LOANS NEWS AND GUIDES » eight-months

Super Fund Industry Likely To Be Happy With Government Changes

Mon, 03 May 2010 07:53:23 +0000

The superfund industry has expressed its pleasure at the government’s decision to increase the super guarantee to 12 per cent, but says it is disappointed at the length of time it will take to implement the change.

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Super Fund Industry Likely To Be Happy With Government Changes

Mortgage Funds To Remain Frozen

Tue, 09 Feb 2010 05:00:05 +0000

Mortgage fund investors may be required to wait as many as four years for access to cash held in frozen investments. Investor group Light of day believes that as few as half a dozen of Australia’s over 200 mortgage funds will resume redemptions during the next 18 months, and most will only allow them on a highly restricted basis. The majority of investors however, will be required to wait a few years before being allowed access to their principal, because managers continue to be afraid that a resumption in redemptions would result in a run. “A handful of funds could be reopened to redemptions in the next 18 months if they can sell a property or two, but it will remain a very difficult situation,” Light of Day managing director Owen Lennie said. Mr. Lennie said that the reluctance of banks to lend to business following the global financial crisis has meant that even if there were potential buyers of properties, financing was not available. In October 2008, unlisted funds, which manage $25 billion in assets of 240,000 investors fell in to crisis, after the federal government announced measures which included guarantees of bank deposits of up to $1 million

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Mortgage Funds To Remain Frozen

Cooper Review Calls For Tighter Regulation Of Super Fund Stock Lending

Mon, 21 Dec 2009 05:46:04 +0000

Australia’s super fund industry will be allowed to continue the controversial practice of stock lending, but may end up being more tightly regulated in order to curtail any elevated risks that they may face as a result of the practice. A government review of the super fund industry, the results of which were released on Monday, made some recommendations towards the regulation of the industry, including managers disclosing their fund’s stock lending policy, and the fees paid to the fund for engaging in stock lending. “Disclosure should also be made about who retains voting power over the securities,” the report said. Stock lending is a practice conducted by investors globally, where those investors lend the stock of companies they own to other investors looking to short the stock, and in return the original owners receive a fee paid by the borrower of the stock

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Cooper Review Calls For Tighter Regulation Of Super Fund Stock Lending