Weekly Wrap: Winter of discontent continues
As with the Canterbury fund, Guardian managing director Sean Carroll, blamed the hold redemption freeze on "liquidity issues" with the fund's cash level dropping below its target of 5%.
Guardian became the fourth mortgage trust to announce such a measure this year in a trend that was kicked off by Tower, which shut down its $242 million fund in April.
Sam Stubbs, head of Tower Asset Management, said the recent events in the mortgage fund sector have confirmed the validity of his decision to close the Tower fund.
Stubbs, who admitted the call on closing the Tower mortgage trust was "a tough one to make" in April, said the fund is about to make its second quarterly payment to unit holders. The latest payout should be in the order of 15-20%, which combined with the earlier payment of 10%, will bring the total capital return to about 30%.
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