Macquarie Group
(ASX:MQG) has asked unit holders of its $10 billion cash management trust whether it can convert their investments into an at-call deposit account with the investment bank.
Macquarie says it’s been forced to consider the future of its cash management trust as a result of the government’s guarantee on bank deposits.
Since that guarantee was introduced late in 2008 due to the financial crisis, Macquarie's cash management trust has seen significant outflows as investors moved their money to bank deposits.
As the cash management trust is not a bank deposit, it isn’t covered by the guarantee on deposits of up to $1 million.
Macquarie has written to unit holders seeking their approval on the proposal, which will be put to a vote at a meeting on April 22.
Macquarie Group’s 2009 net profit was $871 million.
