DURBAN - THE PRUDENTIAL Authority said yesterday that it had no concerns regarding Absa Group’s decision to close its Absa Money Market Fund , worth around R80 billion, following its engagement with the bank since last year.
Last week, Absa informed investors that it would close the unit trust fund, which had been operating since 1997 in terms of Section 102 of the Collective Investment Schemes Control Act, and it would be closed on July 6. “This is one of the largest unit trusts in the country and has been doing reasonably well. We are not aware of how the fund was marketed to clients, though as Absa states there was a misperception among investors that the unit trust was guaranteed by Absa which was not that case,” Wapenaar said.
Wapenaar said there was no onesize-fits-all solution to investments as an option of an investment bank account at Absa, or a new money market fund, would not work for all investors.