Press Release – PwC
PwC Partners John Fisk and David Bridgman as Receivers and Managers to Ross Asset Management Limited and related entities, have provided a report to both the High Court in Wellington and the Financial Markets Authority (FMA). The submission of the report is in accordance with the orders of the High Court dated Tuesday 6 November 2012. The Court has now ordered the report to be released so investors are fully informed.
Mr Fisk says, “The report outlines our appointment and the actions undertaken to date. It also includes recommendations as to the likely next steps and future for the Ross Group.”
Since being appointed, work has been undertaken to verify the Ross Group’s assets in New Zealand and overseas, while also analysing the Group’s records to determine the position of the investors’ portfolios.
To date, the Receivers and Managers have identified 1,720 individual investor accounts holding purported investments of NZ$449.6 million. However, the Receivers and Managers and their expert advisors have only been able to identify $10.214 million of investments held. Accordingly, there is a significant gap in the identified market value of the Group’s investments as against the amounts reported in investors’ portfolios.
The analysis of the Receivers and Managers to date indicates it is likely the historical returns advised to investors are exaggerated and may possibly be fictitious. Therefore, the actual cash loss that may eventually be suffered by the remaining investors will differ from the amounts currently showing as the “value” in individual investors’ portfolios.
Also, through their work, the Receivers and Managers have identified a further three entities within the Ross Group which they recommended should be considered part of the receivership.
Mr Fisk says, “In our opinion, the Investment Fund managed by the Ross Group is insolvent, as it cannot repay the value of the portfolios reported to investors as they become due in the ordinary course of business. We firmly believe a recovery strategy needs to be immediately addressed to maximise investor interests. Therefore, we have recommended the Ross Group entities be placed in liquidation because this will help with the realisation of assets for the benefit of investors.
“We are fully aware the situation is distressing for investors and it is our aim to provide as much certainty as quickly as possible. Should investors or other stakeholders have any queries, please contact us via our website, facsimile, or postal address, or dedicated telephone message,” concludes Mr Fisk.
A summary of the Receivers and Managers report will be distributed to investors and the full report is available on the PwC website http://www.pwc.co.nz/RossAssetManagement.
The details are:
Ross Asset Management Limited (In Receivership) and related entities PricewaterhouseCoopers
PO Box 243
•Facsimile: +64 (0)4 462 7492
•A dedicated page on the PwC website can be found at http://www.pwc.co.nz/RossAssetManagement. It will be updated when relevant and appropriate.
•In addition, a dedicated telephone message line +64 (0)4 462 7040 has been established for any investors or creditors who have an enquiry relating to Ross Asset Management Limited (In Receivership) and related entities.
Note to editors:
PwC Partners Mr John Fisk and Mr David Bridgman were appointed Receivers and Managers to Ross Asset Management Limited and related entities, pursuant to FMA application under the Financial Advisers Act.
Ross Asset Management Limited and related entities include (In Receivership) (the “Ross Group”) comprise of:
•Ross Asset Management Limited (In Receivership)
•Bevis Marks Corporation Limited (In Receivership)
•Dagger Nominees Limited (In Receivership)
•McIntosh Asset Management Limited (In Receivership)
•Mercury Asset Management Limited (In Receivership)
•Ross Investment Management Limited (In Receivership)
•Ross Unit Trusts Management Limited (In Receivership)
•United Asset Management Limited (In Receivership)
•Chapman Ross Trust (In Receivership)
•Woburn Ross Trust (In Receivership)
•Mr David Robert Gilmour Ross (In Receivership).
The additional three entities mentioned in the news release include:
•Ace Investments Limited or Ace Investment Trust Limited or Ace Investment Trust
•Vivian Investments Limited
•Ross Units Trusts Limited.
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