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Second Connaught Ucis fund terminated- no word on losses

mike davies connaught chairman
Mike Davies

Connaught Asset Management has given the trustee of the £18m Series 2 Income Fund permission to wind it up but is refusing to divulge the possible extent of any investor losses.

Investors in Connaught AM’s Income Fund Series 1 were recently told they could face losses of up to 50 per cent, based on estimates from advisory firm Duff & Phelps. Money has begun to be returned to investors but it could take up to two years to determine the full losses and return tthe remaining sums to investors.

Following an EGM last week, which rubberstamped the winding down of the Series 2 fund, Connaught is refusing to say whether a similar estimate on any Series 2 losses is available.

Both funds were used to finance bridging lender Tiuta’s loan book. Duff & Phelps has called on Tiuta to honour a guarantee to fund losses on the Series 1 fund.

Fund trustee ABN Amro has begun to wind-up the Series 2 fund, following its suspension from trading in May.

Connaught chairman Mike Davies, says: “At the EGM for Income Fund Series 2 all extraordinary resolutions proposed were passed meaning that the fund will be terminated with immediate effect and the wind-up process can begin.

“We will be supporting this process fully and expect all monies from the fund to be returned to investors less the associated costs of the wind-up procedure. Further information will be made available to investors in due course.”

A decision to wind down both the Series 1 and Series 2 funds was made in June. Tiuta International, the arm of Tiuta responsible for the loan books, entered administration last month with the books sold to Connaught for £1.

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  1. Once again Mike Davies has much to smile about. All monies will be returned to investors less associated costs of the wind-up procedure. The investors have been raped and are now being offered a lift to the hospital – with the taxi meter still running.

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