Uganda’s collective investment schemes have reached the shs2 trillion mark, the regulator, Capital Markets Authority has said.
Speaking during the launch of Uganda’s first ever dollar unit trust fund by Old Mutual Investment Group, Patrick Kizito, the Market Supervision Manager at Capital Markets Authority said Uganda’s collective investment schemes have continued to grow by leaps and bounds, a state of affairs he said is healthy for the country.
“We have witnessed significant growth in the unit trust space and the markets assets under management currently stand at shs2trillion contributed to by 60,000 investors and with the launch of this new product, we expect numbers to shoot higher. This growth underscores the confidence of investors in unit trusts as a vehicle for prosperity and wealth creation,” Kizito said.
“The launch of the dollar unit trust is therefore a testament to the vibrancy and potential of Uganda’s capital markets.”
The official from Capital Markets Authority said they have played a pivotal role in facilitating this growth by establishing a robust policy framework that governs the issuance and trading of securities in Uganda’s capital markets.
“Our approval process for offers of securities to the public ensures transparency and compliance with regulations. We have also championed the creation and maintenance of a self-regulatory system, where market participants take an active role in ensuring the orderly, fair, and efficient trading of securities. This system fosters market integrity and trust.”
Dollar unit trust
The newly launched dollar unit trust by Old Mutual Investment Group has seen KCB appointed as the trustee and Stanbic bank as the custodian.
Simon Mwebaze, the Old Mutual Investment Group Managing Director said the dollar unit fund offers investors an unparalleled opportunity for diversification.
“By pooling resources into this fund, investors can access a broad spectrum of investment options, effectively spreading risk. It also opens doors to global markets, providing local investors with exposure to international assets and opportunities. This is a game-changer, as it allows our clients to benefit from global economic trends,” Mwebaze said.
He noted that the dollar unit fund will help manage the portfolio to respond to market conditions, ensuring that the level of risk aligns with investors’ objectives.
“The dollar unit fund therefore offers flexibility and customization to meet their unique needs, whether they seek stability, growth, or a balance of both.”
According to Prof. Samuel Ssejaaka, the Old Mutual Investment Group board chairperson, the dollar unit fund will contribute to the overall development of the financial landscape in Uganda.
“It will provide investors with innovative tools to secure their financial future and strengthens the investment ecosystem,” Prof, Ssejaaka said.