It's been a while since we've had any good news in this whole debacle, however small, but still welcome. I've had a look at the Bulletin website but couldn't find any reference to the article you mentioned. Sure it wasn't another LM spruik inserted by LM as an advert? I'm just getting so cynical about it all these days.
So the market is alleged to have improved - at least that provides some hope to us investors. I am still highly sceptical about how much the market values had collapsed anyway. My IFA told me that the funds were a safe investment, all secured by Aussie mortgages, so that must be true! Sure, and GFC apart, real values are never what the experts assert, but what can be actually realised from a sale. But if there are no buyers for a period, so no sales, that cannot mean the value is zero! How much could LM Investment have been manipulating the fund under management values for their own ends? Is it possible that we have seen high fund values maintained for deducting management fees; which are then rapidly reduced for disposal of assets to a bunch of their Gold Coast property mates; and which recover when the real property purchasers return to the market? I was just wondering, but I think there must be some smart analysts out there who could ask some very probing questions of all LM's advisors, consultants, agents, accountants and auditors.
I was always very suspicious about the "hold 'em or fold 'em" mechanism proposed by LM. There never seemed to be any indication of which assets would be sold and which retained, or how those decisions would be made. Quickly dispose of the poorer assests (akin to a fire sale, promised as would never happen) to clear out the selling investors, then keep the better assets for longer term and those management fees again. I'm glad it never got to that.
Lets's see what comes out of LM next.
