Lenore Taylor, National correspondent | October 29, 2008
MALCOLM Turnbull moved part of his fortune out of a property fund just days before redemptions from the fund were frozen as investors rushed for the protection of the Rudd Government's bank deposit guarantee.
In an amendment to the register of parliamentarians' pecuniary interests lodged on October 16, the Opposition Leader revealed that he no longer held an investment in the APN Property for Income Fund No2 - a fund which invests in real estate securities.
On October 24, the APN Property Group froze money in three of its funds, including the Income Fund No2, saying "this action has been taken in response to increased redemption requests following the introduction of the federal Government's bank deposit guarantee initiatives".
Mr Turnbull also disclosed on October 16 that he had acquired "bonds, debentures and like investments" as well as an interest in Agile Property Holdings, a Hong Kong-based investment company that engages in property development and management in China. He also sold a stake in the Goldman Sachs JBWere Australasian Mezzanine Fund 02, a private equity-style fund not affected by the widespread redemption freeze.
A spokesman confirmed that Mr Turnbull no longer held an interest in the APN Property Group and that the pecuniary interest register was "an accurate reflection of his holdings".
Mr Turnbull also has funds in the AMP Capital Structured High Yield Fund, which recently informed investors that while it had previously paid withdrawal requests the following day, it would now "endeavour" to pay them within 12 months.
The Government announced a guarantee for all deposits in banks, credit unions and building societies on October 12, but has yet to resolve the problem of money being moved from non-guaranteed investments.
Yesterday, officials held talks with fund managers and regulators on ways to unlock the $25billion of frozen investment funds, including property trusts, that are threatening the retirement savings of 60,000 Australians.
The Government has flagged it is looking for ways to free up frozen funds to investors facing hardship and is reassessing retirees' assets.
Mr Turnbull has attacked the Government for "rushing" its original decision on the bank guarantee.
