Basis Capital Investors one step closer to their $23 million”, says BT Financial Group

Tuesday 29 July 2008

Investors who applied for units in Basis Capital funds in June 2007are one step closer to seeing their money after the Supreme Court of New South Wales found in favour of June applicants and agreed with BT Financial Group’s arguments that the June application monies were never properly a part of Funds.

The Court’s judgment means that over $23 million of June application monies must be returned to investors.

Head of BT Wrap, Chris Freeman, said the Supreme Court ruling was great news for Basis Yield and Basis Aust-Rim Opportunity Fund investors who have been waiting for over a year for clarity and certainty on the status of their application monies.

“Since July 2007, BT has sought - both directly and through the courts - to recover June application monies on behalf of investors and advisers in the Basis Capital Funds,” Mr Freeman said.

“The ruling means Basis Capital must return over $23 million in June applicants’ monies. The Court also found in favour of June redeemers who will now be treated as creditors of the Funds with their proceeds calculated on the basis of the relevant Fund’s value as at June 30, 2007.

“While there is still some way to go before money is returned, BT and other industry representatives have been able to collectively represent investors’ interests in a way that would be out of the reach of many individual investors,” he said.

Background information Basis Capital commenced proceedings in the Supreme Court of NSW in January 2008 to seek declarations on the rights of investors in the Basis Yield and Basis Aust-Rim Opportunity Funds. BT agreed to act as the representative defendant for all investors who made applications in June 2007 (“June applicants”) as well as provide input into the case for the other representative defendants.

Mr Freeman stated that the proceedings were essentially about whether the monies paid by the June applicants formed part of the Basis Funds or not, and whether the redeemers were to be treated as creditors or rank with other investors.

“As an investment platform, BT Wrap provides investors and their financial advisers with access to over 700 managed funds, which included the two Basis Capital Funds,” he said.

(see following important information about BT Wrap)

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Media enquiries:
Allison Davis
BT Financial Group
Media Relations
Phone: 02 8253 2735
Mobile: 0419 746 655

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Important note about BT Wrap
BT Wrap is an investment administration platform used by over 5000 advisers to manage their client’s portfolio of shares, managed funds, margin loans, and other investments in one place online. A wrap account also provides a range of consolidated reports and online tools that help an investor and their adviser maintain the investments, and more easily manage, monitor and report on an investment portfolio.

BT Wrap does not provide financial advice or recommend investments. The various dealer groups and advisers who use BT Wrap to access managed funds rely on their own review and research processes to construct their Approved Product Lists, from which investment choices can be made, and to assess products in relation to their investor’s individual circumstances. BT Portfolio Services Limited is the operator of BT Wrap.