The Australian reported that three more mortgage funds opted yesterday to freeze withdrawals. The three are the East Coast Mortgage Trust, Northern Investment Trust Fund and the Richmond Mortgage Fund and which hold a combined $660 million in funds under management.
As foreshadowed yesterday by the Financial Review the Challenger Howard Mortgage Fund, with $2.9 billion under management, yesterday froze funds. According to its website: "You will only be able to withdraw from the Fund if we make an offer of withdrawal."
Challenger said it will match redemptions to the maturity of loans. It said monthly payment of interest to investors was not affected.
Northern Investment Trust Fund told The Australian investments in the $325 million fund would be frozen for an initial 90 days.