About Us  |   Advertise  |   Contact Us  |   Terms & Conditions  |   RSS Feeds
deposit rates

No govt guarantee spells end for trust

The recession has caught up with Auckland Mortgage Trust, which has begun winding down its business after failing to secure a government deposit guarantee as access to credit dried up.

Tuesday, 23 June 2009

by Paul McBeth

The fund's trustee, Trustee Executors, agreed to wind down the fund last month. General manager Bruce Rasmussen told investors the aim was to avoid forced property sales and to preserve capital.

"It's tough - most of the property market's in turmoil," he said. "Tighter liquidity controls and less access to credit" made it extremely difficult for the fund to continue, he said.

The fund decided made its decision after "collective investments didn't liquefy," Rasmussen said. The trust will wind down over two or three years, and investors should get back most, if not all, or the $47.5 million fund which was frozen for 90 days.  

The decision follows Canterbury Mortgage Trust's move to wind up its $251 million fund in February. Canterbury Mortgage Trust is expected to take two to three years to fully repay investors.

Around 49% of Auckland Mortgage Trust's lending was on commercial property, and some 20% on residential housing.

The Auckland fund is one of six mortgage trusts, including Canterbury, that were founded by solicitor-nominated companies and have Fund Managers Holdings as a common shareholder.


Commenting is closed


Printable version


Email to a friend
Newsletter Signup

Weekly Updates including news and commentary

Today's Best Bank Rates
Heartland Bank 2.75
Based on a $50,000 deposit    More Rates »
Today's Top 5 Deposit Rates
NZCU Auckland 3.25 Success Saver
Heartland Bank 2.75 Heartland Direct Call
Westpac 2.60 Online Bonus Saver - Potential Rate
Westpac 2.55 Online Bonus Saver - bonus rate
Heartland Bank 2.50 Heartland Business Call
Based on a $50,000 deposit    More Rates »
Find a Rate
Show me the rates for
invested over
Use the full calculator
Cash PIE Rates
Institution Rate 30% 33%
ANZ 0.10 0.10 0.11
ASB Bank 0.40 0.41 0.42
ASB Bank 0.55 0.59 0.56
ASB Bank 0.60 0.61 0.64
ASB Bank 0.65 0.66 0.69
ASB Bank 0.70 0.72 0.75
BNZ 0.10 0.10 0.10
Heartland Bank 2.25 2.59 2.70
Kiwibank 0.75 0.77 0.88
Kiwibank 1.75 1.81 1.89
Nelson Building Society 3.75 3.90 4.08
RaboDirect 0.75 0.77 0.80
SBS Bank 1.80 1.86 1.94
TSB Bank 1.60 1.64 1.71
Westpac 0.35 0.36 0.38
Westpac 0.10 0.10 0.11
Westpac 2.10 2.16 2.26

More »

Previous News
Latest Trends
Coming Soon

Disclaimer - Every possible effort has been made to keep the information in the tables and on this site as accurate as possible, however, neither the publisher, Tarawera Publishing, nor anyone engaged to compile the rates and this site accept any liability for inaccuracies or any loss suffered as a result. It is strongly advised that readers check loan details with providers. The full terms and conditions of this site can be found here.

© Copyright 1997-2017. Tarawera Publishing Ltd. All Rights Reserved.