Investors wait for funds to thaw

Investors with millions tied up in frozen mortgage funds look set to receive some of their money back in the next few months but uncertainty remains over when they will be paid in full.

Guardian Trust, Canterbury Mortgage Trust, Totara First Mortgage Fund and AXA all suspended withdrawals from their mortgage funds last year putting more than a billion dollars on ice.

But demand from investors has put pressure on the companies to come up with repayment proposals.

Guardian Trust, which suspended its $249 million Guardian Mortgage Fund in July, said yesterday it hoped to make its first repayment to investors in the next few months.

It must first gain approval to alter the fund's trust deed at a meeting next month where it is also recommending the fund be wound up.

To read the full NZ Herald story click here

Posted: 22 Jan 2009

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