“Emphatic” victory for Angas Securities in vote on future of embattled fund

Investors have backed the directors of an Adelaide investment firm to get them their money back.

AN overwhelming majority of investors in Angas Securities’ $220 million fixed interest debenture fund have backed the Adelaide-based firm to manage the run-off of the beleaguered scheme.

Needing 75 per cent support for its proposal to go ahead, Angas received 90 per cent from the almost 15000 votes recorded.

Assuming the Federal Court gives the proposal its seal of approval at a hearing on Friday, Angas has assured investors it will return capital in “tranches”, with interest paid at the reduced rate of 4 per cent, down from 7.19 per cent, up until the end of 2016.

Despite issues relating to Angas’ non-performing loans, the sentiment of most investors at today’s meeting was simple: better the company have control, than an independent third-party.

One investor, Linton, 72, admitted the situation is not ideal, but he remains confident of “getting my money out”, estimated to be around $200,000.

“I don’t think there’s any doubt they (Angas) can deliver on what they’ve promised,” he said.

“Since I stopped working I’ve been living on the interest payments. I need that money.”

Another investor said that it’s a “slippery slope once receivers get involved” and that “businessmen are better placed to get our money back”.

“Anyway, where else can you get 4 per cent (interest) these days?” he added.

Despite the overwhelming result, there were tense moments during the two-hour meeting that was overseen by former Supreme Court judge Bruce Debelle.

Executive chairman Andrew Luckhurst-Smith spoke with media and investors post-meeting, describing the result as “emphatic”.

“Any uncertainty about the future of Angas has been cast away. Investors are well and truly behind us,” he said.

“I was actually surprised by the vote against, quite frankly. We’ve made a statement today.”

Addressing investors, The Trust Company’s Chris Green raised concerns about the “real risk that Angas’ assets will not be realised in an amount sufficient to repay you your principal entitlements in full”.

Another concern of the trustee, which first became involved in 2012, is that Angas will now no longer have to report its net tangible assets.

“This will make our job much more difficult particularly as it relates to ensuring Angas’ ability to repay you, the debenture holders, in full,” Mr Green said.

The trustee will continue to receive biannual financial statements from Angas.

Issues related to Angas’ debenture fund do not relate to two other funds managed by the company.

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