Fund Update
Balmain Trilogy is pleased to advise that a Fund update is in the process of
being printed and sent to all Unitholders in the Pacific First Mortgage Fund.
The update includes information on the property market, the asset realisation
program, litigation, hardship and the failed Bransgrove/Sullivan take over
attempt.
Please click on the below link to download a copy of the Fund update.
Unitholder Meeting CANCELLED by Bransgrove / Sullivan
Matthew Bransgrove, the convener of the meeting has now written to Balmain
Trilogy advising the meeting of members scheduled for 9 December 2011, has been
cancelled.
The cancellation of the meeting is welcomed by Balmain Trilogy and Unitholders,
as the Bransgrove/Sullivan self-interest campaign has now drawn to a close.
Please do not hesitate to contact the Balmain Trilogy Client Services
team on 1800 194 500 should you have any questions.
Unitholder Meeting ABANDONED by Bransgrove / Sullivan / Stacks
Bransgrove / Sullivan / Stacks Fail to Advise Unitholders
Stacks have announced on their website that they have withdrawn from the Bransgrove/Sullivan proposal thus rendering the meeting of no effect. The announcement states that Stacks have:
" … withdrawn their consent to act as the Responsible Entity for the Pacific First Mortgage Fund as proposed in the Notice to Members dated 11 November 2011."
Typical of how Bransgrove/Sullivan have conducted this campaign they have failed to tell Unitholders that the meeting is no longer proceeding. Whilst Balmain Trilogy continues to seek formal advice from them, Unitholders should proceed on the basis that the meeting is not continuing and that their disgraceful and self-interested campaign is now at an end1.
It was clear that Unitholders saw through their charade and that their proposal was doomed to fail. Computershare have released the following voting status as at 4pm, Friday 2 December 2011.
RESOLUTION 1
& RESOLUTION 2 |
Units
Voted |
% of Total Register |
% of Proxies Received |
|
For
|
11 million |
1% |
3.5% |
|
Against |
300
million |
34% |
96.1% |
|
Abstain |
1 million |
0% |
0.5% |
|
Total |
312 million |
35% |
100.0% |
With approximately 35% of the vote in, only 3.5% of the votes were in favour of the appointment of Stacks as responsible entity.
Voting in favour of Balmain Trilogy exceeded 96%.
We reiterate Unitholders should proceed on the basis the meeting has been cancelled.
Balmain Trilogy will shortly be providing Unitholders with a written Fund update advising them of:
- Capital repayments;
- Litigation;
- Martha Cove;
- Asset realisations.
Balmain Trilogy appreciates the overwhelming support it has received from Unitholders and assures Unitholders that it will continue to act in their best interests without fear or favour.
1. Balmain Trilogy has now booked the cancelled venue
(Radisson Resort Hotel, Palm Meadows Drive Carrara Gold Coast) and will have staff
present to advise any Unitholders that turn up that the meeting has been cancelled.
Unfortunately, due to lack of information provided by Bransgrove / Sullivan, Balmain Trilogy does not have sufficient time to advise
all Unitholders in writing.
Sullivan Withdraws: Balmain Trilogy Urges Unit Holders to Continue To Lodge Proxy Votes
Balmain Trilogy today called on unitholders in Pacific First Mortgage Fund to continue to lodge proxies against the appointment of Stacks Managed Investments as the new manager of the Fund following Phil Sullivan’s withdrawal of support for a unit holder meeting scheduled for December 9.
Until such time as Matthew Bransgrove – Mr Sullivan’s lawyer and the convenor of the meeting - formally abandons the meeting, unit holders should assume it is proceeding.
Please click on the following link to download a copy of the Balmain Trilogy’s
media release.
Website Promoting Replacement Responsible Entity Shut Down; Balmain Trilogy Raises New
Concerns about Stacks Independence
Balmain Trilogy has today raised new concerns about the December 9 Unitholder meeting to vote on the future management of the Pacific First Mortgage Fund (PFMF), after the proposed new manager's website was shut down.
Ray and Paul Stack are the directors of Stacks Finance, the proposed new responsible entity of PFMF and are also the directors of Pacific First Management Pty Limited, the proposed new manager of PFMF. Ray and Paul Stack closed the site after admitting that information contained on the website had not been authorised by them.
Please click on the following link to download a copy of the Balmain Trilogy’s
media release.
VOTE AGAINST THE BRANSGROVE / SULLIVAN PROPOSAL
Please click on the below link to download a copy of Balmain Trilogy’s letter to all Unitholders.
Please call the Balmain Trilogy Client services team on 1800 194 500 if you have any questions
Balmain Trilogy Warns that Claims Against Sullivan and Others May Be At Risk
Balmain Trilogy today warned that potential claims against Phil Sullivan and others could be halted if Matthew Bransgrove, his lawyer,
was to succeed in his attempt to change the Responsible Entity of the Pacific First Mortgage Fund (PFMF).
Please click on the below link to download a copy of Balmain Trilogy's media release.
Please call the Balmain Trilogy Client services team on 1800 194 500 if you have any questions.
Balmain Trilogy's Media Release
Philip Keith Sullivan v Australian Securities and Investments Commission (ASIC)
Balmain Trilogy provides the following update to all Unitholders.
In a directions hearing before Justice Jacobson in the Federal Court on 25 November 2011 in the matter of Philip Keith Sullivan v Australian Securities and Investments Commission (ASIC), it was apparent that Sullivan had discontinued his claim that ASIC’s intended examination of Sullivan pursuant to s.19 was an “abuse of process”.
Justice Jacobson set a hearing date of 11.00am on 12 December 2011 to consider whether Sullivan has sufficient time to prepare for the ASIC examination.
Counsel appeared for Sullivan as instructed by Matthew Bransgrove (Mr Sullivan’s lawyer).
We also note that Matthew Bransgrove is the Convenor of the Unitholder Meeting called for 9 December 2011 seeking the removal of Balmain Trilogy.
ASIC Update
INVESTOR COMMITTEE STATEMENT TO ALL UNITHOLDERS
Following a meeting of the Pacific First Mortgage (PFMF) Investor Committee (IC) that was held on 24 November 2011, it has been requested that the following statement be published on the Balmain Trilogy website. This letter will also be mailed to PFMF Unitholders.
Please click on the below link to download a copy of the IC’s statement to PFMF Unitholders.
Investor Committee Statement to Unitholders
Investors lose, still no action
Source: Sydney Morning Herald
HE'S a Gold Coast entrepreneur. He was responsible for the destruction of more
than half a billion dollars of investors' funds. Now he is promising to ride
back in and save the day.
