Annual Report 2011 - CMT Annual Report 2011.pdf · Annual Report 2011. Canterbury Mortgage Trust Group Investment Fund. 1. Directory 2. Chairman’s Report 3. Approval by Directors

Canterbury Mortgage Trust Group Investment Fund

Audited Financial Statements For The Year Ended 31 March 2011

Annual Report 2011

1Canterbury Mortgage Trust Group Investment Fund

Directory 2

Chairman’sReport 3

ApprovalbyDirectors 5

StatementofComprehensiveIncome 6

StatementofChangesinUnitholders’Funds 7

BalanceSheet 7

StatementofCashFlows 8

NotestotheFinancialStatements 9-22

AuditReport 23-24Co

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2 Canterbury Mortgage Trust 3Group Investment Fund

The Manager:FundManagersCanterburyLimited

Unit4,212AntiguaStreet

Christchurch

Phone(03)3775201

Fax(03)3775207

POBox13229

Directors of the Manager:AlanWilliamPrescottLLBAlexanderDonaldMcBeathLLB (Chairman)GeoffreyReadThomasLLBPaulErnestMcEwan

The Trustee:TrusteesExecutorsLimited

Level5

10CustomhouseQuay

Wellington

Tax Advisor:PricewaterhouseCoopers

Christchurch

Auditor:Deloitte

Christchurch

Bank:ANZNationalBankLimited

Christchurch

Chai

rman

s Re

port

Directory

Chairman’s Review

TheCanterburyMortgageTrustFundwindupisprogressing,butmoreslowlynowthemajorityoftheperformingloanshavebeenrepaid.

Fromthedateofwinding-upuntil31March2011, investors intheFundhavebeenrepaid78.5%oftheircapitalinvestment.Afurthercapital repaymentof2%proposedforearlyAugustwillbringthetotalrepaidto80.5%.Thiscalculationdoesnotincludeanytaxbenefitreceivedbyunitholdersasaresultofthelossesallocatedinthe2009financialyear.

WearecontinuingtoworkwiththeTrusteeandanexperiencedloansrecoveryspecialistandeachloancontinuestobeindividuallyassessedtoensuretherightactionistakentohaveitrepaid.

Animportantissuefacingborrowersisthedifficultyrefinancingin the current financial climate. When loans are overdue butnototherwiseindefaultwehavebeenprepared,inappropriatecircumstances, to work with borrowers to achieve the bestoutcomefortheFund.

When recovery action is taken as the result of a loan default,we continue to carefully weigh up whether greater benefits toinvestors will occur through an early sale or through deferringsaleuntilthepropertymarketimproves.

Insomecases,whereinvestigationshaverevealedgoodgroundsforlegalactionagainstotherparties,afirmapproachhasresultedinsatisfactorysettlementsbeingmadeonbehalfofinvestors.

Financial Statements

The financial statements now essentially show how the trust,whichisnolongeragoingconcern,isprogressivelyrealisingitsassets.Inaddition,astheassetsarerealised,thevariousfinancialratios that formerly governed the operation of the Fund as agoingconcernareunabletobeachieved.

Over the last2years theTrusthasadded$7.45million (beforetax) to unitholders account balances, representing a partialrecoveryonthewrite-downsappliedtounitholdersaccounts intheyearto31March2009.


The financial statements show the Fund being significantlyreducedinsize,withnetassetsnowbeing$25.24milliondownfrom$61.57millionat31March2010.

Outlook for 2012

Whilewestill expect to continuemakingpayments, the timingandamountofthosepaymentsisdifficulttoforecastaswearedealing with the most difficult of the recoveries. Unfortunatelythe recent earthquakes, occurring when the property marketwas already slow, have made the disposal process much morecomplexandtimeconsumingregardlessoflocation.

The directors remain hopeful of an improvement in the fund’sposition,withthetrusteeandthemanagercommittedtodoingeverythingpossibletoachievethebestresultforunitholders,inthecircumstances.

ADMcBeathChairman

Chairmans Report

Approval by DirectorsFor the Year Ended 31 March 2011

Authorisation for IssueTheDirectorsofFundManagersCanterburyLimited(asmanager)andtheDirectorsofTrusteesExecutorsLimited(astrustee)authorisedtheissueofthesefinancialstatementson20July2011.Approval by Trustee and ManagerTheDirectorsofFundManagersCanterburyLimitedandtheDirectorsofTrusteesExecutorsLimitedarepleasedtopresentthefinancialstatementsofCanterburyMortgageTrustGroupInvestmentFundfortheyearended31March2011.

SignedforandonbehalfoftheManager,Fund Managers Canterbury Limited

Director DirectorFund Managers Canterbury Limited Fund Managers Canterbury Limited

SignedforandonbehalfoftheTrustee,Trustees Executors Limited

Director DirectorTrustees Executors Limited Trustees Executors Limited

Appr

oval

by

Dir

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Statement of Com

prehensive Income

Statement of ChangeS in UnitholderS fUndS For the Year Ended 31 March 2011

Notes 31March 31March 2011 2010

Unitholders’ Funds at Start of Period 61,575,214 221,083,144

NetProfitandTotalComprehensiveIncomefortheYear 2,531,983 4,924,778

Total Recognised Income andExpenses for the Period 2,531,983 4,924,778

NetRepaymentstoUnitholders 5 (38,366,740) (163,420,542)PIEtaxeffect 7 (496,821) (1,012,166)

Unitholders’ Funds at End of Period 4 $25,243,636 $61,575,214

BalanCe SheetAs At 31 March 2011


Trust Equity 4 $25,243,636 $61,575,214

Representedby:

AssetsCashandCashEquivalents 1,387,471 10,733,230

Advances 2 26,528,313 50,583,120Provisionforimpairment 6 (2,000,000) (4,000,000)

NetAdvances 24,528,313 46,583,120

GST 1,491 53,983DeferredTaxation 3 - 152,113PIETaxationRefundable - 4,413,247

Total Assets 25,917,275 61,935,693

LiabilitiesRedemptionspayable 101,405 113,529Tradeandotherpayables 9 227,527 246,950PIETaxationpayable 344,707 -

Total Liabilities 673,639 360,479

Net Assets $25,243,636 $61,575,214

These statements are to be read in conjunction with the accounting policies and notes on pages 9-22

Stat

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Statement of ComprehenSive inComeFor the Year Ended 31 March 2011

Notes 31March 31March 2011 2010RevenueMortgageinterestincome 1,966,219 6,792,283Interestincomefrombankaccounts 129,674 636,008Otherincome 2,201 -

