CFS terminates $852m mortgage fund
|
|
Colonial First State (CFS) has terminated its Colonial First State Mortgage Income Fund.
Colonial First State chief executive Brian Bissaker has confirmed the termination of the $852 million fund today, saying it was in the best interests of investors as a whole and would allow all investors to receive regular payments from the net proceeds of the fund’s assets.
He said that, at this stage, it was envisaged investors would receive full recovery on their investment outlay.
Bissaker told Money Management the decision to terminate the fund had followed a review process which had identified a small number of mortgages within the portfolio that had the potential to become bad debts.
The fund was suspended in October 2008, and Bissaker said redemption requests through periodic withdrawals offers had consistently exceeded the cash available for payment.
CFS said that investors would receive at least 10 per cent of their total account balance as part of the first capital payment in late March this year, with subsequent capital payment amounts being determined by the cash available from mortgage repayments.
As a separate issue, CFS today also announced that it had decided to terminate its Wholesale Guaranteed Mortgage Fund, comprised of $13 million in funds under management, and which closed to new applications in 2004.
AUTHOR
Mike Taylor
Recommended for you
ASIC has permanently banned a former Perth adviser after he made “materially misleading” statements to induce investors.
The Financial Services and Credit Panel has made a written order to a relevant provider after it gave advice regarding non-concessional contributions.
With wealth management M&A appetite only growing stronger, Business Health has outlined the major considerations for buyers and sellers to prevent unintended misalignment between the parties.
Industry body SIAA has said the falling number of financial advisers in Australia is a key issue impacting the attractiveness and investor participation of both public and private markets.
