Despite the challenging economic environment that prevailed in 2016, Old Mutual Unit Trusts recorded a strong performance as yields surged, the company said Tuesday.
Addressing an annual general meeting in Blantyre Tuesday, Old Mutual Unit Trusts Chairperson, Edith Jiya, said due to the diversity in its portfolios, the returns for its investors were above their respective benchmarks and average inflation.
Jiya said the Money Market Fund delivered a gross average return of 28.8 percent against a benchmark of 27.9 percent, while the Balanced Fund recorded a return of 19.4 percent against a benchmark of 14.7 percent.
She said the company’s two unit trust funds have witnessed tremendous growth in both investor numbers as well as funds under management.
“This is testimony to the relevance of our products in this market. During the year, we launched a new and easy way of accessing unit trusts through mobile phones in partnership with TNM.
“This channel called Mpamba Fesa provides access to our Money Market Fund conveniently using Mpamba Mobile Money. Mpamba subscribers can now register for unit trusts using Fesa and are able to invest and disinvest from anywhere in Malawi,” Jiya said.
She said Old Mutual Unit Trusts remain focused on offering investors solutions which provide the benefits of diversification.
Looking ahead, Jiya said the outlook for the rest of 2017 and 2018 points to declining interest rates which should result in declining yields in the Money Market Fund.
“The rebound in equity prices is expected to continue and we look forward to a positive return from the Malawi Stock Exchange which should help the performance of our Balanced Fund.
“A key message is that although we can expect that usual ups and downs in the equity market or the money market rates, it is best to keep an eye on the future, ignore the short term noise and stick to your long-term goals. At Old Mutual we remain your committed investment partner and strive to offer a range of investment products and an investment experience that is equal to none,” Jiya said.
During the AGM, investors nodded to a change in policy of distributing money market Fund returns from quarterly to monthly.
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