Insight Investment has blocked investors from pumping more money into its €1.1bn Insight Euro Liquidity fund following the European Central Bank's move to cut interest rates.
Last week the ECB cut its benchmark lending rate to 0.75%, down from 1%, in a widely expected move. It also cut its deposit rate to zero for the first time ever, down from 0.25%. Insight warned investors the cut in the deposit rate would likely impact the fund's yield. It has therefore moved to close the fund - run by Chris Brown - to new investors. In a statement it 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...
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