| The Comments |
Absolutely - and I have said I don't know this fund at all, so I am just telling you what I would do. I have used management funds which take the fee straight off and decrease the holding immediately. Good luck what ever you do.
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Brian
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Gentlemen, I have followed this thread from the beginning with amusement and shock.
As with most discussions, and probably more so when it is financial opinions, comments vary from, facts that a person knows, facts that a person has taken time to research, general honest opinions, and then the unfortunate utter rubbish from the bar stool advisers and know alls, where everything he says is a true fact and accurate, because it’s him that is saying it. Why don't they keep their mouths shut, its beyond me.
If you want to contact an expert on LM send me a PM and I will put you in touch or do a google search ''LM Australia''.
LM Australia has 3 billion AUD under management.
With regard to their Managed Performance Fund.
10 year solid track record of reliably delivering its targeted returns to investors, without capital loss.
No management fees charged to clients.
Published rates paid net of taxes and all fees.
Currency protected.
Regulated and licensed as a Fund Manager (Responsible Entity in Australia)
LM Managed Performance Fund
Key Features
Minimum investment amount - AUD 5,000
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Currencies available - USD, GBP, EUR, CAD, HKD, SGD, JPY, NZD, CHF, AUD, THB,AED, TRY, SEK, ZAR.
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Investment term - 12, 24, 36, 48 or 60 months
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Distribution frequency - monthly on AUD, annually on all other currencies
Withdrawal notice - 90 days prior to the expiration of the investment term
Fund Objective.
To provide a steady income stream relevant to the risk return of the Fund and to provide an investment with a stable unit price.
Investments in this Fund can be hedged in the relevant currency against Australian dollar currency investments
Investment term
The minimum investment term is 12 months.
Non-AUD Investments - At the end of the investment term the investor's original investment and distribution (unless the investor elects to have the distribution paid to their bank account) is automatically reinvested in the originally nominated currency for further 3 month investment term at the lower distribution rate applicable for the nominated currency unless the investor notifies the Manager to reinvest for the further 12 month investment terms or a withdrawal notice is received by the Manager 90 days prior to the expiration of the term.
AUD Investments - At the end of the 12 month term an AUD investment is automatically reinvested for a further 12 month term unless a written withdrawal notice is received by the Manager 90 days prior to the expiration of the term
Net Effective Rate of Return
LM MPF is a fund and not a term deposit. The rate of return and capital is not explicitly guaranteed. Such a guarantee, if a fund manager was to make it genuinely, would bring the rate of return back down to what a bank term deposit offers and there would be no meaningful point of difference; no outperformance above cash. LM MPF has consistently outperformed cash in several currencies by approximately 5% pa; the capital value of the fund has remained at stable $1 per unit since the fund’s inception in 2001, almost 10 years ago. The currency hedge ensures that exchange rate fluctuations do not impact the capital value of the fund and the earnings. From a policy perspective, rates are set for periods of 12 months irrespective of the term of 1, 2, 3, 4 or 5 years, with longer terms earning a higher rate of return than a shorter term. LM MPF is not a substitute for a term deposit, it is designed for investors that want to outperform the cash rate in a capital stable fund, it enhances the power of compounding and over the last three years, advisors have tended to use MPF as a way of avoiding the volatility inherent in equity markets.
This message was last edited by stevebatchelor on 09/03/2012.
This message was last edited by stevebatchelor on 09/03/2012.
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Slightly patronising post Steve as you have not stated who you are or what authority you have on this manner. I appreciate the cut and paste job but i have read all this before!! This is a forum, and therefore all opinions will be aired, right or wrong. As i stated, it is not a place to reveive financial advice which is why i suggested to the original poster to take financial advice before investing.
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This message was last edited by ojosazul88 on 09/03/2012.
This message was last edited by ojosazul88 on 09/03/2012.
This message was last edited by ojosazul88 on 09/03/2012.
This message was last edited by ojosazul88 on 09/03/2012.
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Ojosazul88
Here is something more RECENT
http://www.bbc.co.uk/news/world-asia-16901378 it was just one of the GEO risk factors I would consider when ADVISING clients
People will ALWAYS disagree thats HUMAN nature ,you have DECIDED to invest in this FUND and time will tell if you MADE the RIGHT decision.
