In a bid to offer an alternative investment portfolio especially for high-risk corporate customers, Old Mutual Life Assurance Company has launched Linked Market Fund.
Linked Market Fund was launched on Tuesday, 6th February, 2024 at a function which was held in Blantyre where the company’s Managing Director, Roy Punungwe, said the product has been developed to be the lasting solution crafted to address the evolving preferences of their customers.
Punungwe said as a business driven by the desire to champion the customer, they always take pride in enhancing their product offerings by understanding the importance of adapting to the ever-changing customer needs and preferences landscape and added that in our pursuit of excellence, the Market Linked Fund has been developed to address some preferences raised by our corporate customers, especially with regards to having more choice.
He added that this is an additional vehicle, to the Grantee Fund, that pension funds can be invested and he added that this solution is a pooled investment vehicle where the value of the fund is determined by the market value of the underlying assets in which it will be invested in. These include equities, bonds, property and alternative investments which will be managed by a professional asset management team.
“All the investment returns earned by the underlying assets in the Linked Market Fund will be passed on to investors. There will be no smoothing of returns and the product will not offer any capital guarantees. As a responsible business, we need to acknowledge and guide that this solution is more appropriate for corporate customers that have a high risk tolerance.
“But it will also provide simplicity and would be easy for customers to understand. The investment strategy for the product will be more active and aggressive and will directly compete with segregated funds arrangements. I, therefore, call upon, pension funds in the country with preference for a higher risk tolerance to embrace this new solution to maximize their returns,” explained Punungwe.
He continued by highlighting that doing this they are not only adding more value to customers, but they are also adding another investment vehicle that will significantly contribute to the country’s socio- economic development, essentially answering the Malawi 2063 call.
