Who owns Freeman Fox?

Nobody.

Freeman Fox was sold in parts at the request of my bankers to pay down debt.

Freeman Fox Finance was sold in the following manner:

2009: Funds Management sold to Fox Invest

2010: Freeman Fox Property sold its rental roll and ceases to operate as a real estate agent

2010: Freeman Fox Finance sold to Etica Finance

2010: August:     Freeman Fox Securities sold to Excela and changes its name to Excela Stock Broking

2012: October: Freeman Fox Wealth Club sold

2013 July: Macquarie Structured Products sold to Macquarie

2013: August: Freeman Fox sold to FNQ Wealth Creation.  Peter Spann resigns as Director and severs all ties

2013: November: The new owners of Freeman Fox changes its name to Capital Advisers Pty Ltd

All proceeds of these sales were retained by my bankers to retire debt.

Is Freeman Fox still operating?

No – it was placed in the hands of a Liquidator by new owners on 31/1/2014

It is important to note that I had no association with the company or its operation at that time.

No client lost money nor were clients’ investments were impacted due to the prior sale or this action.

Who is running this site and why?

The site is owned and run by Freeman Fox Investments Pty Ltd as an information only exercise to assist former clients of Freeman Fox.

Why speak out now?

Up until now I have been prevented contractually from speaking out.

This restrictions have now expired and I have decided to offer my explanation, as best I can in order to explain to former clienst exactly what happened.

What happened to my investments?

All of the operating divisions of the company were sold.

However, unless you instructed otherwise, your investments are still with the original managers.

P~eter S~pann does not manage or control any of the investments.

Click on the Contacts page to get a list.

What happened with the Macquarie Structured Products?

Freeman Fox promoted a number of Macquarie investments which were “structured products”.

These products enabled the client to borrow 100% of the investment.

They were for a fixed term (usually 3 to 5 years) and were capital protected.  So if the market went down the clients’ investment was protected.

Investors were required to continue to pay the interest, but they did not suffer any losses from the capital.

When the market did go down due to the impact of the GFC those funds became “cash locked”.  They were fully invested in cash with no chance of being reinvested.

We approached the provider and negotiated with them outcomes that were significantly better than any other firm we know of.   We cancelled commission agreements, agreed to forego fees, and committed the resources of the company to call every client involved and explain their options.

94% of the funds were reinvested, and it worked.

All of the funds ended up with a capital gain from that point ranging from 11.46% to 64.45%.  The average was 20.95%, significantly offsetting interest paid.

The outcome was significantly better for our clients because of the efforts of our team to make it so.  Eventually those revenue streams were sold back to Macquarie.

Performance

The following performance information is for existing investors in the VOLition Fund.

VOLITION FUND SERIES VALUE PER UNIT AS AT31 JULY 2014 INVESTOR RETURN SINCE INITIAL INVESTMENT IN VOLITION SERIES
E – Max+ 1.1375 64.450%
Initial Adjusted Index*: 4,461.00
Adjusted Index at 31 July 2014: 5,450.07
Volatility at 31 July 2014: 11.02%
Participation Rate at 31 July 2014: 130.00%

* At commencement of the Index Contract on 14 August 2009

This information is current as at the date noted above.  Please note that the performance information provided is not a quote or redemption estimate, is subject to change without notice and is indicative only.  Macquarie Alternative Assets Management Limited, the responsible entity of the VOLition Fund, is not bound by the figures set out above and is not liable to cover any difference between the indicative valuation and the amounts payable on actual redemption.  Furthermore amounts payable on redemption will be subject to loan repayment obligations and break costs as set out in the relevant Product Disclosure Statement and loan documentation.

An investment in the VOLition Fund is designed to be held until maturity.

The indicative valuations above may be materially different to the actual prices realised on redemption of an investment in the VOLition Fund.  This is because the indicative valuations are based on estimated (or theoretical) values of the underlying components of the Index Contract and Cash Investments and not the actual value of these components at the time of redemption.

What happened with Complaints?

Freeman Fox was required, as a condition of its license to have a complaint’s handling procedure and inform clients of that and assist them with any complaints they may have.

When a client complained we were genuinely concerned about their wellbeing and tried to handle it to the best of our ability with the resources we had.

In the rare case we had made a mistake in our advice we took responsibility and we offered compensation.   If not, we tried to explain what had gone wrong and why.  We stepped them through it and tried to help them make sense of it.

The ultimate recourse for a client was to take their complaint to the Financial Industry Ombudsman Service (FIOS) which was a free service.

Freeman Fox “only” had a small number of claims go through to FIOS relative to its client base – less than 1% of our clients, and the majority of those cases were ruled in our favour.

How big was Freeman Fox?

At the peak Freeman Fox advised on $1.7 Billion of client funds.

It had over 160 staff.

It was one of the largest non-bank investment advisers in Queensland.