Final Capital Return to Investors

  • 11-14-2018

Dear Sir/Madam

Northern Investment Trust Fund - Final Capital Return and Trust Closure

The Board of Directors are now in a position to write to investors announcing the final capital return and closure of the Fund.

We refer to our previous newsletter dated 11 September 2018 concerning the proposed winding up of the Northern Investment Trust Fund (NITF).

The formal winding up commenced on 16 October 2018 and we now provide an update in relation to your overall investment in the NITF.

Your final statement is enclosed herewith with the units held expressed in $dollar terms as the paid-up value was $1.00 per unit.

Funds under management at the time the Fund was frozen amounted to $287,433,051.  Total capital returned to investors, including the final capital return, amounted to $284,826,617.  This means that we have been able to return an overall amount of 99.09% of investment capital to investors since the Fund was frozen.

The wind down and eventual wind up process has taken longer than envisaged as the property securing the last of the loans in the books of the Fund had proved difficult to sell.  This property was under the control of Receivers and after long and protracted negotiations with a number of potential buyers, the property was finally sold with settlement taking place on 4 September 2018.  Although the sale price achieved was higher than the last valuation obtained from a registered valuer, nevertheless the sale proceeds were less than initially anticipated and were insufficient to repay all of the capital owing on the loan associated with the borrower.

This fact, coupled with the longer than anticipated time taken to sell this property, has meant that we were unable to meet our long held aim of returning 100% of capital to investors.

We can now confirm that all attempts at recovery of any outstanding debts have been finalised and it is unlikely that we will recover any further funds to distribute to investors.  With this knowledge the Board formally commenced the wind up process to return the remaining capital to investors.

Finalisation of NITF

With the final return of capital on 14 November 2018, the Fund is closed with all investors' units being redeemed and the available cash returned to investors.

The final capital shortfall, being the $dollar value remaining on your statement has now been written off.

We suggest that you seek professional advice on any income tax consequence arising from the final redemption of units and discuss with Centrelink to determine what effect (if any) this may have on Centrelink entitlements.

We would like to take this opportunity to thank you for your support over the many years the Fund has been in existence.  We also thank you for your patience and understanding in what has been a difficult last few years for all concerned.  The Board would also finally take this opportunity of thanking our staff for their commitment and the professional way they have worked in assisting to achieve the final return of capital and closure of the Fund.

The office of Mayne Investments Limited will remain open up to 20 December 2018 to assist with any questions and queries any investor might have.  From that date onwards, alternative arrangements will be put in place with the details to be announced on the Mayne Investments Limited website

Yours faithfully

For and on behalf of the Board of Mayne Investments Limited

Kevin J McGregor


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