Sharechat Logo

Fidelity Capital Guaranteed won't make January payment

Wednesday 3rd December 2008

Text too small?
Fidelity Capital Guaranteed Bond Ltd. said it won't make its coupon payment next month because of a drop in the value of the fund.

The fund needed about NZ$79 million to make its Jan. 15 payment, Fidelity said this week. The net asset value was NZ$63.4 million as at Dec. 2, it said in a statement today. The decline reflected a drop in yields of 10-year Treasuries, which reached 2.72%, the lowest since 1955.

Fidelity has transferred NZ$19.5 million from its active portfolio into its fixed portfolio assets to safeguard the capital guarantee, it said.

"This means that fewer options will be written and the value of the fund will not reach the amount required for the coupon payment on 15 January 2009," it said.

By Jonathan Underhill



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Scott Technology Limited (NZX: SCT) Announces FY21 Results
21st October 2021 Morning Report
Greenfern Industries Limited (NZX: GFI) L&Q Notice
TruScreen Group Limited (NZX: TRU) Clinical Trial Results Highlight Efficacy of TRU Technology
20th October 2021 Morning Report
Freightways Limited (NZX: FRE) Acquisition of ProducePronto
19th October 2021 Morning Report
PGG Wrightson Limited (NZX: PGW) Guidance Update
Vital Limited (NZX: VTL) Provides Update on PSN LMR
18th October 2021 Morning Report