Total Revenue from financial assets at amortised cost 2,098,094 7,428,291

Expenses

Managementfees 9 381,590 1,051,288Trusteesfees 9 118,527 152,351CreditConsultancy 273,566 -Accountancy 27,474 65,605Administration 72,691 45,502Auditfees 58,075 146,171Bankcharges 6,332 6,848

938,255 1,467,765

ReductioninProvisionforImpairment 6 (2,000,000) (32,443,529)ProvisionforImpairmentRecovered - (407,745)BadDebtwriteoff 1,535,158 33,887,022BadDebtsRecovered (907,302) -

NextMovementinImpairmentandBadDebts (1,372,144) 1,035,748

Total Expenses (433,889) 2,503,513

Net Profit Before Taxation 2,531,983 4,924,778

Taxation 3 - -

Net Profit and Total Comprehensive Income for the Year $2,531,983 $4,924,778



Statement of CaSh flowSFor the Year Ended 31 March 2011


Cashflows from Operating Activities Cashwasprovidedfrom:Interestreceived 4,194,761 10,676,421Otherincome 2,201 315

4,196,962 10,676,736

Cashwasappliedto:Interestpaid - -Paymentstosuppliers (905,189) (2,336,893)TaxationPaid - -

(905,189) (2,336,893)

Net Cash Inflow from Operating Activities before changes in operating assets 3,291,773 8,339,843

Cashwasprovidedfrom:Repaymentofmortgages 23,397,452 50,170,227

23,397,452 50,170,227

Cashwasappliedto:Mortgageadvancesmade (2,069,366) (2,513,553)

(2,069,366) (2,513,553)

Net Cash Inflow from Operating Activities 8 24,619,859 55,996,517

Cash Flows from Investing Activities - -

Cash Flows from Financing ActivitiesCashwasprovidedfrom:ReceiptsfromReturnofRedemptions (12,124) 113,529

(12,124) 113,529

Cashwasappliedto:PaymentsforRedemptionsofUnits (33,953,494) (163,419,620)

(33,953,494) (163,419,620)

Net Cash (Outflow) from Financing Activities (33,965,618) (163,306,091)

Net (Decrease) / Increase in Cash held (9,345,759) (107,309,574)AddOpeningcashbroughtforward 10,733,230 118,042,804

Ending cash carried forward $1,387,471 $10,733,230

Representedby:CashandcashEquivalents 1,387,471 10,733,230

$1,387,471 $10,733,230


Statement of Cash Flow

s

noteS to the finanCial StatementSFor the Year Ended 31 March 2011

1. STATEMENT OF ACCOUNTING POLICIES

Statement of ComplianceThesefinancialstatementshavebeenpreparedforCanterburyMortgageTrustGroupInvestmentFund(theFund)byFundManagersCanterburyLimited(theManager),onbehalfofTrusteesExecutorsLimited(theTrustee),inaccordancewiththeTrusteeCompaniesAct1967,theFinancialReportingAct1993andtheprovisionsoftheTrustDeed.The Fund is domiciled in New Zealand and was established as a GroupInvestmentFundinaccordancewiththeprovisionsofitsTrustDeeddated26June2001(assubsequentlyamended).Thesefinancialstatementshavebeenprepared inaccordancewithgenerallyaccepted accounting practice in New Zealand. They comply with the NewZealandequivalents to InternationalFinancialReportingStandards (NZ IFRS)as appropriate for profit-oriented entities. For this purpose the Fund hasdesignateditselfasprofit-orientated.The financial statements comply with International Financial ReportingStandards(IFRS).

Principal ActivitiesTheFund’sprincipalactivitieswere:-Receivingdepositsforinvestmentsfromunitholders;and-Making advances generally on first mortgage security, general security agreementsorspecificsecurityagreements.On11February2009theManagerresolvedthattheFundshouldbewound-upandtheassetsrealisedtopermitthepro-ratarepaymentofcapitaltounitholders.SincethatdatetheactivitiesoftheFundhavebeenlimitedtothemanagementandrealisationofloansandtherepaymentofunitholders.

Basis of PreparationAsnotedabove,on11February2009theManageroftheFundresolvedtowind-up theFundand realise theassetsof theFund. Accordingly, thegoing concernassumptionisnolongerappropriate.Thesefinancialstatementshavebeenpreparedon an other than going concern basis. Performing loans continue to be held atamortisedcostwhichapproximatesrealisationvalue.Non-performingloansareheldatrecoverablevalueafterconsiderationofbaddebts,impairmentlossesandcostsofdebtrecoveryasdetailedintheloanlossprovisioningpolicybelow.ThereportingcurrencyisNewZealanddollars.Theaccountingpoliciesusedinthesefinancialstatementsarethesameasadoptedfortheyearended31March2010.Accountingpoliciesareselectedandappliedinamannerwhichensuresthattheresultingfinancialinformationsatisfiestheconceptsofrelevanceandreliability,therebyensuringthesubstanceoftheunderlyingtransactionsorothereventsisreported.

Use of Estimates and JudgementThe preparation of financial statements requires management to makejudgements,estimatesandassumptionsthataffecttheapplicationofaccountingpoliciesandthereportedamountsofassets,liabilities,incomeandexpenses.Estimates and underlying assumptions are reviewed on an ongoing basis.Revisions to accounting estimates are recognised in the period in which theestimateisrevisedandinanyfutureperiodsaffected.Information about significant areas of estimation uncertainty and criticaljudgements in applying accounting policies that have the most significanteffectontheamountrecognisedinthefinancialstatementsaredescribedinthefollowingnotes:Note6-ProvisionforImpairmentNote10-FinancialInstrumentsNote12-AssetQualityEstimatesandjudgementshavebeenappliedwhereadvancesareoutstandingbeyondnormalcontractualterms.ThelikelihoodoftherecoveryoftheseadvancesisassessedbytheManager.Anyimpairmentlossisestimatedwithreferencetotheprobabilityandtimingofrecovery,thecostofpossibleenforcementthroughsecurityandrelatedcostsandsaleproceeds.

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1. STATEMENT OF ACCOUNTING POLICIES (continued)

SPECIFIC ACCOUNTING POLICIESThe following specific accounting policies which materially affect themeasurement of financial performance and the financial position have beenapplied.

Revenue RecognitionInterestrevenueisrecognisedusingtheeffectiveinterestmethod.Thismethodallocatesinterestovertherelevantperiodbyapplyingtheeffectiveinterestratetothecarryingamountofthefinancialasset.