Read more
Balmain Trilogy Requests Link to Provide Proxies to Ensure Unitholder Votes Are Valid
Balmain Trilogy has requested Link Market Services to provide them with details of returned Proxy votes received ahead of the Pacific First Mortgage Fund (PFMF) Unitholder meeting so as to avoid votes being marked invalid.
Balmain Trilogy is committed to ensuring that all Unitholders are given an opportunity to vote at the meeting if they wish to and that order and integrity are maintained in the voting process.
Please click on the below link to download a copy of Balmain Trilogy's media release.
Balmain Trilogy's Media Release
Balmain Trilogy Rebuts Bransgrove’s Misleading Fund Monies Assertions
Balmain Trilogy said today assertions made by Matthew Bransgrove regarding the application of monies received by Trilogy Funds Management Limited (Trilogy) as Responsible Entity of the Pacific First Mortgage Fund (the Fund) were inaccurate and misleading to Unitholders.
Please click on the below link to download a copy of Balmain Trilogy’s statement to all Unitholders.
Balmain Trilogy's Statement
IMPORTANT INFORMATION FOR PACIFIC FIRST MORTGAGE FUND UNITHOLDERS
VOTE AGAINST THE BRANSGROVE/SULLIVAN PROPOSAL
- Balmain Trilogy has a clear
strategy to protect the interests of Unitholders
- To prevent erosion of your
investment, it is vital that you ensure that Phil Sullivan and his associates do
not regain control of the Fund’s assets which include claims against Sullivan
and others.
- The timing of the Bransgrove/Sullivan Proposal has been determined
to prevent claims against Sullivan and others which may return significant value
to the Fund.
It is important that Unitholders understand that the
Bransgrove/Sullivan Proposal is an attempt by Phil Sullivan to regain control of
the Fund for his own advantage and to the detriment of Unitholders.
Please click
on the below link to download a copy of Balmain Trilogy’s letter sent to all Unitholders.
Balmain Trilogy Letter to Unitholders
Please note: The YELLOW proxy form referred to in the letter has been mailed to Unitholders.
Please call the Balmain Trilogy Client Services Team on 1800 194 500 if you have
any questions about the Fund or as to what action to take.
Bransgrove Proposal – Inaccurate, incomplete and liable to mislead or deceive
We are aware that Unitholders in the Pacific First Mortgage Fund have received
correspondence from Matthew Bransgrove, of Bransgroves Lawyers, enclosing a
Notice of Meeting of PFMF Unitholders scheduled for 9 December 2011.
The meeting has not been convened by Trilogy or Balmain Trilogy but rather has
been convened by Matthew Bransgrove on behalf of an undisclosed group of
unitholders. Matthew Bransgrove is Phil Sullivan's lawyer.
All Unitholders will be receiving a letter from Balmain Trilogy regarding the
proposal and the six key reasons why Unitholders should reject the
Bransgrove Proposal. These documents can be viewed by clicking on the
below links.
Trilogy and Balmain Trilogy recommend that you vote:
AGAINST resolution 1
AGAINST resolution 2
by completing the YELLOW proxy form that you will receive in the mail and
returning it to Computershare.
Unitholders should ignore all correspondence received from Stacks,
Bransgrove, Sullivan or anyone else associated with the Bransgrove Proposal.
Please call the Balmain Trilogy Client Services Team on 1800 194 500 if you have
any questions about the Fund or as to what action to take.
Balmain Trilogy Letter to Unitholders
Six Reasons You Should Reject the Bransgrove Proposal
ASIC examines Phil Sullivan
As previously advised, Trilogy Funds Management Limited (Trilogy) is pursuing legal action against various directors of the former responsible entity of the Pacific First Mortgage Fund (PFMF), including Mr Phil Sullivan.
On 4 October 2011 the Australian Securities and Investment Commission (ASIC) subpoenaed Mr Sullivan to be examined under Section 19 of the ASIC Act. In an effort to defer this examination, Mr Sullivan commenced proceedings in the Federal Court of Australia.
As highlighted in an article (‘Exam Trouble’) published in the Sydney Morning Herald on 2 November 2011, the Federal Court ordered for the first directions hearing to be set for 18 November 2011.
Under Section 19 of the ASIC Act, ASIC has the power to question under oath if ASIC, on reasonable grounds, ‘suspects or believes that a person can give information relevant to a matter that it is investigating’. As such, Trilogy is also pursuing legal action against various service providers and individuals with knowledge of the examinable affairs of City Pacific.
Balmain Trilogy will continue to ensure that Unitholders are kept up to date with developments regarding ASIC investigations concerning Mr Sullivan.
If you have any questions or require any further information regarding this development, please contact the Balmain Trilogy Client Services team on 1800 194 500.
Please click on the below link to view a copy of the article
PFMF Regulatory Guide 45
- Disclosure under ASIC
Balmain Trilogy is pleased to provide an update on the extent to which Trilogy Funds Management Limited (Trilogy) as Responsible Entity of the Pacific First Mortgage Fund and Balmain Trilogy Investment Management Pty Limited (Balmain Trilogy) as Investment Manager satisfies the benchmarks set by the Australian Securities and Investments Commission in the
Regulatory Guide 45: Mortgage Schemes - improving disclosure for retail investors.
This disclosure represents data as at 31 August 2011.
Please click on the below link to download a copy of the update.
2011 Tax Statements
Balmain Trilogy wishes to advise that the June 2011 Tax Statements for the Pacific First Mortgage Fund (the Fund) have been delayed. We are conscious of the need for Unitholders to have these statements in order to complete a tax return and wish to apologise for any inconvenience this delay may have caused.
The Statements will be mailed to Unitholders in the week beginning 17 October. In the interim, if it is of assistance to you, we can advise no income tax is payable for the financial year ended 30 June 2011.
If you have any questions or require any further information regarding Tax Statements, please contact the Balmain Trilogy Client Services team on 1800 194 500.
2011 Annual Financial Report
Balmain Trilogy is pleased to present the Annual Financial Report (Accounts) for the year ended 30 June 2011 for your investment in the Pacific First Mortgage Fund (Fund).
The Fund's auditors, BDO, have reviewed the Accounts and have verified that they have been prepared in accordance with applicable accounting standards. As required the Accounts have been lodged with the Australian Securities and Investments Commission (ASIC).
A copy of the Accounts will be mailed or emailed to Unitholders shortly.
Please click on the below link to download a copy of the 30 June 2011 Annual Financial Report.
Should you have enquiries, please call Balmain Trilogy Client Services on Freecall 1800 194 500 or email
contact@balmaintrilogy.com.au
Hardship Update
Please be advised that the hardship redemption period ending 30 September 2011 is now closed.
Applications are now being accepted for the third hardship redemption period ending 31 March 2012. Please note that all hardship payments are subject to the liquidity of the Fund.
