Macquarie have announced that all clients with a Macquarie Cash Management Trust (CMT) will have the option to convert to an at-call deposit with Macquarie Cash Management Account (CMA). We support the change and believe this to be in your best interest for the following reasons–
- You will be benefiting from the Retail Guarantee – the Macquarie CMA is covered by the Government’s Retail Guarantee for aggregate balances for each investor with MBL up to $A1 million*
- Convenience – unit holders will be able to transition from the Macquarie CMT to a Macquarie CMA while retaining the same account name, functionality, BSB and account number, and be supported by the same service teams, with no interruption expected and no paperwork required
- Higher interest rate – a Macquarie CMA offers a higher rate of return than the Macquarie CMT^
- Increasing costs – if the Macquarie CMT continues to operate, there will be limited opportunity to keep maintaining and improving the functionality without increasing costs
- Withdrawal of the Wholesale Guarantee – the Government has decided to withdraw its Guarantee Scheme for Large Deposits and Wholesale Funding (Wholesale Guarantee) from 31 March 2010. This means that the Macquarie CMT will not be fully covered by a Government Guarantee and will eventually not be covered at all
- No more ratings – Standard & Poor’s credit ratings for the Macquarie CMT are no longer available for disclosure to Australian retail investors.
Information packs will be forwarded to clients in the following days via Macquarie. Clients will have the opportunity to vote on the proposal, details will be included within the information pack. If you require further information please refer to www.macquarie.com.au/cmtvote or our office on 52242700.
*The Australian Government has committed to maintaining the Retail Guarantee for aggregate deposits up to $A1 million for three years from 12 October 2008. The Retail Guarantee is the term we use to describe the Government’s guarantee under the Financial Claims Scheme, which covers aggregate retail cash deposits of up to $A1 million held by any one account holder with Macquarie Bank Limited (MBL) without charge to MBL or the account holder. For general information on the Australian Government’s guarantee arrangements, including types of accounts and applicable monetary thresholds, visit www.guaranteescheme.gov.au/
^ As at 3 March 2010 the Macquarie CMT rate was 2.66% p.a. (daily average annualised rate) and the Macquarie CMA rate was 4.00% p.a.. Rates are variable and subject to change without notice. Until March 2012 MBL has committed that the rate will be adjusted to reflect any change in the RBA cash rate within one week of the change being announced by the RBA.