View more on these topics

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.

It refuses to disclose the amount of money owed to investors.

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: “The non-payment 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.”

Yellowtail Financial Planning managing director Dennis Hall says: “A lot of people will now find themselves asking questions about counter party risk that they perhaps should have asked earlier, such as what happen in the case of default.”


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