Update: Embattled City Financial goes into administration - reports

After suspending equity fund earlier this month

The firm appointed FRP Advisory as administrator late last week

The firm appointed FRP Advisory as administrator late last week

Struggling City Financial has gone into administration after a bad bet on volatile markets forced it to suspend trading in its Absolute Equity fund earlier this month.

According to The Times, the $1.2bn firm appointed FRP Advisory as administrator late last week and its funds, as well as its subsidiaries in Hong Kong and Singapore, are now being sold off. The London-based firm was bought by former Invesco colleagues Andy Williams and Rob Hain in 2006; in 2017, it lost £16.6m after spending £9m on funds, IT systems and "human resources costs".  Last year, the firm closed its Decca fund, which made up around a third of its total $3.3bn (£2.5bn) in assets, after the fund fell 21% following a bad investment call. As a result, its AUM plummeted to $1.2bn...

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