If you have any questions or require any further information regarding the Hardship Policy, please contact the Balmain Trilogy Client Services team on 1800 194 500.
Return of Capital
Balmain Trilogy is pleased to announce that it has processed a return of capital payment to all Pacific First Mortgage Fund (PFMF) Unitholders totalling $8.84 million on 30 September 2011.
Over the coming days, all Unitholders recorded on the register as at 22 September 2011 will receive a capital repayment of 1c per ordinary unit. Unitholders will either receive a cheque or have their nominated bank account credited, in line with their previously outlined payment preference.
We will continue to update Unitholders in regards to further capital repayments via the Balmain Trilogy website.
If you have any questions, please contact the Balmain Trilogy Client Services team on
1800 194 500.
Investor Committee letter to Unitholders
Representatives of the Pacific First Mortgage Fund (PFMF) Investor Committee (IC) have requested that the following letter be posted to the PFMF website. This letter will also be mailed to PFMF Unitholders.
Please click on the below link to download a copy of the IC’s letter to PFMF Unitholders.
Misleading and Incorrect Information from ProtectPFMF
Further to Balmain Trilogy’s (BT) announcement on 19 August 2011 ‘Unsolicited letter to Unitholders’, we have issued the following letter to all Pacific First Mortgage Fund (PFMF) Unitholders in relation to the misleading and inaccurate information stated in the unsigned letter by a person or group, referring to themselves as ProtectPFMF.
Trilogy and Balmain Trilogy refute and emphatically deny the allegations made by the hidden authors of the unsolicited letter.
Trilogy has reported the unsolicited letter and associated website to ASIC and will consider commencing proceedings against the authors of the Unsolicited Letter once their identity is established.
There is no requirement for Unitholders to take any action in relation to the material that has been issued by Protect PFMF.
Should you have enquiries, please call Balmain Trilogy Client Services on Freecall
1800 194 500 or email
contact@balmaintrilogy.com.au
Please click on the below link to download a copy of BT’s letter to Unitholders
Unsolicited letter to Unitholders
Balmain Trilogy (BT) is aware that some Pacific First Mortgage Fund (PFMF) Unitholders have received an unsolicited, unattributed and unsigned letter from a person or group, referring to themselves as ProtectPFMF.
There is no clear indication of who is responsible for this correspondence (and the associated website) or what their intentions may be for the Fund. We do, however, note an article in the weekend Financial Review1 which states:
"In the past week Sullivan [ex-CEO of the previous manager of PFMF] and some unit holders have tried to gauge the sentiment of some of Pacific First Mortgage Fund’s 11,000 investors towards Balmain Trilogy.
Sullivan says he may know the answer to that question by the end of next week, and if he garners sufficient grunt from a new website and letter to investors, he may call a meeting to remove Balmain Trilogy."
In the event that any "group" were to gain control of the Fund which is in any way associated with Mr Sullivan (in any capacity) we assume that any legal actions to examine Mr Sullivan (and others) in Court and/or to recover fund assets from any Mr Sullivan entity would immediately cease. We believe that it is essential that these proceedings continue as they may yield significant value for PFMF.
Unitholders should also note that Mr Sullivan was served with an Examination Summons by PFMF's solicitors, Maurice Blackburn Pty Limited, in March 2011. More recently Mr Sullivan has commenced a personal defamation action against Andrew Griffin, the Joint CEO of Balmain Trilogy.
Unitholders should rest assured that whatever Mr Sullivan may do, it will not lessen our resolve to proceed with the public examinations of his conduct.
Additionally, and to make it quite clear:
- none of the information or statements contained in the letter are supported by BT;
- the statements in the letter are misleading in relation to material facts and/or incorrect;
- we are not aware of any unitholder that is in support of the contents of the letter other than those
Unitholders associated with Mr Sullivan;
- we are not aware of how ProtectPFMF obtained your personal details as they were not provided
by BT; and
- nothing will diminish our ongoing commitment to optimally recover PFMF assets.
We will be shortly sending a mail out to all Unitholders refuting the primary allegations made by this hidden group who still, weeks later, refuse to show themselves, if indeed they exist other than in the
mind of Mr. Sullivan. There is no requirement for Unitholders to take any action in relation to the material that has been issued
by ProtectPFMF.
Should you have any general enquiries, please call Balmain Trilogy Client Services on Freecall 1800 194 500 or email contact@balmaintrilogy.com.au
1.
The Australian Financial Review (The Weekend Edition), 13 -14 August 2011, Pg 53
Fund update and asset review
Balmain Trilogy is pleased to advise that a Fund update has now been dispatched
to Unitholders. The update includes information in relation to the timing of
capital repayments and a review of all assets in the Fund.
Please click on the below link to download a copy of Fund update and asset
review.
Hardship update
We are pleased to advise that all hardship relief payments for the first hardship redemption period ending 31 March 2011 have now been made.
91% of applications received were approved under the guidelines set out under the Hardship Policy of the Pacific First Mortgage Fund.
Applications are now being accepted for the second hardship redemption period ending 30 September 2011.
Please note that all hardship payments are subject to the liquidity of the Fund.
If you have any questions or require any further information regarding the Hardship Policy, please contact the Balmain Trilogy Client Services team on 1800 194 500.
Fund update
Balmain Trilogy is pleased to advise that a Fund update has been dispatched to Unitholders alongside the payment advice for the April capital repayment.
The update provides an overview of the Queensland and New South Wales markets for residential units and vacant land and shows the effects that the continued decline in these markets has had on the Fund's asset realisation program and availability of funds for return to Unitholders.
The update also provides information on hardship, litigation, Litigation Recovery Rights and the Martha Cove information session held in April this year.
If you have any questions, please contact Balmain Trilogy Client Services
on 1800 194 500.
PFMF Regulatory Guide 45
- Disclosure Under ASIC
The downloadable PDF provides an update on the benchmarks set by the Australian
Securities and Investments Commission in the Regulatory Guide 45: Mortgage
Schemes - improving disclosure for retail investors and explains to what extent
Trilogy Funds Management Limited (Trilogy) as Responsible Entity of the Pacific
First Mortgage Fund (the Fund) and Balmain Trilogy Investment Management Pty
Limited (Balmain Trilogy) as Investment Manager satisfies them.
This disclosure is correct at 28 February 2011
Interim Financial Report
The Interim Financial Report for the Pacific First Mortgage Fund (Fund) has now
been completed. The Fund's auditors (BDO) have reviewed the financial report and
have concluded that they present a true and fair view of the Fund's financial
position and financial performance for the six months ended 31 December 2010, as
well as complying with the Corporations Act 2001 and applicable Accounting
Standards.
While there is no requirement for the financial report to be made publicly
available, we believe that it is in the interests of all Unitholders to be
advised of the Fund's financial position.
