By: Nkosiyabusa Nsibande
Old Mutual Eswatini delivered strong inflation-beating returns across its major investment funds during the quarter ended March 31, 2026, providing a boost for investors navigating an increasingly uncertain global economic environment
The performance comes at a time when geopolitical tensions, volatile financial markets and shifting investment flows continue to test asset managers worldwide, placing greater emphasis on portfolio diversification and risk management.
Old Mutual reported strong gains across its flagship Balanced Fund, Enhanced Money Market Fund and Absolute Stable Growth Portfolio (AGP), with all three portfolios outperforming inflation and key benchmarks over the period under review. The results highlight a growing trend among investors seeking both wealth preservation and real returns amid a low-inflation domestic environment and heightened global market uncertainty.
Balanced Fund Delivers Double-Digit Growth
The strongest performance came from the Old Mutual Eswatini Balanced Fund, which generated one-year returns of up to 13.7 percent, significantly exceeding inflation and its benchmark target. Over a three-year period, the fund produced annualised returns of up to 12.2 percent, while delivering an annualised return of 9.8 percent since inception. The fund’s performance was supported by a diversified investment strategy spanning Eswatini, South African and international markets, with allocations across equities, bonds and cash instruments.
According to Old Mutual, active portfolio adjustments played a key role in protecting investor value during the quarter. These included increasing offshore exposure, raising allocations to gold, reducing South African equity holdings and strengthening cash positions as global markets reacted to escalating conflict in the Middle East and growing volatility in commodity markets.
Portfolio Manager Thomo Molatjane said the investment team sought to reduce concentration risk while positioning the fund to benefit from opportunities outside traditional developed markets. The strategy appears to have paid off. The Balanced Fund has recorded positive monthly returns approximately 71.5 percent of the time since inception, demonstrating resilience despite periods of market turbulence. For investors focused on long-term wealth accumulation, the results reinforce the importance of diversification as a tool for managing risk while maintaining growth potential.
Money Market Fund Offers Stability
While equity-focused investors benefited from capital growth, conservative investors continued to find value in Old Mutual’s Enhanced Money Market Fund.
The fund generated one-year returns of up to 7.9 percent, outperforming the STeFI 3-Month Index benchmark return of 7.0 percent. Over three years, annualised returns reached 8.2 percent.
The portfolio’s appeal lies largely in its stability. Since inception, the fund has recorded positive monthly returns every month while maintaining exceptionally low volatility. The fund invests primarily in treasury bills, negotiable certificates of deposit, government bonds and fixed deposits across Eswatini and South Africa. Portfolio Manager Nadia Ismail attributed the performance to favourable money market conditions, including higher short-term borrowing rates and attractive treasury bill yields.
The fund continued to invest in six to 12-month Eswatini treasury bills and fixed deposits, enabling it to capture attractive yields while maintaining liquidity and preserving capital. For households building emergency savings, businesses managing cash reserves or investors seeking low-risk returns, the results underline the continued attractiveness of money market products in the current interest rate environment.
Pension-Focused Portfolio Maintains Momentum
Old Mutual’s Absolute Stable Growth Portfolio, designed primarily for pension assets, also recorded robust growth. The portfolio delivered a one-year return of 15 percent, substantially above inflation of 1.6 percent. Over three years, annualised returns reached 11.5 percent, while since inception the portfolio has produced annualised growth of 9.5 percent.
The AGP combines exposure to local and international assets, including equities, bonds and property investments, while incorporating an 80 percent capital guarantee structure aimed at reducing downside risk. Assets under management in the portfolio now exceed E1.18 billion, reflecting its growing role within the retirement savings market. The strong performance is particularly significant for pension savers as inflation-adjusted returns remain a key determinant of long-term retirement outcomes.
What the Results Mean for Investors
The latest figures illustrate how investment diversification is increasingly becoming a critical defence against global economic uncertainty. While domestic inflation remains relatively subdued, investors continue to face risks ranging from geopolitical instability and commodity price shocks to currency fluctuations and shifting global capital flows.
Old Mutual’s decision to increase offshore exposure and allocate more capital to gold reflects broader international investment trends, with asset managers seeking alternative sources of growth and protection against volatility. For Eswatini investors, the results also highlight the widening distinction between simply saving money and investing it strategically. While traditional savings products remain important for liquidity, long-term wealth creation increasingly depends on generating returns that consistently outpace inflation.
Old Mutual Eswatini Chief Executive Officer Muzi Bell said the performance demonstrates the resilience of the company’s investment strategy despite challenging market conditions. He said the results reflect both disciplined investment management and the trust investors continue to place in the institution to grow and protect their wealth. As economic uncertainty persists globally, the latest quarter suggests that diversified investment portfolios remain one of the most effective tools available to investors seeking long-term financial security and sustainable wealth creation.
