UAP-Old Mutual, an investment, retirement, and insurance group that operates mainly in Eastern Africa, has seen its Balanced Fund continue to produce relatively positive returns over the past several years.
Balanced Funds are defined as investments for investors who are looking for a mixture of safety, income and modest capital appreciation.
Those who invested in the group’s Balanced Fund with a base of Ksh100,000 ($995) on 1st January 2009, have seen their cash more than double to nearly Ksh240,000 ($2,387) over the past 10 years, according to a recently-released analysis from the firm.
Kenya-based UAP-Old Mutual – which targets individual and corporate investors who seek long-term capital growth from a well-diversified portfolio of East African shares, bonds and money market investments – stated that its Balanced Fund has continued to produce positive returns for unit holders with a year to date return of 8.4%.
Though in 2015, the Fund performed poorly with a return of -4.4% on investments. The year 2016, however saw a marginal improvement, with returns reaching 2.7%.
The group noted this month that returns were highest in 2017 as they reached 15.7%. In 2018, the Balanced Fund has seen its investors reap returns of 8.7% (year to date).
The primary objective of the Old Mutual Balanced Fund is to generate long-term capital growth with a total return objective for unit holders.
The fund aims to meet its objectives through investing across a wide range of asset classes which include equity, bond and money market instruments.
The organization, which is based in Kenya, has an interest in stakeholders that have an investment horizon of greater than three years, seeking superior returns and a moderate tolerance for fluctuations of the investment value.
The Fund is valued on a daily basis.
In March, the Fund generated a return of 3.91%.
“The equity market was on an upward trend for the third consecutive month with the Nairobi Securities Exchange (NSE) 20 and All Share Index rising by 2.5% and 5.2% respectively, mainly driven by positive performance of banking stocks following the release of their full year results,” the group said in a recent statement.
An index is an indicator or measure of something, and in finance, it typically refers to a statistical measure of change in a securities market.
The NSE 20 share index is therefore an indicator used to track the performance of the NSE equities (shares) market.