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Connaught Income Fund Series 3 ‘partner’ defaults on Q3 payments

mike davies connaught chairman

Investors in the £22m Connaught Income Fund Series 3 have not received distribution payments for the third quarter after the fund’s “specialist partner” UK Acorn Finance defaulted on the payments.

Connaught Asset Management, which was placed into administration in September, says it has served UK Acorn Finance with a notice of default. Connaught says it is demanding the loan monies are repaid in full within 20 days.

Connaught suspended the Series 3 fund in July following a spike in redemptions from investors.

Connaught says investors will receive a letter by 23 November outlining how the suspended fund will be wound down.

Connaught Administration Services chairman Mike Davies says: “Up until the last quarter end, the specialist partner to the fund, UK Acorn Finance Limited, had met its obligations to investors regarding the payment of distributions, however as at the close of business on the 15 October UK Acorn Finance Limited had not paid the amounts due to investors for the quarter ended 30 September 2012.

“The non-payment of the management fee constitutes an event of default and a notice of default was served on UK Acorn Finance Limited on the 16 October. The notice includes an immediate call in of the loan book assets funded by Series 3 and it gives UK Acorn Finance Ltd 20 days to repay the loan monies in full.”

Davies says the amount of security held in the fund is in excess of the outstanding sums and expresses confidence the full amount will be recovered.

Connaught AM’s Series 1 fund was suspended in March and interest payments were not made. A decision to wind down the Series 1 and 2 funds was made in June.

Investors in the Connaught Income Series 1 fund were warned in August they could face 50 per cent losses on their investments.

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  1. Having sat through & listerned to the fraud that went on in versions 1&2 no surprise. I would be amazed if there were enough assets to back anything given the fact that Connaught gave free reign to Tuita to defraud Investors breaking all IM Terms for scheme 1 in particular. Sorry but do not beleive a word anyone at CAM says. Good luck to those poor soles who did invest

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