DistributionsIn accordance with the Fund’s Trust Deed, the Fund fully distributes itsdistributableincometounitholders.Sincethedecisiontowindup,thishasbeenbywayofaprorataallocationofdistributableincometounitholdersindividualaccounts. Distributable income equals all income after deduction of fees,expenses,taxesandanyamounttheManagerconsidersprudenttowithholdtomeetpossibleloanlosses.

The distributions are recognised in the Statement of Changes in UnitholdersFundsandNote5.

Applications and RedemptionsApplicationsandredemptionshavebeensuspendedsince22July2008andsincethedecisiontowinduptheFundinFebruary2009,theFundhasmadeproratarepaymentsofcapitaltounitholdersasfundshavebeenrealised.

Financial AssetsFinancialassetsareclassifiedintothefollowingspecifiedcategories:“fairvaluethroughprofit&loss”,“availableforsale”,“heldtomaturity”and“loansandreceivables”. The classification depends on the nature and purpose of thefinancialassetsasdeterminedatthetimeofinitialrecognition.

Financialassetscarriedonthebalancesheetincludecashandcashequivalents,tradeandotherreceivablesandadvances.Financialassetsareinitiallyrecognisedattheirfairvalueplustransactioncosts. Fairvalueisdeterminedbyamarketvaluationbasedonmarketinterestrates.

Advances,tradeandotherreceivablesandotherfinancialassetsareclassifiedas“loansandreceivables”.

Advancesarerecordedatamortisedcostusingtheeffectiveinterestratemethodless any impairment except where the advance is no longer being operatedwithintheloanterms.Non-performingadvancesarerecordedattheirestimatedrealisation value after consideration of impairment losses and costs of debtrecoveryasdetailedintheimpairmentofassetspolicybelow.

Tradeandotherreceivablesandotherfinancialassetsarerecordedatamortisedcostusingtheeffectiveinterestratemethodlessanyimpairment.

Financial LiabilitiesFinancialliabilitiescarriedonthebalancesheetincludetradeandotherpayables,andaremeasuredatamortisedcostusingtheeffectiveinterestratemethod.

Trust EquityIn accordance with the February 2008 Amendments to NZ IAS 32 and NZIAS 1 Puttable Financial Instruments and Obligations Arising on Liquidation,unitholdersfundsaredefinedas“puttableinstruments”andclassifiedasEquity.Theseamendmentsapplytoannualperiodsbeginningonorafter1January2009.However,theFundearlyadoptedtheseamendmentsduringtheperiodended31March2008.

Derivative Financial InstrumentsTheFundhasnotenteredintoanyderivativefinancialinstruments.

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Impairment of AssetsAteachreportingdate,theManagerreviewsthecarryingamountsoftheFund’sassets to determine whether there is any indication that those assets havesufferedanimpairmentloss.Ifanysuchindicationexists,therecoverableamountoftheassetisestimatedinordertodeterminetheextentoftheimpairmentloss(ifany).ImpairmentlossesdirectlyreducethecarryingamountofassetsandarerecognisedintheNetProfitbeforetaxation.

Financialassetsareimpairedwherethereisobjectiveevidencethatasaresultofoneormoreeventsthatoccurredaftertheinitialrecognitionofthefinancialassettheestimatedfuturecashflowsoftheassethavebeenimpacted.Forfinancialassetscarriedatamortisedcost,theamountoftheimpairmentisthedifferencebetweentheasset’scarryingamountandthepresentvalueofestimatedfuturecashflows,discountedatthecurrentinterestrateasalladvancesareatfloatingrates.

Impairment losses on an individual basis are determined by an evaluation oftheexposuresonanadvancebyadvancebasis.Aspecificprovisionforimpairedadvancesiscreatedwhenrecoveryofprincipaland/orinterestisnotconsideredfullycollectableinaccordancewiththetermsoftheloancontract.ThecollectiveimpairmentprovisionhasbeendeterminedbytheManagerafterassessingtheremainingadvancesaccordingtotheircreditriskcharacteristicsandconsideringobjectiveevidenceof impairment events. Theprovision isused to reduce thecarryingamountofadvanceswhentheactuallossisrealised.Inundertakingthisassessmentadvancesareassessedasfollows:

a. Past Due AssetsAdvanceswhereinterestand/orprincipalareinarrearsandtheyhavenotbeenoperatedbytheborrowerwithintheirkeyterms,whicharenotimpairedassets.

b. Impaired assetsImpaired assets are any assets where there is significant doubt about thecollectabilityoftheamountsowing.

c. Restructured assetsRestructuredassetsarethosewheretheoriginaltermshavebeenchangedduetotheborrowers’difficultyincomplying.The loans are tobe repaidover a longer periodof time than specified in theoriginalagreement.

Income TaxFrom 1 October 2007 the Fund elected to be taxed as a Portfolio InvestmentEntity(PIE).AsaPIE,theFundallocatesincomeorlossesonadailybasistoeachinvestoranddeductstaxfromthatallocatedincomeattheprescribedinvestorrateforeachinvestor.ThetaxthatispaidtotheInlandRevenueisnotshownasincometaxintheStatementofComprehensiveIncome,ratheritisshownasthePIETaxeffectintheStatementofChangesinUnitholdersFunds.

Current TaxTheFundqualifiesasaPortfolioInvestmentEntity(PIE)fortaxpurposes.UnderthePIEregimeincomeiseffectivelytaxedinthehandsoftheUnitholdersandtherefore the Fund has no income tax expense. Accordingly, no income taxexpenseisrecognisedintheStatementofComprehensiveIncome.UnderthePIEregime,theManagerattributesthetaxableincomeoftheFundtoUnitholders inaccordancewiththeproportionoftheir interest intheFund.TheincomeisattributedtoeachUnitholderquarterlyandtaxedattheUnitholder’s“prescribedinvestorrate”whichiscappedat28%(30%priorto1October2010).

Deferred TaxDeferred tax is accounted for using the comprehensive balance sheet liabilitymethod in respect of temporary differences arising from differences betweenthecarryingamountofassetsandliabilitiesinthefinancialstatementsandthecorrespondingtaxbaseofthoseitems.



Notes


Goods and Services TaxTheFund is registered forGST for thepurposeof returningGST in relation toincomereceivedwhileinpossessionofpropertiesorwhereapropertyissoldbywayofamortgageesaleonbehalfofGSTregisteredmortgagors.

AllothertransactionshavebeenrecordedinclusiveofGST.

Statement of Cash FlowsTheStatementofCashFlowshasbeenpreparedusingthedirectmethod.

