Trustees Executors Limited (‘Trustees Executors’) has formally removed Fund Managers Otago Limited (‘FMO’) as the manager of three managed investment funds.

As the Licensed Supervisor of FMO, Trustees Executors exercised its powers under the Financial Markets Conduct Act 2013 (‘FMCA’) to remove FMO in the best interests of investors.
Following a recommendation by Trustees Executors, the Financial Markets Authority has appointed KPMG Restructuring Services NZ Limited (‘KPMG Restructuring Services’) as the temporary manager of the funds.

Prior to the decision to remove FMO as the manager, two of its mortgage trusts funds - the Capital Mortgage Income Trust and the NZ Mortgage Income Trust - were in the process of being wound up. In accordance with the requirements of the Trust Deed, a third fund, the NZ Mortgage Income Trust (No 2 Fund), will now also be wound up. There are approximately 600 investors in this fund.

Commenting on the announcement, Matthew Band, Trustees Executors’ General Manager of Corporate Trustee Services stated: “As the Licensed Supervisor, Trustees Executors has worked closely and continuously with FMO's board and management to address issues related to governance, compliance, solvency of the manager, and regulatory breaches.

“FMO has been unable to improve its performance to the standard that we expect from a licensed manager, and that which is required under the FMCA. Trustees Executors has an obligation to monitor the management of the funds in the best interests of all investors.

“We believe those interests are best served by the removal of FMO and requesting FMA to appoint KPMG Restructuring Services as the temporary manager.

“From November 2, investors are unable to redeem units from NZ Mortgage Income Trust (No 2 Fund). This ensures all investors will be treated fairly and equally. KPMG Restructuring Services will be contacting investors to communicate its process for the winding up of this fund.”

Investors can visit www.kpmg.co.nz/restructuring-services for further information.

Alternatively, investors can email any questions they might have about the windup process to [email protected] or contact KPMG Restructuring Services on their toll-free hotline, 0800 576 477, between 9am-5pm, Monday to Friday.

Ends.

Media inquiries:
Patrick Southam, Reputation Edge
+61 419 415 998
[email protected] 

About Trustees Executors
Trustees Executors Limited was established in 1881 and is New Zealand’s oldest Trustee Company. We provide a full range of financial and trust solutions to individuals, families and the corporate sector including estate planning, trustee and investment advisory services. We are a Licensed Financial Markets Supervisor and a leading provider of specialist Corporate Trustee and back office investment administration services to some of New Zealand’s largest financial institutions, banks and fund managers.
www.trustees.co.nz

About KPMG Restructuring Services NZ Limited
KPMG Restructuring Services NZ Limited is the temporary manager of the NZ Mortgage Income Trust (No2 Fund) Group Investment Fund, NZ Mortgage Income Trust Group Investment Fund and Capital Mortgage Income Trust Group Investment Fund. KPMG Restructuring Services NZ Limited is owned and controlled by KPMG a New Zealand Partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.