This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Find out more here.
X
MM+cover+small+241014

No cash for shareholders as Tilney fund goes bust

  • Print
  • Comments (4)

Tilney Asset Management’s Guernsey-domiciled £79.5m British real estate fund has gone bust and administrators PricewaterhouseCoopers says there is little prospect of returns for shareholders.

PwC is writing to the fund’s 275 shareholders, which are made up of private, retail and institutional investors, including pension funds.

Partner David Chubb says: “Given the level of the debt, it looks very unlikely there will be any distribution to shareholders.”

In January 2009, Money Marketing revealed the fund fell by over 70 per cent in the 12 months to November 30, 2008.

In March 2009, the fund’s directors suspended the calculation of its net asset value because they considered they could not accurately determine the value of the assets. This prevented subscription and redemption requests being made.

In March 2010, shareholders approved a resolution to extend the maximum suspension period of the valuation of the NAV and redemptions of participating shares from 12 months to 24 months to allow further time to explore restructuring options.

The loan-to-value ratio on the geared commercial property fund at December 30, 2010 was 109.1 per cent, compared with 99.3 per cent in December 2009.

In December 2010, chairman Robert L Court wrote in the fund’s annual report: “The fund was affected by the downward valuation of property values in the secondary sector and, as a result of its gearing, the share price performance has suffered considerably more than other funds.”

Deutsche Bank, which owns Tilney Asset Management, declined to comment.

Bestinvest senior research analyst Simon Moore says: “There are higher income returns from geared funds but this amplifies the downside.”

  • Print
  • Comments (4)

Daily Email Updates
If you enjoyed this article, sign up to receive the latest news and analysis from Money Marketing.

The Money Marketing CPD Centre
Build your annual CPD - you can log and plan your CPD hours for free with The Money Marketing CPD Centre.

Taxbriefs Advantage
Advantage is a digital reference source giving unbiased, independent, answers to your technical queries. Subscribe to Taxbriefs Advantage.

Readers' comments (4)

  • Nice.

    So what happened?

    The properties fell into a hole in the ground?

    The loans against the properties exceeded the loan values?

    However you look at it, this is no way to run a fund.

    You think Tilney's will attract any more investment be it in Guernsey or the UK?

    Why would you?

    Ian Coley
    Partner
    Medical Investment Services

    Unsuitable or offensive? Report this comment

  • Is this another payout for IFA's from the FSCS

    Unsuitable or offensive? Report this comment

  • Yes I know this an offshore fund but before I get slated - my last comment was tonge in cheek

    Unsuitable or offensive? Report this comment

  • And PWC's bill for sorting this out is?

    Unsuitable or offensive? Report this comment

Have your sayEdit my profile/screen name

You must sign in to make a comment

Fund Data

Editor's Pick



Poll

Should Sesame unwind the 'pay to play' deals it set up as part of its restricted advice panel?

Job of the week

Latest jobs

View all jobs

Most recent comments

View more comments