Operatingactivities:are theprincipal revenueproducingactivitiesof theFundandotheractivitiesthatarenotinvestingorfinancingactivities.

Investingactivities:aretheacquisitionanddisposaloflongtermassets.

Financing activities: are activities that result in changes in the size andcompositionofthecontributedequityoftheFund.

Cashandcashequivalentscomprisecashonhand,cashinbanksandinvestmentsinmoneymarketinstrumentsorothershorttermhighlyliquidinvestments,netofoutstandingbankoverdrafts.

STANDARDS AND INTERPRETATIONS ON ISSUE NOT YET ADOPTEDAtthedateofauthorisationofthefinancialstatements,anumberofStandardsand Interpretations were on issue but not yet effective.We are not aware ofanystandardsonissuebutnotyeteffectivewhichwouldmateriallyimpacttheamountsrecognisedordisclosedinthesefinancialstatements.

2. ADVANCES 31March 31March 2011 2010Mortgageadvancesbyloantype:-Commercial 7,354,224 13,453,802-Home-owneroccupied 654,762 3,876,315-ResidentialInvestmentProperties 12,766,649 27,350,924-Rural 5,752,678 5,902,079

Closingbalance $26,528,313 $50,583,120

Mortgageadvancesbygeographicalregion: CanterburyRegion 5,763,482 17,659,859OtherSouthIslandRegions 13,354,341 17,452,391NorthIslandRegions 7,410,490 15,470,870

Closingbalance $26,528,313 $50,583,120

Mortgageadvancesbynatureofunderlyingsecurity:COMMERCIAL BareLand 1,048,084 1,388,615 Development 1,981,741 575,963 Investment 4,324,399 7,804,120 OwnerOccupied - 3,685,104RURAL Crop/Horticulture - 274,230 Sheep 1,706,670 1,465,588 Viticulture 4,046,007 4,121,845 BareLand - 40,416HOUSING-OwnerOccupiedCrossLease - 36,085 StandardHomes 654,762 3,840,230RESIDENTIAL Apartments 5,224,112 12,387,471 BareLand 396,168 4,475,382 Development 6,209,487 9,467,908 StandardHomes 936,883 1,020,163

$26,528,313 $50,583,120



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3. TAXATION

a) TAXATION EXPENSE 31March 31March

2011 2010ProfitBeforeIncomeTaxation 2,531,983 4,924,778

DistributabletoUnitholders (2,531,983) (4,924,778)

Taxation Expense $- $-

Taxation Expenses comprises:

CurrentTaxationExpense - -DeferredTaxationbenefitofimpairmentprovision - -

$- $-

b) DEFERRED TAX 31March 31March 2011 2010

Openingbalance 152,113 170,842DeferredTaxationMovements (152,113) (18,729)

Closingbalance $- $152,113

DeferredTaxrelatedsolelytothetaxbenefitoftheFormationLossesoftheFund.ThisrepresentedaPIEtaxcreditreceivablebytheunitholdersuponrealisationofthoseFormationLossesandwasfullyrealisedin2011.TheFormationLossesrelatedto theProvision for Impairmentat thedateof transition toaPortfolioInvestmentEntity.Thedateoftransitionwas1October2007andtheProvisionforImpairmentatthatdateamountedto$880,248.ThebalanceoftheDeferredTaxbenefitat31March2011afterutilisationoflossesduringtheyearis$Nil(31March2010$152,113).

4. TRUST EQUITY 31March 31March

2011 2010

UnitholdersFunds(Note5) 25,243,482 61,575,347

Accumulated(Overdistributed)/UndistributedIncome(Note7) 154 (133)

$25,243,636 $61,575,214

5. UNITHOLDERS FUNDS 31March 31March

2011 2010

RepaymentstoUnitholders (38,366,740) (163,420,542)

Profitsappliedtoinvestors(NetofPIETax) 2,034,875 3,912,692

OpeningBalance 61,575,347 221,083,197

Closingbalance $25,243,482 $61,575,347

Units were issued at $1 per unit. Unitholders funds were invested for no fixedterm.AsdescribedinNote1redemptionsweresuspendedfrom22July2008.TheManagerresolvedon11February2009towinduptheFund.Allunitshaveequalrightsinanysurplusonwindingup.Tobalancedate,31March2011,theFundhadrepaidUnitholders78.5centsofeachdollarheldatthetimethedecisiontowindupwasmade(31March201065cents).




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7. ACCUMULATED UNDISTRIBUTED/(OVER DISTRIBUTED) INCOME 31March 31March

2011 2010

ProfitAttributabletoUnitholders 2,531,983 4,924,778PIE(Profit)/lossappliedtoUnitholders (2,531,696) (4,924,858)

Increase/(Decrease)inUndistributedIncome 287 (80)

Openingbalance (133) (53)

Total Accumulated (Over Distributed) / Undistributed Income $154 $(133)

PIEtaxeffectallocatedonProfits $496,821 $1,012,166

The PIE tax effect has been calculated at the individual unitholder’s PIR(PrescribedInvestorRate).

8. RECONCILIATION OF NET PROFIT WITH NET CASH FLOW FROM OPERATIONS 31March 31March

2011 2010

NetProfitaftertax 2,531,983 4,924,778

Plus

IncreasefromnetrepaymentofMortgages 23,983,318 91,619,261

Net(Decrease)/Increaseinprovisionforimpairment (2,000,000) (40,446,000)

24,515,301 56,098,039

(Decreases)/IncreasesinWorkingCapitalItems:

AccruedInterest 71,491 767,289

Trade,otherpayablesandGST 33,067 (868,811)

DeferredTaxation 152,113 18,729

NetMovementsinWorkingCapital 256,671 (82,793)DeferredTaxMovementthroughStatementofUnitholdersFunds (152,113) (18,729)

Net cash flow from operating activities $24,619,859 $55,996,517

Movement in Accrued Interest

AccruedInterestisincludedintheadvancesonthebalancesheet.

