Update on Retention Fund – Non-payment of the interest coupon on the Martius notes.
Further to our previous notifications, updates and communications, investors in the MiPlan IP Enhanced Income Retention Fund are notified that Martius (RF) Limited issued a further SENS Cautionary Announcement today, Wednesday, 13 March 2024, confirming that no interest will be paid on the Martius MAR02B and MAR03B notes as at the next coupon date, being 17 March 2024.
Further to the above, please find below the communique from the investment manager, Vunani Fund Managers.
Please note that this non-payment does not affect the value of the assets in or the pricing of the MiPlan IP Enhanced Income Fund.
This notice is issued in terms of and in compliance with the conditions prescribed by the Financial Sector Conduct Authority in approving the side-pocketing on the assets in the MiPlan IP Enhanced Income Retention Fund.
Re: SENS announcement relating to Martius instruments
We make reference to the SENS announcement released earlier today pertaining to the default on the Martius B (RF) Limited (“Martius B“) Note Programme, specifically the instruments MAR02B and MAR03B.
As communicated previously, a Retention Fund / side-pocket was created on 16 February 2024 to house the four instruments in the MiPlan Enhanced Income Fund exposed to two special purpose vehicles linked to Bridge Taxi Finance No. 8 (RF) (Pty) Ltd (“BTF 8”) and Bridge Taxi Finance No. 6 (RF) (Pty) Ltd (“BTF 6”). The Martius B notes reference BTF 8.
A decision was taken in February to suspend interest accruals on the respective instruments in client portfolios and only accrue for coupons upon receipt. On 1 March 2024, we communicated the decision to reduce the carrying value of MAR02B and MAR03B by 30% each.
We remain committed to keeping our clients informed of any significant developments in the resolution of this matter.
13 March 2024
Vunani Fund Managers