Howard Mortgage Fund

Update on the payment of final proceeds for the Howard Mortgage Funds

Final proceeds from the termination of the Howard Mortgage Funds was paid to investors on or around 24 September 2014. For further information regarding the payment please refer to the update.

Notice of termination of the Howard Mortgage Fund and Howard Wholesale Mortgage Fund

Fidante Partners Limited (ABN 94 002 835 592, AFSL 234668), as responsible entity of the Howard Mortgage Fund and Howard Wholesale Mortgage Fund continue to manage all aspects of the operation of the funds. This includes the determination of appropriate capital repayments and income distributions, as well as the current valuation of the assets in the Howard Mortgage Fund, including the mortgage portfolio. The mortgage portfolio of the Howard Mortgage Fund has now reduced to less than 50 mortgage loans, including a number of mortgage loans where the realisation process is complex and is impacting on the value of these mortgage loans. If all mortgage loans are allowed to run down through to their respective maturity date, the final repayment of capital to investors would likely extend into 2016.

We understand the repayment of capital is a priority for unitholders. Over recent months we have reviewed a number of options to best realise the mortgage portfolio in the interest of expediting the orderly return of capital to unitholders. Following this review and after careful consideration, we undertook a competitive process for the sale of the remaining mortgage loans and have accepted an offer that will realise these loans. This will result in the funds terminating on 17 July 2014 (the 'termination date') and the commencement of the winding-up process for the funds which will include the final return of capital.

For more information please refer to the notice of termination for the Howard  Mortgage Fund and the Howard Wholesale Mortgage Fund.

Overview

The Howard Mortgage Fund was established in 1985 and has built a reputation as one of Australia's most experienced mortgage managers. The Fund invests in a diversified portfolio of primarily commercial mortgage loans and interest bearing securities. The Fund may also invest in cash and other short-term investments.

Interests in the Howard Mortgage Fund (ARSN 090 464 074) and Howard Wholesale Mortgage Fund (ARSN 093 720 159) are offered by Fidante Partners Limited (ABN 94 002 835 592) (AFSL 234668). All mortgage funds carry some investment risk. They are not bank deposits. Past performance is not a reliable indicator of future performance.

Investment objective

To provide investors with a diversified income producing portfolio that aims to provide regular income and capital stability.

Investment approach

Our mortgage lending team employs a conservative approach to managing the mortgage investments of the Fund. We adopt an active approach to managing investments in the interest bearing and other short-term securities portfolio of the portfolio.

 

For more information contact your financial adviser or call our Investor Services team on 13 51 53.