County to unfreeze funds
County hopes to unfreeze its five suspended cash trusts by the end of August.
The fund manager froze the trusts on August 7 after it experienced liquidity problems with the Loy Yang power station fixed interest securities.
The trusts affected are the Enhanced Cash Trust, Indexed Bond Trust, Enhanced Cash Pooled Superannuation Trust, Lifestyle Enhanced Cash Trust and the Direct Enhanced Cash Units.
The exposure of the Loy Yang units is $42 million out of a total of $350 million on issue. A spokesman said that at present there was no market for the securities due to ownership changes pending at the Victorian power station. County emphasised that the securities were not in default, just its valuation of them was not being achieved in the marketplace.
This, combined with outflows, has raised liquidity problems for the products despite the Loy Yang holdings generally being about 8 per cent of assets.
The securities have a 30-year maturity from the date on inception, which was 1997. The security holders receive a quarterly interest payment and the yield is about 8 per cent.
Recommended for you
Far too few wealth managers are capitalising on the opportunity presented by disruptive technology to deliver personalised investment solutions to the mass affluent demographic, according to PwC.
With over half of advisers using managed accounts, HUB24’s head of managed portfolios has unpacked the benefits driving their usage and how they can be leveraged by advice practices.
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
ASX-listed platforms HUB24, Netwealth, and Praemium have used their AGMs to detail how they are using artificial intelligence to improve their processes and the innovative opportunities it presents.