9. RELATED PARTIES AND KEY MANAGEMENT PERSONNELa. Related PartiesTherelatedpartiesareTrusteesExecutorsLimited,whoprovidetrusteeservicestotheFundandFundManagersCanterburyLimited,whoprovidemanagementservicestotheFund.TrusteeandManagementfeesarepaidinaccordancewiththeProspectusatthefollowingrates:- Trustee Fees are 0.1% (2010: 0.1%) on Investments up to $50 million and

0.08%(2010:0.08%)onInvestmentsexceeding$50million.- ManagementFeesare1.0%(2010:1.0%)ofunitholdersfunds. Thefollowingtransactionsoccurredduringtheperiodunderreviewinregard

topartiesdirectlyrelatedtotheFund. 31March 31March

2011 2010TrusteesFees-TrusteesExecutorsLimited 118,527 152,351ManagementFees-FundManagersCanterburyLtd 381,590 1,051,288

$500,117 $1,203,639

Softwareservicecharge-FundManagersCanterburyLimited $12,976 $12,500Amountspayabletorelatedpartiesatperiodend:FundManagersCanterburyLimited $78,049 $161,403TrusteesExecutorsLimited $28,103 $15,545

Amountspayableareunsecuredandrepayableatnormaltradeterms.

ThepersonalclientservicesdivisionofTrusteesExecutorsLimitedinvestedintheFundonbehalfofitsretailtrustclientsandasat31March2011held$801,417intheFund(31March2010$1,890,923).

Amountsreceivablebyrelatedpartiesatperiodend:CMTrustPropertiesLtd $549,600 $313,448

CMTrustPropertiesLtdisapropertyowningcompany,establishedinNovember2009,whosesharesareheldintrustforthebenefitoftheFund,thusenablingtheFundtoenhanceitsreturnonaloansettlement.Therearealsosharesheldintrustforthebenefitofthefund,inrelationtoTheNelsonRidgeWaterCompanyLtdanditssubsidiaryRidgesRoadLtd.ThesecompaniescontrolassetsassociatedwithasubdivisioninCentralOtago.

6. PROVISION FOR IMPAIRMENT 31 March 31 March 2011 2010 Collective Specific Total Collective Specific TotalOpeningbalance 4,000,000 - 4,000,000 5,000,000 39,446,000 44,446,000Increaseinimpairment - - - - 1,876,000 1,876,000Reductioninimpairment (2,000,000) - (2,000,000) (1,000,000) (33,319,529) (34,319,529)

Net(Reduction)/IncreaseinImpairment (2,000,000) - (2,000,000) (1,000,000) (31,443,529) (32,443,529)Provisionutilised - - - - (8,002,471) (8,002,471)

Closingbalance $2,000,000 - $2,000,000 $4,000,000 - $4,000,000

InMarch2010eachloanwasreviewedinrelationtoimpairmentwiththeManagerandtheTrusteeconcludingthateventshaddevelopedtothepointwherethespecificprovisionsshouldbeconsideredtobebaddebtsandwrittenoff.Attheendofthe2011financialyearallremainingloanswereonceagainreviewedandrecoveries/writeoffsrecognisedthroughbaddebts.TheManagerandTrusteearestillpursuingallandanyavenuesforrepaymentbutacknowledgethatcollectionbeyondthewrittendownvalueisunlikely.

ThecollectiveimpairmentprovisionhasbeendeterminedbytheManager,withinputfromtheTrusteeandindependentexternalcreditconsultants.Afterassessingtheremainingadvances,accordingtotheircreditriskcharacteristicsandconsideringobjectiveevidenceofimpairmentevents,in2011thiswasreducedsignificantly.Thisreductionrecognisestheprogressmadeinrecoveringloans,whichwhilenotconsideredbadwerefelttoattractsomecollectionrisk.


b. Key Management PersonnelCompensation paid to Directors and executives, being the key managementpersonnelofFundManagersCanterburyLimitedinrespectoftheirresponsibilitiestotheFundwere: 31March 31March 2011 2010Short-termBenefits $189,798 $295,553PostEmploymentBenefits - -OtherLongTermBenefits - -TerminationBenefits - -

ThefollowingdirectorsorkeymanagementpersonnelandtheirrelatedpartiesbeneficiallyownedunitsintheFund: 31March 31March

2011 2010GCMain $11,291 $28,546GCMain&VLEilken-Main $5,621 $13,688VLEilken-Main $5,158 $12,567ThistledomeTrust $28,928 $65,046HJThomas $8,256 $20,108LatheronTrust $11,465 $25,779VFYoung $11,062 $26,922Winsome&AllenBarrowTrust $3,585 $9,077

10. FINANCIAL INSTRUMENTSa. Financial Risk Management PoliciesInterest Rate RiskItisthepolicyoftheFundtoensurethatinterestrateexposureismaintainedonafloatingratebasis.Alladvancesaremadeatfloatingrates.

Credit RiskCreditriskistheriskthatacounterpartywilldefaultonitsobligationresultinginafinanciallosstotheFund.Priortothedecisiontowindupallprospectivemortgagorsweresubjectto lendingcriteriaestablishedbytheManager.Theseincluded maximum loan security value ratios, a demonstrated debt servicingability andall advancesare securedbyfirstmortgageand/orgeneral securityagreementorspecificsecurityagreement.ApprovalswerebyManagement,orbytheBoardofDirectorsoftheManager.FortheperiodsincethecommencementofthewinduptheFundhasacreditriskonoutstandingadvances.TheFund’spolicywithregardtooutstandingadvances,isthatallexpiredloansarerequiredtoberepaidandtheremainingloans,9asat31March2011(35asat31March2010),areencouragedtoseekalternativefunding. The Fund, with the assistance of a third party credit consultant, isworking with borrowers to have the loans repaid or recover the outstandingamountsbyrealisingsecuritiesheldagainsttheloans.TheTrusteehasapprovedthisapproachandismonitoringtheprogressonanongoingbasis.

Liquidity RiskLiquidityriskistheriskthattheFundmayencounterdifficultyinraisingfundsat shortnotice tomeet itscommitmentsandarises fromthemismatchof thematurityofmonetaryassetsandliabilities,andunitholderfunds.Managementmonitorstheriskasfollows:- Thefundisinsuspension,withfundsbeingreturnedtounitholdersonlywhen

sufficientreserveshavebeenaccumulatedtomakearepaymentofcapital.- ExpensesincurredprotectingorrealisingtheFund’spositiononadvancesare

paidastheyfalldue.Aminimumlevelofreservesareheldasacontingencytocoverthesecosts.


9. RELATED PARTIES AND KEY MANAGEMENT PERSONNEL (continued)

a. Financial Risk Management Policies (continued)- With theexceptionof9 loans (35 in2010)allmortgageshaveexpiredand

beencalledup.Thefundisworkingwithborrowerstorealiseitsinvestmentinthemostefficientmanner.Ananalysisofthecontractualrepaymentprofileofthemortgageadvancesisoutlinedinnote11.