The gross asset value of the Fund as at 31 December 2010 totalled $382.66
million (a decrease of $30.49 million as at 30 June 2010). This represents a net
tangible asset value of $0.40 per unit (a decrease of $0.03 as at 30 June 2010).
The 31 December 2010 net tangible asset value incorporates the $0.04 per unit
($35.48 million) return of capital in October 2010. Funding of this capital
repayment was from the sale of underlying security properties of impaired
mortgage loans.
During the period, the Directors agreed terms to extend the Fund's finance
facility with the CBA for a further two years.
No units were redeemed and no distributions were made from the Fund during the
six months ended 31 December 2010.
Please click on the below link to download a copy of the Interim Financial
Report.
Martha Cove Information Session
More than 60 Pacific First Mortgage Fund (PFMF or the Fund) Unitholders and
partners joined representatives from the PFMF Investor Committee on Saturday 16
April for a first hand look at Martha Cove, one the Fund's major assets.
Against a backdrop of blue skies and perfect Autumn weather, Unitholders gained
a full understanding of the issues and opportunities for Martha Cove, including
a comprehensive perspective of its future development potential.
Balmain Trilogy's Joint CEO, Andrew Griffin, commenced proceedings with a
presentation on the history of the site and how the Fund became the majority
stakeholder in the precinct. Unitholders were then given a guided tour of the
site, which gave them the opportunity to view PFMF controlled assets as well as
the development potential of the site as a whole.
For Unitholders who were unable to attend on the day, a video presentation is
currently being prepared for webcasting and DVD production. We will notify
Unitholders when the video becomes available.
Litigation Action - Update
Following leave from ASIC, Trilogy Funds Management Limited (Trilogy) has
commenced proceedings in the Supreme Court of New South Wales Equity Division
for the issuing of Examination Summonses and Production Orders so that the
examinable affairs of City Pacific Ltd (receivers and managers appointed) (in
liq) can be investigated.
A number of Production Orders have been issued by the Supreme Court of NSW
requiring third parties to produce various documents to the Court by 7 April
2011. To date our lawyers have received in excess of ten thousand documents in
partial answer of Production Orders. However, a number of other production
orders have been adjourned to 28 April 2011.
In conjunction with the issue of Production Orders, Examination Summonses have
also been issued by the Court and served upon various individuals with knowledge
of the examinable affairs of City Pacific (receivers and managers appointed) (in
liq). It is expected that those examination hearings will take place in the
Supreme Court of NSW during July 2011.
Subsequent to those examinations, legal advice will be sought to determine the
best course of action to recover funds on behalf of Pacific First Mortgage Fund
Unitholders.
Return of Capital - April 2011
Balmain Trilogy is pleased to announce that it will process a return of capital
payment to all Pacific First Mortgage Fund (the Fund) Unitholders totalling
$8.87 million on 30 April 2011. All Unitholders recorded on the register as at
19 April 2011 will receive a capital repayment of 1c per unit.
As previously stated, the property market in Queensland has continued to retract
as demand for vacant land and completed residential dwellings has declined.
Depressed property values, combined with the effects of the flooding in
Queensland, have caused the projected sales of assets to fall below our
forecasts.
As a result, and as previously indicated, the scheduled capital return of $35
million (or 4c per unit) can only be partially paid in April. The residual
amount is forecast to be returned by June 2011. However, this may be extended if
market conditions deteriorate further and/or there are delays with settlements.
We will provide an update nearer that time. We still remain confident that the
capital repayment anticipated for October 2011 will be made in full.
As we work to have properties realised in an orderly fashion, we remain
conscious of the continued decline in the market and ask Unitholders to
understand that our commitment is to provide the optimal return of funds without
resorting to fire sales.
As per our undertaking in February 2011, Trilogy Funds Management Limited
(Trilogy), as the responsible entity, will reduce its management fee from 1
April to reflect the scheduled repayment of $35 million. That is, Trilogy will
be excluding the full $35 million from the calculation of the gross assets of
the Fund when calculating the management fee.
If you have any questions, please contact the Balmain Trilogy Client Services
team on 1800 194 500.
Liquidity Update
As we near the close of the first quarter of 2011, Balmain Trilogy
continues to progress with its core strategy to complete, add value and realise
the Funds Non Development Assets. As indicated in the February 2011 newsletter,
challenging market conditions have impacted on asset realisations and the rate
of sale.
This has had a direct effect on the Fund's cash position; to enable
Unitholders to clearly understand this we have provided the following sources
and applications of cash (unaudited) that have occurred from 1 January 2011 to
15 March 2011.
|
1 January 2011 - 15 March 2011 |
|
|
Opening Cash Balance (1 January 2011) |
$7,806,933 |
|
Inflows
|
$6,431,661.60 |
|
Outflows
|
($5,746,987) |
|
Closing Cash Balance (15 March 2011) |
$8,491,607.27 |
|
Inflows
|
|
|
Cash Generated from sale of Assets: |
$5,991,103.07 |
|
Rental Income Earned from Assets: |
$42,525.96 |
|
Interest Income Earned from Assets: |
$259,655.25 |
|
Interest Income from Cash: |
$104,695.69 |
|
Other Income: |
$33,681.63 |
|
Total Inflows: |
$6,431,661.60 |
|
Outflows (excluding unpresented cheques) |
|
|
Interest Expense (CBA): |
($503,169) |
|
Reinvesting in Maintaining and Improving Assets: (See Note 1) |
($3,707,314) |
|
Fund Expenses: |
($499,968) |
|
Management Fees |
($1,033,652)
|
|
Transaction And Misc Fees |
($2,884) |
|
Total Outflows: |
($5,746,987) |
|
Note 1 |
|
|
Asset No. 1 |
($58,717) |
|
Asset No. 3 |
($58,291) |
|
Asset No. 4 |
($25,666) |
|
Asset No. 5 |
($13,820) |
|
Asset No. 6 |
($250) |
|
Asset No. 7
|
($8,189) |
|
Asset No. 8 |
($1,015) |
|
Asset No. 9 |
($16,984) |
|
Asset No. 10 |
($2,200) |
|
Asset No. 11 |
($345) |
|
Asset No. 12 |
($24,587) |
|
Asset No. 15 |
($220) |
|
Asset No. 16 |
($34,592) |
|
Asset No. 18 |
($1,244,849) |
|
Asset No. 19 |
($6,041) |
|
Asset No. 20 |
($9,718) |
|
Asset No. 23 |
($47,733) |
|
Asset No. 24 |
($1,217,548) |
|
Asset No. 26 |
($45,746) |
|
Asset No. 28 |
($11,830) |
|
Asset No. 29 |
($26,125) |
|
Asset No. 30 |
($250,000) |
|
Asset No. 31 |
($26,459) |
|
Asset No. 33 |
($81,367) |
|
Asset No. 35 |
($1,898) |
|
Asset No. 36 |
($25,876) |
|
Asset No. 37 |
($285,691) |
|
Asset No. 38 |
($71,267) |
|
Asset No. 39 |
($110,290) |
|
Grand Total |
($3,707,314) |
The inflows from asset sales have been below our quarter
projections, however we still remain confident that asset realisations moving
forward in the next quarter will be aligned to revised projections. As we have
detailed previously, it is a commitment not to jeopardise the total return to
Unitholders by undertaking a fire sale to generate cash inflow but to ensure
assets are realised at their highest possible value.
