Monthly withdrawals for AUI mortgage fund
Australian Unity Investments (AUI) has introduced a regular monthly withdrawal facility for its High Yield Mortgage Trust.
Three per cent of the trust’s total assets are available for withdrawals each month, with the move coming as part of AUI’s stated plan to improve liquidity within its mortgage funds.
Investors can also set up a regular monthly withdrawal facility for up to 12 months, or request a one-off withdrawal of the full amount of their investment, which would then be met on a pro-rata basis in the event of over-subscription, AUI stated.
“An important focus for us has been to establish a redemption process suitable for each fund that will allow investors regular access to their capital,” said AUI’s general manager of property, Mark Pratt.
A 3 per cent withdrawal facility was put in place for AUI’s Mortgage Income Trust in late 2010 and that fund continues to see higher payout ratios, he said.
“We have also ensured that both funds have maintained their $1 per unit capital value for investors and have continued to pay regular, monthly income over the past three years,” he said.
“Mortgage funds have a strong future and I believe are well-suited to meet increasing demand by investors, and particularly retirees, for regular income and capital stability.”
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.
