Uganda’s Collective Investment Schemes Surge Past the Shs2 Trillion Milestone, Fueling Confidence in Capital Markets

Uganda’s collective investment schemes have achieved a remarkable milestone, exceeding the shs2 trillion mark, according to the Capital Markets Authority (CMA). This significant development was announced during the launch of Uganda’s inaugural dollar unit trust fund by Old Mutual Investment Group. Denis Kizito, a supervision manager at CMA, hailed this robust growth as a positive sign for the nation.

Kitizo, speaking at the event, said, “We have witnessed substantial growth in the unit trust sector, with assets under management now totaling shs2 trillion, contributed by 60,000 investors. With the introduction of this new product, we anticipate a surge in these numbers. This growth underscores investors’ confidence in unit trusts as a vehicle for prosperity and wealth creation.”

“The launch of the dollar unit trust is a testament to the vibrancy and potential of Uganda’s capital markets,” he added.

Capital Markets Authority officials emphasized their role in facilitating this growth by establishing a strong policy framework governing securities issuance and trading in Uganda’s capital markets.

“Our approval process for public offerings of securities ensures transparency and regulatory compliance. We have also championed the creation and maintenance of a self-regulatory system where market participants actively contribute to the orderly, fair, and efficient trading of securities. This system fosters market integrity and trust,” stated CMA.

Dollar Unit Trust

The recently introduced dollar unit trust by Old Mutual Investment Group has appointed KCB as the trustee and Stanbic bank as the custodian. Simon Mwebaze, the Managing Director of Old Mutual Investment Group, highlighted the benefits of the dollar unit fund for investors.

“By pooling resources into this fund, investors can access a diverse range of investment options, effectively spreading risk. It also provides access to global markets, allowing local investors to participate in international assets and opportunities. This is a game-changer, enabling our clients to benefit from global economic trends,” Mwebaze explained.

He further emphasized that the dollar unit fund would adapt the portfolio to respond to market conditions, aligning risk levels with investors’ objectives.

“The dollar unit fund offers flexibility and customization to meet unique needs, whether seeking stability, growth, or a balanced approach,” Mwebaze added.

According to Prof. Samuel Ssejaaka, the Chairman of the Old Mutual Investment Group board, the dollar unit fund will contribute to the overall development of Uganda’s financial landscape.

“It will provide investors with innovative tools to secure their financial future and strengthen the investment ecosystem,” Prof. Ssejaaka affirmed.