I HOPE YOU do make a GOOD return on YOUR INVESTMENT and you should tell the FORUM readers about this when it HAPPENS.
Rod
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Thanks Rod, i do watch the news!, And your point is? As previously stated, Queensland is huge. None of LMs property assets were affected by the floods and i prefer to research actual Queendsland state reports and detailed flood analysis which i have seen than general BBC news sites that tell very little. You almost write in a disbelieving manner that returns have been made with this fund.
Im staggered you use a BBC news site as one of the deciders in your "Geo risk factor" in anycase.
I like to see real evidence before so called experts give opinions, i have no issue with you or anyone here airing opinions on this matter but i think you have let yourself down in providing the evidence that makes you dismiss the fund so easily.
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LOOK as I SAID ON BALANCE it is not A FUND I would choose FOR MY CLIENTS however YOUR FINANCIAL ADVISER has CHOSEN it for you for good REASON and WOULD have weighed up the PROS and CONS of PUTTING your MONEY into it
AS I said I WISH you well with IT
HAVE a NICE weekend
Rod
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Rod, appreciate your views but i just would have like to have seen some real evidence or detail into why youre so dismissive based on the BBC article and alleged "liquidity problems" which just arent true.
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OK I will do as you ASK I have COMMISIONED a HIGH LEVEL REPORT from our INVESTMENT ANALYSTS to examine the FUND in further DETAIL this may TAKE A FEW days I will PM you the results NEXT WEEK
Rod
This message was last edited by rod on 09/03/2012.
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Thanks, i look forward to reading it, By the way the link you have attatched is no longer available.
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Hi Guys
An interesting thread. We often use the LM Managed Performance fund in our investment portfolios that we hold for clients. I think it has been said but worth repeating that you should never place all your capital into just one fund. I contacted LM about this thread and I thought it would be interesting to post their reply below so you have answers from the horse´s mouth so to speak.
LM is authorised by ASIC (Australian Securities & Investment Commission) as a Responsible Entity. Its obligations as a Responsible Entity are to ensure that fund assets are clearly identified as fund assets, and held separately from assets of LM and of any other LM fund. A third party custodian for the LM Funds, The Trust Company (est. 1885) hold and safeguard the fund assets that are mutually owned by all the fund's investors. If LM were to go "bankrupt" the funds and their assets remain with investors in the fund owning the assets by way of unit trust.
Currency exposure is mitigated by the use of Forward Foreign Exchange contracts. Investors investing in EUR or GBP are not exposed to the movement of the Australian dollar.
I note Rod has included a link to floods in Queensland, this article is over 14 months old. The floods in Queensland were in January last year. Yes many of the assets of the MPF are in Queensland, however this is a very large state, (England can fit into the state of Queensland 12 times!) None of the assets of the funds were affected by the floods.
All properties within LM funds are fully covered for damage which may occur in this type of incident / natural disaster, including insurances to cover potential loss of earnings. It is part of our due diligence process to ensure adequate insurances are in place over the property at all times. There is a renewal monitoring process also in place whereby unless we are provided with copies of certificates of currency by our borrowers in a timely manner we can contact the underwriters directly to check or pay any insurance as necessary.
The inevitable recovery from the floods and the rebuilding has in fact presented opportunities for our funds. Reconstruction has begun on roads, rail, residential and commercial buildings to name a few areas, which for many investors may present an opportunity to invest and prosper from.
An investment in an LM fund is an investment in one asset class and should form only part of a diversified investment portfolio. LM does not solicit or accept investment direct from the public. An investment into an LM fund must come via a Financial Intermediary following a comprehensive due diligence process and financial analysis.
“Liquidity Issues”
The LM Managed Performance Fund is currently AUD$308 million in size.
It extends finance and participates actively in property development profit across the Australian property market. It secures its position via debt securities/loans across its assets. As an income fund, the debt securities/loan agreements take into account all the fund’s entitlements to ensure that they come back into the fund as interest only so that it is a competitive income return that is passed to the investor and not a capital gain. It is a transparent structure that sees any profit to which the Fund is entitled flow back into the fund as interest.
