Arch offshore fund values plummet

The value of Arch's entire offshore fund range slumped between 10% and 40% in the days leading up to...

The value of Arch's entire offshore fund range slumped between 10% and 40% in the days leading up to its onshore fund suspension.

Arch's 22 Guernsey-domiciled offshore portfolios, which include three cru vehicles, saw their values plunge between 11 and 13 March after most of the vehicles enjoyed relatively smooth performance in the previous months.

The Arch Real Estate fund saw its value fall by nearly 40%, while funds which should have no correlation to each other, such as the Arch Global Forestry and Arch Fine Wine, dived by about 10%, according to Trustnet.

Investment Week and IFAonline first revealed last Friday FundsNetwork and Cofunds refused to take investor money into the onshore CF Arch cru fund range up to eight days before Arch and custodian Capita suspended the range on 13 March.

Capita, which has responsibility for settlements, determined liquidity in secondary markets was inadequate for the funds to continue to operate.