CPF temporary suspension and changes to management fees and distributions
13/01/2009
Over the past few months we have seen continuing volatility and deterioration in financial markets around the world and this has impacted most investment funds. The CPF has unfortunately, not been immune from the impact of these events and as a result Cromwell Property Securities Limited (Cromwell), the responsible entity for the CPF, has announced the following measures to take effect 13 January 2009:
- a temporary suspension of all applications and withdrawals for CPF, due to increasing uncertainty around property valuations;
- a reduction in distributions of the Fund from 8 cents per annum to 7 cents per annum as a result of the continuing default on lease payments by Rozendale Pty Ltd, part of ASX listed Raptis Group;
- a reduction in ongoing fund management fees charged by Cromwell in proportion to the reduction in distributions until 30 June 2009; and
- a strategic review of CPF, to ensure that the Fund remains as resilient as possible in the current economic climate.
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