Guardian suspends NZ$160 mln fund to restructure it

Guardian suspends NZ$160 mln fund to restructure it
Guardian Trust has suspended its NZ$160 million CashPlus fund for 35 days while it splits out its mortgage unit investments so its remaining cash investments can be covered under the government's retail deposit guarantee scheme. The fund has about 4,500 investors and about 35% of the fund is in mortgage units, which would be moved into a seperate fund guaranteed by Guardian Trust, it said. That separate fund would be closed to new redemptions and investments and would eventually be liquidated as soon as market conditions permit, Guardian Trust said. "Given the global economic turmoil and the need to respond quickly and responsibly to the rules set by the Treasury, this is the best strategy for an investment scheme such as the Guardian CashPlus Fund," said Guardian Trust Managing Director Sean Carroll. The suspension of these funds lifts the 'Deep Freeze' list of finance companies and mortgage trusts compiled by interest.co.nz to NZ$5.970 billion, with the number of investor accounts affected to 177,481. * This article was first published in our daily subscription newsletter for the banking and finance industries. The email costs NZ$365 per annum and carries exclusive news and analysis for New Zealand banking and finance industry executives, regulators and investors. Sign up for a free trial here.

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