Australian Securities Limited [ASL] regularly reviews its loan process and economic conditions to ensure investors always invest in their preferred mortgage security at a fair risk rate return.
Since early September world financial markers have been in turmoil marked by large declines in equity prices and exceptional volatility across a range of markets. The financial landscape is being reshaped in the aftermath of business models of some of the most highly leveraged institutions no longer viable.
ASL anticipating the impact of these changes has elected to temporarily withdraw from investing in the following securities:
While these securities have had a good performance history, our concern is for the immediate future and the continuing turmoil in the financial markets.
ASL today lifted its interest rates (+0.20%) for its prime two year fixed interest rate to 8.60% following a 0.25% interest rate rise to the cash target rate by the RBA yesterday.
Michael Clarebrough the CEO said the Australian Securities Income Fund had a history of Australian's providing direct finance to clients. It has withstood the test of time with credit squeezes and recessions over 83 years. The fund has no debt or borrowings from banks or overseas private funds. It is not affected by rising cost of funds. Our investors require a fair market value for their funds and this is always reflected in our current interest rates.
We expect an inflow of investment from investments in equities, property trusts, pooled mortgage funds and blind trusts where the investor has little or no control over their investment. The Australian Securities Income Fund allows its investors the rare option to select their own security. The mortgage security is held in a separate sub scheme for the exclusive benefit and protection of specific investors.
Current finance clients have access to the Fund now with over $135 million under management.
Our priority in 2008 is to support our investors and finance clients with a stable financial environment for finance and investment with reliably fair interest rates to suit their financial or investment needs.