The fund’s debt securities/loans are secured across property with a current “on completion of development” value of AUD$1.36 Billion.
Proactive management of the assets in collaboration with the borrowers is important to achieving and protecting that value. The cash flow has to be managed to meet all the fund’s commitments. Yes, to assist cash management of the fund, if necessary, the fund is able to make investor redemption payments over longer than usual timeframes. It is important to note that income continues to be earned on the investment until the date of payment of the redemption.
Property is not immediately liquid and a development property may not have reached a stage of completion satisfactory for its sale. So generating cash for the fund through the sale of an asset is not always immediately viable as it may not be in the best interests of protecting long term value for investors.
Slowing redemptions payments is a measure that protects fund performance and value for investors.
The Fund’s assets are sound and are progressing through various development stages as expected. Investors within the fund continue to earn income at the published rates.
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Interesting thread.
As an Australian resident in WA investments in Banks and Funds in Oz are providing much better return than in Europe. As an example Westpac pay 5.5% on a 5-month deposit and upto 7% is available for long term.
The economic outlook is a lot more positive than Europe, although growth forcasts have been down graded in WA 4% is the expected 2012 growth. Employment is much higher an there are jobs to be had - different states have different profiles; in WA its mining and services orientated.
The problem overseas investors have is the requirement for an Oz address to make cash deposits. Also the AUD is strong and continues to strengthen, this will not last there will be a correction.
OK being an investor but the tax man exists here also as do hungry fund managers who need to pay the mortgage.
David
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Hello glad to join the debate on L M ,I retired to ALMERIA in 2006 from Perth WA after having worked for KPMG. My Interest in this subject is because I had L M funds as part of my super, I withdrew my Investments on retirement and moved to Spain wish it had come sooner love the place the lifestyle etc.
I don’t know much about investments I left this to my adviser at Westpac anyway that’s enough about me
I had a look at the accounts of the Fund you are discussing and I would like to give you my opinion if I may In my view the accounts look extremely unhealthy to say the least also the June bank repayment could be a big problem for this fund, the banks have them by the goonies charging 15% for the facility the highest I have seen for a financial , I,m sure I read that CBA used to be the bankers but they withdrew their facility it got so bad
As of the annual report 64,000,000 dollars had been requested to be withdrawn by investors and refused and the fund/company made a 91,000000 dollar loss overall for that year.
If I had any money to invest I would probably prefer Burswood casino as a better risk
Im just glad I got out when I did.
Hope I haven’t bored you too much after all I was an accountant but not anymore
Gerald
Ps here is the latest audited accounts for the anoraks and do not know why my text is all funny I never was very IT
This message was last edited by Gerald21 on 10/03/2012.
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This comment is for aesinternational so what do you think about what Gerald21 has to say below. Even I am begining to wobble a bit. If its true, don't I look the bloody fool.
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sounds like good old mr ponzi is back and working in oz
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"sounds like good old mr ponzi is back and working in oz"
What are you implying Stillgoin?
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Sorry I still cannot get this damn link to work I will keep trying and let all those interested know
Thats it grrrrrrr
One other thing I find shocking is the managers make a 90 million dollar loss and reward themselves with 11 million dollars in fees 2 million more than last year
God help anyone who is in this thing they probably will lose a lot if not all their money
Thank goodness its closed to new investors so no more innocent people lose out
Sorry to be the bearer of bad news
Gerald
This message was last edited by Gerald21 on 10/03/2012.
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Gerald21, Are you reffering to the LM "Managed performance fund" because as far as i know its not closed to new investors?
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ojo not impling anything just a coment that from i what i read on here sounds like the old pyramid scam
This message was last edited by stillgoin on 10/03/2012.
This message was last edited by stillgoin on 10/03/2012.
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Yes, and thats exactly how vicious rumours start, from a few mis informed posts, people jump to conclusions, in this case Stillgoin, as mentioned earlier, the LM fund is not a Ponzi or "pyramid scam", end of. How people want to interpret whether the fund is suitable for investing is one thing but to make these sweeping conclusions based on a few posts on a forum site is wrong.
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