The receivers for Ross Asset Management have found just $10.2 million of investments, slightly more than 2% of the total of $449 million.
PwC receiver John Fisk says it is likely the historical returns advised to investors are exaggerated and may be fictitious.
In a progress report to the High Court, released today, receivers Mr Fisk and David Bridgman say RAM and its nine associated entities are insolvent and should be liquidated.
The report comes nearly a fortnight after the group’s assets were frozen.
Mr Fisk says they have identified investments of nearly $450 million held on behalf of more than 900 investors across 1720 individual accounts.
However, there is still a “significant gap” in the identified market value of the investments as they have only managed to identify $10.214 million so far.
He says because the returns have probably been exaggerated, the actual cash loss which may eventually be suffered by the remaining investors will differ from the amounts currently showing as the “value” in individual investors’ portfolios.
“In our opinion, the investment fund managed by the Ross group is insolvent, as it cannot repay the value of the portfolios reported to investors as they become due in the ordinary course of business.”
He says a recovery strategy needs to be looked at immediately to maximise returns to investors.
To do that, Messrs Fisk and Bridgman have recommended the group’s entities be placed into liquidation as this will help to release some of the assets.
“We are fully aware the situation is distressing for investors and it is our aim to provide as much certainty as quickly as possible,” Mr Fisk says.
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