Friends,
The momentum towards achieving 3 trillion Ugandan Shillings (UGX) in Unit Trusts assets under management is on. The countdown is on and Old Mutual Investment Group is leading the pack with it’s nearly UGX 1.86 Trillion AUM that has grown by over 300 Billion in 3 months. That’s like 110 Billion each Month.
But overall, As the first quarter of 2024 concludes, there is cause for celebration among market participants and all the Fund Managers, having surpassed the UGX 2.5 trillion mark, with an impressive growth of nearly 300 billion Ugandan shillings in total assets in the last 3 months ending March 31, 2024.
During this period, we also witnessed an expansion in the number of funded accounts, climbing from 70,000 to 79,000—an addition of 9,000 accounts in 3 months or an average 100 accounts per day in the last 90 days.
Although this represents a positive trend, the figure is still modest when compared to the broader potential our population. We need to hit the 100,000 funded accounts this year and the efforts towards this are on.
On the other end, Britam Asset Managers faced a downturn with a 15% contraction in the total assets under management, dwindling from approximately UGX 193 billion to UGX 164 billion Ugandan shillings. A similar trend was Noted at SBG Securities Limited, a subsidiary of Stanbic Holdings.
For SBG Securities however, within a span of six months, SBG Securities saw its assets under management plunge from UGX 89 billion to a mere UGX 33 billion Ugandan shillings—shedding around 60 billion Ugandan shillings in total.
Despite these individual variances, the overarching sentiment in the first quarter of 2024 remains optimistic as the market continued to grow Surpassing 2.6 trillion Ugandan shillings and heading towards the UGX 3 trillion thresholds.
Happy Investing Everyone.
Thanks for this Alex.
This is good momentum.
Wondering what happened to Britain and SBG.
In a recent report by the CMA CEO, she said only 121,000 Ugandans are saving with the Unit Trusts and that, "We have barely scratched the surface."
We need to keep beating the drum louder so that many Ugandans can learn about this. It's quite shocking that even those in the formal sector still don't know or appreciate these alternative vehicles. It's even worse for those in the informal sector.
But well done on preaching the gospel of alternative investments. Let's each push the message wherever we are.
Any root cause analysis for the Britam and SBG drops in assets under management