Australian Unity Investments (AUI) has introduced monthly redemptions for its Mortgage Income Trust (MIT), the trust’s first regular redemption facility since the introduction of the Government’s bank guarantee last year.
Investors will be allowed to withdraw up to 1 per cent of their total investment in the fund each month, according to AUI.
AUI has allowed investors two redemption offers in the trust since December last year, AUI head of mortgages Roy Prasad said.
However, Prasad said continued stabilisation of liquidity levels in the fund has now allowed for a capped monthly redemption policy while at the same time allowing for appropriate management of the fund.
Prasad said mortgage funds continue to be a very attractive option for investors compared to other fixed income alternatives, particularly in view of low interest rates.
