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- Release Date: 05/07/12 14:28
- Summary: GENERAL: PGC: Perpetual Trust FMA Update
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PGC
05/07/2012 12:28
GENERAL
REL: 1228 HRS Pyne Gould Corporation Limited
GENERAL: PGC: Perpetual Trust FMA Update
Perpetual Trust FMA Update?
Perpetual Trust Limited ("Perpetual") is currently involved in judicial
review proceedings with the Financial Markets Authority ("FMA").
Perpetual Trust is the trust business of Perpetual Group - a unit of Pyne
Gould Corporation Limited ("PGC"). Perpetual Group is a wealth management
business which also includes Perpetual Asset Management and Perpetual
Portfolio Management.
A confidentiality order was made by the High Court at the commencement of the
proceedings. The High Court and the Court of Appeal have now ruled that the
confidentiality order is discharged. With the confidentiality order lifted,
disclosure can now be made.
The proceedings concern an interfund facility between the Perpetual Cash
Management Fund ("CMF") and Torchlight Fund No. 1 LP ("Torchlight").
Trustees Executors Limited, the statutory supervisor of the CMF, and the FMA
consider that the interfund facility does not comply with the CMF's governing
documents and with the reasonable expectations of investors, having
considered the CMF's Investment Statement.
The FMA approached Perpetual on 27 April 2012 with this concern.
We understand that Perpetual does not accept the FMA's interpretation and
indeed intends to dispute the FMA's position. Perpetual considers that the
interfund facility provides superior first ranking security and provides a
good return.
However, to alleviate the concerns raised by the FMA, Perpetual has (without
prejudice to its position) asked Torchlight to prepay the $28 million
interfund facility in advance of the scheduled repayment in February 2013.
In response, Torchlight agreed to do so. To date, Torchlight has prepaid $15
million in cash leaving a balance of approximately $13 million outstanding.
Full prepayment is expected this month.
End CA:00224673 For:PGC Type:GENERAL Time:2012-07-05 12:28:39
