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Cru chief says he has hit ‘wall of silence’

Cru founder Jon Maguire says there has been “a complete breakdown” between cru and Arch’s managing partner Robin Farrell and head of fund platforms Robert Addison.

Maguire says the firm has met with “a wall of silence” at both Arch and Capita and says he will not wait until May to receive a statement on the position of underlying assets in the fund range.

He says the firm still has “great confidence” in Arch chief investment officer Michael Derks and will continue to back the company as long as he remains involved.

“If he leaves, then our advice to all investors is to seek the removal of Arch as investment managers and we will encourage Michael to establish a new investment firm to take over management of the Arch cru funds. We have had no discussions with Michael on this,” says Maguire.

Cru has confirmed that share trader Winterflood Securities, which was fined by the FSA, is the market-maker for the Arch cru Guernsey investment cells.

It was fined £4m in July 2008 after two of its traders were found guilty of market abuse.

Maguire says he does not believe this was a contributory factor to the funds’ problems.

He says that the turbulent market events of October last year and the liquidity freeze that has followed has meant that the valuation point has been dislocated.

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