You may have received some communications from Capita to notify you about
its dealing status.
What does this mean? Capita, being the owner of
the fund, took the decision on Friday 13th to suspend trading in the
fund until liquidity issues are resolved. Liquidity means the amount of cash
(liquid asset) that is held by a fund.
Why has this happened?
The liquidity issues have
resulted from a number of factors but principally from people surrendering
their holding early and cash being used to facilitate this. The aim of this fund is that it is held as a
3-6 year investment but some investors have been encashing early as
they do not want to touch their other investments that have declined sharply in
value.
The underlying investments
that make up this fund are not highly liquid in nature (much the same as
property at the moment) and this has been compounded by the current
UK economic
situation.
What does this mean for you?
At the moment as dealing is
suspended you can not encash your fund. We feel this is a positive step for our
investors as it protects the investment from forced sale of assets at a time
where maximum value may not be reached.
What we are doing…
Please rest assured that we
are closely monitoring the situation with this fund and will keep you abreast
of any news. We are meeting with Cru
this week and will continue to until this is resolved
If you have any queries or
questions please do not hesitate to contact us.
