Stanlib Unit Trusts Anyone?

  • Thread starter Thread starter Former member 61586
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So its been about 3 months. Anybody got their ABIL money back?
 
So got this email the other day


Dear Client, 11 February 2015


African Bank (ABIL) issued two announcements in December 2014. The announcements were very detailed and technical, so we would like to distil some of the core information that they contained.

The first announcement dealt with the update on the sale of Ellerines. The business rescue plan for Ellerines continues and buyers have been found for some but not all of the businesses. The sale of Ellerines forms part of moving the business back to its core focus and we are happy to see that this remains on track.

In the second announcement, the Curator confirmed that he is not deviating from his original plan and that good progress is being made with respect to the company restructuring.

To recap, the registration of a new bank to house the good assets from ABIL remains on track. Both the necessary legislation and the relevant authority approval are being fast-tracked, while at the same time the Curator is constituting a board of directors and looking for a CEO to manage the new bank.

The new bank will take over the good loan book from ABIL, that is, all the ABIL clients in good standing will be brought over to this new bank, leaving the non-performing loans behind. The bad debts of ABIL will therefore have no bearing on the new bank.

The announcement also gave us clarity as to how the current fixed interest investments in ABIL will be resolved.

As things currently stand, these instruments and all related payments have been suspended. As you will recall, side pockets (also known as retention funds) were created to house all of the suspended ABIL bonds in any given portfolio. When the new bank is registered, it will issue its own bonds, like any other listed company would. The Curator will then offer to swap the new bank bonds for the old ABIL bonds on a one-for-one basis.

The new bonds will earn back-dated interest to cover the period when the suspended ABIL bonds were not earning interest. The maturity of all the new bonds is expected to be extended by 24 months and will continue to earn interest at the prescribed rate (the same rate as originally contracted with ABIL) over this time and then ultimately, the redemption value.

To add to this positive news, the Curator has assured us that the new bank will have sufficient capital to meet its bond obligations and repayment of these bonds will not be reliant on further market capitalisation. These bonds will remain in the side pocket till they mature.

We will continue to engage with the Curator and other entities to deliver the best possible result for all our investors.

To keep informed of any further developments or should you require any more details on the announcement, please click on the African Bank Update banner on our website (www.stanlib.com)

As more information becomes available, we will continue to update you and post regular updates to our website.

Yours sincerely,

Bongani Mageba
Managing Director: Retail
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Anybody care to interpret for a lay person? When do I get my R11k back. That's all I want to know.
 
ambroseg1 said:
So got this email the other day




Anybody care to interpret for a lay person? When do I get my R11k back. That's all I want to know.
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donner why didn't they just say yay or nay? send them an email and ask them. hate it when they cant just bring across a simple point but sink it in technical crap. im sure the instruments used are interesting for some but a the end of the day we still don't know anything.
 
ambroseg1 said:
Leave money invested with business who doesn't think it necessary to inform clients when they stand to lose a substantial amount of money. Worst advice ever.

And yes, home loan interest rate, is Prime. Interest rate from unit trust is between 6 and 7%.

And I am sorry to disagree again...but they are taking my money. As yesterday I couldn't withdraw it. Which by my definition means its taken. Irrespective whether there is the possibility of me getting it back 3 months from now. For now I consider it taken.
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You invested in Unit Trusts. These are linked to the stock market, which means there is inherent risk - your money isn't guaranteed.
I'm not sure if this was explained to you, but if it wasn't then blame your financial adviser, not Stanlib.

The reason that they've suspended R11k of your cash is because that's the value of ABIL shares/bonds that you own. They cannot be bought or sold until the future of ABIL is determined. It could be worse - you could have lost the R11k altogether. You still might lose the entire R11k. It's not "taking your money". It's a completely legitimate loss of money through investing.
 
Still fokol communication received from stanlib regarding ABIL to me. I know they have my correct email because I get statements, and I did have exposure to ABIL and lost because of it (not 11k though).
 
Ok then if not STANLIB Income ABIL Retention Fund then where???? My suggestion would be maybe to diversify... coz I've been playing around with my own portafolios via Stanlib, property income fund, multi-manager medium equity fund, moderately conservative fund and Nada, nothing No problems with them. Some days are better than others, but the numbers still grow. And it beats putting your cash in Money market, see!
Fly's away
 
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