Perpetual has announced greater than expected mark to market losses within its Exact Market Cash Fund (EMCF), largely attributable to the repricing of Australian-issued residential mortgage backed securities.
The company told the Australian Securities Exchange that the mark to market losses on the EMCF for the 2009 financial year stood at $24.3 million — a $9.6 million increase over the mark to market losses reported in early December last year.
The Perpetual announcement said investors in the EMCF had not been impacted by the losses and said that it would be booking restructuring charges of $12 million in the December 2008 half-year result, which represented a slight increase on the company’s initial estimate of approximately $10 million disclosed in December.
It said the major component of the charges related to targeted redundancies across the company in the last quarter of last year.
Perpetual said the December 2008 half-year result would also include $6.3 million of realised and unrealised losses from investments due to the impact of the falling equity markets on Perpetual’s seed funds.
