Britam vs. Sanlam: The Battle for Third in Uganda's CIS Fund Manager Rankings
Unit Trust Funds Investments.
Friends,
Britam Fund Managers has consistently held its position as the third largest fund manager in the Collective Investment Schemes (CIS) industry in Uganda, trailing only UAP Old Mutual Investment Group and ICEA Investments Managers.
However, the stability of their ranking is under threat due to the aggressive expansion of Sanlam Investments, which is on the brink of surpassing Britam Investments in the comings Months.
Analyzing the fund fact sheets and Capital Markets Authority (CMA) approved reports from the past five quarters, we observe that Britam Asset Managers' investments peaked at 202 billion UGX in Q4 of 2022. Since then, there has been a noticeable and significant decline in their assets under management, dwindling to 164 billion UGX by Q1 of 2024. This downturn became particularly pronounced between Q4 of 2023 and Q1 of 2024.
In stark contrast, Sanlam Uganda's investments have surged from a modest 50 billion UGX in Q4 of 2022 to an impressive 163 billion UGX in Q1 of 2024. Should this trend persist, Sanlam is poised to overtake Britam as the third-largest collective investment fund manager in the subsequent quarter.
The performance of these fund managers is also reflected in the interest income generated by their funds. While Britam's total interest income to investors has been declining, Sanlam's has been on an upward trajectory.
This shift in fortunes is evident in the market share each company holds; Britam's share has halved from 12% in Q4 2022 to around 6% in Q1 of 2024, mirroring Sanlam's rise from 3% to over 6% in the same period.
Despite these challenges, Britam continues to be recognized as one of the top-performing fund managers, offering returns above 11% and as Sanlam Investments continues its expansion and poised to overtake Britam Asset Managers, the Investors in the collective space are the winners.
The only Question that remains, when did Britam Last publish and communicate its Monthly Fund Fact sheet to its Investors like its the norm with other Fund Managers in the collective Investment Space.
Great analysis, why is UAP return still low compare to that of Sanlam yet their fund(UAP) is growing?
Great analysis and piece of writing Alex. Is is possible to find out how much of Sanlam's jump is through the SC Shillingi by Standard Chartered?