22 October 2009

Statement of Taxable Income
- Financial Year End 2009 Notification

Please note that the Annual Statements of Taxable Income for the year ended 30 June 2009 were produced for the Pacific First Mortgage Fund unitholders by Computershare and were dispatched progressively from Friday 9 October 2009. These statements indicated zero taxable income for the 2009 financial year. These statements were issued prior to finalisation of the external audit review of the Fund for the year ended 30 June 2009 and are therefore subject to changes that may arise thereupon. Further, we anticipate that the Annual Financial Report for the Fund for the 2009 financial year and the Periodic Statements detailing investor unit balances and the audited net asset value per unit as at 30 June 2009 will also be forwarded to unitholders in late November 2009.

Extension of Lodgement of Annual Accounts

We also advise that the Australian Securities and Investment Commission (ASIC) have granted an extension to the 15th November 2009 for the lodgment date for the Pacific First Mortgage Fund Annual Accounts and the Audit Report.

Progress to Date

Following is a monthly itemised timeline of operational tasks and ongoing reviews being undertaken by BalmainTRILOGY since being appointed investment manager of the City Pacific First Mortgage Fund.

  • Jul 09
  • Aug 09
  • Sep 09
  • Upcoming

July 2009

  • BalmainTRILOGY is appointed investment manager of the City Pacific First Mortgage Fund.
  • Trilogy Funds Management is formally noted on the ASIC register as the Responsible Entity of the City Pacific First Mortgage Fund.
  • BalmainTRILOGY renames the Fund to "Pacific First Mortgage Fund".
  • BalmainTRILOGY formally amends the Constitution of the fund to reduce the management fee to 1.5%pa.
  • Legal and Asset Review commence.
  • Transition of all Books and Records of the Fund commences.
  • Trust Company Fiduciary Services Limited is appointed as the independent custodian of all assets in the fund.
  • Asset security documentation transferred to the control of the Custodian.
  • Computershare Fund Services Pty Limited is appointed as independent registrar of the Fund.
  • Computershare commences the upload of all investor/unit holder information.
  • AMAL Asset Management is appointed as independent loan servicer of all loan files in the Fund.
  • BalmainTRILOGY enlists the services (on contract) of ex CPL employees to assist in the transition (at the cost of BalmainTRILOGY).

August 2009

  • Fund bank accounts under control of the Custodian.
  • All loan accounts have been reconstructed and verified as at 30 June 09 by AMAL.
  • KPMG retained as auditors of the Fund. KPMG has acted as auditor for the Fund for the financial year ending 30 June 2009. They have been reappointed as it considered prudent that they complete the final audits for the Fund so that the taxation statements and lodgment of the final accounts be undertaken without undue delay. Their appointment will be reconsidered following the Asset and Legal Reviews.
  • Preparation of the 2009 financial accounts commence.
  • Directors of BalmainTRILOGY meet with ASIC to discuss the finalisation of the transition and the Funds hardship policies.
  • Credit Team visits the Martha Cove development and all other Victorian based security properties.
  • BalmainTRILOGY meet with Fortress to discuss current facility arrangements.
  • BalmainTRILOGY holds discussions with Centrelink regarding hardship.
  • Credit Team visits the two NSW securities.
  • BalmainTRILOGY meets with CBA representatives and subsequently submit a proposal to extend the current CBA facility.
  • Credit Team inspect all Brisbane and North Queensland security properties.
  • Initial Update is sent to all unit holders requesting for their details to be confirmed and nominations for the investors committee.
  • Credit Team visits security properties located in Sunshine Coast/Gold Coast.
  • Investors Committee nominations are being received.
  • Credit Team visits the Martha Cove development and meet with other stakeholders in the development.
  • BalmainTRILOGY implements their own proprietary asset and investor management web based systems for the Pacific First Mortgage Fund.
  • BalmainTRILOGY meets with CBA to discuss the proposed facility extension.

September 2009

  • Computershare are in the final stage of implementation and setup of unit holder data.
  • BalmainTRILOGY commence the drafting of the Funds Hardship strategy and policy.
  • Credit Team sign off and confirm that they have inspected all security properties.
  • All stakeholders in the Martha Cove Development meet to discuss the next steps forward on a "co-ordinated" approach.
  • Balmain holds further discussion with ASIC regarding the transition of books and records, hardship policy and the management of the City Pacific Income fund.
  • CBA and BalmainTRILOGY meet again to discuss the facility extension.
  • Credit Team meet with the town planners involved in the Martha Cove development.
  • BalmainTRILOGY request for extension to complete 2009 Financial Accounts from ASIC.

Upcoming

  • 2009 Tax statements to be sent to all unit holders.
    (Oct 09)
  • Publication of Summary Report of the Asset and Legal review.
    (Early Nov 09)
  • Finalisation of the CBA facility extension.
    (Mid Nov 09)
  • Release of 2009 financial accounts.
    (Late Nov 09)
  • Publish RG45 disclosures.
    (Late Nov 09)
  • Investor Committee members to be chosen by MGI White Hancock.
    (Late Nov 09)
  • Web based portal to access unit holder information to be made available.
    (Nov/Dec 09)
  • Hardship policy to be implemented and published.
    (Dec 09)

    This will be subject to the Fund having sufficient liquidity at the time to meet hardship requests and will require an amendment to the Constitution to reach an equitable redemption value for each unit. Additionally, the policy will require the consent of ASIC prior to implementation.

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