While most claimed losses have been to Otago investors, people from outside the province, and now as far afield as the North Island, have contacted the Otago Daily Times in recent days expressing concern at their losses.
The Victoria Property Fund's manager Britannia Management, whose director is Dunedin-based financial adviser Craig Myles, who is also with NZ Funds Private Wealth, has not responded to questions put to him on behalf of investors.
He said in a brief statement yesterday: "The trustee prefers that any and all information of relevance is communicated direct to unit holders so they have first-hand knowledge of what is happening".
It was signalled to investors last June that the Victoria fund was under stress, but a letter this May 7 said it was "highly unlikely" investors would get a return.
The Victoria fund began in mid-2006, based on owningtenanted buildings for lease but then got involved in developing a property subdivision inRichmond near Nelson, a deal which appears to have suffered when it took twice as long to develop; with financier Heartland New Zealand now having clear claim to place the subdivision under mortgagee sale.
Three aggrieved investors contacted the newspaper yesterday, both from outside Otago, and between them claim to have lost more than $120,000.
"They went away from their core value of financial involvement [building ownership and leasing] and went into something they knew nothing about, the Richmond [subdivision development] thing.
"There was no consultation with us on [switching to] Richmond," said the investor, who had been with the fund managers for several years.
During the past fortnight, 14 Victoria investors have contacted the newspaper, claiming total losses of more than $862,000. They range from about $10,000 to two claims of more than $100,000, and the majority being mid-range losses of between $45,000 to $80,000.
The clear majority were part of retirement savings portfolios.
Another investor who called yesterday said their retirement fund, included in a trust for their children, initially saw their investment increase in value, before it was "all written off"' by May this year.
"I want to know what were the valuations [used] for each of the units," the investor said.
Investors bought into theVictoria Property Fund "units" through Britannia Management, based on a valueplaced on them, which differed from year to year.
Unit sales could be arranged by Britannia, but only if there was a buyer, and potentially at a discounted price to what the investor may have been advised in earlier updates.
The investor concerned is one of several who are seeking "professional advice" on the Victoria fund.
• Investors in the Victoria Property Fund can contact Simon Hartley, in confidence, at simon.hartley@odt.co.nz , or direct dial (03) 479-3527.