Donation - Queensland Flood Appeal
Following Balmain Trilogy Investment Management's $20,000 donation to the Premier's Flood Relief Appeal, we have received the following letter from Premier Anna Bligh.
Our thoughts are with those who have been affected and we will continue to assist in the rebuilding process where possible.
Litigation Recovery Right
Balmain Trilogy is pleased to announce the issue of Litigation Recovery Rights (LRRs) to Unitholders of the Pacific First Mortgage Fund (PFMF or Fund). For each ordinary unit held in the Fund on 15 March 2011, you will receive one LRR.
The LRR is a separate and transferable entitlement that has been created to
ensure all Unitholders retain the right to their pro rata share of any net
proceeds resulting from litigation being undertaken by the Fund.
The creation of this entitlement at nil issue price will enable Unitholders to
deal in their ordinary units through either a transfer or withdrawal (via the
Fund's hardship policy) without affecting their entitlement to participate in a
pro rata share of the net proceeds of litigation.
The LRR will have no right to distribution of capital or income of the scheme
other than the right to a pro rata share in net proceeds from litigation. The
issue of the LRR has not affected your rights and entitlements as a Unitholder
in dealing with your ordinary units.
A separate transfer form (Transfer Form - Litigation Recovery Right) has been
created for the transfer for LRRs and is available for download by clicking on
the below link.
Please note that no action is required unless you wish to transfer your rights
to another party.
An updated statement confirming your PFMF holding across both your ordinary units
and litigation rights as at 15 March 2011 will be issued to you shortly.
If you have any questions please contact the Balmain Trilogy Client Services Team
on Free call 1800 194 500 or email
contact@balmaintrilogy.com.au
Martha Cove Information Session
Balmain Trilogy is pleased to announce that the Martha Cove Information Session
will be held on Saturday, the 16th of April 2011. Registration will be closing
this coming Friday, the 11th of March 2011.
At this time we will send out a confirmation form to those who have registered,
which will enable Balmain Trilogy to best provide on-site amenities and on
ground local transport. Final details will be provided upon receipt of your
confirmation details.
Please contact Balmain Trilogy Client Services if you have any questions
on 1800
194 500.
REGISTRATION HAS NOW CLOSED
pfmfnews, Issue #2 February 2011
Balmain Trilogy is pleased to provide Unitholders with the second issue of the
pfmfnews.
In this edition of the newsletter, Balmain Trilogy's Joint CEOs' outline the progress to
date and the Fund's strategy for 2011 and beyond. An update on the strategy in
action with assets that have been realised to date and the ongoing completion
and value add of the Fund's Non Development Assets is provided. Information
regarding our approach for the Martha Cove group of assets, legal action, the
Capital Repayment for April, the Fund's Hardship Policy and Litigation Recovery
Rights are detailed in this newsletter.
Also included in this issue is an address from the Investor Committee addressing
Unitholders on their views of Fund's progress to date and their views on Balmain
Trilogy. The Martha Cove 'On Site Information Session' will be held in the first
half of 2011. To enable us to cater for those Unitholders who wish to attend,
please register your interest by clicking on the link below.
If you have any questions, please contact Balmain Trilogy Client Services
on
1800 194 500.
Hardship Policy & Litigation Recovery Right
Hardship Policy
Balmain Trilogy Investment Management Pty Limited (Balmain Trilogy) is pleased to inform Unitholders of the Pacific First Mortgage Fund (PFMF or Fund) that the Hardship Policy for the Fund has now been finalised.
Following ASIC granting the Fund the required relief, changes have been made to the Fund's constitution to facilitate the implementation of the Hardship Policy. The Hardship Policy enables Unitholders who are suffering from severe financial hardship to apply for redemption from the Fund. Applications will only be considered where the Unitholder is able to satisfy the criteria and requirements detailed in the Hardship Policy.
Unitholders are permitted to withdrawal up to $20,000 each calendar year pursuant to successful hardship redemption applications. Hardship applications will be processed on a semi annual basis, for the periods ending 31 March and 30 September. Please note Hardship withdrawls will only be permitted if there is sufficient liquidity within the Fund and hardship payments may be scaled back on a pro rata basis if the total amount approved for Hardship withdrawals exceeds the available allocation of funds set aside for hardship payments. If payments are scaled back on this pro rata basis, the excess will be rolled over to the next hardship redemption period.
Hardship withdrawals will be at a unit price based on the net asset value of the Fund divided by the number of units on issue at the relevant time. This will ensure all Unitholders are treated equally.
For those Unitholders who wish to make a hardship redemption application, it is requested they carefully read through the Hardship Policy and the Statutory Declaration Form before making an application. Please ensure all supporting documentation is provided as incomplete applications will not be able to be processed. Upon receipt of your completed application, your application will be assessed and you will be advised of the outcome.
Please note that in order to participate in the first hardship redemption period ending 31 March 2011, your completed Statutory Declaration Form , together with all required documentation to support your application, must be received by Balmain Trilogy by 18 March 2011.
Should you require additional information or require a copy of the Hardship Policy or the Application Form please call Balmain Trilogy Client Services on 1800 194 500.
Litigation Recovery Right
As previously advised, to ensure all Unitholders are able to obtain the benefit of any future net proceeds that result from the litigation currently being undertaken by the Fund, we will create a separate and transferable entitlement. Each unit in the Fund which you hold on 15 March 2011 will be split into two units going forward, one of which will be a Litigation Recovery Right ('Litigation Recovery Unit').
You do not need to do anything in order to effect the split and, in all material respects, your rights and entitlements in respect of the Fund will not change. There will be no cost to the Unitholder for the Litigation Recovery Unit. The split is being undertaken to ensure that those Unitholders who were affected by the significant losses the Fund suffered will, even if they transfer or withdraw (through the hardship withdrawals process) their ordinary units in the Fund, obtain their portion of any benefit from any net proceeds that may result from legal action currently in process.
