Two bitter enemies who fought over a multimillion-dollar distressed Australian mortgage fund now agree on one thing: they expect New Zealand investors to lose all their money.
Just under 3000 New Zealanders had about $140 million in the LM First Mortgage Income Fund (FMIF) in 2009 when it was frozen.
Now, some 18 months after LM's directors called in administrators, both LM's Kiwi founder, Peter Drake, and David Jansen, from fund manager Trilogy, which tried and failed to take over FMIF, believe the return to investors could be zero.
Court-appointed receiver BDO's most recent forecast return on August 4 was that investors would get just A15c a unit.
Jansen had a more gloomy forecast.
"The recovery is going to be zero," he said. "The BDO guys are saying maybe 18 cents in the dollar, but that's not projecting forwards and does not reflect either their fees and the legal fees that will have to be paid."