Madison Asset re a igns o s

statement issued yesterday.

“Towards the end of 2018, the regulator, Securities and Exchange Commission (SEC) issued a directive on the prohibition of investment activities which disallows guaranteed returns by Capital Market Operators such as MAMCo.

“Accordingly, MAMCo is in the process of winding down its Fixed Income Fund portfolio, a fund which guaranteed a return and had been available to its esteemed customers for the last 10 years,” she said.

She said the process of unwinding down the Fixed Income Fund had brought about some challenges because a substantial portion of the Fund was invested in real estate whose values were subject to market perils.

Ms Chisanga said the company’s business lines were being restructured and the Fixed Income Fund and attendant assets ring fenced in order to comply with the SEC’s directive.

“MAMCo has embarked on li uidating the fi ed assets underlying the Fixed Income Fund to address the obligations to the investors in the Fixed Income Fund. This exercise is being undertaken with a view to unlocking and maximizing the cash value of these assets,” she said

Ms Chisanga said the streamlining of MAMCo’s operations would create a leaner organization with greater finan ial fle i ility

“Unit Trusts, Portfolio Management, Stockbroking, Collective Investment Schemes, Gratuity and Pension Fund Management as well as broader asset management services.