A new manager for the City Pacific First Mortgage Fund
Balmain and Trilogy were both separately approached by disgruntled Investors of the City Pacific First Mortgage Fund (the ‘Fund) seeking replacement of the existing responsible entity and Manager, City Pacific Limited. A number of issues had caused these concerns including:
- the lack of any meaningful information in relation to the Fund and its assets being provided to Investors;
- a raft of related party transactions undertaken by the Manager;
- excessive fees being charged by the Manager;
- apparent inability of the Manager to recover loans; and
- the current freeze on both distributions and redemptions.
The union of Balmain and Trilogy as the proposed investment manager for the Fund brings together unparalleled skills and experience and over thirty years experience in their respective industries of mortgage management and funds management. Balmain is a specialist manager of mortgage fund assets and Trilogy has specialist skills and experience in administering and investing in property and income funds and servicing fund investors.
The complimentary skills of the two groups are ideally suited for Balmain and Trilogy to manage the Fund.
As a direct consequence of Trilogy’s appointment the Fund will need to be renamed to remove any reference or inference to CPL. It is proposed that the Fund will be renamed the “Pacific First Mortgage Fund“.
Balmain is Australia’s leading originator and manager of commercial property loans. Over the last 30 years Balmain has helped more than 20,000 Australians and their businesses secure finance. Balmain originates or manages more than 40% of all commercial property loan investments made by the institutional sector in Australia.
The Balmain Group is a major shareholder in AMAL Asset Management (AMAL), which is a specialist mortgage administrator and currently administers in excess of $7 billion of mortgage portfolios. AMAL is rated by S&P as an “above average” service provider, and manages funds for many of Australia’s largest financial institutions.
Balmain provides asset management services (including credit and special servicing) to numerous programmes including services to such major Australian financial institutions as NAB, AXA, Adelaide Bank, INGFM and CBA. Last financial year Balmain settled over $3 billion in commercial mortgage loans. Balmain operates from 9 offices throughout Australia and New Zealand and has 130 staff.
Trilogy Capital Group was formed in 2004 to provide specialist property related products to the retail and wholesale investment markets in Australia. Trilogy Funds Management Limited is the funds management entity of the Group, and holds an Australian Financial Services Licence (261425). It is also the Responsible Entity for a number of mortgage investment and property trusts.
The Group’s strength is underpinned by the quality and experience of its Directors, Senior Management and staff benefiting from a combined 150 years of management experience across property investment, mortgage management, financial services and the law. Trilogy has a “people come first” philosophy which applies to our staff, clients and the organisations in the community we deal with. Maintaining and enhancing our existing relationships is paramount to the success of the Group, as is developing new ones.
Trilogy’s objective is to offer investors competitive investment performance and high quality services through a range of managed investments. The underlying philosophy of all Trilogy products is the belief that property represents one of, if not the most, significant planks of wealth creation opportunity for all investors, large or small. Trilogy’s goal is to increase clients’ wealth by delivering transparent property and mortgage based investment solutions, from a “value-added” management perspective. Alignment of investors’ interest and Trilogy’s objectives are essential. Trilogy’s objective to maintain and enhance the company’s funds under management is beneficial for both Trilogy and investors alike. Trilogy maintains high standards of corporate governance and compliance management which delivers a balance of risk management and investment performance.