TheFund’sliquiditypositionissetoutinnote11.TheFundmonitorsitsliquidityposition on an ongoing basis and maintains deposits at call, which togetherwith funds received from mortgage repayments enable the Fund to meet itscommitmentsastheyfalldue.Tomeetbothexpectedandunexpectedfluctuationsinoperatingcashflows,theFundmaintainsastockofliquidinvestments.AsaresultoftheFund’sresolutiontowindupthefund(refernote15)theleveloffundsheldtocoveroperatingcashflowshasbeenreducedtolevelsproportionatetotherisk

Capital ManagementThe Fund has no externally-imposed capital requirements other than thoseset out in theTrust Deed dated 26 June 2001 (as amended) and Investmentguidelines.However,sincethedecisionwastakentowinduptheFund,thefocushasbeenonmaximisingloanrecoveries.TheFundretainsonlysufficientcapitaltomeetitsoperationalrequirements.Allsurplusfundsarerepaidtounitholders.

b. Quantitative Risk Exposure DisclosuresConcentration of Funding 31March 31March 2011 2010CanterburyRegion 16,817,931 42,542,869OtherSouthIslandRegions 3,696,846 9,203,516NorthIslandRegions 4,483,459 9,272,978Offshore 245,246 555,984

25,243,482 61,575,347

FundingisprimarilyfromunitholdersintheCanterburyregionofNewZealand.

Fair ValuesThecarryingamountsoffinancial instrumentsarethesameastheirfairvalue.Fairvaluehasbeendeterminedwithreferencetotheexpectedrecoveryoneachindividualmortgageadvance.

Credit RiskAtbalancedate$1,387,471(31March2010$10,733,230)or5.50%(31March201017.43%)of theFundwas investedwith theANZNationalBankofNewZealandLimited.OnegroupofcloselyrelatedcounterpartiestowhichtheFundhasacreditexposureexceeded5%ofunitholdersfundsat31March2011andthisexposurewas6.55%(31March20106.21%).At balance date the 6 largest borrower exposures amounted to 70.81% ofunitholderfunds(31March201042.37%).Thisexceedsthecreditriskexposureguidelineof20%,establishedpriortowindup.Sincethedecisiontowindup,theFundhasbeenunable toadhere to thisguideline,dueto the reduction insizeofunitholders fundsand theongoing realisationof the loanbook.WhilsttheManagerandTrusteecontinuetomonitorthis,giventhereducingfundsizetheFundisunabletoreducethisexposureandtherefore,remedythesituation.The maximum credit exposure (net of provisions and write-offs) of the Fundis $25,915,784 (31 March 2010 $61,729,597). Collateral held in respect ofadvancesof$26,523,313(31March2010$50,583,120)isbywayofregisteredfirst mortgage. One loan equalling $9,080,718(gross) (31 March 2010$9,202,564(gross)), recordedas fully impaired,was incorrectlysecuredbyfirstmortgage over a neighbouring property and proceedings are ongoing againsttheactingsolicitor,withfurtherlegalremediesbeingexplored.Theaverageloanto valuation ratio (LVR)onmortgageadvances as at the timeof lendingwas56.03%(31March201050.76%).Thedeteriorationinthepropertymarket(refernote15)hashada significantadverse impacton theLVRasatbalancedate.AssetQualityisfurtherdiscussedinNote12.


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10. FINANCIAL INSTRUMENTS (continued)Liquidity RiskCanterburyMortgageTrust’sTrustDeedprescribesthatliquidassets(asdefinedin the Trust Deed as including cash, bank deposits and securities) are to bemaintainedataminimumof5%ofTotalTangibleassetslessreserves.SincetheresolutiontowinduptheFundinFebruary2009,theFundhastodatemaintainedapolicyofpayingallsurplusfundstounitholders,asreturnsofcapital,thusnotcomplyingwiththisrequirement.

Sensitivity AnalysisTheFundisfocusedsolelyontherecoveryoftheremainingloans,themajorityof these loansare significantly inarrearsandarenotmaking regular interestpayments. It is not considered relevant or practical to calculate the Fund’ssensitivity to changes in interest rates. The overall recovery of the loans ismoresensitivetothepropertymarket,asthiswilldeterminetheFund’soverallrecoveryontheremainingloans.

Interest RevenueCanterbury Mortgage Trust as an entity accumulates income from mortgageloanswhich,afterdeductionofexpensesisthenpaidouttounitholders.


11. LIQUIDITY PROFILEThefollowingtablesdetailtheFund’sremainingcontractualmaturityforitsfinancial assetsandliabilities.ThetableshavebeendrawnupbasedonundiscountedcashflowsbasedontheearliestdateonwhichtheFundisentitledtoreceivethefinancialasset orrequiredtopayforthefinancialliability.Thetableincludesbothinterestandprincipalcashflows:31 MARCH 2011 On Demand 0-6 Months 6-12 Months 1-2 Years 2-5 Years Over 5 Years TotalFinancialAssets:CashandCashEquivalents 1,387,471 - - - - - 1,387,471Advances 24,079,932 559,099 114,041 1,697,859 38,576 195,138 26,684,645

$25,467,403 $559,099 $114,041 $1,697,859 $38,576 $195,138 $28,072,116

FinancialLiabilities:TradeandOtherPayables - 227,527 - - - - 227,527

$- $227,527 $- $- $- $- $227,527

31 MARCH 2010 On Demand 0-6 Months 6-12 Months 1-2 Years 2-5 Years Over 5 Years TotalFinancialAssets:CashandCashEquivalents 10,733,230 - - - - - 10,733,230Advances 28,559,203 16,987,336 5,079,399 290,029 121,113 627,142 51,664,222

$39,292,433 $16,987,336 $5,079,399 $290,029 $121,113 $627,142 $62,397,452

FinancialLiabilities:TradeandOtherPayables - 246,950 - - - - 246,950

$- $246,950 $- $- $- $- $246,950

Advances include all contractual cashflows for theperiod defined. The interest rate appliedtothesecontractualcashflowsisthefloatingrateapplicabletotheseadvancesatBalanceDate.Whilstmortgagesareadvancedonanondemandbasis,alladvanceswiththeexception of9loans(asnotedinNote10aabove)haveexpiredandbeencalledup,itisnotexpectedthatthesewillberepaidonthatbasis.DuetotheFundbeingwoundupitisnotpossible topredictwithanycertaintywhentheremainingmortgageadvanceswillberepaid(RefertoNote15).The weighted average interest rate on performing advances is 11.29% (March 2010 11.67%).A0.5%movementintheinterestratewouldresultina$50,000movementininterestrevenueresultinginanincreaseordecreasetoprofitandequity(March2010 $109,000).Advanceswhicharesignificantlyimpairedaresetasnonaccruinguntiltheloanisbroughtuptodateorrepaid.Interestratesonalladvancesarefloatingwith14days noticeofachange.Thereforealladvancesrepricein14days.Interestratesonbankcallandtermdepositaccountsarewithintherangeof2.50%to3.50%.Interestratescan beresetdailyforcallaccountsoronmaturityofthetermdeposit.While all financial assets/liabilities are ultimately at call the ability to liquidate a financialassettorepayunitholdersisultimatelyconstrainedbythetimelinesstorealisetheasset(referalsotonote15).

