Absa is closing the Absa Money Market fund and has informed investors that they will need to move their funds.
“Absa Fund Managers recently reviewed the Absa Money Market Fund (AMMF) and established that the majority of the retail client
population sampled, believe that the AMMF capital and its associated returns are guaranteed by Absa Bank.”
However, Absa adds, the AMMF is not a bank account. “It is a collective investment schemes product (also known as a ‘unit trust’) and therefore capital and returns are not guaranteed. We have therefore decided to close the AMMF as of 6 July 2021 (the closure date), in the best interest of our clients, and given our findings that the majority of retail clients believe that their capital and returns are guaranteed.”
Absa states that the closure is a winding-up process, “which in terms of Section 102 of the Collective Investment Schemes Control Act, requires the selling of your share of the fund and paying the proceeds to you. We will therefore, as part of this process, pay out your funds in the AMMF to
you, on or before the closure date.”
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