Millions locked up in funds

ADMINISTRATORS have terminated an investment fund linked to one of two failed companies run by Gold Coaster Jeffrey Worboys, leaving $19 million in investor funds locked up indefinitely.

Unit holders of the Trident Global Growth Fund have been told legal and other costs will be deducted from their investments by Australian Mutual Holdings (AMH), which went into administration in June.

ASIC cancelled the financial services licence of AMH two weeks later.

AMH, which has been linked to Australia’s biggest Ponzi scheme, was the responsible entity for the Trident fund and the second of Mr Worboys’s companies to fail in seven months.

His Halifax Investment Services collapsed in November, freezing $211 million of investor funds held by more than 10,000 people.

Administrator BRI Ferrier’s Peter Krejci told creditors of AMH it was likely to be placed in liquidation.

Mr Krejci found the Trident Global fund was the only active fund for which AMH was the responsible entity.

He said about a third of Trident’s investors had asked to redeem their investments, but their requests would not be processed as the fund had been terminated.

“Rather, all remaining unit holders will receive a distribution on the winding up of the fund in due course,” the administrator said.

In an update to Trident unit holders, Mr Krejci said he had believed the fund would be able to continue operating under a new responsible entity, Quay Fund Services, but that had not eventuated.

As a result, AMH remained its responsible entity – but did not have the staff or skills to properly manage the fund, leading the administrator to terminate it.

Three other funds for which AMH was responsible, Grange Capital Management Growth, Australian Pink Diamond and the Accelerated Trend Hedge Fund, were already being wound up when AMH went into administration.

ASIC banned Mr Worboys and former AMH director Matthew Barnett in April from providing financial services for six years.

AMH was formerly the responsible entity for collapsed firm Courtenay House Capital Trading – which took $209 million from 780 investors, including the Mayor of Sydney’s Sutherland Shire.

Both AMH and Trident were fined by ASIC in 2014 for making potentially misleading statements about their investment funds.

More than 13 per cent of Trident’s fund was tied up in Mr Worboys’ Halifax Investment.

Halifax liquidators Ferrier Hodgson said investors could see anywhere between 83 and 94 cents in the dollar of what they invested returned to them, dependent on the shortfall being recouped from “third parties”, including Mr Worboys.