Investment opportunity at Old Mutual Unit Trust
03/10/2011

Old Mutual Malawi on 29th September 2011 officially launched its new subsidiary company called Old Mutual Unit Trust Company to open a new window of opportunity for companies and individuals on the money market.

Speaking during the ceremony which was held in Blantyre, Old Mutual's Group Managing Director Chris Kapanga said the launching of the unit trust would permanently change the investment climate in the country.

"Through the unit trust, we have introduced an offering that produces real and competitive returns on investments based on a transparent service", said Kapanga.

Explaining its dynamics, Old Mutual Unit Trust Company General Manager Khumbo Phiri described the unit trust as a package of investment products through which companies and individuals can invest their Money and get a return.

He said a unit trust pools together savings from like minded investors whose resources are invested on both the stock exchange and government securities market like treasury bills.

He said any corporate or individual with a minimum amount of K360,000 to spare is eligible to invest and enjoy the benefits of a collective investment scheme. There is no minimum limit to investments.

"This is a diversified value pack. When one puts his money in the unit trust, you get into several windows through, one investment," said Phiri.

He described a unit trust as a "bank account with rewards like a treasury bill investment but with a behaviour like that of a stock market".

He said unlike the stock market where there has to be a buyer available for people to get back their invested money and unlike government bands and treasury bills where one has to wait for the expiry of an agreed period of investment to liquidate their investment, unit trust are flexible and can be cancelled at any time.

"Unit trusts are 100 percent liquid. The problem of buying or selling is ours not yours," said Phiri.

He said the scheme was also very transparent with all fees disclosed when one is investing. He said even foreigners are free to invest in unit trusts as long as they have local bank accounts.

Reserve Bank of Malawi (RBM) Deputy Governor Mary Nkosi, who was guest of honour during the ceremony, commended Old Mutual for launching the trust which she described as an open ended collective investment scheme in Malawi.

“This beneficial initiative will go a long way in providing alternative avenue of investment to the investing public," said Nkosi.

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Many companies usually opt for corporate branded materials such as T-shirts, calendars or pens as gifts to guests who grace their events. But during the launch of their unit trust in Blantyre, Old Mutual did the unusual thing in corporate courtsey when they handed over a complimentary fruit seedlings to every guest.

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