Managed Funds Geared Equity Income Fund

I invested in the GEIF fund through Peter Spann. I applied to transfer the funds into the Volition fund but due to a misunderstanding with Macquarie Bank, the application to transfer the funds was late so I no longer qualified for the transfer. However the application to exit the GEIF fund did (without my approval) go ahead. I have now been exited from the GEIF fund, have to pay substantial exit fees as well as the 25% loss the fund has experienced. I also have forfeited the Capital Guarantee I had been paying for while I was in the fund. I had a loan from Macquarie to invest in this fund so am experiencing financial hardship and cannot repay the loan until I sell my house. I think I should, at the very least, not have to pay the costs of my expulsion from the fund and be given a loan by Macquarie for the funds I owe until I can repay them. I am looking for any advice you have. Thanks. Yes, I have a problem with 2 funds at the moment..........

 

thanks Sim, I went through Freeman Fox, Peter Spann's company. I approached the account manager who basically said they could do nothing. I have moved since so perhaps my local one here can. I'll give it a try, but I've had a Letter of Demand so it looks like a court job.

 

Macquarie Geared Equity Income Fund

Hi Russ, my parents also have invested in this fund via Spann and they have recently received the letter of demand from the solicitors representing Macquarie. Just wondering if you have sought legal advice and if so, what your intentions are? Or if you have received any further communication from the solicitor or a court of law. I'm just wondering if Macquarie are just bluffing in an attempt to get back losses that will be written off as page 29 of the PDS suggests the loan is limited recourse and Macquarie only has the ability to reposess the units in the fund and no other external assets of the unit holder?

 

thx for your reply Darcy86 but I haven't gotten any further. I think the quote on page 29 only means the investor is liable for the units owned only and is unlikely to be liable for anything more. Except the exit fees and things which are about a third of what I owe which, since I didn't option to exit the fund, I object to paying. I think you will have no hope of avoiding repaying the loan for the money the Fund lost, even though the risk management strategy may not have been up to the test. At least it was better than the mq Property Income Fund which lost 95% of it's value. I am very surprised Macquarie are getting away with that, but I haven't seen anything on the net to indicate anyone cares. I think no matter how the PDS risk section was worded or what the advisor might have said, nothing can prepare you for that sort of loss.
Thanks again for your interest.