The directors of the fund made the decision after the European Central Bank reduced eurozone interest rates on 5 July, with the deposit rate reaching 0% from 0.25%.
They have subsequently closed five of the six share classes on the euro-denominated Insight Liquidity Fund, launched in March 2005, leaving the sterling and dollar-denominated options unchanged.
In a statement, the company said: “The reductions, particularly the deposit facility rate, are expected to lead to a fall in yield for the euro-denominated Insight Liquidity Fund. Restricting subscriptions on the named share classes will help to preserve capital and maintain a constant NAV, consistent with the fund’s stated investment objective.”
The one share class that remains open is share class two as it carries “significantly lower” charges when compared to the others.
The company is keeping the situation under review and will reopen the share classes to investors if it feels it will be in the shareholders’ best interests.
