The Guardian Cash Fund has reopened as at 10 December 2008 after a 35-day scheduled suspension. The reopening follows the approval of Guardian Trust’s proposal to restructure the Fund at a meeting of unit holders on 8 December 2008.
The restructure has resulted in investors now holding two investments, one in the Guardian Cash Fund and one in the new Guardian CashPlus Mortgage Units Fund.
The restructure provides the following benefits;
- The investments held by the Guardian Cash Fund are now aligned with the requirements to qualify for a Crown Guarantee.
- The management fee of the Guardian Cash Fund is reduced from 0.75% p.a. to 0.60% p.a.
- The mortgage units previously held by the Guardian Cash Fund have been separated out to a new fund, the Guardian CashPlus Mortgage Units Fund, which has the benefit of an indemnity from Guardian Trust for the face value of those units. However, this fund will be closed to withdrawals and new investments.
Guardian Cash Fund
The Guardian Cash Fund is now comprised solely of bank deposits and registered deposit certificates, and it is expected that the Fund will continue to perform well.
Guardian CashPlus Mortgage Units Fund
The Guardian CashPlus Mortgage Units Fund invests solely in the Guardian Mortgage Fund, which is suspended. However, the capital value of the Guardian CashPlus Mortgage Units Fund’s investment in the Guardian Mortgage Fund is indemnified by Guardian Trust.
Guardian Trust has written to Guardian Mortgage Fund unit holders informing them that a meeting of unit holders will be called to consider winding up that Fund and making partial repayments during the wind-up process. Investors will soon be advised of details of the meeting, which is expected to take place in late January 2009. If the resolutions are approved, Guardian Trust aims to start repayments next year.
A new investment statement relating to all the Guardian Trust Group Investment Funds including the restructured Guardian Cash Fund is available here.
