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Delivering investment products that add real value in evolving markets

10 Dec 2020

By Vimal Chagan, Divisional Executive for Investments at Liberty

The extraordinary events of the past year have highlighted more than ever the importance of providing our clients with the certainty that they can reach their investment goals.

We saw increased interest in product features such as the Exact Income Fund, which provides a guarantee on future retirement income today, and the High-Water Mark Guarantee which supports the pursuit of high growth investment strategies by locking in the best quarterly returns earned on a client's portfolio.

Our focus at Liberty Investment Products continues to be about helping clients invest their money in a way that gives them the best chance of achieving the outcomes they need so that they can live the life they want.

This philosophy is evident in the product enhancements we developed this year. We added the Income Enhancer Benefit as a feature on our flagship Living Annuity so that clients can have the option to boost their retirement income and reduce the risk of outliving their savings.

We also launched a new generation structured portfolio which balances the need to earn high returns from offshore exposure with the security provided by an allocation guarantee.

Importantly we are conscious of the shift in how clients think about their investments, and we have embraced goal-based investing. We have also continued to simplify our product range so that we can provide our clients with quality products that they can customise to suit their needs - based on their goals or stage in life.

While the features that are available in our products are designed to help mitigate risk and increase returns, it is also crucial that the portfolios our clients are invested in perform in the current changing circumstances.

Our view this year has revolved around the fact that the pandemic has required our asset managers to develop new and innovative ways of thinking in order to provide returns in lacklustre markets.

We are also aware there is the need to deliver broader asset-class diversification. As South African equities continue to underperform, the need to broaden our investment horizons grows.

We are also seeing permanent changes in consumer behaviour as a result of the pandemic. The normalisation of working from home and adoption of online shopping is likely to have some long-term ramifications for certain sectors.

We are identifying themes that will drive long-term growth, such as digital economies and environmentally conscious activities, then investing in companies likely to benefit from those themes.

With this kind of thinking we are confident of being able to successfully navigate this ever-changing environment.

And the ways our products are structured will continue to reflect this so you can enjoy the best chance of consistent returns.

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Liberty Group Limited (Reg. no 1957/002788/06) is a licensed Insurer and an Authorised Financial Services Provider (no 2409).