New contributions to and withdrawals from the Fund ceased in April 2008 and the Fund is in the process of being wound up. Capital is being returned to investors in instalments as the Fund’s assets are liquidated. To date there have been pro-rata payments of capital on 16 May 2008, 15 August 2008, 14 November 2008, 6 March 2009, 5 August 2009, 18 December 2009, 4 March 2010, 2 June 2010, 20 October 2010, 1 July 2011 and 13 October 2011.
The July 2011 capital repayment also included income generated by the Fund for the year ended 31 March 2011 and was 2.47% per annum of the average balance of unitholder investment for the period. The Fund continues to earn interest, and this interest, net of expenses, will be paid out at the direction of the Trustee. The timing and the amount of the next income distribution will be determined by the Trustee after the audited financial statements for the year ending 31 March 2012 have been issued.
The amount returned to investors depends on the ability of the mortgagees to refinance or repay their loans, or the Fund's ability to sell loans to other lenders. Every effort is being made to preserve investor’s capital during the wind up process.
At 31 March 2011, the mortgage portfolio was comprised of 67 mortgages with a value of $23.9 million (net of $0.1m loan provisioning). Total arrears in MortgagePlus have decreased from $1.0m at 30 September 2010 to $0.45m at 31 March 2011.
Capital will continue to be repaid to the Fund’s investors as the mortgages are repaid, refinanced or sold. The last payment of capital paid on 13 October 2011 brought the total capital repaid to investors to 92%.
The current economic conditions and the nature of the Fund’s assets make it extremely difficult to predict the timing of future capital repayments.
MortgagePlus is in the process of being wound-up in an orderly manner and as it does so, it continues to earn income on its assets. The last distribution of income was made in respect of the 12 months to 31 March 2011 and was paid in July 2011. This amount was equivalent to 2.47% per annum of the average balance of unitholder investment for the period.
The Fund continues to earn interest, and this interest, net of expenses, will be paid out at the direction of the Trustee. The timing and amount of the next income distribution will be determined by the Trustee after the audited financial statements for the year ending 31 March 2012 have been issued.
TOWER cannot guarantee full repayment, and the amount returned depends on the ability of the mortgagees to refinance or repay the loans, or the Fund’s ability to sell loans to other lenders.
The audited financial statements for the year ended 31 March 2011 show 6.1% of mortgages having a maturity profile greater than 5 years.
The next payment may not take place until after the completion of the audited financial statements for the year ending 31 March 2012, when we intend to next make an income distribution.