Invesco closes County cash trust
County Investment Management has been forced to close its Enhanced Cash Trust (ECT), after suffering liquidity problems about a year ago.
County’s ECT was wound up late last week, consequently closing the group’s Enhanced Cash Pooled Superannuation Trust (ECT PST). The funds were two of five County cash trusts frozen by County in August last year after management changes at the Loy Yang power station forced the group to freeze the fund based on liquidity issues.
County, which was bought earlier this year by Invesco Australia, says the closure of cash trusts is in the best interest of its unit holders.
The wind-up of the two trusts comes after the trusts experienced high levels of redemptions, with the current standing of the trust looking unlikely to meet is objective cash rate of plus 1.0 per cent to 2.0 per cent, according to Invesco.
County says it is scheduled to begin distribution of the trusts within the next 28 days. The intention of the group is to realise assets and distribute an initial 75 per cent to 85 per cent of the trust as soon as possible.
Until the final distribution occurs, unitholders will continue to hold a proportional holding in the trust. No investment management fees will be charged to unitholders for the remainder of the trust’s life.
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