Ballina retiree backs local mortgage trust
CHRIS LYKKE is putting his money where his mouth is.
Last Friday, the 79-year-old Ballina retiree deposited an $80,000 top-up into his East Coast Mortgage Trust investment fund, and he thinks other local people should do the same.
Last week East Coast Mortgage Trust, Mayne Investments and Richmond Mortgage Fund announced a 90-day freeze on redemptions after their investors rushed to withdraw their money and deposit it into Government-guaranteed banks.
“They must not take their money out and put it into banks,” he said. “People should have more sense.”
Mr Lykke said he had been investing with East Coast Mortgage Trust for 10 years. He said they knew what they were doing.
Mr Lykke said East Coast Mortgage Trust was a local business which invested in local building projects.
“The money is used on good investments,” he said.
Mr Lykke said he was worried about what might happen to the trust when the 90-day fund freeze was over.
East Coast Mortgage Trust chief executive Scott Collis said the board was acutely aware of the significance of their decision on investors and was working to help the Government find a solution to the problem.
“It's too early to say when a solution might be found. Today, high-level industry representatives are pushing hard for the Government to solve this impasse,” Mr Collis said.
Mr Collis said the trust appreciated the support of its investors.