EQT winds-up funds
Equity Trustees (EQT) has notified unit holders it intends to wind-up two of its major fixed income funds.
EQT said the decision to terminate the EQT Lehman Brothers High Income Fund and the EQT Lehman Brothers Wholesale High Income Fund is a consequence of United States-based investment manager Lehman Brothers’ decision to stop operating fixed income and credit products out of Australia.
EQT managing director Peter Williams said the company believes that winding-up the funds and realising the assets immediately is in the best interests of unit holders.
“From an EQT perspective, the real concern is that the fund manager won’t have the resources in Australia.”
Williams said he could not speculate on whether any Lehman employees would lose their jobs as a result of the decision but stressed EQT employees’ jobs were safe.
The funds’ official termination date is May 20, 2008. No further applications or redemptions will be accepted and no further units will be issued.
Lehman has indicated it will work closely with EQT to ensure an orderly liquidation of the funds’ portfolio holdings and exercise its full fiduciary duties. EQT said distributions will be paid until the winding-up of the funds is complete.
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