Colinial First Mutal..

I dealt with this issue today at work, and its a non issue really. It hit my desk late last night from the research houses.

The fund is a unit trust which invests clents monies into mortgages. Since the government introduced the bank guarentee, there were a run on these fnds, generally they hold 3-10% liquidity.

As such they could not cope with the redemption requests and froze the fund. They have looked at various options and concluded that closing the fund is in the best interest to all members.

In respect to not being able to make interest payments,this has been taken way out of context, the fund recives interest and principal from th emoney it lends, what the trouble was, that there was a huge queue of redemptions that they had to cpay out pro rata.

By closingit and winding it up its fair to everyone invested.

I think future mortgage funds will be a fixed duration.
 
I also thought it was quite poor media reporting by an entity that i wont name. I got two phonecalls after it went to air that Colonial were totally bust, the reporter should have got their facts right.
 
By closingit and winding it up its fair to everyone invested.

I think future mortgage funds will be a fixed duration.
Makes no difference to me,but sometimes a lot of data is meaningless while other times one single piece of information can say a lot about future trends,btw it will take up too 4 years for investors to get their money back does not seem fair to me..imho..willair.
 
Makes no difference to me,but sometimes a lot of data is meaningless while other times one single piece of information can say a lot about future trends,btw it will take up too 4 years for investors to get their money back does not seem fair to me..imho..willair.

Why not, its written in the PDS's hat they receved Its not just Colonial, its the whole sector.

A positive thing is that many of these were used for clients who were retired, thus the need for capital was not huge, all they required was stability and regular distributions, (which most are stil paying)
 
Why not, its written in the PDS's hat they receved Its not just Colonial, its the whole sector.
(which most are stil paying)
No problem,but how many take the time and read page by page marking in yellow ink and ask the questions to their F-P face to face,most just want someone to hold their hand no different from wood ducks in side show alley,easy money when most up too date statistics are invisible.
willair..
 
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