As more Ugandans seek reliable ways to grow and protect their wealth, unit trusts are emerging as a practical investment solution.
Designed to be simple, flexible, and accessible, these investment vehicles are attracting both first-time investors and seasoned savers seeking stability amid economic uncertainty.
Speaking on Next Radio, Grace Semakula, CEO of SBG Securities Uganda, shared insights into his journey in finance and explained the growing relevance of unit trusts in today’s market.
Semakula’s interest in financial markets began early, inspired by global business news.
His passion guided his academic path through statistics, mathematics, and economics, eventually leading to a career spanning stock brokerage, investment analysis, and corporate finance.
Today, he leads SBG Securities Uganda, a subsidiary of Stanbic Uganda Holdings Limited.
At their core, unit trusts are professionally managed investment funds that pool resources from multiple investors into a diversified portfolio.
These portfolios typically include treasury bills, government bonds, bank deposits, and corporate instruments.
SBG Securities Uganda, regulated by the Capital Markets Authority Uganda, offers unit trust funds in both Uganda shillings and US dollars. The aim is to provide steady returns while mitigating risk through diversification.
Semakula notes that unit trusts are increasingly important as Ugandans navigate currency volatility and global economic uncertainty.
For many, preserving the value of savings is as crucial as growing them. Dollar-denominated investments, in particular, provide a safeguard against exchange rate fluctuations, making such options essential for individuals planning education abroad, travel, or imports.
Dispelling the myth that investing requires large sums, Semakula highlights that unit trusts are intentionally inclusive.
Minimum investments start at just Shs100,000 or $100, enabling participation from individuals, institutions, and even minors through guardians.
Flexibility is another key advantage. Unlike traditional investments that may lock in funds for long periods, unit trusts allow investors to contribute or withdraw money with ease, with transactions processed within 48 working hours.
Returns accrue daily, allowing consistent growth over time.
Funds are invested in a carefully diversified mix of high-quality, short-term instruments both within East Africa and offshore.
While risks such as currency fluctuations, interest rate changes, and credit risk exist, these are managed through prudent investment strategies and diversification.
Transparency is a cornerstone of SBG’s unit trust offerings. Management fees are 1.5 percent annually, with no entry or exit fees, and all reported returns are net of charges. Investors can also monitor performance through secure platforms, receive monthly statements, and access detailed factsheets.
As financial literacy grows in Uganda, more individuals are exploring structured investment options beyond traditional savings accounts.
According to Semakula, this shift reflects a changing mindset one where citizens are not just saving money but actively making it work for them.
In this evolving financial landscape, unit trusts offer a practical, transparent, and accessible way to build and preserve wealth.
