Discretionary fund manager Seven Investment Management (7IM) has suspended two of its funds due to liquidity concerns.

Trading has been suspended in the £33m 7IM Absolute Return Portfolio and the £20m 7IM Income Portfolio funds.

According to a statement from the firm, the move has been taken due to “ongoing liquidity challenges” faced by both strategies, which were inherited by 7IM when it acquired Tcam Asset Management in 2018.

The funds were suspended to ensure further withdrawals would not result in “unacceptable levels of illiquidity” but added it did not expect any significant outflows.

The statement said both funds have exposure to two investments which are “facing ongoing liquidity challenges”.

It said: “In light of this, 7IM decided that a fund suspension was necessary to protect the interests of all investors. The options to resolve the suspension will continue to be evaluated.”

The investment in question is the Guernsey-listed Xenfin Securitised Debt Fund which has been suspended since July 2019. Both 7IM funds have a position of around 10% in the fund.

Both funds also hold the Drum Income Plus Reit which is also currently under strategic review due to liquidity challenges.

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