Australian Unity Investments (AUI) has further increased the regular monthly withdrawal facility of its Mortgage Income Trust (the Trust) so that investors can withdraw up to two percent of their total investment in the Trust each month or $2000. The changes are effective from 26 October 2009.
AUI will also open an additional one-off withdrawal option to investors until 16 November, capped at $50 million. If requests exceed the cap, redemptions will be paid on a pro-rata basis.
AUI introduced its monthly redemption offer in June this year with a cap of one percent, when it also stated its intention to seek to continually improve withdrawal arrangements for the Trust whenever possible.
Mr Adam Coughlan, AUI’s General Manager – Retail, said that AUI’s strategy has always been to prudently increase the amount and frequency of liquidity for investors in the Trust following changes to its redemption arrangement last year brought about by the reaction to the Government’s bank deposit guarantee.
“AUI still believes in the benefits of mortgage funds for investors seeking fixed income and portfolio diversification. The Trust continues to provide investors with stable income returns paid monthly and capital stability, and is a sensible investment for longer term, well-informed investors.
“We think it is unlikely that any mortgage fund will again offer daily redemptions for investors; however our intention is to increase the monthly withdrawal capability over time, in a sustainable and responsible way, so that ultimately investors have regular access to their capital.
“While this may still be some way off, the increase to two percent is another step in the right direction and we are continuing to monitor liquidity in the Trust so that further increases can be introduced when appropriate,” he said.
Mr Coughlan added that the Trust has maintained its $1.00 per unit capital value for investors and has experienced very few impaired assets.
“The level of arrears is currently at 1.50 percent of net asset value, which continues to be historically low and well within the specified range. The Trust has also continued to pay monthly returns to investors as usual during the last 12 months. Over one year, the Trust (Wholesale) has returned 5.36% pa*,” he said.
Australian Unity Investments is the funds management arm of financial services, health and retirement living services provider Australian Unity. It has over $8 billion* in funds under management. Its investment approach is to use its established in-house expertise in property and mortgages while also forming joint ventures and strategic alliances with other organisations with specialist expertise.
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For further information please contact:
Adam Coughlan
Phone: 03 8682 4476
Email: acoughlan@australianunity.com.au
* As at 30 September 2009. Returns are calculated after fees and expenses and assume the reinvestment of distributions. Past performance is not a reliable indicator of future performance as returns may vary.
