The (SUHL), whose success would likely benefit from the financial group’s sizable clientele. A unit trust is a type of investment instrument that allows people to pool their funds and take advantage of expert fund management to produce profitable returns.
As of March 2024, the Capital Markets Authority reported that the total assets managed by Collective Investment Schemes had reached 2.8 trillion Uganda shillings.
The Stanbic Unit Trust is backed by SBG Securities, which promises to revolutionise and transform financial investments in Uganda.
In addition, as collective investment schemes play a bigger role in financial product investment, this is anticipated to greatly enhance the pool of funds available for mid and long-term investments at reduced costs.
Like other collective investment plans, trust funds have given Ugandans a way to save money and a means of earning daily returns on their savings.
According to SHUL Chief Executive Francis Karuhanga, SBG Securities, SHUL’s specialised division for investment management and advisory, recently managed MTN Uganda’s Initial Public Offer, assuring that it will skillfully traverse the Ugandan market.
The chief executive of SBG Securities, Grace Semakula, states that the fund managers “will navigate the investment environment, diversifying portfolios across treasury bills, bonds, fixed deposits, and shares to minimise risk and maximise returns for our customers.”
According to Semakula, investment is “accessible to a wider audience” because a potential investor just requires 100,000 shillings to begin saving and can deposit as little as 50,000 shillings. This contributes to its convenience.
A two percent yearly management fee will be charged by the Trust. The Stanbic Unit Trust offers three different funds, including a short-term money market fund, a bond fund, and other options to suit different investing needs and ambitions.
Clients can invest jointly, for minors, or as a part of a savings group, according to Semakula.
Nowadays, the majority of Ugandans would rather invest in land or rental buildings than in traditional financial instruments like stocks.
Nonetheless, because unit trusts are more transparent and cost-effective, there has been a significant increase in their use in Uganda and around the world.
For instance, the Investment Company Institute’s 2022 study states that the worldwide mutual fund business handles assets worth over 60 trillion dollars.
According to a 2022 poll by the Africa Collective Investment Scheme, the CIS industry in Africa has also expanded dramatically, with assets under management exceeding 120 billion dollars.
The Capital Markets Authority reports that assets under management have increased by 20 percent in the last year alone, indicating that Uganda’s unit trust sector is expanding strongly.
Because the interest is computed daily, CISs also have the benefit of allowing investors or savers to watch or monitor their investments daily.
n addition to the regular statements that are given, the investor also finds investing and withdrawing to be simple and handy because they may readily access their funds within 48 hours of requesting.
The Stanbic Unit Trust was created by Stanbic Uganda Holdings because, according to Karuhanga, “we want to enable our customers to tap into this impressive growth and not be left behind, ensuring that they have access to financial investment services.”
Potential clients can sign up for the trust online via SBG Securities’ website or in person at their offices.
In Uganda, the majority of the money managed by unit trusts and other collective investment managers is invested in government securities like treasury bonds and bills, which are seen as relatively risk-free in comparison to other assets, as well as stock markets or stocks.
Due to underperformance by certain stocks on the Uganda Securities Exchange, particularly those that were cross-listed from the Nairobi Stock Exchange, the Ugandan stock market had a minor decrease in its overall market value last year.
