LM Investment Management - Lack of confidence

[RODENT69]

G'day Rodent,

Darn, that meddling Piper Alderman. I was quite surprised that Piper Alderman were asking financial advisors to hold their proxies at the creditors meeting, what good could they do other than obfuscate the process?

Perhaps the lawyers would want an entity as manager that'd be more likely to do business with them? I'm sure FTI would be quite capable of running any proceedings on their own - that might not come as good news for Piper Alderman, no business, no money.

I'd like to think that Piper Alderman might be moved by:
http://moneymagik.com/info_letter_re_pacific_first_mortgage_fund.pdf

But like entities on this file:
http://moneymagik.com/crap_file.php

I don't think the issue for Piper Alderman is concern over Trilogy's past performance, I think it's more about making money off your problems. Piper Alderman probably wants to be the first lawyer to get "a foot in the door", but with FTI at the helm, I'd guess that's unlikely to be the case.

My views on Trilogy are clear:
http://moneymagik.com/three_part_trilogy_funds_management_tragedy.php

In particular why I wouldn't want Trilogy anywhere near any interest of mine (especially a litigation interest): http://www.moneymagik.com/litigation.php

All links are to public (disclaimed) documents - if anyone wants to send them anywhere, then they may.

Rodent, I would caution you to be careful dealing with (pushy) lawyers like Piper Alderman. If there is a wad of $$$ out there somewhere, then it'd be much better if a receiver is able to pursue it with your own (fund) money rather than give 30% - 40% away to a litigation funder thru the likes of Piper Alderman.

FTI will be well resourced to take care of all litigation - right now with the pending court applications, I'd say there's some "bent noses" down at Piper Alderman and Trilogy.

It was pleasing to see the article about FTI not wanting Trilogy anywhere near the LM funds (although I couldn't read the whole article) - I guess the article really set the stage for Trilogy's and Piper Alderman's respective roles as spectators.

ASICK Thanks very much, I certainly understand the points you make re PA vs FTI , and the cautionary reference having been approached by P.A. quite a while back, I do see this as a fishing expedition

 

[ASICK]

Litigation

ASICK Thanks very much, I certainly understand the points you make re PA vs FTI , and the cautionary reference having been approached by P.A. quite a while back, I do see this as a fishing expedition

Happy to help Rodent - of course, as investors, you guys have to make up your own minds.

Even if a successful action is launched against the previous LM directors, I think other security holders would probably have already taken any exposed assets, so that's not a likely path for recovery.

It seems to me from the PDS that there's no directors' indemnity except under certain circumstances the directors are entitled to be indemnified by the fund itself - so, the outcome for that course of action is a "no brainer".

That leaves valuers and the auditors.

The receivers of Equititrust's Income Fund is pursing one or more valuers - to date, I'm not aware of any actions by Trilogy against valuers of PFMF security assets. Trouble is, just like noses, everyone's got an opinion - so I suspect a successful action against a valuer's valuation might not be as easy as first thought.

Then there's the auditor - Trilogy told PFMF investors that while it first thought legal claims could amount to in excess of $300m, due to contributory negligence that claim could be reduced to about $100m. Finally it claimed $60m on behalf of the fund, even though the insurance could bear no more than $20m (Phil Sullivan, ex-CEO of City Pacific alleges the insurance is void because the run off policy wasn't maintained).

http://www.moneymagik.com/litigation.php

Since no claim was brought by Trilogy against the fund's auditor, it seems (at least to me) that contributory negligence has had quite a dampening affect on the value of any potential claim on behalf of PFMF members.

http://en.wikipedia.org/wiki/Contributory_negligence

I think the information is "on the table" - at least an informed decision is able to be made.

 

[ASICK]

And the Good News Keeps Rolling in !

http://www.baysidebulletin.com.au/s...inted-at-capalabas-rhodes-development/?cs=213

""At the moment, the building site has been abandoned and the four-year building development application is still current but lapses in November," Cr Gleeson said." ... and the block is partly flooded !!!

and again, a part report from AFR:
http://www.afr.com/p/business/property/asic_backs_fti_as_receiver_to_lm_HwIpEbTAYqJhcMfi41QuDM
(subscriber only content)

"The Australian Securities and Investments Commission is supporting the appointment of FTI Consulting as receiver to the controversial $400 million LM Managed Performance Fund.", and we knew that from the material disclosed by FTI.

