City Financial: a terrible fund management advertisement
Fund manager City Financial’s intention to appoint administrators has highlighted a heavily indebted and loss-making investment manager which seemingly had no right managing other people’s money. As our blog here reveals, its flagship investment fund looks more akin to gambling than sensible, well-researched investing.
The last filed financial statements for investment manager City Financial Investment Company for the year ending 31 December 2017, available from Companies House, show the management business made a loss of £9.4m on revenue of £21.4m, bringing accumulated losses to that date to a staggering £33.3m. However, the terrible performance in the year didn’t stop directors being richly rewarded for their mediocre efforts, with the highest paid director receiving £944,000. As reported in the Times and confirmed by our review of the financial statements, founder and chief executive Robert Hain also owed the company £965,000 and fellow Director Andrew Williams…