TRAFALGAR MULTI ASSET FUND (SUSPENDED)
After the disasters of failed pension schemes Capita Oak, Henley and Westminster (aggregate of £20 million lost to over 500 victims through investments in Store First store pods – wound up by the Insolvency Service), there are now concerns about the suspended Trafalgar Multi Asset Fund of £20 million. The board of directors have published the below report and are investigating how this fund came to be mostly invested in one asset: Dolphin property development loans.
In fact, Dolphin was one of the assets of Stephen Ward’s London Quantum scam which is now in the hands of Dalriada Trustees (appointed by the Pensions Regulator). Dalriada stated a year ago that Dolphin was not a suitable investment for a pension scheme and yet the investment manager of Trafalgar has invested most of the fund in Dolphin.
The unlicensed adviser to the victims was also the investment manager of the Trafalgar fund. The advisory firm, Global Partners Limited – which then changed its name to The Pension Reporter – was an agent of a firm called Joseph Oliver and was not licensed to give pension or investment advice.
Trafalgar Multi-Asset Fund (Suspended) shareholders report (excerpts):
Board’s significant concerns with respect to the conduct of the Investment Manager:
- Repeated and consistent failure to carry out and maintain records of proper due diligence with respect to investments
- Making investments which involve inappropriate or unjustified risk, particularly in allowing the over-exposure to two counterparties and allowing loans to suspected related parties without any disclosure of interests to the Board
- Repeated and consistent failure to ensure that the position of the Fund is properly protected by having appropriate, properly executed legal documentation in place
- Repeated failure to provide the Board with relevant information with respect to investment activity e.g. variations to the arrangements with investments in Dolphin and Quantum
- Inability to answer straightforward questions put forward by the Auditors
- Providing misleading and even dishonest information to the Board
- Transacting business on behalf of the Fund knowing that the Board had suspended subscriptions and redemptions
- Failure to make investments which are appropriate for the Fund
The question must also be asked of STM Group WHY DID THEY ACCEPT BUSINESS FROM AN UNLICENSED ADVISER AND ALLOW THEIR VICTIMS TO HAVE 100% OF THEIR PENSIONS INVESTED IN A FUND WHICH WAS A SCAM? THE TRAFALGAR MULTI ASSET FUND WAS A UCIS WHICH IS ILLEGAL TO BE PROMOTED TO UK RESIDENTS. STM ARE ENTIRELY NEGLIGENT AND CULPABLE FOR ALLOWING THIS SCAM TO HAPPEN AT ALL.