24 March 2010
Interim Financial Report
The Interim Financial Report (Accounts) for the six months ended 31 December 2009 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 been lodged with ASIC.
Whilst there is no requirement for the Accounts to be made publicly available we believe that it is in the interests of all unitholders to be advised of a summary of the Accounts.
As at 31 December 2009 the gross assets of the Fund were $499.63M (a decrease of $21.43M from 30 June 2009). As at this same date the net assets of the Fund were $414.25M (a decrease of $11.99M from 30 June 2009). The net tangible assets attributable to each unit was $0.47 (a decrease of $0.01 from 30 June 2009).
The net assets calculation takes into account the $83.27M owed to the Commonwealth Bank of Australia (CBA) pursuant to the Facility Agreement between the Fund and the CBA. Since 31 December 2009 the Fund has repaid a further $3.2M to reduce the outstanding loan to $80.07M. The Fund continues to repay this debt and we believe that the outstanding loan will be reduced to $30.0M by June 2010 which is in accordance with the Facility Agreement.
The Accounts properly disclose contingencies for current litigation. At this stage, prior to the imminent commencement of legal recovery actions against various third parties, the Accounts make no allowance for either the cost of such recovery actions nor any potential recoveries that may be achieved to the benefit of the Fund.
No units were redeemed and no distributions were made during the half year ending 31 December 2009.