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The Old Mutual Market Linked Fund is a new fund from Old Mutual Malawi. It offers investors an opportunity to maximise returns subject to an acceptable level of risk. The product aims to provide inflation-beating returns over the medium to long-term.
How does it work?
This is a pooled investment vehicle involving different clients. The portfolio is diversified to include property, equity, the money market and fixed interest bonds and other approved assets in order to maximise long-term returns.
Individual client contributions paid into the fund purchase units from the pool. At any given time the fund balance of a client’s fund is the total value of the units participating in the pool at that point.
Returns on the portfolio are allocated at least once a month based on the performance of the underlying assets.
It's important to note that unlike the Guaranteed Fund product, there are no guarantees or bonus smoothing on the product.
Why choose Old Mutual Market Linked Fund?
Reputable company
Old Mutual is a long-standing company with a strong financial position.
Opportunity
This Fund offers investors the opportunity to maximise returns.
Diversification
This Fund enables you to diversify your investment portfolio.
Want to know more about Market Linked Fund?
If you would like to know more we have answered a few questions you might have about the fund. For more info you can speak to a consultant or call +265 891 002 010 or +265 888 897 41
The investment returns earned on the underlying investment mandate are passed on to investors weekly through changes in unit prices. The returns are distributed gross of tax.
The product is unitised, meaning that units are bought or sold by different investors in the product. The fund invests in different assets and the value of the units reflects the underlying value of the overall investment portfolio. The unit prices of the underlying assets fluctuate with market changes. If the assets decrease in value so does the value of the portfolio and vice versa.
Clients value their investments by means of the number and value of units they hold. Old Mutual does not guarantee capital in the fund and all capital appreciation/depreciation is for the account of the participating members.
Our fees are simple and fair and are split into two categories.
Investment Admin Fee - This is the cost of managing the investment portfolio. The annual fee is 1% per year on the assets underlying the policy. It is dedicated monthly in arears.
Asset Management Fee - The cost of managing the assts. The underlying asset manager charges a fee of about 0.4% on the assets underlying the policy.
The Market Linked Fund is a Unit-Linked Investment Product.
Benefit payments from the Market Linked Fund to individual retirement fund members are as per provisions of the Pensions Act. The Pension - Payment of Benefits Directive guides the procedure of paying benefits from a pension fund. Benefits are payable when a member has left employment through retirement, resignation, dismissal, retrenchment or death. All benefit payments (i.e. resignation, retirement, death, disability, retrenchment payments) will be made within ten working days of receipt of an authorized instruction (claim form) to pay.
The instruction comprises of a claim form duly signed by the authorized signatory (employer representative), application letter by the exiting member and a national identity. In case of a death claim a list of beneficiaries needs to be attached to the claim form. Benefits may also be paid to the retirement fund’s bank account if a request comes in the form of a disinvestment request duly completed by the Fund administrator.
An employer/pension investor may terminate their fund from the Market Linked Fund by giving at least six calendar months’ written notice to Old Mutual. Old Mutual shall be liable to pay the Fund Credits, i.e. the balances of the Investment Account at the Termination Date.
Old Mutual Life Assurance Company (Malawi) Limited (OMLAC) is a registered long-term life insurer. Old Mutual Life Assurance Company Malawi) Limited is subject, inter alia, to the provisions of the Insurance Act 2010.
Old Mutual is thus subject to strict compliance standards and controls. This includes the appointment of a Compliance Officer, the maintenance of checklists identifying the extent of adherence to legislative and regulatory requirements and reporting on a regular basis to the Group Compliance Officer for OML and to the Compliance and Risk Management Committee of OML in South Africa.
Adherence to compliance and quality standards is ensured by the identification of accountable individuals, on-going checks and the provision of regular reports to the Managing Director of Old Mutual Life Company (Malawi) Limited (OMLAC). Compliance is measured against legislated requirements and the specified contractual undertakings.
Standards are reviewed on an annual basis, with additions and amendments being made as and when legislative changes necessitate this. The information contained in this document is provided as general information and does not constitute an offer by Old Mutual. Users should be aware that short-term performance can be volatile and that past performance is not necessarily indicative of future performance.
Every effort has been made to ensure that the information contained in this document is accurate. Should you have any statutory compliance queries, please address these in writing to:
The Corporate Governance Manager
Old Mutual Life Assurance (Malawi) Limited
PO Box 393
Blantyre
MALAWI
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