For their clients, Standard Chartered Bank Uganda has launched an offshore mutual fund product.
The Bank’s clients will enjoy access to hundreds of underlying equities or bonds from blue-chip companies in the US, Europe, the UK, Asia, and emerging markets in different sectors like healthcare, technology, real estate, and ESG or green investments.
This proposition is the first of its kind in Uganda and will provide the bank’s clients with an affordable and diverse way to put their money to work in some of the world's most promising markets.
What differentiates this product is its affordability, as any individual client can start investing for as little as USD 100 (approximately Shs 370,000) with a simple monthly plan, and they can invest in USD, EUR, and GBP.
Furthermore, clients will easily and conveniently invest in these offshore mutual funds as well as the cash out their investment at any time at market value.
While unveiling the offshore mutual fund proposition, the Chief Executive Officer of Standard Chartered Bank, Sanjay Rughani, said:
"The launch of this offshore mutual fund proposition is a significant milestone for Standard Chartered Bank and a testament to our commitment to providing our clients with a diverse range of investment options."
He said these new funds, will be able to offer clients access to a broader range of markets and industries and the potential for higher returns adding that they will also provide any client with objective, relevant wealth advisory services and the solutions they need to achieve their ambitions.
"All investors can take comfort in knowing that this offshore mutual fund proposition has been carefully designed and will be managed by our team of experienced professionals, and we are confident that it will perform excellently well."
Moses Rutahigwa, the Head of Consumer Private and Business Banking at Standard Chartered Bank, said the bank prides itself on being the number one Wealth Management advisory bank in the market and is proud to announce the launch of International Mutual Funds, an alternative investment vehicle that is affordable and offers a diverse way to put one’s money to work.
“As a bank, we are also in a strong position to help any client build a secure future for themselves and their families, as we have a unique combination to offer: an open architecture platform, which means we access insights and solutions from the best providers in the industry, as well as strong investment advisory capabilities and strategic partnerships with insurers and asset managers.”
While articulating the technicalities of the newly launched offshore mutual fund offering, Lydia Nakamya, General Manager, Affluent Banking and Wealth Management at Standard Chartered Bank, had this to say:
"With the offshore mutual funds, our clients will gain access to global investment, have the opportunity to diversify their portfolios by adding exposure to different markets, sectors, and currencies, access higher returns than what’s currently available locally, and reduce their risk due to the diversification of their portfolios."
"We, therefore, welcome all potential clients to contact us so that professional relationship managers can talk through the product’s proposition and the rest of our investment opportunities, help them get their profiling done online to assess their risk-taking appetite, and then assist them with their investments."
Speaking on behalf of the Capital Markets Authority (CMA), the Chief Executive Officer, Keith Kalyegira, emphasised that "as the Capital Markets Authority, our role is to protect investors’ interests and ensure the integrity and stability of the capital markets in Uganda."
This includes setting and enforcing regulations related to the registration, operation, and reporting of mutual funds, as well as conducting inspections and investigations to ensure compliance.
"We are proud to have worked closely with the team at Standard Chartered Bank to support Ugandans with an inclusive investment option that is flexible, affordable, and relatively conservative in terms of risk."
He added: "Schemes like the one Standard Chartered is launching are highly regulated, and the CMA also has the power to take disciplinary action for any violations of regulations or for engaging in fraudulent or unethical practices."
Additionally, the CMA may also provide guidance and education to mutual funds.
Mutual funds are a general term for funds that allow investors to pool their money with that of other investors and are managed by a team of investment professionals.
The term may vary across countries, but mutual funds may also be referred to as collective investment schemes, unit trusts, or simply as funds.
The pooling of money generally creates greater buying power, so investors are able to invest in a wider range of investments than would be possible for most individual investors.
Each investor in a fund owns units or shares that represent a part of the fund’s portfolio holdings. Mutual funds can be classified by the types of assets they invest in (such as shares, bonds, cash, or other securities).