Asset Categories

Client Assets within CHC are dealt with in the following categories:

  • Segregated Client Assets – are those assets that are held on behalf of individual clients and are separately identifiable from assets of other clients. These include segregated property assets held in a Destiny Structure.
  • Pooled Client Assets – are those assets held within pooled funds and pooled bank accounts of CHC, meaning that one client’s money was intermingled with another client’s and therefore is not as readily identifiable.
  • Syndicated Property Investments – consist of shares in European SPVs which hold property investments or units in Destiny Funds which hold property assets.

Segregated Asset

Segregated client assets are unique assets that are held on behalf of individual clients and are separately identifiable and separately held from assets of other clients.

  • All Segregated client assets have been reconciled and are available for transfer once outstanding contractual management fees have been settled.
  • Clients who hold segregated assets should have received correspondence confirming this from both the Liquidator and BCWM.
  • If you hold segregated assets and have not received any communication or are seeking an update on the status of your transfer, you should follow the link below to request information on the transfer process and who you need to contact in order to ensure your assets are transferred out of CHC to a new provider.
  • The Liquidator is anxious to ensure all segregated assets are transferred in their entirety as soon as possible.
  • In the event that clients do not make contact to elect a new provider it is the Liquidator’s intention to make an application to Court to default transfer all remaining segregated assets to BCWM.
  • BCWM is a MiFID regulated investment firm authorised by the Central Bank to hold client assets. BCWM provide structures such as PRSAs, ARFs and SSAPs.
  • Assets that are transferred to BCWM under the Court application will be done so in specie (ie in the same form as they currently exist and with the same custodians which are currently in place).

Typical assets in the Segregated Assets Category include the following: – Please note that this is not an exhaustive list:

  • Ari Bond I and II,
  • RBS Capital Protected Income Deposit I and II,
  • Stockbroker accounts held for individual investors,
  • Bank accounts held for individual investors,
  • Investments held with third party custodians;

Please click on the link below if you require further information and would like to access additional information on how to transfer your segregated assets out of CHC.
Please click here for the link, alternatively phone: +353 1 906 0250 or email: transfers@bcwm.ie

f you have made a claim under the Investor Compensation scheme and are seeking information in relation to your claim, please email:
info@investorcompensation.ie

Pooled Assets

  • The pooled assets can be broken into four categories:
    • Destiny cash and equity funds,
    • Pooled bank accounts,
    • Commodity Bonds and the Mezzanine Bond;
  • As set out in the High Court Report (link here), these funds and bank accounts were subject to misappropriation to the extent of almost being depleted in their entirety. In some instances money was diverted from these accounts into property investments without client knowledge or authorisation. Clients were then issued with misleading statements of account showing that their money was still in cash, for example, when in reality it was in many cases invested in property. The majority of these properties are held within European SPVs and return of misappropriated monies will in many cases depend on recoveries from these SPVs.
  • Due to the nature of pooled accounts (the fact that one client’s money was intermingled with another client’s etc.) it is not currently possible to determine each client’s position in order to form the basis on which assets currently held within those accounts, or which may be recovered in the future, can be distributed to clients.
  • The Liquidator is currently seeking appropriate legal advice in determining the best approach to take in relation to the distribution of these funds and on determining how the costs of that process will be funded.
  • It is likely that both the determination of the approach to be taken and how costs arising will be funded will be the subject of Court applications which is likely to issue in 2017.
  • Once the approach to be taken is determined the following work will need to be completed;

Recovery of misappropriated funds

  • Misappropriated funds will need to be recovered from their current position, typically invested in European SPVs. Any sales of property in these SPVs will be on the recommendation of both the investment manager (“CHC”) and the Board of Directors of each of the individual SPVs.
  • Not all of the properties in the SPVs will need to be sold however as some may have sufficient cashflow to repay misappropriated funds without the need to sell the underlying property.
  • The Liquidator’s current approach (in conjunction with the Directors of the SPVs on the advice of the Investment Manager, BCWM) to the sale of properties is to maximise the return on equity as opposed to accelerating the sale of the properties and recovery of misappropriated funds. This approach will be continually reviewed as the liquidation progresses.

Time lines

  • It is estimated that recoveries of misappropriated funds from SPVs will be largely complete by the end of 2017 and provided the mechanism for dealing with the distribution of pooled assets is determined at that stage these funds can be distributed to clients.
  • Given the complexity of identifying the original sources of the misappropriated funds it is likely that a small number of client assets will remain beyond the end of 2017 and alternative methods of dealing with these assets will need to be determined at that point in time.

Typical assets in the Pooled Assets Category include the following: – Please note that this is not an exhaustive list.

  • Destiny Equity
  • Destiny PRSA Cash
  • Select II Destiny PRSA Cash Fund
  • Destiny PRSA Equity Fund
  • Destiny Gilt
  • Select II Destiny PRSA Equity
  • CHC Capital Protected Commodity Bond
  • CHC Capital Protected Commodity Deposit
  • CHC Mezzanine Bond

This section of the website will be updated as and when there is more progress on the recovery of misappropriated funds and on the Court applications in relation to the distribution of funds.

Syndicated Property

  • Syndicated property investments are a type of pooled investment whereby a number of investors collectively pool together to invest in a property which would not have been possible on an individual basis.
  • CHC devised a number of syndicated property investments with a view to investing in European properties. These property investments were typically structured by way of equity investment in a Luxembourg limited liability company which bought real estate using investors’ equity and secured bank debt. The majority of these properties are located in Germany and France.
  • CHC also devised a number of syndicated property investments with a view to investing in UK and Irish properties. These property investments were typically structured through the Destiny Trust and were held via sub unit trusts under the Destiny umbrella.
  • You will need to contact BCWM who will provide you with a username and password in order to access the information relevant to you. Further details can be found via the link below.

Typical assets in the Syndicated Property Category include the following: – Please note that this is not an exhaustive list.

  • CHC Colorado Fund
  • CHC Allemanic Retail Fund
  • CHC Dominium Tri-City Fund
  • CHC Futura II Fund
  • CHC Hanseatic Retail Fund
  • CHC Holstein Retail Fund
  • CHC Jutland Retail SA Property Fund
  • CHC Le Havre Fund
  • CHC Munich x3 Fund

Please click on the link below if you think you fall into this category and would like to access more information on the status of individual properties.
Please click here for link, alternatively phone: +353 1 906 0250