Arch cru fund manager SPL Guernsey paid back an additional £17.6m to investors in the year to 31 March as it continues attempts to recover money from the range’s former fund manager.
In a statement published this week, the firm, which manages the cell companies where Arch cru investments were made, says it is trying to reach out-of-court settlements with former fund manager Arch Financial.
SPL Guernsey chairman Hugh Aldous says: “We are prepared to discuss settlement with the defendants and have sought to do so with the principal defendants for some months, while pressing on with our work towards court hearings if settlement cannot be achieved.
“We would hope that settlement can prevail but nothing is predictable in litigation.”
SPL Guernsey took over the cells three years ago and has now paid back £136.4m to investors. Aldous warns the rate of repayments will “begin to slow” as the firm gets to the tail end of the fund with the last £25m “pretty illiquid”.
Total assets in the cells have dropped by more than £30m in 12 months, from £114m last year to £81.1m at 31 March. The firm has spent £2m on portfolio management.
The £391m Arch cru fund range was suspended in March 2009. Following the collapse of the funds, affecting up to 20,000 investors, the FSA agreed a £54m payment scheme in June 2011 to compensate investors with Capita, the authorised corporate director, and depositaries BNY Mellon and HSBC.
A separate consumer redress scheme began in April this year where advisers who recommended Arch cru must write to clients to ask if they want their advice reviewed. The regulator estimates the scheme will deliver between £20m and £40m in redress.
The IFA Centre is looking to bring a legal challenge against Capita on behalf of Arch cru investors not covered by the FCA’s redress scheme.