Investors in a frozen mortgage fund have finally been paid back all of their money after a five year wait.

The Mortgage Backed Bonds fund was frozen in July 2009 and placed into a wind-up programme designed to return all the principal to bond-holders.

At the time the fund was owned by AXA but it was taken over by AMP when the companies merged.

It was one of a number of mortgage funds frozen during the global financial crisis amid fears there would be a run of investors pulling their money out.


AMP made the final payout of $19.1 million to investors last week bringing the total to $173.65 million. A further $2.37 million in interest was also paid.

James Georgeson, AMP's chief risk officer, said the company had dedicated significant resources to realising the money for investors.

"There have been very few instances throughout the GFC [global financial crisis] where mortgage based funds have delivered a full return of principal as well as an interest payment.

"In fact, for many it led to significant financial losses and hardship."

Georgeson said the inaccessibility of a frozen fund was often a challenging period for investors but it had successfully delivered on the objectives set up when the decision was made to wind-up the fund.

The money was invested in first-ranking commercial mortgages, fixed-interest securities and cash.

There were around 2800 retail investors.