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
Sequoia Financial Group has announced it is selling off its Informed Investor subsidiary which it acquired in April 2022.
Wealth Data has examined which advice business model has seen the most growth since the start of the year including those that offer holistic advice.
Research conducted by Elixir Consulting and Lonsec has quantified the efficiency gains of using managed accounts in financial advice practices in hours per week saved.
With only one-quarter of advice practices actively seeking feedback from clients, the Financial Advice Association Australia has emphasised why this is a critical tool for client retention.