Connaught Asset Management has revealed that Connaught Income Fund Series 3 is to be wound down.
This follows the recent move by the asset manager to wind down bothIncome Fund Series 1 and 2.
The Connaught Income Fund Series 3 is a fund invested in the short-term agricultural lending sector.
“Despite the Income Fund Series 3 being completely separate from the Series 1 and 2 funds there has been a spike in the recent level of redemptions and to avoid any investor detriment we have reluctantly agreed that it is in the best interests of investors to let the fund naturally wind down as the assets are redeemed to the Fund,” said Mike Davies, chairman of Connaught Asset Management.
“Investor monies will therefore be redeemed as the loans mature and the Specialist Partner, UK Acorn Finance Ltd, will continue to pay out the distributions so there is no investor detriment expected at all. The fund will continue to perform during the wind down process.”
Davies added: “It is great shame this decision has to be taken as the fund has performed very well to date and was expected to continue to perform in the future. Investors will find it very hard to find an alternative investment offering over 8% annualised returns which has such a strong asset security.
“However we do understand how contagion between funds can occur so we have decided to take this decision today rather than let it to get to a point where all parties felt there may be future investor detriment.”