Ok, call me crazy, but why would LM pay investors anything? Why wouldn't the facility be paid off ASAP? (the interest rate is over the top - murderous). For investors to put some money in the bank at 5% and leave that amount in the fund paying 14% - 15% - I'd call that nonsensical.
Keep in mind, Trilogy only paid back $0.0875/unit in nearly three and a half years (nothing for the first year) - and made more than $17m for its management services.
I don't think it's a good look for Drake not to turn up and inspire investors - quite the shame really. They don't seem to have learned too much at all.
They're shy with a RG45, that's worrying. The RG45 will disclose how much risk in the loans in table "H" (loans in LVR ranges), regardless of the spruiked unit price.
If the facility is paid off promptly, that'll mean asset sales, and if LM assets follow the PFMF's assets, that'll mean a drop in the unit price which in turn puts pressue on the fund to repay (a viscious circle) - after all, the bank isn't going to lose, investors will. If LM is being paid its management fee on FUM (Funds Under Management), then it'll be picking up a fee on the bank debt too - such arrangements are nice little earners and, to my mind, disincentives for managers to pay down debt in such circumstances.
Looking from "outside", I'd say things aren't looking good at all.
PS... well, at least the Bank'll have a merry xmas - ah! those stupid Australians!
