City Pacific revises guidance on mortgage fund
City Pacific has revised downwards its half-year guidance for the City Pacific First Mortgage Fund.
The company told the Australian Securities Exchange that impairment losses in respect of certain assets of the fund were expected to total approximately $339 million or 35 per cent of total assets prior to impairment.
As well, the company said the project underlying total asset value for the fund was now $630 million, with the expected underlying value of one unit in the fund now being 61 cents.
The company said the main contributors to the impairment losses in the fund had been “the unprecedented events that have severely impacted the global and Australian financial sectors and the consequent limits on the availability of credit".
It said conditions in Australia’s capital and property markets remained uncertain.
The company made the point that the impairments noted in its announcement were recorded in line with accounting rules and did not represent the actual amount lost by the fund.
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.