 

[ASICK]

Equititrust Income Fund

For those interested, here's some consolidated information about Equititrust Limited & the Equititrust Income Fund (EIF): http://moneymagik.com/equititrust.php

 

[ASICK]

Re: LM Investment Management - Licence Suspended

http://www.investordaily.com.au/cps/rde/xchg/id/style/16421.htm?rdeCOQ=SID-0A3D9633-86229D46

 

[ASICK]

Re: LM Investment Management

I started this link:
http://moneymagik.com/lm_investment_management.php

It'll be very slow getting together and I'm not sure how much info I'll be able to put there.

The table of news articles might be a useful resource for those looking for documents sorted in time.

The link is available for the menu (on the rhs, second from the bottom)

 

[Taja]

Thanks again ASICK for taking the trouble with these posts/updates and the link. Very helpful.

 

[ASICK]

Trilogy Healthcare REIT investors lost ALL.

The Trilogy Healthcare REIT is being wound up.

Here's the mid-term 2013 report (as at 31 December 2012):
http://moneymagik.com/trilogy_healthcare_reit_dec_2012.pdf

All signed off nice and neat by Philip Ashley Ryan, of "breach of trust" fame:
http://moneymagik.com/trilogy1.php

Punters lost their capital.

The asset which cost over $8.1m was sold for $2.35m (net proceeds).

That's a loss of about 71% !

Proof positive about Trilogy's ability to make massive losses on behalf of its investors. While it's not a large fund, every $1.00 is just as important to each of the investors in the Healthcare REIT as it is to every other investor in every other fund.

The bank forgave (lost) $871k - a "sweet" memory for doing business with Trilogy? If there's any pleasing point here, it's that the bank lost that $871k and investors didn't.

http://moneymagik.com/three_part_trilogy_funds_management_tragedy.php
(link to be updated with the latest information)

 

[Titinet]

Re: And the Good News Keeps Rolling in !

Can anyone explain to me why MPF is the only fund under receivership process? Not the others?
If FTI is the receiver, what will be the next action?

Thanks

 

[Mysteryman]

I haven't been online for a while but I want to thank ASICK for all his valuable links, hints and information. It has been a big learning curve for me and most, I'm sure.

If any investors do not want to see Trilogy as RE of LMFMIF or any other LM fund for that matter, I encourage you to email FTI today and have your say. It seems some decisions may be made this Friday.

 

[ASICK]

The Speed of Light and Other Things

Thank you Taja and Mysteryman - I do what I can to provide more information for investors in your funds. My only concern is that your funds don't follow down the same path as the PFMF and other funds did with Trilogy: http://moneymagik.com/three_part_trilogy_funds_management_tragedy.php

When I was taught the fundamentals of radio communications, I was taught light travels at the speed of about 300m metres/second (186k miles/second) - but strangely, communications between NZ and Australia seems to be a tad tardy: it seems to take a whole day to get there:
http://www.financialstandard.com.au/news/view/26842080

Still, stale news is better than no news at all.

Re: LM FMIF - I guess we'll find out the future of the FMIF sooner rather than later (since LM's licence has been suspended). I thought that FTI had also applied to the court to be appointed receiver of the FMIF, but that doesn't seem to be the case. Perhaps in the light of licence suspension FTI will make a further court application to be appointed receiver there too?

http://www.lmaustralia.com/Home/notifications.aspx

 

[Mysteryman]

Does anyone know by what date Companies are required to produce their end of year financial statement? Trilogy has been RE of LMWFMIF for over 5 months now and we are still waiting for 30 June 2012 statement.

 

[ASICK]

Does anyone know by what date Companies are required to produce their end of year financial statement? Trilogy has been RE of LMWFMIF for over 5 months now and we are still waiting for 30 June 2012 statement.

15 March 2013

Trilogy filed the PMFMF's return on 15 March 2013 but hasn't released it to investors yet:
http://balmaintrilogy.com.au/
(it's what we've come to expect from Trilogy)

The PFMF's return is available for a cost of $36 from ASIC as of a couple of days ago - as a note, I paid ASIC $36for the Trilogy Healthcare REIT's return.

