Old Mutual Unit Trust, a subsidiary of Old Mutual plc, has forecasted a challenging 2020 in view of the novel coronavirus (Covid-19) pandemic.
In its published summary of audited financial statement, the firm, whose trusteeship is administered by Standard Bank plc, said revenues declined by 21 percent in 2019 due to lower money market rates and subdued equity performance compared to the corresponding period.
Reads the statement in part: “The money market and balanced funds achieved total revenues of K2 billion, down from K3.5 billion in 2018.
“The funds under management, however, grew by nine percent to K22.4 billion from K20.6 billion in 2018 despite the tough economic conditions that prevailed during the year which resulted in a negative net client cash flow.”
The trust said a profit of K2 billion was available for distribution in 2019, lower than the K2.8 billion shared in 2018. Old Mutual Unit Trust has since warned that the earlier positive economic prospects for 2020 have already been dampened by the Covid-19 pandemic which has negatively impacted economies and financial markets across the world.