An Australian investment manager with $3.1 billion in funds under management (FUM) has announced it is going into voluntary administration, with FTI Consulting appointed administrator.
In a statement to clients yesterday, the directors of LM Investment Management said the company currently faces a risk of not being able to pay its creditors, and is now "acting to maximise outcomes for all investors".
The fund manager - which also operates under AFSL No. 220281 - said that the action was taken in the best interests of investors in its funds.
"Voluntary administration is a proactive approach by the board to officially bring in independent financial advice across the company and the funds," the statement said.
"This step is believed to be in the best interests of protecting the funds and maximising returns for investors, and preventing LMIM company cash flow issues going forward.
"This is not liquidation or receivership, and neither LMIM nor any of the funds is in liquidation or receivership."
The statement confirmed that voluntary administration will have "no effect" on the structure of the funds.
The appointed administrator, FTI Consulting, said it will now "conduct a review of the business and of of the LM funds and will update unit holders as a matter of priority".
