View more on these topics

Connaught administrator says it is too early to determine losses

Connaught Asset Management administrator Peter Hollis says it is too early to determine the full extent of the losses within the asset manager’s Ucis funds or indicate when investor monies will be recovered.

Last week, Money Marketing revealed CAM appointed Hollis of KPF Advisory as administrator on 18 September, the same day Tiuta Plc’s directors filed a notice of intention to place their firm into administration.

Two former Tiuta Plc subsidiaries, Tiuta International and Tiuta Development Finance, used the Connaught Income Fund Series 1 and Series 2 Ucis funds respectively as funding lines.

CAM’s £118m Series 1 fund was suspended in March over concerns about its true value, 14 months after Tiuta Plc warned CAM it had suffered “significant losses”. CAM also suspended its £18m Series 2 fund in March to “avoid speculation”.

Last month, Money Marketing revealed Tiuta Plc made a pre-tax loss of £37.8m in the 18 months to 30 September 2011.

CAM decided to wind down the Series 1 and Series 2 funds in June. A £22m Series 3 fund, which was not linked to Tiuta loans, was wound down in July due to a spike in redemptions.

CAM bought Tiuta International and Tiuta Development Finance for £1 each in June to manage the redemption of their loans. In July, Money Marketing revealed CAM had placed Tiuta International into administration.

Last month, Money Marketing revealed investors in the Series 1 fund faced losses of up to 50 per cent. An independent review by Duff and Phelps suggested recoveries would be between £46.5 and £53.2m of the £105.5m used to fund Tiuta. Last month, CAM said it could take up to two years to determine the full extent of the losses in Series 1.

Earlier this month, Money Marketing revealed 92 per cent of investors voted in favour of placing the £118m Income Series 1 fund into liquidation.

Hollis says: “It is too early to put a timescale on the whole process.”

An investor in the Series 1 fund, who wishes to remain anonymous, says: “We hope that now Connaught is in administration we will get the truth and recover investor monies.”

Last week, the FSA confirmed it approved Tiuta’s decision to place itself into administration on 11 September, but the courts are yet to approve David Rubin & Partners as the firm’s administrator.


Jamie Clark MM blog

Jamie Clark: Auto-enrolment is not about pensions

If it’s been said once, it’s been said a hundred times. Automatic enrolment is not really about pensions, it’s about business planning. Many changes may have to be made to processes and contracts of employment. Getting this done takes time and will invariably require consultation with workers, financial advice and professional legal advice. So the […]


Experts back Shaughnessy call for protection tax breaks

Protection experts have backed Zurich chief executive for UK life Gary Shaughnessy’s call for the Government to investigate introducing tax breaks for protection products. In his first interview since joining Zurich from Fidelity in June, Shaughnessy (pictured) says policymakers should consider extending the incentives offered to pension and Isa savers to people who buy protection […]


Santander sets out RDR investment advice plans

Santander will offer face-to-face investment advice post RDR to customers with existing savings and investments of at least £25,000. The investment advice service will be restricted to products from Santander Asset Management. Santander will launch its RDR advice service towards the end of year. Customers will also be advised on Santander’s savings and banking products, […]


Danny Alexander: Govt on track to raise £4bn from tax dodgers

Chief secretary to the Treasury Danny Alexander will today announce the Government is on track to raise £4bn this year in its crackdown on tax dodgers. Speaking at the Liberal Democrat conference in Brighton, the BBC reports Alexander (pictured) will reassure delegates that the UK is making good progress towards its pledge to raise £9bn […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm