CMT Logo







11 October 2017

CMT Investors

Dear Investor


Reliance on an Exemption Notice issued by the Financial Markets Authority

1. The purpose of this letter is to inform unitholders on the reliance by Canterbury Fund Managers Limited (the "Manager"), acting in its capacity as Manager of the Canterbury Mortgage Trust Group Investment Fund (the "Fund") on a class exemption issued by the Financial Markets Authority (FMA),

2. The FMA have issued an exemption for funds that are in the process of winding up, in order to exempt them from certain provisions of the Financial Markets Conduct Act 2013 ("Act"), requirements they would otherwise need to comply with. The Financial Markets Conduct (Unit Trusts and Group Investment Funds being Wound Up - Securities Allotted under Securities Act 1978) Exemption Notice 2017 (the "Exemption") has now been enacted and as Manager we intend to rely on the Exemption unless otherwise stated below.

3. The Exemption requires us to advise investors that some of the standard disclosure and governance requirements prescribed by the Act do not apply to the Fund while it is in the process of being wound up. The following is the prescribed notification we must make and the exemptions the Manager is relying upon.

4. Due to cost and additional compliance requirements, the FMA has recognised that for schemes in active wind-up, full compliance with the FMC Act may outweigh the benefits for investors. Accordingly, the Fund is exempt from:

(a) The requirement that the Trust have a governance document that meets the standards prescribed by sections 135(1) and (3); s127(1)(b); and s133(a) of the FMC Act; and

(b) The requirement that the Manager be licensed as a manager as prescribed under section 127(1)(c); s133(a); and s388(a) of the FMC Act.

5. Pursuant to the sections 164 and s166(1) of the FMC Act, managers are required to have a "statement of investment policy and objectives". As the Fund is being wound up this is not applicable to the Trust and the manager is exempted.

6. The Manager is exempted from section 218 and therefore is not required to ensure that its registers are audited or reviewed in accordance with the FMC Act and regulations.

7. The Funds cash records are not required to be reconciled daily as required under regulation 86(3). Notwithstanding reliance on this exemption, the Funds cash assets will be reconciled on a regular basis.

8. Regulation 87(1) requires the Custodian of the Trust to engage an auditor in regards processes relating to the handling of the schemes assets. There is one mortgage security and cash remaining. The Manager and Custodian are relying on this exemption.

9. No reliance is made on the exemption that assets are no longer required to be held independently from the Manager. This is because those assets are already held independently by a subsidiary of the Supervisor.

10. The former Manager (Fund Managers Canterbury Limited) by way of Board Resolution resolved to wind up the fund. The trustee, now Supervisor, (Trustees Executors) then advised investors of the proposed way forward to realise the assets being the "winding up plan" (the "Plan"). A copy of this letter is enclosed. Investors have also been advised of the progress of the wind-up to date and will continue to be updated.

The contact details for the Manager, Custodian, and Supervisor are as follows:


Canterbury Fund Managers Limited

Trustees Executors Limited

FM Custodians Limited
6a / 212 Antigua Street
Christchurch 8011
New Zealand
Level 5,
10 Customhouse Quay
Wellington 6011
New Zealand
Level 5
10 Customhouse Quay
Wellington 6011
New Zealand
PO Box 13229
Christchurch 8141
New Zealand

11. You may obtain an electronic copy of the governing document for the Fund (being the Trust Deed) by emailing You also have a right to receive, free of charge, a hard copy of the Trust Deed from the Manager within 15 working days of receipt of this notice. Please contact the Manager on (03) 377 5201 or write to the address above.


Yours faithfully



Colin Gower
For Canterbury Fund Managers Limited





Financial Statements



Canterbury Mortgage Trust Annual Report 2017


Canterbury Mortgage Trust Annual Report 2016


Canterbury Mortgage Trust Annual Report 2015

CMT Annual Report 2014


Canterbury Mortgage Trust Annual Report 2014

CMT Annual Reports


Previous Annual Reports








Investment Transfer Policy


Trust Deeds & Wind-up Resolution


Previous Updates



Click here to access CMT transfer policy and form.

Click here to access deeds and resolution

December 2016


July 2016


Click here to access previous updates.


Canterbury Mortgage Trust Group Investment Fund, office of the Manager Canterbury Fund Managers Ltd

Unit 6a, 212 Antigua St, Christchurch 8011 • PO Box 13-229, Christchurch 8141
Phone 03 377 5201 •