In a response to an International Adviser article published last week, Drake was also critical of the various investor and adviser groups which have “popped up” since the “LM disaster”, referring to the Advisers Committee for Investors and the LM Investor Victim Centre.
“None of these committees or groups has sought comment on anything at all from me and yet I have noticed that a fair bit of the information they are propagating is half baked and quite often misleading in its content,” said Drake.
Drake also revealed that he is “making enquiries as to how, within a few months, both FTI and Korda Mentha totally wiped out a twenty year old global business and its funds under management”.
He added: “On top of that, without any accounting to me at all, FTI have managed to swallow A$5.3m of net tangible assets. This is on top of the management fees taken in the process.”
Drake’s comments came in reaction to a story published last week, in which International Adviser revealed the extent to which some IFAs sold one of LMIM’s flagship funds, the Managed Performance Fund.
The story revealed that more than 80 advisers based in Asia and the Middle East had each put over a million Australian dollars of their client’s money into the fund, while there were 13 advisers who put in excess of A$10 of their clients’ money into the fund.
It isn’t the first time Drake has criticised FTI, KordaMentha and the ACI. In August last year, Drake wrote a piece exclusively for International Adviser in which he refuted a number of claims made by the various parties and gave his view of what happened at LMIM. Click here to read the full article
