Frequently Asked Questions

Who has been appointed and what are their roles?

David Whyte of BDO was appointed Receiver of the assets of LM First Mortgage Income Fund by Order of the Supreme Court of Queensland on 8 August 2013 to wind up the Fund in accordance with its constitution. In summary, the constitution provides that, inter alia, the procedure for the winding up of the Fund is that all assets are converted to money, all properly incurred costs are deducted and the balance of money is distributed to each unit holder in proportion to the unit holder’s interests in the Fund.

Joseph Hayes and Anthony Connelly of McGrathNicol were appointed Receivers and Managers of LM Investment Management Ltd (In Liquidation) in its capacity as responsible entity of the LM First Mortgage Income Fund (Receivers and Managers Appointed)(Receiver Appointed) by Deutsche Bank AG on 11 July 2013. The Receivers and Managers’ role is to realise sufficient assets of the Fund to repay the debt due to Deutsche Bank AG.

BDO and McGrathNicol are working together to ensure the objectives of their respective appointments are achieved as efficiently as possible.

John Park and Ginette Muller were appointed Voluntary Administrators of the responsible entity of the Fund, LM Investment Management Ltd (In Liquidation), on 19 March 2013 and subsequently as Liquidators on 1 August 2013. The responsible entity remains in place, however whilst the Court Appointed Receiver winds up the Fund, their role will be very limited.

Will tax statements be issued?

It is not our intention to issue taxation statements for the year ended 30 June 2014 to investors at this time. Please be advised that a nil income was declared for the 2013/2014 financial year. The distributions to investors in February and June 2013 relate to payments of capital. In addition to these distributions, a further amount was paid in January 2013 to those investors who had elected to receive monthly income; this distribution related to July – October 2010 interest payments and was included in investors tax statements for the 2011 financial year.

When will unit holders receive a return on their investment?

The unit holders will receive a distribution following the retirement of the Deutsche Bank’s Receivers and Managers, the release of Deutsche Bank’s security and following the payment of all other properly incurred costs of the Fund. Although the debt to Deutsche Bank has been repaid, Deutsche Bank is not likely to release its security until the potential claim by KordaMentha as the new trustee of the Managed Performance Fund is resolved. At this stage, the timing and quantum of any distribution to unit holders is subject to the above and the realisation of the underlying assets of the Fund. I may have to seek the directions of the Court before proceeding with a distribution. Unit holders will be provided with regular updates from the Receiver with respect to the winding up of the Fund.

How do unit holders update their contact details or transfer units to another party?

Investors can contact BDO with requests to update their contact details or transfer units.

BDO
GPO Box 457
Brisbane QLD 4001
Phone: +61 7 3237 5999
Fax: +61 7 3221 9227
Email: enquiries@lmfmif.com

How do I obtain a unit price statement?

The unit price will be calculated every six months, as at 30 June and 31 December. Copies of these statements can be found on the Financial Statements & other Key documents page of the website.

How do I obtain further information?

Should unit holders require further information, please contact BDO on the details provided below.

BDO
GPO Box 457
Brisbane QLD 4001
Phone: +61 7 3237 5999
Fax: +61 7 3221 9227
Email: enquiries@lmfmif.com