As one way of responding to the needs and demands of its corporate customers, Old Mutual (Malawi) Limited has introduced a new product on the market dubbed “Market Linked Fund”.
The product is an additional to the already existing Old Mutual Guaranteed Fund and it has been launched to address preferences of some customers especially who are risk takers.
Speaking after the launch, Old Mutual Life Assurance Managing Director Roy Punungwe said the product the will provide choices to customers.
“This product is a pooled investment vehicle where the value of the fund is determined by the market value of the underlying assets. The fund will be invested in different asset classes including equities, bonds, property and alternative investments; these investments will be managed by a professional asset management team. All the investment returns earned by the underlying assets in the fund will be passed on to investors. There will be no smoothing of returns and the product will not offer any capital guarantees,” said Punungwe.
He added: “We need to acknowledge and guide that solutions is more appropriate for corporate customers that have a high tolerance.”
Punungwe then urged pension funds with preference for a higher risk tolerance to embrace the new product if they are to miximize their returns.
