Commonwealth Bank's plans to close two troubled mortgage funs have sparked concerns that many other frozen funds across the sector may soon follow. Colonial First State has been hit by rising lending losses in its underlying investments, which have wiped out its ability to pay distributions of the fund. The CEO Brian Bissaker states "the logical conclusion is to give investors their money back as soon as they can while the fund is a going concern". It may take four years for investors to be fully paid out and Mr Bissaker could not guarantee that investors would get all their money back.
In a separate article in SMH Business Day, Carolyn Cummins reports that CFS Retail Property Trust and Commonwealth Property Office Fund are both confident that the worst of the global financial meltdown is behind them and that vacancy rates and shop sales will move into positive territory this year.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment