Pyne Gould Corp subsidiary Perpetual Trust said it had placed its Mortgage Fund into moratorium for the period from July 5 to August 31.
Perpetual chief executive Patrick Middleton said the moratorium was a result of a recent surge of applications for redemptions.
"Following recent adverse publicity, Perpetual received applications for the redemption of 6.1m units ($6.1m)," he said in a statement.
As a result of court orders sought by the Fund's statutory supervisor, Trustees Executors, and not opposed by its trustee, Perpetual, the Fund's ability to make payments was restrained, he said.
Perpetual determined, in accordance with the Fund's Trust Deed, that it was likely that payments for requested redemptions were unable to be made.