Six investment funds to be wound up

Six managed investment and superannuation funds holding $260 million will be wound up by the administrator of collapsed financial services group Trio Capital.

In a note to creditors released yesterday, administrator Nicholas Martin from insolvency firm PPB said the funds had ”substantial assets which are unlikely to be realised in the short-term and are therefore proposed to be wound up”.

The funds are: Astarra Strategic Fund; ARP Growth Fund, Astarr Portfolio Services, Astarra Overseas Equities Pool, Asttar Wholesale Portfolio Service and the Regional Land Property Fund.

The Astarra Strategic Fund is at the centre of the collapse of Trio Capital.

Administrators have been unable to locate $118 million invested by Astarra Strategic Fund in a mysterious company in the British Virgin Islands. The ARP Growth Fund also had substantial investments in the British Virgin Islands.

A number of the other funds that will be wound up had exposures to Astarra Strategic Fund and the ARP Growth Fund.

The administrators have told creditors that investigations into the existence of the assets of Astarra Strategic Funds are continuing with the help of the Australian Securities and Investment Commission.

PPB plans to conduct public examinations of Shawn Richard and Eugene Liu, who managed the Trio funds during the time when the missing funds were invested in the Virgin Islands.

ASIC confirmed in January that the pair has surrendered their passports by consent and are unable to leave Australian until February 22.

ASIC swooped on Trio Capital’s funds in December, suspending the Albury-based Trio Capital and appointing acting trustees to its funds.