Uganda's Unit Trusts Assets surges past UGX 3.5 trillion.
November 13, 2024
Friends,
The momentum towards achieving 4 trillion Ugandan Shillings (UGX) in Unit Trusts assets under management is now on with the potential hit coming before year end if the Fund Managers continue their momentum.
The countdown is on, and Old Mutual Investment Group is leading the pack with its nearly UGX 2.4 trillion AUM that has grown by over 200 billion in 3 months from Q2 to Q3 as of September 30, 2024. That’s like UGX 80 billion each Month. The Muscle of Old Mutual Growth is unprecedented in the Market to realize they are adding an average of UGX 90 billion per Month over the last 9 months and in pace to have added over UGX 1 trillion in 2024 alone in the total assets under Management.
But overall, As the second third of 2024 concluded, there is cause for celebration among market participants and all the Fund Managers, having surpassed the UGX 3.5 trillion mark, with an impressive growth of nearly 200 billion Ugandan shillings in total assets in the last 3 months ending September 30, 2024.
Noteworthy is the recently launched SBG Securities Limited’s Stanbic Unit Trust Fund that has overtaken Xeno Investments as the 5th largest Fund Manager and at a growth rate of 100% in the last 3 months.
During this period, we also witnessed an expansion in the number of funded accounts, climbing from 91,000 to 103,950—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 with so much potential to tap into the lower income level groups.
Although this represents a positive trend, the figure is still modest when compared to the broader potential our population. How do we bring more informal sector into the Capital Markets.
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?
Happy Investing Everyone.