All rights you have as a Unitholder in the Fund will remain attached to your ordinary unit, with the exception that the right you have to share on a proportional basis in any net proceeds of litigation taken by the Fund for loss suffered as a result of previous Fund management will attach to your Litigation Recovery Unit. The Litigation Recovery Unit does not restrict Unitholders in dealing with their ordinary Fund units - at any point in time, you are able to transfer your ordinary units, or apply for redemption through the Fund's hardship facility. At the time of any transfer, you can elect whether you also transfer your Litigation Recovery Units or whether you hold on to them.
The PFMF Hardship Policy and Hardship Statutory Declaration Form can be downloaded by clicking on the following links.
Queensland Floods
In the last two weeks we have seen the total destruction of so many homes and
businesses in the Brisbane area.
We understand that these floods have affected a number of Unitholders and their
families living in Brisbane and surrounding arrears.Our staff in Brisbane have
also been personally affected by this natural disaster.
To assist in the recovery effort, Balmain Trilogy has made a donation of $20,000
to the Flood Relief Appeal. Those who wish to aid through donation can visit the
Premiers Disaster Relief Appeal website (www.qld.gov.au/floods)
The flow on effects of this natural disaster will not be able to be quantified
just yet; it is going to be a long rebuilding process, not just for Brisbane but
for the state of Queensland. Balmain Trilogy remains very conscious of the
effects that this will have on the recovery of the Fund's assets in Queensland.
Our thoughts are with all of those affected.
Flood Notice
Due to the flooding in Brisbane, communications with Trilogy Funds Management may
be disrupted temporarily.
Please call 02 8028 2828 if you require assistance.
Hardship Policy
Following approval from ASIC, Balmain Trilogy are now making the required amendments to the Fund's constitution to allow for the Hardship Policy to be implemented.
Applications for Hardship Withdrawals will be dependent upon the liquidity of the Fund and will only be considered where the applicant is able to satisfy the Hardship Policy Criteria.
Details of the Hardship Policy including the Policy Criteria and Application Guidelines will be available to Unitholders in the New Year.
PFMF Regulatory Guide 45 - Disclosure Under ASIC
The downloadable PDF provides an update on the benchmarks set by the Australian Securities and Investments Commission in
the Regulatory Guide 45: Mortgage Schemes - improving disclosure for retail investors and explains to what extent Trilogy
Funds Management Limited ('Trilogy') as Responsible Entity of the Pacific First Mortgage Fund (the "Fund")and Balmain
Trilogy Investment Management Pty Limited ("Balmain Trilogy") as Investment Manager satisfies them.
This disclosure is correct at 31 October 2010.
Investor Information Sessions
A series of Investor Information Sessions that took place across five major cities has now concluded and was attended by more than 1500 unitholders.
These sessions were conducted to allow the Balmain Trilogy team to provide an update on the current situation of the Fund and importantly, enable unitholders to ask questions about their investments.
The meetings were chaired by Rodger Bacon, joint CEO of Balmain Trilogy and addressed by joint CEO Andrew Griffin, this provided unitholders with a clear, open and transparent overview of the past, present and future activities of the Fund.
Mr Griffin's presentation addressed four areas and a summary of the critical points are as follows:
1. The history and fighting back
- Nature of the Fund and how it differed substantially from the way it was portrayed
- Lack of sound corporate governance and oversight from the previous Investment Manager and Responsible Entity
- Illusory returns from accounting treatment
- How we are bringing action against those responsible - ASIC granting leave
- The involvement of IMF in funding these actions
2. The assets
- 17 loans that have currently been realised - recovery in excess of $145 million
- 18 non-Martha Cove loans that still remain - the requirement of significantly more work to achieve an optimal sale
- 6 loans relating to Martha Cove - how to achieve the best development outcome
3. The present and immediate future
- Outcomes of last unitholders meeting - which despite 81% support from unitholders that voted fell short of the required 75% of units issued to be passed
- Future payments to unitholders - target to return $295 million by Oct 2012, including the $35million received by unitholders in October 2010.
- Hardship payments - ASIC approval to commence hardship payments
- Improving unitholder communications
4. The future of your fund
- Strategies available to the assets of your Fund
- How Balmain Trilogy will maximise the value on the non-Martha Cove assets
- The structured development of Martha Cove - selection, structure, returns, authority, skill, money and choice.
Due to legal reasons the transcript of the Sydney Information Session has been removed from this website.
Gold Coast Investor Information Session
Balmain Trilogy wishes to inform Unitholders that the Gold Coast Information
Session that is to be held on 16 November 2010 has reached full capacity and is
now closed to any further reservations. For those Unitholders in the South East
Queensland area who wish to attend an Information Session, we ask if they please
attend and reserve their seat for the Brisbane Information Session that is to be
held on Monday 22 November.
PFMF Consolidated Annual Financial Report for the year ended 30 June 2010
The Financial Report (Accounts) for year end 30 June 2010 for the Pacific First Mortgage Fund (Fund) have now been completed. The Fund's auditors, KPMG, have reviewed the Accounts and have verified that the Accounts have been prepared in accordance with applicable accounting standards. As required the Accounts have now been lodged with ASIC.
As at 30 June 2010 the gross assets of the Fund were $413.15 million (a decrease of $107.91 million from 30 June 2009). As at this same date the net assets of the Fund were $382.47 million (a decrease of $43.77 million from 30 June 2009). The net assets attributable to each unit was $0.43 (a decrease of $0.04 from 30 June 2009).
Whilst the Fund recorded further impairments on gross mortgage assets during the year of $44.50 million, the Fund recovered $108.85 million which enabled the CBA facility to be reduced by $61.8 million to $30 million at 30 June 2010. This significant reduction in the Funds finance facility also enabled Balmain Trilogy to negotiate and renew the facility for a further 2 years and to allow repayment of capital to unitholders, with the first payment of 4c per unit being returned in October 2010.
The reduced value of the gross mortgage assets has been affected by the further diminution in value of several unimproved/undeveloped assets that continue to be affected by adverse market conditions, while other assets in the portfolio continue to perform inline with our original projections. The valuations of all assets have undergone a due process with values being obtained from independent valuation firms and then verified by the Fund's Auditors. We will continue to actively work on enhancing the value of unimproved/undeveloped assets where permitted and continue to manage completed assets to ensure the maximum value is returned to the Fund.
No units were redeemed and no distributions were made during the year ending 30 June 2010.
A copy of the Consolidated Annual Financial Report will be distributed to all Unitholders via the mail. In addition it can be downloaded by clicking on the following link.
28 October 2010
Investor Information Sessions
BalmainTRILOGY will be holding a series of Investor Information Sessions across 5 major cities
to provide an opportunity for Unitholders to better understand their Fund. These sessions have
been established to allow the BalmainTRILOGY team to provide an update on the current situation
of the Fund and also allow Unitholders to ask questions about their investment.
