My father had an investment in Pacific First Mortgage Fund - related to City Pacific - which has been involved in litigation against the former responsible entity for years now. I gather there are still some possible recoveries (& distributions to unitholders) from suing directors or other officers. I've inherited the units which are now worth virtually nothing (they were post CGT to Dad so are at his cost base less capital returns to date) For a company I know you need to wait for a liquidators' declaration, is it the same for a managed fund?
According to that link you can expect a payout of 1 cent per unit at the most by the end of this month. You might be able to make a claim with the liquidator but it sounds like that's the limit of the payout.
At this time there is no basis to determine a CGT loss. There is a way however to trigger one. You could seek to sell the units to a related party or even to a trust, company etc. If a transfer is permitted. Or you can wait until the matter has more certainty. I believe that a 1cent payment per unit from the cash reserve (in a fixed term deposit that expired in March) may soon be made PLUS a further $72m may be recovered if the court awarded damages are successfully obtained after "costs" are resolved. I appreciate that Trilogy units are "valueless" based upon original value however CGT rules do require that a liquidator makes a determination that shares or units will have no further value upon winding up. That still could be sometime away Unitholder Distribution Payments – 13/03/2018
Thanks, Paul, it was that last point about whether a liquidator would make a determination for a managed fund that I wasn't sure about. I'm not in a hurry to realise the loss; but will consider the transfer option if needed.
You can claim the loss when the debt is unrecoverable. This might be when the limitations act kicks in or when the fund is wound up.
Whoops, misunderstood your question. Looks like the services of an accountant are going to be needed though.