Type your fund's name into the search field AT THE TOP of this page:
https://connectonline.asic.gov.au/R...ic first mortgage fund&searchType=OrgAndBusNm

Latest:
http://www.propertyobserver.com.au/...ho-spruiked-lmim-mortgage-funds/2013040960193

 

[Mysteryman]

Has anyone in the WFMIF noticed the total lack of information from Trilogy since they took over as RE of WFMIF? Whatever happened to the 'we will improve communication' spin we were handed out? Their website offers no extras - still stuck back at the time they took over. Have they expired? No could not have done. They just managed to extract a large fee and large expenses claim out of the latest payment we received from LM.

 

[Mysteryman]

15 March 2013

Trilogy filed the PMFMF's return on 15 March 2013 but hasn't released it to investors yet:
http://balmaintrilogy.com.au/
(it's what we've come to expect from Trilogy)

The PFMF's return is available for a cost of $36 from ASIC as of a couple of days ago - as a note, I paid ASIC $36for the Trilogy Healthcare REIT's return.

Type your fund's name into the search field AT THE TOP of this page:
https://connectonline.asic.gov.au/R...ic first mortgage fund&searchType=OrgAndBusNm

Latest:
http://www.propertyobserver.com.au/...ho-spruiked-lmim-mortgage-funds/2013040960193

Thanks ASICK. Have searched your asic link but can find no evidence of Financials 2012. In fact nothing much added since November last year. If 15/3/2013 is deadline, I guess I'll have to contact asic about it.

 

[Mysteryman]

Thanks ASICK. Have searched your asic link but can find no evidence of Financials 2012. In fact nothing much added since November last year. If 15/3/2013 is deadline, I guess I'll have to contact asic about it.

Have contacted ASIC and got the following response in regard to missing LMWFMIF Financial statement for 2012:

"The Form 388 Copy of financial statements and reports (Form 388) is required to be lodge within 3 months after the end of the managed investment scheme's financial year.

ASIC have not received the Form 388 for 2012 for the above managed investment scheme.

The managed investment scheme may be picked up in a compliance assessment preformed by ASIC, ASIC will then issue them with a compliance letter asking the scheme to submit the Form 388."

Since LM were RE 3 months from end of Financial year, it seems they are non complying in this as well as many other areas. Well, what a surprise!! Whether Trilogy have had an extension due to RE ship of 5 months, who knows?

 

[ASICK]

Thanks ASICK. Have searched your asic link but can find no evidence of Financials 2012. In fact nothing much added since November last year. If 15/3/2013 is deadline, I guess I'll have to contact asic about it.

Hi Mysteryman, the closing date for filing seems to be 15 March in each year. Trilogy filed the PFMF's on 15 March 2013 but didn't disclose it to investors until TODAY (11 April 2013), nearly a month later.

ASIC took over TWO WEEKS from 15 March to disclose that the financials had been filed, and then another week before the report was available to buy.

Nothing works in investors' favour - it's all about them, not about us. If Trilogy was concerned about disclosing information at the earliest possible time, it'd publish the financials on its website on 15 March 2013.

Trilogy would be in a position to seek an extension of time in filing the return for your fund (as you allude to in your following posting): in which case, you'll all have to wait - you're not entitled to know much, after all, you're only the investor.

The bottom line is that you know the story about mid-term reports now, and that's something. Full year reports are filed on or before 15 September each year.

I've updated the litigation information at the bottom of this page:
http://moneymagik.com/lm_investment_management.php
re: Investors Action Group

It's important to read the "about" link provided - the site is clearly run by a group of self-interested lawyers.

 

[ASICK]

Re: LM Investment Management - court applications

Seems Trilogy turned up at the Qld Supreme Court registry late yesterday afternoon.

$$$$ .. puff .. pant ... $$$$

 

[Mysteryman]

Re: LM Investment Management - court applications

Seems Trilogy turned up at the Qld Supreme Court registry late yesterday afternoon.

$$$$ .. puff .. pant ... $$$$

....and.... Can see you want us to guess why.......

Well it is decision day today by FTI.

......and I'll put my money on Trilogy being disappointed..... At least for now.

 

[ASICK]

Re: LM Investment Management - court applications

....and.... Can see you want us to guess why.......

Well it is decision day today by FTI.

......and I'll put my money on Trilogy being disappointed..... At least for now.

no .. no .. no .. Mysteryman .. no guessing ... I don't know.
I've just been told (by a non-LM related person) that Trilogy filed late yesterday - nothing more.

My only suggestion was Trilogy was motivated by $$$$$ .. I really didn't have anything more to add.

Why do you think Trilogy'll be disappointed? and why only for now?