The Joint CEO's and other key executives from BalmainTRILOGY will be attending. These sessions are scheduled
to last for 2 hours and will commence at 10am on the day and be followed by light refreshments.
Please note that registering your interest is essential as seating is limited. These sessions are informal
and are not another Unitholder Meeting requesting a vote.
Please understand the costs for these
sessions are being paid directly by
BalmainTRILOGY and NOT by the Pacific First Mortgage Fund.
The meeting has now passed
28 October 2010
Financial Accounts
Trilogy and Balmain Trilogy are currently in the process of completing the PFMF Consolidated Annual Financial Report for the year ended 30 June 2010 with the Fund's Auditors. We are very conscious that the accounts have been delayed but the assessment of values must be undertaken carefully and with regard to due process. Once the accounts have been finalised and lodged with ASIC on 1 November 2010 they will be published on this website and mailed out to all Unitholders with expected delivery by mid November.
18 October 2010
PJPL Offer - Update
Balmain Trilogy has now been advised that Project Junior Pte Ltd (PJPL) will
waive all conditions relating to its Offer effective from 20 October 2010.
Processing of acceptances for payment will commence within 10 days from 20
October 2010.
PJPL has also confirmed that the offer period has been extended to 5.00 pm on 10
December 2010 unless closed earlier.
PJPL have issued a letter to all Unitholders confirming the above and copy of
the letter can be viewed by clicking on the below link.
13 October 20100
Return of Capital
Balmain Trilogy is pleased to announce that the proposed capital repayment totalling $35.481 million has now been processed.
All Unitholders will be receiving a capital repayment of $0.04 per unit held in the Fund. For those Unitholders who have nominated for
payment to be made electronically, funds will start to appear in their accounts from today. If the Fund's Registrar does not hold your
account details on file a cheque has been drawn and will be mailed to Unitholders within a week.
A further capital repayment is scheduled for early in the new year and we will be advising Unitholders of this closer to the date.
05 October 2010
Offer to Purchase at 30c - Update
Further to Balmain Trilogy's announcement on 13 September 2010 regarding an offer
from a group of unitholders to purchase units in the Pacific First Mortgage
Fund, we have now received further information from the Group's coordinator Mr
Tom Powers.
Tom Powers has now confirmed the Groups offer has closed as they have reached
their unit limit. They will no longer be taking any further transfers and any
transfers already sent to them will be returned to those Unitholders
unprocessed.
29 September 2010
Hardship Policy - Update
Trilogy and Balmain Trilogy are aware that a number of Unitholders are suffering from severe financial hardship and would benefit from hardship relief. To assist those unitholders in need, Trilogy has now sought legal advice to implement a Hardship Policy that would allow for hardship relief without disadvantaging those Unitholders who do not qualify or seek relief. The implementation of a Hardship Policy would require changes to the constitution that would allow for units to be redeemed to ensure the underlying value per unit would be maintained and is subject to ASIC approval. The nominated changes to the constitution are allowed to
be made in Trilogy's capacity as the Responsible Entity of the Fund.
We have sought for an urgent determination of the Fund's Hardship Policy by ASIC. Further details regarding the Hardship Policy will be provided once relief from ASIC is obtained
24 September 2010
PJPL Offer - Update
Balmain Trilogy has now been advised that the Project Junior Pte Ltd (PJPL) Offer
to acquire units in the Pacific First Mortgage Fund has been extended to the earlier
of 21 October 2010 or PJPL receiving acceptances for 435 million units.
PJPL have also confirmed that they have waived all of the conditions relating to
its Offer except the 10% minimum acceptance condition. As at 22 September 2010,
PJPL have received acceptances of 27.7 million units representing 3.1% of the
total units on issue.
Balmain Trilogy also advises that Unitholders who accept the offer will still
receive the upcoming capital repayment of 4 cents per unit in early October. If
the minimum acceptance condition is satisfied or waived the PJPL offer price
will be adjusted accordingly to 22 cents per unit.
PJPL have now issued a letter to all Unitholders providing a status update of
their offer and copy of the letter can be viewed by clicking on the below link.
Neither Trilogy nor Balmain Trilogy recommends that Unitholders either accept or
reject the PJPL offer. However, the Liquidity offer does provide unitholders
with a choice to exit the Fund immediately. Balmain Trilogy advises Unitholders
to seek professional financial advice if any aspect of the offer is unclear to
them.
21 September 2010
Payment of 4c per unit and Tax Statements
- CHECK YOUR BANK DETAILS -
Balmain Trilogy are pleased to announce that a capital repayment of $35.481 million will be made to all Unitholders. This will in effect be a capital reduction of 4 cents per unit and the payment will be made in early October.
Unitholders will shortly receive a letter providing more details of the capital repayment and also their individual June 2010 Tax Statement. To facilitate payments to all Unitholders as quickly as possible, it is important to ensure that the bank accounts details we hold are correct. To assist with this, included with the letter is a Direct Credit form that has been pre-populated with each Unitholders bank account details currently held by Computershare. If the bank account details on this Direct Credit form are
incorrect please write the correct details in the space provided, and ensure that all relevant signatories sign the form and return it in the reply paid envelope provided within
7 days. Unitholders are not required to do anything if the bank account details listed are correct. Please note that Computershare can only process original forms that are received and signed by all signatories to the original unit application.
If you have any questions please call the Client Services Team on 1800 194 500.
17 September 2010
Clarification of Litigation Settlement with Atkinson Gore
Balmain Trilogy confirms that it has reached an out of court settlement with Gore and other companies. After 18 months of defending various claims, some of which sought more than $300m in damages, the actions will now be discontinued saving the Fund several million in legal costs. Balmain Trilogy believes that the out of court settlement is in the best interest of unitholders.
Settlement of these litigation actions does not in any way affect the ability of Trilogy and Balmain Trilogy to bring actions against parties that have contributed to the significant losses of the Fund.
Recent public commentary that the settlement has wiped away or will result in a further loss to the Fund of $190m is wrong. There will be no change to the value of the Fund as a result of the settlement other than a slight increase in value because of the removal of a contingency for legal fees to defend certain proceedings that have now been discontinued.
Balmain Trilogy's lawyers will now seek to formalise the discontinuance of the actions against the Fund with the trustees in bankruptcy for Messrs Gore and Atkinson and, once that is done, all substantive litigation involving Messrs Atkinson and Gore, and the Atkinson Gore companies, will come to an end.
16 September 2010
CEO's Address
Following the Meeting of Unitholders that was held on 1 September, we provided a
copy of Andrew Griffin's address to Unitholders. The address by Mr Griffin
provided an opportunity to present the Funds current position, the issues and
problems that it has faced and those resolved and the proposed path forward. We
trust that all unitholders who were unable to attend the meeting will find Mr Griffin's address beneficial.
