Dollar Money Market Fund fee reduced – January 2010
The objective of Ashburton’s Money Market Funds is to provide a safe haven during periods of unprecedented market turmoil to those clients that are especially risk-averse. The Funds have achieved that aim over recent years.
However, US Central Bank strategy in response to the recent credit crisis has been to pump additional money into the financial system and at the same time cut interest rates to extremely low levels. This has had the effect of reducing the returns available from the type of assets the Funds invest in.
In particular, yields on dollar money market assets have fallen to very low levels. As a result, it has become difficult to reinvest the maturity proceeds of what were higher yielding instruments at levels which exceed the expenses of the Fund itself.
Therefore, to protect the interests of shareholders, Ashburton Fund Managers Limited has decided to temporarily reduce the annual management charge on the Dollar Money Market Fund by 0.25% per annum. This reduction will take effect from Friday 22 January 2010.
It must be reiterated that this fee reduction is purely a temporary measure and introduced at the Manager’s sole discretion. It will be reviewed on a quarterly basis. Shareholders will be advised of a return to standard fees.
Global Sales Director