NEWS ANALYSIS: Absa’s closure of money market fund only fuels speculation

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Absa saying it closed the fund because clients didn’t understand its risks doesn’t add up, considering 30% of assets are from retail investors

Absa saying it closed the fund because clients didn’t understand its risks doesn’t add up given just 30% of assets are from retail investorsAbsa’s stated reason for winding down its money market fund, one of the biggest unit trusts in SA, has served to fuel rampant speculation that the bank is not being completely transparent with the public who have ultimately been left with more questions than answers about the fund’s closure.

The bank’s official line is that its decision to close the fund was based on an independent review that found clients believed investments in the fund enjoyed the same safety guarantees as cash held in a bank account. This was partly due to the fund’s rather unusual integration into Absa’s banking system as it allowed investors to make withdrawals from the fund directly from ATMs — not a typical feature of most unit trusts...

 

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NEWS ANALYSIS: Absa’s closure of money market fund fuels speculationAbsa saying it closed the fund because clients didn’t understand its risks doesn’t add up, considering 30% of assets are from retail investors
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