Unit Trust funds hit K20bn
Old Mutual Unit Trust, a subsidiary of Malawi Stock Exchange (MSE) -listed Old Mutual Plc, says it has registered growth in business with funds accumulating to K20 billion since inception in 2011.
Unit trusts are a pull of funds that aggregates funds from like-minded individuals to be invested in high earning instruments on the investment market.
Old Mutual Unit Trust managing director James Mhura, told Business News on Thursday that the unit trust has been embraced by the public, thereby recording a strong performance as evidenced by the growth of funds.
“Talking of numbers, we are looking at us managing funds in excess of K20 billion with over 4 000 customers excluding mobile customers.
“On the mobile customers, we have registered over 30 000 with around 12 000 actively investing in the Unit Trust. From these numbers, it can clearly be seen that every day, we receive new investors both on the mobile and the traditional investment platform,” he said.
On the economic outlook and forecast as the year draws to an end, Mhura said it is their expectation that rates will continue to trickle down.
“Ultimately, this brings an advantage to the unit trust product in a way that the slope in the decline in the unit trust will be quiet gradual and not a steep as one would expect on a fixed term type of investment,” he said.
Speaking earlier with Business News, Reserve Bank of Malawi (RBM) governor Dalitso Kabambe noted that funds are growing rapidly outside the stock exchange, especially for pension and life insurance funds.
According to Kabambe, it is estimated that by next year the country will have a combined total of pension funds and life insurance funds to the tune of K1.4 trillion.
To invest in the unit trust, investors need to make a minimum investment of K100 000 after which they are free to invest at any amount above K30 000 at anytime. n
