AUI increases redemption levels for mortgage fund

Time for wealth reality check: EQT
April 27, 2011
Not planning cash flow can be costly for SMSFs: HLB Mann Judd Sydney
April 28, 2011

As part of its continued improvement of liquidity to investors in its mortgage funds, Australian Unity Investments (AUI) has introduced a regular monthly withdrawal facility for its High Yield Mortgage Trust, offering three percent of the Trust’s net assets for withdrawals each month.

As part of its continued improvement of liquidity to investors in its mortgage funds, Australian Unity Investments (AUI) has introduced a regular monthly withdrawal facility for its High Yield Mortgage Trust, offering three percent of the Trust’s net assets for withdrawals each month.

Investors can set up a regular monthly withdrawal facility for up to 12 months. Alternatively, in any given month investors can request a one-off withdrawal of the full amount of their investment, which will be met on a pro-rata basis in the event of over-subscription.

AUI’s Mortgage Income Trust has had a similar three percent withdrawal facility in place for almost a year, while the High Yield Mortgage Trust has offered quarterly redemptions since 2009.

Mr Mark Pratt, general manager – property, mortgages and capital markets, says that providing investors in its mortgage funds with regular access to their capital has been a priority for the business.

“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.

“This was put in place with our Mortgage Income Trust late last year, and we are continuing to see higher payout ratios month after month for that fund. “We are now in a position to set up a similar monthly redemption offer for our High Yield Mortgage Trust.

“We have also ensured that both funds have maintained their $1.00 per unit capital value for investors and have continued to pay regular, monthly income over the past three years.

“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,” Mr Pratt said.

Australian Unity Investments is the funds management arm of financial services, health and retirement living services provider Australian Unity. It has $12.3 billion in funds under management (as at 31 March 2011). 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.

-oOo-

For more information please contact:
Mark Pratt – 03 8682 4448

28 April 2011