Fund update 26/07/17

We recently provided an update that Trilogy Funds Management Limited, in our capacity as responsible entity (RE) of the Fund, had settled with KPMG in relation to their role as the compliance plan auditor of the Fund.  We can now confirm that for the protection of Unitholders and the RE we sought and have received Judicial Advice from the Federal Court of Australia that Trilogy Funds Management Limited, in our capacity as responsible entity of the fund, is justified in concluding the proceedings on the terms set out in the Deed of Settlement entered into between ourselves and KPMG.

Please note that we cannot release any further information about the settlement, including the quantum of the settlement, because of confidentiality restrictions in the settlement deed.

We are now preparing the Annual Financial Report for the financial year ended 30 June 2017.  As part of the annual audit process, we are working with our auditors and seeking professional advice about the finalisation of litigation matters with a view to finalising the Fund’s asset position and updating the Unitholders of the Fund.  In this regard it should be noted that a judgment in the directors’ Appeal Court case is still awaited, which now is having the effect of delaying a planned distribution (see our update to Unitholders dated 21 November 2016 regarding “Sullivan Swan and Donaldson Appeal”). Following receipt of the judgment (and assuming it is favourable) it is expected that steps may need to be taken to enforce the judgment debt.

The annual report of the Fund when issued will be available at www.balmaintrilogy.com.au on or before 30 September 2017,  and will be provided to you in accordance with your communication preferences.

We will keep Unitholders informed via this website and provide further information as we work through the process with the aim to wind up the Fund.