View more on these topics

ARM investors call for scrutiny of bid proposals

A group of investors in troubled life settlement vehicle ARM Asset Backed Securities wants to be able to scrutinise each proposal from prospective buyers of the fund to ensure the best offer is put to a bondholder vote.

Luxemburg-based ARM issued bonds based on life settlement policies without the appropriate permissions. The bonds were sold via distributors in the UK and Europe. A total of £75m was paid into ARM bonds by UK investors.

ARM was one of the underlying investments which backed Rockingham’s retirement income tri-investment account, or Rita, a 10-year annuity wrapped in a Sipp. Rockingham was fined £35,000 in September for putting clients at risk of unsuitable advice, and went into liquidation last month.

The ARM board is currently tendering for a buyer of the assets and liabilities of ARM, which would then restructure the fund.

Last week the board revealed there were four interested parties in buying ARM, which have been asked to submit full proposals.

The interested bidders include US life settlement firm Insetco, which first announced its intention to acquire ARM assets in September, and UK-based company Life Settlement Consulting. The other two potential bidders have asked not to be named under confidentiality agreements.

One of the interested parties is a specialist fund house and the second is a hedge fund with over $60bn under management.

The ARM Help investors group, led by investor Bob Sharpe, has continued to raise concerns over the lack of transparency in the way the board has carried out the search for a potential buyer.

It has written to the ARM board calling for the details of each proposal to be made available to all ARM investors. Selected offer proposals are due to be put to a bondholder vote in July.

Sharpe says: “The tender document is in our view inadequate to the task of producing fully detailed restructuring proposals.

“We consider the only way in which bondholders can be satisfied as to the fairness of the selection process is for bondholder representative Bob Sharpe together with a suitable member of the ARM Investors Forum to be allowed to examine each and every proposal to satisfy demands that the best offer for bondholders is put forward to the general meeting in July for investors to vote on.”

Recommended

Bolton extends tenure on Fidelity China spec sits by 12 months

The Fidelity China special situations investment trust has confirmed that manager Anthony Bolton will be extending his minimum management tenure by a further year. Star manager Bolton will now remain at the helm of the investment trust until April 2014, a year later than his original minimum management tenure, which was due to expire in […]

44

Nic Cicutti: The quiet RDR adjustment

One of the things I have learned in the years I have been writing this column is that, regardless of what is said, positive or negative, there will always be a variety of hostile responses. I do not have any problems with that – it comes with the territory. Either way, this week I thought […]

Three years of Modi: what next for India?

Kunal Desai, Head of Indian Equities. Three years ago India’s Prime Minister Narendra Modi swept into power in an historic election. The first party in the country’s history to govern without the need for coalition support, Modi’s BJP was voted in on the promise of an impressive reform agenda. Under Modi, India’s macroeconomic health is […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. An ARM Investor 13th April 2012 at 11:23 am

    I am an ARM investor and support the call for more transparency regarding the details of the proposals submitted.

    However, I cannot support the suggestion that only Bob Sharpe (and a suitable member of the ARM Investors forum) are provided with the details of all the proposals.

    There is a lot of money inveted in this fund and I believe that it is only fair that ALL investors are given full details of what options may be available.

Leave a comment