About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   depositrates.co.nz  |   landlords.co.nz
Last Article Uploaded: Friday, December 9th, 4:05PM
rss
Latest Headlines

First LM mortgage fund payout approaching

The embattled LM First Income Mortgage Fund has signalled its first payout to investors next month after ditching a proposed “liquidity mechanism” and fund split.  

Tuesday, February 26th 2013, 9:06AM

by Niko Kloeten

About 1300 New Zealanders have more than $100 million invested in the frozen fund run by Queensland-headquartered LM Investment Management.

Last year LM proposed a constitutional change and liquidity mechanism allowing investors the choice to either stay within the Fund or choose to realise their investment, or a combination of the two.

That plan has since been cancelled but LM has told investors that it is planning to make its first pay-our since the fund was frozen in March 2009.

“As previously advised, the liquidity mechanism proposed in May 2012 will not proceed. The Fund will not be split, and there will no longer be the options for investors to “sell” or “hold” their investment in the Fund,” the company said in its latest update to investors.

“Instead, all remaining assets will be sold, and all investors will share pro-rata in the liquidity provided through this sales program. This strategy is for an orderly, commercial sale and not a fire sale of assets.”

LM said it expected to make the first payment in March, with payments likely to be made in a process that it said would take two to three years.

But it didn’t say how much investors would get in the original payment.

Last year LM cut the fund’s unit price from 73c to 59c, calling it “a true and realistic reflection of sales pricing in the current market”.

LM, which was founded by expat New Zealander Peter Drake, has been involved in a public spat with rival fund manager Trilogy, which tried to take over the running of its frozen funds.

Trilogy took over one of the feeder funds for the LM First Income Mortgage Fund but not the main fund itself.

Niko Kloeten can be contacted at niko@goodreturns.co.nz

« NZFAA: Two not a crowdFund managers call for level playing field »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
  • Back to the novel for holiday reading
    “Couldn't agree more - but if there was an issue with the 'sales' reference, then some direct reference to 'product' in the...”
    1 day ago by dcwhyte
  • CFFC calls for seven changes to KiwiSaver
    “I tell Kiwisavers not to put more into kiwisaver than the minimum needed to get the maximum subsidy. Kiwisaver is locked...”
    1 day ago by Murray Weatherston
  • Back to the novel for holiday reading
    “David Yes, a list needs only one item on it to be a list. With no items it doesn't exist and therefore it can't be...”
    1 day ago by Murray Weatherston
  • CFFC calls for seven changes to KiwiSaver
    “Yeah I thought it was pretty lightweight. Standard stuff from the Ministry of Financial Capability. For example “CFFC...”
    1 day ago by Brent Sheather
  • Back to the novel for holiday reading
    “Hi Murray, Of course the two terms are not the same - I agree. In the spirit of Christmas, I was merely adopting Rob...”
    1 day ago by dcwhyte
Subscribe Now

Weekly Wrap

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
ANZ 5.59 4.75 4.95 5.15
ANZ Special - 4.25 4.45 -
ASB Bank 5.65 4.69 4.99 5.29
ASB Bank Special - 4.29 4.49 4.79
BankDirect 5.65 4.69 4.99 5.29
BankDirect Special - 4.29 4.49 4.79
BNZ - Mortgage One 6.25 - - -
BNZ - Rapid Repay 5.70 - - -
BNZ - Special - 4.29 4.45 4.65
BNZ - Std, FlyBuys 5.64 4.85 4.95 5.15
BNZ - TotalMoney 5.64 - - -
Lender Flt 1yr 2yr 3yr
Credit Union Auckland 6.70 - - -
Credit Union Baywide 5.95 4.99 4.99 -
Credit Union North 6.45 - - -
Credit Union South 6.45 - - -
Finance Direct 6.10 6.45 6.69 7.10
First Credit Union 5.85 - - -
Heartland 6.70 7.00 7.25 7.85
Heretaunga Building Society 5.60 4.85 4.90 -
Housing NZ Corp 5.55 4.69 4.75 ▲4.99
HSBC Premier 5.75 4.19 4.19 4.49
HSBC Premier LVR > 80% - - - -
Lender Flt 1yr 2yr 3yr
HSBC Special - - - -
ICBC 5.60 4.39 4.69 4.99
Kiwibank 5.25 4.70 4.75 4.75
Kiwibank - Capped - - - -
Kiwibank - Offset 5.25 - - -
Kiwibank Special - 4.19 ▲4.39 ▲4.75
Liberty 5.69 - - -
Napier Building Society 6.50 5.80 6.70 -
Nelson Building Society 6.10 4.85 4.99 -
NZ Home Loans 5.45 4.69 4.75 ▲5.00
NZ Home Loans - Specials - - - -
Lender Flt 1yr 2yr 3yr
NZ Home Loans - Specials - 4.19 ▲4.39 ▲4.75
Perpetual Trust 7.70 - - -
Resimac 5.19 4.94 4.90 4.91
SBS Bank 5.54 4.75 4.89 4.99
SBS Bank Special - 4.25 4.29 4.35
Sovereign 5.75 4.69 4.99 5.29
Sovereign Special - 4.29 4.49 4.79
The Co-operative Bank 5.45 4.39 4.45 4.79
TSB Bank 5.54 4.75 4.75 4.99
TSB Special - 4.25 4.19 4.59
Wairarapa Building Society 6.20 5.75 5.95 -
Lender Flt 1yr 2yr 3yr
Westpac 5.65 4.79 4.90 5.09
Westpac - Capped rates - 5.15 5.25 -
Westpac - Offset 5.65 - - -
Westpac Special - 4.25 ▲4.39 ▲4.75
Median 5.65 4.69 4.75 4.95

Last updated: 7 December 2016 7:40am

News Quiz

The maximum remuneration model for Australian life insurance advisers is to be set at what?

Upfront 40% + trail 20%

Upfront 50% + trail 10%

Upfront 50% + trail 20%

Upfront 60% + trail 10%

Upfront 60% + trail 20%

MORE QUIZZES »

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com