Q2 Report. Uganda's Unit Trusts Assets surges past UGX 3 Trillions.

September 16, 2024

Friends,

The momentum towards achieving 4 trillion Ugandan Shillings (UGX) in Unit Trusts assets under management is now on.

The countdown is on and Old Mutual Investment Group is leading the pack with it’s nearly UGX 2.2 Trillion AUM that has grown by over 300 Billion in 3 months from Q1 to Q2 as of June 30, 2024. That’s like 110 Billion each Month.

But overall, As the second quarter of 2024 concluded, there is cause for celebration among market participants and all the Fund Managers, having surpassed the UGX 3 trillion mark, with an impressive growth of nearly 300 billion Ugandan shillings in total assets in the last 3 months ending June 30, 2024.

During this period, we also witnessed an expansion in the number of funded accounts, climbing from 79,000 to 91,000—an addition of 12,000 accounts in 3 months or an average 130 accounts per day in the last 90 days.

The average account holds around UGX 33 Million.

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.

We are now entering a take off stage where monthly contributions alone are more than the total annual contributions the whole Unit Trust industry had in 2018 and where the total annual income distributions will soon be more than the 2017 total Assets under Management.

Have you opened up a Unit trust account yet?

And most importantly, at a time when now 3 of the Fund Managers led by Old Mutual Investment Group have launched the Dollar Unit trusts, it can only get better for the industry and for all those that want to diversify and invest in more stronger currency funds, the opportunities are just getting better.

Other Fund Managers that have launched Dollar Unit Trusts are Britam Asset Managers and Sanlam Investments.

Happy Investing Everyone.

Alex Kakande