Old Mutual Malawi on Monday declared a 37 percent bonus on its Guaranteed Fund for the year 2025 during an event held in Lilongwe.
The development means that investors in the Old Mutual Guaranteed Fund have all the reasons to smile on their way to the bank to cash out fat bonus cheques.
The bonus is above inflation, averaging 28 percent, and higher than the bonuses declared in the past years.
Old Mutual Life Assurance Company Managing Director Mark Mikwamba attributed the strong performance to the experience that Old Mutual has on the Malawi market for the past 70 years, coupled with the group’s investments strategy.
According to Mikwamba, the operating environment in 2024 was tough, characterised by an elevated inflation.
“It is not easy for businesses and this includes businesses that we have invested in but our principle is very simple. We want diversity, not putting all eggs in one basket.
“We have started the alternative investment which means we are driving and investing in the real economy which is for the benefit of our customers,” Mikwamba said.
Looking ahead, Mikwamba said the future looks promising because their experience helps them to think about investments in a proper way.
“As I said, our launch of alternative investments years back really helps us to position the fund to navigate a difficult investment environment.
“And the big thing for us is that the Guaranteed Fund actually guarantees the amount of money that customers give us and also guarantees a significant portion of retain that they make. So it really ensured that our clients are safe,” Mikwamba said.
Hail & Cotton Finance Director Edward Kanyenda hailed Old Mutual for declaring the 37 percent bonus which is way above inflation.
Kanyenda said the development means that investors’ money is not getting eroded by inflation.
Economics Association of Malawi Vice President Hellings Nasoni said in a volatile environment, it is crucial for investors to invest in situations that are resilient to all the shocks.
Nasoni encouraged investment diversification, especially in real estates.
