Important Information

Changes to the U Ethical Enhanced Cash Trust and Funeral Fund Distribution Yield - Published January 21 2020

The Reserve Bank of Australia (RBA) has cut the cash rate by 0.75% since June 2019, with the result that it is now at an all-time low of 0.75%. U Ethical is acutely aware of the financial pressure on investors’ savings caused by the current low interest rate environment. We therefore made the decision to limit the reduction in the distribution yield of the U Ethical Enhanced Cash Trust to 0.35%, half the total cut in the cash rate.

In recent months, U Ethical has been left with no choice but to rollover term investments at lower rates. Furthermore, there is the potential of one or more cash rate cuts by the RBA in 2020. This has prompted a further review of the distribution yield.

Changes are effective 10 January 2020