Mirvac AQUA freezes three of its mortgage funds, two of which have exposure to impaired mezzanine loans.
Investors in Mirvac AQUA's funds may be at risk of taking losses, as the investment manager stopped redemptions last week because the value of its investments has eroded.
Mirvac AQUA froze its High Income Fund and Enhanced Income Fund as their mezzanine loan exposures have become impaired.
The High Income fund has $37.3 million of its $180 million in funds under management (FUM) tied to these types of loans. The $6.3 million Enhanced Income fund has 10.5 per cent in FUM invested in mezzanine loans.
Mirvac AQUA also froze its Income Fund despite it not being exposed to mezzanine loans, the company said. The decision has been made so investors would not rush to withdraw their money.
Mirvac AQUA did not make it clear whether it intended to liquidate the funds, however it notified ratings agency Standard and Poor's that payouts from the High Income and Enhanced Income funds would tumble as much as 6 per cent and 7 per cent respectively.
Just in its last company quarterly review Mirvac AQUA stated that the funds were "well-placed" to perform and maintained high levels of liquidity.
"We are conscious at times like these that investors and their financial planners seek clear and transparent communications on the activities of the manager and the funds and we remain committed to our corporate position of investment confidence through clarity," the review said.
The firm intends to meet unitholders within two months to discuss the situation, a Mirvac spokesperson told InvestorDaily.
In Part 2 of our exclusive series, we ask leading names to nominate their best investments, the most effective industry group and the importance of platforms.
Catholics revamp fixed interest »
Industry superannuation fund the Catholic Superannuation and Retirement Fund (CSRF) has revamped its fixed income portfolio.
Mercer backs alternatives »
Mercer has awarded $34.15 million in mandates to Tactical Global Management (TGM) and Lazard Asset Management to invest in alternative assets.
InvestorDaily ran a story last week on better online capabilities being able to improve financial planning services and the quality of advice for people with a lower income base.... read more »
