Embattled financier City Pacific has written off more than a third of the value of its struggling $940 million mortgage fund as it emerges from a two-month trading suspension.

City Pacific yesterday said it had recorded $339 million of 'impairment losses' on the assets of the frozen First Mortgage Fund, which it manages on behalf of about 11,000 ordinary investors.

Shares in City Pacific, trading at 8c when the group was suspended from trading on the Australian Securities Exchange on 26 February, closed at 6.5c yesterday.

The Australian