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Economy hits unit trust

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Challenges in the economy are compromising the performance of the only active unit trust in the country.

According to managers of the Trust, Old Mutual, although the Trust has potential to grow, the economy has made it increasingly difficult to run operations and reach out to many people as most do not have enough disposable income to make an investment.

The Fund grew from K5 billion in 2014 to K7.4 the billion in 2015 but despite positive outturn in the past two years, Old Mutual says the performance of the economy has continued to compromise its operations.

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Speaking on the sidelines of the firm’s Annual General Meeting held in Blantyre on Tuesday, Old Mutual Unit Trust Fund Managing Director, James Mhura, said while the outlook for the Fund’s performance appears positive, the economic challenges are limiting growth.

“Most Malawians still do not have disposable income which in turn is compromising the Trust’s ability to grow.

“We are experiencing many problems as a country, and that goes without saying. But for us, what we look up to is the return to our unit holders,” he said.

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According to Mhura, the Fund has managed to grow to K10 billion from K5 billion in 2014.

“That is significant growth and it also shows the confidence and trust the public has in the unit trust. We still believe that despite the challenges, what we are giving out to our unit orders is good,” Mhura said.

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