According to the LM Investor Victim Centre founder, Victor John, the 500 registered members account for around US$38m of monies “owed” by LM, 90% of which was invested in the group’s former flagship fund – the Managed Performance Fund (MPF).
At its peak, the MPF is believed to have had around A$400m (US$370m, £220m, €267m) invested in it.
International Adviser recently revealed the full scale of the sale of the MPF by some advisory groups. According to a document seen by IA more than 80 advisers each channelled over A$1m of their client’s money into the MPF.
Over the past month, John has been encouraging investors to write to the Australian prime minister, Tony Abbot, to call for an investigation into how a company which at one point had at least A$3bn in assets under management, was allowed to fail so catastrophically.
So far, John says 170 letters have been sent to Abbot, adding that many similar letters have also been sent by investors to their home country finance ministers with “a suggestion that the matter should be raised at Australian hosted G20 meetings during the remainder of the year in which Australia have the G20 chair”.
