Investors trying to recover their savings from the stricken Arch Cru fund range have suffered fresh setbacks after five sub-funds have rev-ealed sharp losses from shipping and asset-backed lending holdings.
Statements for August and September show that almost two years after the funds were suspended, liquidators are still grappling with heavy losses.
Three funds have written off holdings in an asset-backed lending vehicle Aarkad plc completely after announcing there would be no recovery for investors.
This amounted to a £626,000 loss for one investor, a £277,000 loss for another and a £120,000 hit for a third but the statements hint at a possible legal battle to try to recover assets.
All the funds sustained losses after collateral used against a package of shipping loans, known as “shipping deal one”, were valued down by over 7 per cent over the per-iod. The statements describe this as “the largest detractor to performance”.
Three of the funds were also exposed to further legal and maintenance costs connected to loans to a ship called the Santa Maria.
The £363m fund range was suspended in March 2009 by administrator Capita amid liquidity concerns. In December 2009, Capita cut its valuation on the funds’ assets by £140m.
The assets are now being liquidated by Jersey-based Spearpoint. Chief executive John Davey says: “We are getting on with trying to get cash out of these assets.”