Australian mutual funds have been hit by the wave of withdrawing cash from them and moving into (now) state guaranteed deposits at local banks. Some funds froze redemptions or made them available less frequently than before. This is an interesting situation, created by the decision of the Government to guarantee all the bank deposits.
This decision suffered minor adjustments recently. Premium is to be introduced for deposits over $1 million. Premium is also to be paid on any deposit in a non-Australian bank branch. Premiums will vary based on the bank's credit rating, from 0.7% to 1.5%.
Prices of property funds fell dramatically more than those of other funds. After close, at 8pm, ASX S&P 200 index is at 3720. This seems like another leg down the waterfall.
This decision suffered minor adjustments recently. Premium is to be introduced for deposits over $1 million. Premium is also to be paid on any deposit in a non-Australian bank branch. Premiums will vary based on the bank's credit rating, from 0.7% to 1.5%.
Prices of property funds fell dramatically more than those of other funds. After close, at 8pm, ASX S&P 200 index is at 3720. This seems like another leg down the waterfall.
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