Turnbull Denies Heads-up On Property Funds Freeze

30 October 2008

MALCOLM Turnbull was acting on independent financial advice when he withdrew his investment from a property fund just days before it was frozen.

And he says he had no prior knowledge, or suspicion, of the decision by APN Property Group to freeze money in three of its funds, including one in which he had invested.

Mr Turnbull said there was nothing unusual about the timing of the decision, and that he and wife Lucy regularly bought and sold into funds and other investments.

"Regularly I disclose, as does every other member, what they've invested in and what they've disposed of. I don't want to elaborate on what's in the members' interests disclosure, but obviously (my wife) Lucy and I act on advice.

"Australians invest and disinvest into funds all the time, that is par for the course."

On October 16, Mr Turnbull revealed he no longer held an investment in the APN Property for Income Fund No.2, a real estate securities investment fund.

Eight days later, on October 24, redemptions from the fund were frozen, and remain so.

The Opposition Leader confirmed yesterday he has investments in a fund that has been frozen, but said he was unconcerned with his own position.

Instead, he said, he was worried about people whose life savings have been frozen or who relied on redemptions for income.

"I imagine most people that have their investments in a number of investments funds will have some that have redemptions frozen and others which have not."

Treasurer Wayne Swan accused Mr Turnbull of double standards. "Mr Turnbull, on the one hand, was saying the global financial crisis was overhyped and, on the other hand, he was moving his own funds out of the system," he said.

Mr Turnbull had made the comments after a tour of suburban Burwood yesterday. He visited a cafe, an op shop and a greengrocer, all unused to such attention, but happy enough for the interruption.

It was his penultimate stop, at a travel agent, where the Opposition Leader found the going best. Cliff Harding told Mr Turnbull tough times meant people were cutting back on holidays, dropping Paris from the itinerary. The plummeting exchange rate was hurting, too.

"My job is to try to keep everyone here," Mr Harding said of those in his employ, "12 of them, in a job."

Essentially, yesterday's exercise was a chance for the Opposition Leader to sell his credentials as an economic manager, to promote his party as the fiscally responsible side of politics, and to accuse Prime Minister Kevin Rudd of "letting the Australian people down" by failing to do his due diligence on his bank deposit guarantee.

He even adopted one of the Prime Minister's lines - "I'm here to help."

At the end of an ad hoc press conference, staged among crates of fruit, a woman applauded. Mr Turnbull smiled. Here to help. -- With TIM COLEBATCH


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