Savings accounts a safe investment

Wednesday February 13, 2008

Investors in the Macquarie Group-managed Fortress Investments fund will be wishing they had their money tied up in everyday savings accounts after it was announced the fund had effectively been forced to meet the margin call on its investments.

In a statement to the Australian Securities Exchange, Fortress's director, Peter Lucas, said, "Given current market conditions, the investment manager believes that a sale of the remaining portfolio would be unlikely to realise the current market value, and also believes that a meaningful portion of it would not be able to be sold."

Mr Lucas also acknowledged that the fund may not be able to secure refinancing due to the global credit crunch which has resulted in the banks making a margin call against the investment fund.

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