Michael Derks, chief investment officer of Arch Financial Products, said: 'The decision to suspend was taken due to a lack of liquidity in the funds' underlying assets. Since there have been no significant improvements in the liquidity of the underlying assets of the funds, we feel that the suspension will continue to best serve the funds' investors.

'Capita has therefore confirmed that it is likely that the suspension which was announced on 13 March 2009 will need to be extended to at least the end of May.'

Derks said that Capita, the funds' administrator, and ARCH, the fund manager, were conducting 'a thorough and detailed review of all the underlying assets in the funds' with the aim of finding the best option for investors.

He added: 'This review, which will be undertaken with the involvement of Arch, the depositaries and the FSA, will take some time, but will ensure that shareholders are provided with the most comprehensive information about the funds.'

Derks stressed that Arch's first priority was finding a solution for investors but was unable to answer any questions from advisers.