Challenger helps small unit-holders
Unit-holders in the Challenger Howard Mortgage Fund have gained access to more liquidity.
The fund announced this week that an additional pool of $30 million would be made available for redemption by unit-holders with balances of $4,000 or less.
The group said the "Small Balance Withdrawal" offer was being implemented following last year's restructure and return of $850 million to unit-holders.
It said small balance withdrawal windows were contemplated at the time the restructure was proposed by responsible entity Challenger Managed Investments Limited and approved by unit-holders at an extraordinary general meeting held on 28 October, 2010.
Commenting on the move, Challenger Howard Mortgage Fund chief executive of distribution, product and marketing Paul Rogan said Howard investors continued to fall into one of two categories: longer-term investors content with staying in the fund or those seeking maximum liquidity.
"This offer is additional to the ongoing quarterly liquidity window," he said.
"We acknowledge that not everyone will want to take up the offer, but we're pleased to provide it for those wishing to fully redeem their investment," Rogan said.
The company announcement said that in the unlikely event the facility was oversubscribed, a pro-rata scale back would take place.
Small balance investors have approximately eight weeks to submit their withdrawal form to Challenger, with the offer scheduled to close on 30 December 2011.
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