Farringdon Group of late have been seeing a vast amount of expats who not only have been experiencing bad performance within their portfolios, but high charging structures, frozen funds, ridiculous annual management fees of up to 18%, seriously bad advice, high risk portfolios with low risk appetite, no communication from their advisory and now this, New Earth Funds!
I want to share with you in this brief Factsheet all about New Earth Funds and why Farringdon Group feel that knowledge is power when educating and putting together our clients’ portfolios.
ALL of our portfolios are daily traded meaning that our client’s funds don’t have a lock in period, our annual management fee is a maximum of 1% and none of our selected investment funds have front & back end charging paying commission to the advisory.
If this information relates to you or someone you know, please share this, we don’t want this to happen to anyone else in the future as this can affect anyone, time and time again we are seeing people’s pensions pots reduced to ZERO due to this sort of bad practise.
The New Earth Group of Funds offered three collective investment schemes:
- New Earth Recycling and Renewables (Infrastructure) (NERR), an Isle of Man specialist fund;
- Premier Investment Opportunities Fund (PIOF), an Isle of Man qualifying-type experienced investor fund; and
- Eclipse Investment Fund, an Isle of Man qualifying fund investing into NERR.
Unregulated, Non-Retail Funds
Specialist, qualifying and qualifying type experienced investor funds are unregulated collective investment schemes which are not approved or reviewed by IOMFSA. Once launched the funds must be registered with the authority within 14 days. These types of funds cannot be sold to the retail public. Access to such funds is only available where investors confirm that they meet the fund type’s minimum entry criteria. This includes a statutory certification that they have read the scheme’s offering document and understand and accept the specific risks associated with that type of fund. IOMFSA’s remit for such schemes is to register, receive notifications of changes, and supervise their appointed Isle of Man functionaries
In letters to NERR and PIOF shareholders dated 16 June, the manager of New Earth Group, The Premier Group, advised that “the New Earth Group of Companies have sought statutory protection by filing notice to appoint an administrator. The administrator has moved quickly and has sold [NESG and NESFM] to DM Opco, the full details of which are unknown. “Taking into consideration that the assets of NERR are largely subordinated to the senior lenders’ debt, the directors consider it unlikely that the sale of these assets to DM Opco will achieve over and above the amount of senior lending. “It therefore remains unlikely that the sale of these assets will generate a return for the fund.”
According to the report, in October 2014, the group carried approximately £159 million of debt, with £37 million due to the Co-operative Bank and £102 million to the New Earth Recycling & Renewables Fund. A further £20 million was also owed to Macquarie Bank from the energy side of the business.
Duff & Phelps was appointed as administrator of New Earth Solutions Group and its sister company New Earth Solutions Facilities Management in early June following a breakdown in protracted talks with an unnamed plant developer to purchase the company.
Little is known about DM Opco, the sole director and shareholder of which, Declan McKelvey, is listed by Companies House as an accountant that was appointed as director of Direct Golf UK last October after its administration was also handled by Duff & Phelps. However the sale was said to safeguard the 143 jobs across New Earth Solutions’ five sites, which treat around 450,000 tonnes of municipal and commercial waste a year through in-vessel composting and mechanical biological treatment, as well as at its head office in Verwood, Dorset.
The Duff & Phelps report states that the company bought New Earth’s business for £5.9 million, with the majority (£3.2 million) going towards equipment and vehicles.
Prior to the company entering administration, the report notes that 51 companies had expressed an interest in new Earth Solutions, with seven following up with written expressions of interest, three of which wanted to take the business and assets forward as a going concern. However, none of the offers were considered acceptable by the senior lender, the Co-operative Bank, and were rejected in March.
These funds paid up to 8% commission to the advisors investing on client’s behalf – 8% just for placing client’s money in to the fund….below we have the proof from the CISE website.
Farringdon Group cannot stress enough that everyone should do their due diligence before agreeing to advice by any financial advisory, get a fully detailed report, see past performance, and check the history of anything you are being advised to invest in, ask about the charges, ask for the advisors qualifications and get a second opinion.
If you would like to arrange an introduction to Farringdon Group we are happy to set up a conference call, meeting or even Skype, it’ll take 30 minutes of your time and we can lend our years of experience to stopping this happening and potentially maximising your investments.
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