Question: Why did pooled mortgage schemes fail during the GFC?

After much research into pre and post GFC pooled mortgage schemes, Future Asset Management International’s view is that many failed due to lax controls on liquidity. Future Asset Management International therefore intends to strictly manage liquidity via withdrawal windows.

FAMI intends to put aside an amount of cash each financial Quarter (being each three-month period ended 30 September, 31 December, 31 March and 30 June) to facilitate the making of a Withdrawal Offer to Investors. A Participation Notice must be submitted to FAMI at least 60 days prior to end of the relevant quarter. The Participation Notice requires Investors to identify the amount they are looking to withdraw from the Fund. This information assists FAMI to budget the amount to make available under the Withdrawal Offer.

For more detailed information on how the Future Mortgage Income Fund operates please read the PDS

adminQuestion: Why did pooled mortgage schemes fail during the GFC?