Manager exposed to Great Southern MIS loan book
Adelaide Managed Funds has told investors in its Asset Backed Yield Trust that it expects to book impairment charges on loans made to Great Southern investors, to which the trust is exposed.
The trust is invested in a securitisation program that has lent money to investors in managed investment schemes promoted by Great Southern, which entered receivership last week.
A statement from Adelaide Managed Funds to the Australian Securities Exchange (ASX) said the trust is exposed to more than 1,800 loans. The manager said the average size of these loans is less than $46,000, and belong to investors across every state and territory in Australia.
The $23.5 million exposure accounts for more than 12 per cent of the trust’s total investment portfolio.
The loans are secured by woodlots, the manager said, and have full recourse to the borrowers. All the loans are currently managed and serviced by Bendigo and Adelaide Bank.
But while the manager said it expects an impairment to its investment as a result of increased arrears and losses in the loan portfolio, the manager believes this impairment will not be material to its NTA backing.
Furthermore, if an impairment charge did occur, it would not impact on the distributable income earned by the trust in the quarter to June 30, 2009, the manager said.
Recommended for you
ASIC has cancelled a Sydney AFSL for failing to pay a $64,000 AFCA determination related to inappropriate advice, which then had to be paid by the CSLR.
A former Brisbane financial adviser has been charged with 26 counts of dishonest conduct regarding a failure to disclose he would receive substantial commission payments for investments.
Inefficient data processes and systems mean advisers are spending over half of their time on product implementation and administration at the expense of clients, according to research.
With the regulator announcing its enforcement focus for 2025 last week, law firm Hall & Wilcox examines the areas which have dropped down the list in priority for the regulator.
