Australian Unity Investments (AUI) has further increased the redemption policy on its Mortgage Income Trust (MIT) after changes to its redemption arrangement last year.
The new arrangement begins on 26 October and allows investors to withdraw up to 2 per cent of their total investment in the trust or a maximum of $2000 every month.
AUI will also open an additional one-off withdrawal option to investors until 16 November, capped at $50 million.
AUI general manager Adam Coughlan said AUI would continue to increase the amount and frequency of liquidity for investors in the MIT.
"We think it is unlikely that any mortgage will again offer daily redemptions for investors. However, our intention is to increase the monthly withdrawal capability over time in a sustainable and responsible way, so that ultimately investors have regular access to their capital," Coughlan said.
AUI has earmarked further increases in the MIT redemption policy.
"While this may still be some way off, the increase to 2 per cent is another step in the right direction and we are continuing to monitor the liquidity in the trust so that further increases can be introduced when appropriate," Coughlan said.
In June AUI said it would allow MIT investors to redeem up to 1 per cent of their total investment or a minimum of $1000 every month.
This followed changes to its redemption arrangement last year that were brought about by the reaction to the government's bank deposit guarantee.
