PODCAST | Liberty’s index tracking strategy beyond R9bn under management

The growth of index tracking backed investments in the realm of employee and corporate funds is the focus of this edition of Business Day Spotlight. 

Host Mudiwa Gavaza is joined by Kgotso Thipa, head of investment distribution and servicing at Liberty Corporate Benefits. 

Liberty’s leading index-tracking portfolios have achieved remarkable success over the past decade, accumulating R9bn in assets under management. Thipa says the company has good growth in this space, between 12% and 13%, which is in line with industry trends.

Corporate benefits is the unit at Liberty that specialises in structuring employee benefits for businesses. 

Index tracking funds, also called index funds, are a type of investment vehicle designed to mirror the performance of a particular market index.

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These funds track a chosen stock market index, like the S&P 500 or the FTSE/JSE All Share index, depending on your location. This serves as a benchmark, representing a specific segment of the market. 

Thipa explains that the value land attractiveness of this type of investment lies in its ability to provide broad market exposure, low costs and a transparent investment approach.

The discussion highlights the future of passive investing; how passive investment strategies contribute to achieving financial goals; growing demand from pension funds for effective index tracking options; insights and lessons learnt from the past decade; and possible future trends. 

• Business Day Spotlight is a MultimediaLIVE Production. 

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