Please note the address has been edited for the purposes of publication on this website.
13 September 2010
Offer to Purchase at 30c
Balmain Trilogy has become aware of an offer from a group of unitholders to purchase units in the Pacific First Mortgage Fund at $0.30. The purchasing group, which appears to be represented by Tom Powers, has made an offer without any consultation with either of Trilogy or Balmain Trilogy. Given this lack of consultation we are unable to provide any comments as to the capacity of the intending purchasers to complete the purchases of units. We also note that the offer conditions are not clear in respect of either the identity or capacity of the purchaser/s. As such we are unable to confirm either the maximum number of units the group intends to acquire or whether the group has the capacity to complete the purchases. We are also unaware on what basis the group intends to select which acceptances it will honour.
Balmain Trilogy advises Unitholders to seek professional financial advice if any aspect of the material that has been published by Mr Tom Powers is unclear to them.
06 September 2010
Requisition has been withdrawn
Balmain Trilogy has been requestioned by 133 members to convene a meeting of unitholders to consider 12 separate resolutions regarding changes to the Fund's constitution. The statement provided by these members was published on this website on 31 August 2010. Balmain Trilogy now confirms that it has received written confirmation from 37 members withdrawing their request to convene a meeting of unitholders to consider the 12 proposals. As the number of members now calling the meeting is below the requisite number of members required, Balmain Trilogy considers the requisition to be withdrawn and will not be facilitating the meeting.
Should you have any questions please do not hesitate to contact the Client Services Team on 1800 194 500.
03 September 2010
Liquidity Offer Remains Open
Morgan Stanley Special Situations Fund III (MS SSFIII) through its subsidiary
Project Junior Pte Ltd (PJPL) has today advised that their liquidity offer to
Pacific First Mortgage Fund Unitholders remains open. Whilst one of the Approval
Conditions was the passing of Resolution 1, PJPL have confirmed that they are
neither waiving the Approval Condition nor withdrawing the offer and PJPL will
continue to leave the offer open, reserving its rights to withdraw the Offer,
until the closing date of 30 September 2010. If the Approval Condition is not waived on the close of the Offer all
acceptances will be void.
Neither Trilogy nor Balmain
Trilogy recommends that Unitholders either accept or reject the PJPL offer.
However, the Liquidity offer does provide unitholders with a choice to exit the
Fund immediately. Balmain Trilogy advises Unitholders to seek professional
financial advice if any aspect of the offer is unclear to them.
02 September 2010
Balmain Trilogy receives 82% unitholder support, falls short of required 75% majority
The Unitholder meeting of the Pacific First Mortgage Fund (Fund) held in Brisbane yesterday was attended by over 680 Unitholders. Balmain Trilogy, the Investment Manager of the Fund, received the majority support of Unitholders in respect of Resolution 1, a resolution designed to enable full implementation of the proposed New Strategy for the Fund.
There were 3 resolutions put to Unitholders as follows:
Resolution 1 would have allowed changes to the Fund's constitution to
enable:
- The development of selected fund assets to achieve a better outcome for all
investors;
- The commencement of a Hardship Redemption Policy;
- Separate non-redeemable units in respect of recoveries from legal proceedings to
ensure unitholders benefit from any litigation recoveries regardless of whether
they accepted or declined future redemption offers and
- An amended management fee structure to better align the interests of the manager
and the unitholders.
Resolution 2 enabled Unitholders to elect whether redemptions are to be
made at either current value or issue price.
Resolution 3 was a resolution proposed by certain member of the Fund (and
was not supported by Balmain Trilogy) which sought to reduce the manager's fee
from 1.5% of the gross assets to 1.25% of the net assets of the fund.
Resolution 1 received the support of 82% of all unitholders by number and 67% of
all units voted. Unfortunately, the voice of 82% of unitholders was not
sufficient and the vote fell short of the required 75% majority needed to pass
the Resolution. However, with 82% of unitholders voting in favour of Resolution
1, Balmain Trilogy believes that this confirms strong Unitholder support for the
New Strategy.
Resolution 2 was conditional upon Resolution 1 being passed, hence was not
effective and Resolution 3 was soundly defeated (see below vote results).
The consequences of Resolution 1 not being passed are as follows:
- Hardship payments cannot be made under the Fund's present constitution because a
unit price based on underlying asset values cannot be struck. Balmain Trilogy is
urgently seeking guidance as to how to commence Hardship payments;
- The management fee will remain at 1.5% and not be reduced to 1%
- There will be no introduction of performance/incentive fee for Balmain Trilogy
to act as development manager in respect of some of the Fund's assets; and,
- Unitholders will be denied the individual choice as to whether they can
accelerate or delay their exit by way of future redemptions from the Fund.
Balmain Trilogy confirms that, notwithstanding the failure of Resolution 1, it is
committed to the following:
- Targeting to repay $295m, or 71% of the current assets of the Fund, to
Unitholders prior to October 2012.
- A pro rata payment to all unitholders of $35m in October 2010;
- Returning any excess liquidity to Unitholders promptly and regularly;
- Will continue to act in the best interests of all Unitholders in maximizing the
value of recoveries and no fire-sales will occur;
- Will continue to work to find ways to ensure the maximum returns from assets
such as Asset 34 or Martha Cove are achieved. Trilogy and Balmain Trilogy will
continue to act in the best interests of Unitholders and if that means
developing assets, then Trilogy will appoint appropriately skilled development
managers where it considers it to be in the best interests of Unitholders; and
- Will improve communications to all Unitholders.
Trilogy and Balmain Trilogy will continue to act in the best interests of
Unitholders and will continue to both maximise the value of the Fund and
minimise the time period for redemptions to occur.
OFFICIAL VOTING RESULTS
|
Resolution 1 |
No. Units |
% |
|
Votes cast 'FOR' the motion |
442,656,102 |
66.72 |
|
Votes cast 'AGAINST' the motion |
220,790,190 |
33.28 |
|
TOTAL VOTES CAST |
663,446,292 |
100.00
|
|
Resolution 2 |
No. Units |
% |
|
Votes cast 'FOR' the motion |
434,400,751 |
65.73 |
|
Votes cast 'AGAINST' the motion |
226,524,071 |
34.27 |
|
TOTAL VOTES CAST |
660,924,822 |
100.00
|
|
Resolution 3 |
No. Units |
% |
|
Votes cast 'FOR' the motion |
234,019,673 |
35.92 |
|
Votes cast 'AGAINST' the motion |
417,515,523 |
64.08 |
|
TOTAL VOTES CAST |
651,535,196 |
100.00
|