Absa Money Market Fund reaches R50 billion

The Absa Money Market Fund this week reached a significant milestone, with its assets passing the R50 billion mark.

Speaking about the fund, Alan Miller, managing executive of Absa Investments, said: "The Fund, which has more than 300 000 investors and is by far the largest unit trust in South Africa and across Africa, offers investors a high yield, currently 9.00% p.a. effective. It has the highest level of security possible, on a par with the South African Government. It also offers investors immediate access to their money."

The Absa Money Market Fund is a collective investment scheme in unit trusts. The fund pools investors' capital and invests it in the money market.

In this way, the Absa Money Market Fund is able to offer high interest rates which would otherwise only be available to companies or institutions.

Investors may choose to re-invest their interest, or have it paid into any nominated bank account. The fund has a constant unit price of R1 per unit.

The Absa Money Market Fund is rated "AAA" by CA Ratings. This rating is on a par with the rating of the South African Governments ability to repay its short-term debt obligations.

As the fund is a collective investment scheme, it spreads its investments among various deposit-taking institutions, thus diversifying its assets and ensuring that it is not over-exposed to any one bank or institution. The pooled monies of all investors are also held in trust with an independent trustee, namely Standard Bank, thereby ensuring the safety of investors money.

Investors in the Absa Money Market Fund can withdraw cash at any ATM or Absa branch. These withdrawals attract no charges if done at Absa outlets. Furthermore, the fund offers investors the opportunity to do real-time transactions via ATM, Absa branches, Internet Banking and Telephone Banking. So investors have 24/7 access to their money.

The minimum lump sum investment amount is R25 000 and the minimum debit order amount is R1 000 per month.