In an email sent to investors on 17 December by Ginette Muller from FTI Consulting, liquidator of the fund, investors were told AUS$20m is being distributed to unit holders. The sum equates to about 42.8% of the fund.
The email explained that the fund no longer makes redemption payments, “but rather makes pro-rata equivalent capital distributions to all its' investors, with capital due to investors to be returned over time as the assets of the AIF are sold and sufficient funds are available for distribution”.
Muller added that the capital distributions investors receive will not affect the number of units they hold in the fund; instead the unit price will decrease proportionately to each capital distribution payment made i.e. as a result of this distribution there would be a 42.8% reduction in the unit price.
The fund entered liquidation earlier this year along with the asset management firm LM Investment Management. LMIM managed eight funds before it went bust this year, and was estimated to have had more than AUS$4bn in assets under management at its peak.