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12. ASSET QUALITYa. Past due assetsThe past due assets include the total amounts owing by the borrowers who are inarrears,notjustthepastdueportion.Asat31March2011thepastdueportionwas$1,814,335(31March2010$2,734,534).Pastdueassetsexcludeimpairedassetsasnotedin(b)below.ThepastdueassetsaresecuredbyfirstmortgagesoverpropertiesinNewZealandwithanaverageLVRof35.36%,basedonvaluationatthetimeoflending.Duetotheuncertaintyin the property markets (Refer Note 15) the Manager considers it impracticable toestimatethefairvalueofthecollateralheldassecurityasatbalancedate.

TheageanalysisofthePastdueassetsandthePastdueportionis:

31 MARCH 2011 0-3 Mths 3-6 Mths 6-9 Mths 9-12 Mths 12 Mths + Total

Pastdueassets 174,846 - 1,689,103 - - 1,863,949

Pastdueportion 125,232 - 1,689,103 - - 1,814,335

31 MARCH 2010 0-3 Mths 3-6 Mths 6-9 Mths 9-12 Mths 12 Mths + Total

Pastdueassets 4,412,093 2,020,649 516,797 - - 6,949,539

Pastdueportion 2,217,088 649 516,797 - - 2,734,534

31March 31March 2011 2010b. Impaired AssetsOpeningImpairedassets 29,752,041 79,753,915NewImpairedassets 1,885,500 6,625,069Impairedassetsrepaid/writtenoff (15,592,035) (56,626,943)

ClosingImpairedassets $16,045,506 $29,752,041

The impaired assets include the total amounts owing by the borrowers who are inarrears,notjustthepastdueportion.Therecordedamountsarenetofwrite-downsforpreviouslyidentifiedimpairments.InterestIncomeonImpairedFinancialAssetsfortheperiodwas$120,375(31March2010$2,003,876).The impairedassets are securedbyfirstmortgagesover properties inNewZealandwithanaverageLVRatthetimeoflendingof40.79%,withtheexceptionofonefullyimpairedloanequalling$9,080,719(31March2010$9,202,564),thatwasincorrectlysecured by first mortgage over a neighbouring property. As stated in Note 6 theManagerandtheTrusteehavedeterminedthatduetochangesinthepropertymarketthese impaired loan assets should be considered bad debts. Accordingly Impairedadvanceshavehadabaddebtwritedownappliedtothemof$27,240,229(31March2010$33,313,786),toreflectacurrentestimatedfairmarketvalue.

TheageanalysisoftheImpairedassetsandthePastdueportionis:

31 MARCH 2011 0-6 Months 6-12 Months 12 Months+ TotalImpairedassets 1,205,424 180,076 14,660,006 16,045,506Pastdueportion 759,910 180,076 14,660,006 15,599,992

31 MARCH 2010 0-6 Months 6-12 Months 12 Months+ TotalImpairedassets 3,962,602 5,701,185 20,088,254 29,752,041Pastdueportion 3,228,016 1,152,305 20,088,254 24,468,575

c. Restructured Assets.AsatBalanceDate,noloans(31March2010-noloans)withinteresttotalling$Nil(March2010$Nil)wascapitalisedontotheprincipalbalanceoftheloans.Inallcases,theseloanscontinuedtomeettheloansecurityvalueratiosanddonotformpartofthepastdueassets.WhiletherearenorestructuredloanstheFundhasadvancesoutstandingat31March2011of$2,342,188tothreeborrowers(31March2010$313,448tooneborrower),ontermsthatwouldnotmeettheFund’sformer investmentguidelines.Theseadvancesweremadeas theManagerandTrusteebelieve theywill improve thefinal recoverytotheFund.



13. COMMITMENTS

Commitments inrespectofmortgageadvancesapprovedbutnotyetpaidoutat31March2011totalled$Nil(March2010$Nil)asincludedinNote11.

14. SEGMENT REPORTING

Adoption of NZ IFRS 8 Operating Segments

CanterburyMortgageTrustGroupInvestmentFundhasadoptedNZIFRS8OperatingSegments, with effect from 1 April 2009. NZ IFRS 8 requires operating segmentstobe identifiedon thebasisof internal reportsaboutcomponentsof theFund thatare regularly reviewedby thechiefoperatingdecisionmaker (which is theBoardofDirectorsoftheManager),inordertoallocateresourcestothesegmentandtoassessitsperformance.

Products and services from which reportable segments derive their revenues

TheFundoperatesinoneindustry,receivingdepositsforinvestmentsfromunitholders(funding) and making advances secured by mortgages and other forms of security(lending).On11February2009theManagerresolvedthattheFundshouldbewound-upandtheassetsrealisedtopermitthepro-ratarepaymentofcapitaltounitholders.Since that date the activities of the Fund have been limited to permit the pro-ratarepayment of capital to unitholders. The service provision process for each of theinvestmentsandmortgagesissimilar.

Segment revenues and results

TheaccountingpoliciesofthereportablesegmentarethesameastheFund’saccountingpoliciesdescribed inNote1. As there isonlyone reportable segment for the Fundthesegmentprofit representsprofitearned for thesegmentafterall costs includingallmanagement fees, trustees fees, reduction in provision for impairment, provisionrecoveredandbaddebtwriteoff.TheBoardofDirectorsoftheManagermakeresourceallocationdecisionstothissegmentbasedontheexpectedcashflowsandresultsofFundoperationsasawhole.Forthepurposesofmonitoringsegmentperformanceandallocating resources to the segment, the Board monitors the tangible and financialassetsattributabletothesegment.Allassetsareallocatedtothereportablesegment.

Information about major customers

PleaserefertoNote10bforthesixlargestborrowerexposures.

Geographical reporting

Alloperationsarecarriedout inNewZealand,and there isaconcentrationofbothfunding and lending in the Canterbury region. Therefore there is a geographicalconcentrationof risk regarding lending,withapproximately22.0%(201034.9%)oftheloanportfoliolentinCanterbury,refertoNote2forfurtherdetails.

