Fidelity Capital Guaranteed won’t make Jan payment
Dec. 3 - 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.