City Financial enters administration

City Financial enters administration

City Financial Investment Company has entered administration, the Financial Conduct Authority (FCA) has confirmed. 

The firm appointed Jason Baker and Geoffrey Rowley of FRP Advisory LLP as joint administrators. 

Six of City Financial’s Ucits funds have been transferred to Valu-Trac Investment Management and the investment management has been given to Garraway Capital.

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The funds, which include the Diversified Fixed Interest, Multi Asset Balanced, Multi Asset Diversified, Multi Asset Dynamic and Multi Asset Growth, have been renamed VT Garraway. 

Earlier this month, the company announced it had suspended trading in its Absolute Equity fund and the decision to reinstate this product now lies with Valu-Trac and the fund’s depositary. 

Garraway Capital has also assumed management of the Irish-domiciled Ucits funds, which includes the Absolute Equity Feeder fund, Adventurous Portfolio and Wealth fund. 

City Financial will update direct investors and intermediaries in writing over the coming weeks. 

Following a difficult year in 2018, City Financial was rumoured to have filed a notice of intention to appoint an administrator in February 2019.