Dear all Trilogy just sent this out by Email
I note below that Roger Bacon is still referring to Trilogy as a significant Unit Holder - despite that fact that I have written to him about his earlier document -as we no its us investors that are the unit holders NOT Trilogy!!!!
I don't know if this is of help to overseas investors who can view the Four Corners program, maybe there is a link here?
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Unitholders in the LM First Mortgage Income Fund (and its feeder funds) and the LM Managed Performance Fund may be interested in the latest episode of ABC’s Four Corners program ‘A Betrayal of Trust’, which aired on Monday 4 March 2013 on ABC1.
The 45 minute program focuses on the money lost by investors in managed investment schemes and debenture issues and the way in which these are managed and regulated.
In particular we draw your attention to the part of the program that focuses on the LM First Mortgage Income Fund and the current financial position of the LM Managed Performance Fund (beginning at 23.27 minutes and ending at 37.36 minutes).
Please note - Four Corners is an independent current affairs program broadcasted by the ABC, a statutory authority constituted and operating under the provisions of the Australian Broadcasting Corporation Act 1983.
View the program
View online abc.net.au/4corners
ABC iview
Watch replay Saturday 9 March 8.00pm ABC News 24
Key findings of the investigation:
• In marketing its funds to offshore investors and advisers, the Trustee and Manager of the LM Managed Performance Fund, LM Investment Management Limited (LM) promotes itself as a ‘conservative and highly-rated private bank’ that is ‘regulated twice’ - as a private bank and as a fund manager. Australian Securities and Investments Commission (ASIC) Chairman Greg Medcraft claims to have no prior knowledge of these assertions and indicates that ASIC will be having ‘a closer look’.
• Maddison Estate, a 118 hectare bushland site located at Pimpama on the Gold Coast (and the flagship asset of the LM Managed Performance Fund) was purchased for $89 million at the top of the market. Loans against the asset now total $250 million with a small first mortgage to Suncorp and a very large second mortgage loan of more than $240 million from the LM Managed Performance Fund, via companies controlled by LM CEO and Chairman Peter Drake.
• Notwithstanding this, the LM Managed Performance Fund is still raising capital from overseas investors. With Maddison Estate in its infancy and no land having been sold, Four Corners questions how distributions to investors in the LM Managed Performance Fund are being paid. LM confirmed to Four Corners that capital from new investors in LM Managed Performance Fund along with cash and income from other assets in the fund is being used to pay returns to existing investors.
The program also explores the collapse of Banksia Securities and Prime Trust.
Further information
Unitholders may be also interested in watching extended interviews with either ASIC Chairman Mr Greg Medcraft or former ASIC special investigator Niall Coburn, which are also available from the Four Corners website abc.net.au/4corners
As a significant unitholder in the LM First Mortgage Income Fund, we remain committed to gathering information that allows us to critically assess the management and performance of our Fund and the alternate management option. We will continue to update you in relation to our findings. Please email us at
updates@trilogyfunds.com.au
with your name and Account ID to register your interest in receiving further updates. If you have any queries please feel free to contact Client Services on 1800 176 559 or for New Zealand, David Jansen on +64 21 675 244 or
jansendw@gmail.com
Yours sincerley
Rodger Bacon
Executive Deputy Chairman
Trilogy Funds Management