PERPETUAL Trustees is closing down a $50 million investment fund because of continuing liquidity problems following last year's rush by investors to redeem assets not covered by the Government's banking guarantee.
Investors in Perpetual's Term Fund will receive about 20 per cent of their deposit back in November, and the rest will be returned over two years as the commercial mortgages in which the money is invested mature.
The head of income at Perpetual Investments, Richard Brandweiner, said the fund had been set up to provide regular payments, but due to recent changes in redemption policy, ''it was no longer able to meet its obligations''.
