Questions & Answers:
Best Asset Protected Fund and New Energy Protected Fund (the “Funds”) - sub funds of CF Bespoke Investment Funds
Capita Financial Managers Limited (“Capita”), the authorised corporate director of the Funds, has written to investors to say that, subject to FSA approval, it intends to wind up the Funds.
Why are the Funds being wound up?
The Funds are being wound up because the appointed investment manager (Lyxor Asset Management Limited) has taken the decision to resign.
Capita has sought to appoint another investment manager who is prepared to take on the role but has not been successful in this regard.
What efforts have been made to find a new investment manager?
Capita have tried to find a new investment manager from investment managers who advise other Capita funds. However it has not been possible to find an investment manager who wishes to take over the position.
Why do the Funds need an investment manager?
Capita acts as the authorised corporate director of the Funds and, as disclosed in the Prospectus for the Funds, the investment manager performs the role of managing how the Funds’ investments should be made. Capita is not regulated to carry out the role of an investment manager.
Who is managing the Funds until wind up?
The current investment manager will continue to manage the investments of the Funds and they will continue to do so until the wind up process is complete.
What happens next? Please explain the legal process to wind up the Funds.
An initial submission will be made to the Financial Services Authority (the “FSA”). Audited solvency statements will then be prepared and submitted to the FSA. It is anticipated that this will take place in Q1 2009.
Following confirmation from the FSA that the wind up can take place a final letter to investors will be sent.
The final report and accounts will be prepared and a final distribution, if appropriate, will be sent to investors.
What money will I receive after the wind up? How will this be calculated?
Any final payment to unit holders will be calculated once all assets and liabilities have been realised and settled. It is anticipated that this will take place in Q2 2009. This will be based on the net asset value at that time. For information purposes only the price per unit as at 23 December 2008 is below, which may, of course, change between now and the date of the winding up of the Funds.
| A | Accumulation - | 93.00(p) |
| A | Income - | 93.01(p) |
| A | Accumulation - | 98.28(p) |
| B | Accumulation - | 98.25(p) |
| A | Income - | 97.76(p) |
| B | Income - | 97.74(p) |
Will the protection offered by the investment objective apply in the event of wind up?
The investment objective of each of the Funds was to aim to offer a level of protection to investors holding shares at the maturity date of each Fund. The level of protection was to provide investors with a minimum redemption amount at the maturity date. The achievement of the investment objective only applies at the maturity date. As the Funds will be wound up prior to reaching the maturity date, the protection will not apply.
What should I do if I have any further questions?
Should you have any further questions, please contact our Customer Services Department on 0845 300 2110 or email: technical.services@capitafinancial.com