LM funds facing class action by unitholders
- {{x.value}}
{{ twilioFailed ? 'SMS Code Failed to Send…' : 'Enter verification code' }}
{{ completedStep1 ? 'Authentication & Security' : content.trialHeading.replace('{0}', user.FirstName) }}
{{ content.upgradeHeading.replace('{0}', user.FirstName) }}
The email address you entered is registered with InvestSMART
Please login to continue
We have sent you an email with the details of your registration.
Looks you are already a member. Please enter your password to proceed
{{ upgradeCTAText }}
Updating information
Please wait ...
Your membership to InvestSMART Group recently failed to renew.
Please make sure your payment details are up to date to continue your membership.
Having trouble renewing?
Please contact Member Services on support@investsmart.com.au or 1300 880 160
You've recently updated your payment details.
It may take a few minutes to update your subscription details, during this time you will not be able to view locked content.
If you are still having trouble viewing content after 10 minutes, try logging out of your account and logging back in.
Still having trouble viewing content?
Please contact Member Services on support@investsmart.com.au or 1300 880 160
Please click on the ACTIVATE button to activate your Intelligent Investor 15-day free trial
Please click on the ACTIVATE button to finalise your membership
Unsuccessful registration
Registration for this event is available only to Eureka Report members. View our membership page for more information.
Registration for this event is available only to Intelligent Investor members. View our membership page for more information.
- You are already registered for this event.
- This event is already full.
- Please select a quantity for at least one ticket.
- {{ i }}
Forgotten password
Please enter your email address below to request a new password
- Verify your email address by clicking on the link we sent to {{user.Email}}
- You now have free access, we look forward to helping you on your financial journey.
Piper Alderman partner Amanda Banton confirmed on Monday that the firm had been contacted by a number of concerned unitholders.
"Piper Alderman is presently investigating the conduct of LM in respect of the LM First Mortgage Income Fund to determine whether to commence proceedings against the fund's responsible entity, LM Investment Management Ltd, or any other parties in respect of the demise of that fund," she said.
Ms Banton has acted for unitholders in Equititrust's funds and for the liquidator in Elderslie Finance.
As reported by the ABC's Four Corners on Monday, the Australian Securities and Investments Commission is investigating LM for potentially false and misleading statements.
The Gold Coast fund manager LM Investment, which operates in 70 countries and says it manages $3 billion of realisable assets, has even claimed that one of its key funds is a "bank-like" facility and that it operates in Australia as a "conservative and highly-rated private bank".
At least three of LM's funds are frozen, hundreds of millions of dollars have been lost and many unitholders cannot access what is left of their savings. LM denies that it has misled investors.
Late last year, its founder, Mr Drake, brought legal proceedings against Fairfax Media for defamation over a story criticising his management of the funds. He has also claimed that he has the author of this article "under investigation".
Property funds management group Trilogy Capital is seeking to remove LM as the manager of its flagship fund, the frozen LM First Mortgage Income Fund.
In marketing to clients to defend against the incursion by Trilogy, LM has ratcheted up its fees for the funds that are still open, such as the Managed Performance Fund.
Sources said that some financial advisers had been offered about 10 per cent cash in commissions, in the first year, to pt their clients' savings into an LM fund.
Neither LM nor Mr Drake were available for comment.
Call 1300 880 160
Start a chat
Schedule a call
