Investors in the Absa Income Enhancer Fund are notified that effective 1 April 2016, the Absa Income Enhancer Fund will declare income quarterly on 31 March, 30 June, 30 September and 31 December, respectively. Similarly, income will be distributed according to the client’s instructions on 15 April, 15 July, 15 October and 15 January.
The current mandate of the fund makes provision for a longer duration, with most of these longer dated assets paying semi-annual income, while the fund distributes on a monthly basis. This results in a mismatch in income receivable and income payable. As a result of the above mismatch, the fund does not generate enough income on a monthly basis to cater for the monthly distribution. We therefore would like to rectify this by changing the income distribution from monthly to quarterly in order to balance interest received by the fund and interest payable to you.
The fund aims to continue providing you with a competitive income and maximum stability of capital invested over the short to medium term, with the return objective being to outperform the STeFI Composite Index.
The indicated changes will in no way impact the fund’s objective, and no action will be required from you.
We thank you for your continued support. Please contact your Financial Adviser or Absa Fund Managers directly on 0860 111 456 with any queries in this regard.