Investor resigned to a loss

AN Invercargill man with $80,000 invested with one of three Fund Managers Otago legacy funds says he has received less than half of that money in the windup process and he has little hope of getting more.

Ray, who did not want his last name used, said he inherited the investment from his late father and since 2012 had received one big payment of about $30,000 with a few more smaller payments coming over the years.

When asked if he had hope new fund managers KPMG would expedite the windingup process and more of his money might be returned, Ray was not confident.

‘‘The expression that springs to mind is ‘the silence is deafening’.

‘‘They kept sending out letters that pushed out finalisation and settlement dates . . . I kept thinking we’re not going to get that money. I’ve resigned myself to that now.’’

Ray said his late father went into aged care in 2012 and not long after Ray said he tried to take the money out of the NZ Mortgage Income Trust (NZMIT) fund, but was told he was two days late and would have to go through the windup process.

A recent annual report for NZMIT found the fund held just over $16 million of investors’ money at March 31 this year, but had accumulated $10.4 million in losses, largely on fees and expenses, leaving $5.7 million worth of assets for 1553 investors.

In the report, FMO chairman John Gallaher said they had made progress selling the funds’ assets and were confident the last four assets were in a saleable condition.

‘‘That clears the way for the final windup process to begin which will result in the final distribution of the cash assets to you, our investors,’’ he wrote.

Trustees Executors Ltd, the supervisor that sacked FMO from managing the three funds, expected all investors to have been contacted by KPMG by later today.

A Trustees Executors spokesman said amounts returned to investors would depend on factors such as the ability to recoup loans and length of the windup.

‘‘KPMG will provide updates on the progress of the wind up in further sixmonthly reporting to investors,” he said.

KPMG has not yet responded to requests for comment.

Trustees Executors announced on Tuesday it had removed FMO from managing the Capital Mortgage Income Trust, the NZ Mortgage Income Trust and NZ Mortgage Income Trust 2 funds and asked the Financial Markets Authority to appoint KPMG as the new manager.

It also confirmed NZMIT2 would be wound up with the other two, which were already in that process.