In a recent development, Liberty Life Assurance Limited has disclosed the final rate of return for the year 2023, revealing a 0 per cent return for the pooled guaranteed pension portfolio.
This announcement sheds light on the company's investment challenges amidst a volatile economic landscape.
"Consequently, the final rate of return for the year 2023 for the pooled guaranteed pension portfolio is 0 per cent," the company said.
The low performance of the pension portfolio is primarily attributed to the underwhelming returns from the investment market.
Notably, the equities market experienced a significant setback, delivering a negative 28 per cent return.
Additionally, the Treasury bonds market incurred fair value losses due to a rapid rise in yields during primary auctions held in 2023.
Nkoregamba Mwebesa, Managing Director of Liberty Life, acknowledged the impact of these market dynamics on the company's investment strategy.
"The low investment performance reported under this portfolio is predominantly due to the low returns from the investment market, particularly the equities market, which delivered a negative 28 per cent return, and the Treasury bonds market, due to fair value losses resulting from a rapid rise in yields at the primary auctions in 2023," Mwebesa stated.
The company's response to these challenges includes a revamped investment strategy aimed at providing clients with a competitive edge.
Liberty Life is now offering a guaranteed rate of 9 per cent for the 5-year period spanning 2024 to 2028.
This initiative aims to mitigate the effects of market volatility and ensure a more stable trajectory for clients' retirement savings.
As Liberty Life navigates through these turbulent times, clients are assured of the company's unwavering commitment to securing their financial futures.
For clients' convenience, the terms and conditions, along with revisions to policy documents related to the guaranteed rate offering, have been made available for review and acceptance.