Uganda’s Collective Investment Schemes Surge to UGX 2 Trillion Milestone, Bolstering Confidence in Capital Markets

Uganda’s Collective Investment Schemes Surge to UGX 2 Trillion Milestone, Bolstering Confidence in Capital Markets

In a momentous development, Uganda’s collective investment schemes have achieved a remarkable milestone, surpassing the UGX 2 trillion threshold, according to a statement from the Capital Markets Authority (CMA). The announcement was made during the launch of Uganda’s inaugural dollar unit trust fund by the Old Mutual Investment Group. Denis Kizito, a supervision manager at CMA, emphasized that this exponential growth is a positive sign for the nation’s financial landscape.

Speaking at the event, Kitizolauded the substantial expansion in the unit trust sector, revealing that the total assets under management have now reached UGX 2 trillion, with contributions from a substantial base of 60,000 investors. With the introduction of this new product, he anticipates a surge in participation, attributing this growth to investors’ trust in unit trusts as a vehicle for prosperity and wealth creation. Denis Kizito, a supervision manager at CMA said.

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Denis Kitizo further highlighted the significance of the dollar unit trust launch as a testament to the vigor and potential of Uganda’s capital markets.

CMA officials attributed their pivotal role in facilitating this growth to the establishment of a robust policy framework governing the issuance and trading of securities in Uganda’s capital markets. They underscored their commitment to ensuring transparency and regulatory compliance in the approval process for public securities offerings. Additionally, they championed the creation and maintenance of a self-regulatory system, fostering market integrity and trust among participants.

Dollar Unit Trust Revolutionizes Investment Landscape
The recently introduced dollar unit trust by the Old Mutual Investment Group has appointed KCB as the trustee and Stanbic Bank as the custodian. Simon Mwebaze, the Managing Director of the Old Mutual Investment Group, highlighted the unique advantages of the dollar unit fund, emphasizing its role in diversifying investment portfolios.

Mwebaze stated that by pooling resources into this fund, investors gain access to a wide array of investment options, effectively mitigating risk. He stressed that it also provides local investors with exposure to international assets and opportunities, aligning them with global economic trends. The dollar unit fund, according to Mwebaze, is designed to adjust its portfolio to market conditions, ensuring alignment with investors’ objectives.

“The dollar unit fund offers flexibility and customization to meet their unique needs, whether they seek stability, growth, or a balance of both,” Mwebaze concluded.

A Positive Impetus for Uganda’s Financial Landscape
Prof. Samuel Ssejaaka, the Chairman of the Old Mutual Investment Group board, emphasized that the dollar unit fund will significantly contribute to the overall development of Uganda’s financial landscape. He described it as an innovative tool for investors to secure their financial future while strengthening the investment ecosystem.

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