15. WIND-UP OF THE FUND AND MORTGAGE ADVANCES ARREARS

On22July2008theManageroftheFundadvised its investorsthatallwithdrawalsfromtheFundhadbeensuspendedfor90daysandwouldthenbe followedbythe90 business day redemption period making the effective date for the payment ofredemptionsMarch2009.ThisactionwastakentosecureandprotecttheFundfromanunprecedentedlevelofwithdrawalrequestsfromunitholders.On11February2009theManagerresolvedthat theFundshouldbewound-upandtheassets realisedtopermitthepro-ratarepaymentofcapitaltounitholders.SincethedecisiontowinduptheFund,therealisationoftheFund’sassetshasbeensupervisedbytheTrustee,whohascontractedathirdpartycreditconsultanttomanagetherealisationprocess.

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15. WIND-UP OF THE FUND AND MORTGAGE ADVANCES ARREARS (continued)

ThecontinuedsluggishNewZealandeconomy,thedemiseofanumberoffinancecompaniesandthesoftpropertymarkethaveresultedinverylimitedoptionsformortgageholderstorefinance,makingitincreasinglydifficultformanytorepaytheir loans. The property market continues to be characterised by depressedpricesandslowsalesvolumes.Theseconditionsresultinuncertaintyregardingthevalueandtheabilitytorealisetheunderlyingsecurityonmortgageadvancesonatimelybasis.Theinabilityofborrowerstorepaymortgageadvanceshasreduced the amount estimated to be recoverable on these advances, in realterms,andacollectiveprovisionforimpairmenthasbeenmade.Consistent with the wind-up instructions of the Trustee, the provisioning inrespectofthepotentialimpairmentofadvancesoutstandingatbalancedatehasbeendeterminedbasedonanorderlyrealisationofadvances.In terms of the earthquakes that hit Canterbury in the last year, the Fund’ssecurities within the Canterbury region were all insured and while there isdamage to some properties, theTrust’s position is protected by the insurancecover carried over those properties. Progress on collection outside of theCanterburyregionhascontinueduninterrupted.


INDEPENDENT AUDITOR’S REPORT

TO THE UNITHOLDERS OF CANTERBURY MORTGAGE TRUST GROUP INVESTMENT FUND

Report on the Financial StatementsWe have audited the financial statements of Canterbury Mortgage Trust GroupInvestmentFundonpages6to22,whichcomprisethebalancesheetasat31March2011, thestatementof comprehensive income, statementof changes inunitholdersfunds and statement of cash flows for the year then ended, and a summary ofsignificantaccountingpoliciesandotherexplanatoryinformation.This report ismadesolely to theFund’sunitholders,asabody. Ouraudithasbeenundertaken so that we might state to the Fund’s unitholders those matters we arerequiredtostatetotheminanauditor’sreportandfornootherpurpose.Tothefullestextentpermittedbylaw,wedonotacceptorassumeresponsibilitytoanyoneotherthantheFund’sunitholdersasabody, forourauditwork, for this report,or for theopinionswehaveformed.

Manager’s Responsibility for the Financial StatementsTheManagerisresponsibleforthepreparationoffinancialstatements,inaccordancewith generally accepted accounting practice in New Zealand and that give a trueandfairviewofthematterstowhichtheyrelate,andforsuchinternalcontrolastheManagerdeterminesisnecessarytoenablethepreparationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.

Auditor’s ResponsibilitiesOurresponsibilityistoexpressanopiniononthesefinancialstatementsbasedonouraudit.WeconductedourauditinaccordancewithInternationalStandardsonAuditingand International Standards on Auditing (New Zealand). Those standards requirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreefrommaterialmisstatement.Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosures in thefinancialstatements. Theproceduresselecteddependontheauditor’s judgement, including theassessmentof the risksofmaterialmisstatementof the financial statements, whether due to fraud or error. In making those riskassessments,theauditorconsidersinternalcontrolrelevanttotheentity’spreparationoffinancialstatementsthatgiveatrueandfairviewofthematterstowhichtheyrelateinordertodesignauditproceduresthatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessoftheentity’sinternalcontrol. An audit also includes evaluating the appropriateness of the accountingpoliciesusedandthereasonablenessofaccountingestimates,aswellastheoverallpresentationofthefinancialstatements.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.Other than in our capacity as auditor, we have no relationship with or interests inCanterburyMortgageTrustGroupInvestmentFund.

OpinionInouropinion,thefinancialstatementsonpages6to22:• complywithgenerallyacceptedaccountingpracticeinNewZealand;• complywithInternationalFinancialReportingStandards;and• giveatrueandfairviewofthefinancialpositionofTheCanterburyMortgageTrust GroupInvestmentFundasat31March2011,anditsfinancialperformanceandits cashflowsfortheyearendedonthatdate.

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Emphases of MatterBasis of PreparationAsdisclosedintheaccountingpoliciesandNote15tothefinancialstatementson11February2009theManagerresolvedtowind-upandrealisetheassetsoftheFund.Accordingly, thefinancial statements for the yearended31March2011havebeenpreparedonanotherthangoingconcernbasis.

Fundamental Uncertainty Informingourunqualifiedopinion,wehaveconsideredtheadequacyofthedisclosuresinNote15ofthefinancialstatementsregardingtheimpairmentofadvancesandthepotentialimpactofcurrentmarketconditionsontherecoverabilityofadvances.Thesemarket conditions impact on both the realisation value and the expected timing ofrepaymentofadvances.Consistentwiththewind-upinstructionsoftheTrusteetheprovisioninginrespectofthepotentialimpairmentofadvancesoutstandingatbalancedatehasbeendeterminedbasedonanorderlyrealisationoftheadvances.The financial statements do not include any adjustment to the carrying value oftheadvances thatmay result fromfurtherdeterioration inpropertypricesonwhichadvancesaresecuredbeyondthedateofapprovalofthefinancialstatements,northeeffectofanydelaysinliquidatingthepropertysecuritiesthroughasaleprocess.

CharteredAccountants20July2011Christchurch,NewZealand

Canterbury Mortgage Trust Group Investment Fund

Registered office of the Manager Fund Managers Canterbury Limited

Unit 4, 212 Antigua Street, Christchurch03 377 5201 • 03 377 5207 • [email protected]

Documents

Annual Report 2011 - CMT Annual Report 2011.pdf · Annual Report 2011. Canterbury Mortgage Trust Group Investment Fund. 1. Directory 2. Chairman’s Report 3. Approval by Directors