It has appeared that another 15% of the investment would be soon received by investors with savings frozen in Guardian Trust's $249 million mortgage fund in two further repayments.

It was specified by Guardian Trust that it has more than enough cash in the fund to return a further 10 per cent to investors in September, followed by at least another 5 per cent by the end of the year.

"It takes the amount returned to investors to 40c for every dollar invested in the fund, which 3700 unit-holders voted overwhelmingly to wind up in February. The fund was frozen in July 2008," explained a source on the condition of anonymity.

Apart from this, the company considered it prudent to increase provisions against bad loans reported in the financial statements, and realized that losses in the fund were comparatively small thus far.

According to Managing director Greg Campbell, "It was too early to know whether the provisions would translate into the same level of losses, but the company believed it was appropriate to raise these provisions, based on the distressed market."

"Our priority is to preserve our investors' capital, and we have informed investors that based on our provisioning for today's market environment, we may be faced with a small loss. The outcome will depend on whether market conditions remain as challenging as they are today," he continued.

Mr. Campbell concluded that if they see betterment in market conditions between now and wind-up, they might see a healthy outcome.