Stanbic Uganda Holdings Limited has announced the launch of its Stanbic Unit Trust, strategically entering the nation’s burgeoning Collective Investment Scheme (CIS) market.
This move leverages SUHL’s established client base and aligns with the Ugandan Capital Markets Authority’s reported UGX 2.8 trillion in total CIS assets under management as of March 2024
Under SBG Securities, the Stanbic Unit Trust comes with a promise to revolutionarise and transform financial Investments in Uganda.
This is also expected to significantly increase the stock of finances available for lower cost mid and long-term investments, as collective investment schemes take a lead role in investing in financial products.
Trust funds, like other collective investment schemes, have provided Ugandans with, not only a savings platform, but a channel through which their savings make daily returns.
SBG Securities is SUHL’s specialised arm for investment management and advisory, and recently handled MTN Uganda’s Initial Public Offer, which gives confidence that it will ably navigate the Uganda market, according to SHYL Chief Executive, Francis Karuhanga.
The Unit Trust is an investment vehicle that empowers savers to pool their resources, leveraging professional fund management to generate favourable returns.
Grace Semakula, the SBG Securities Chief Executive says the fund managers “will navigate the investment environment, diversifying portfolios across treasury bills, bonds, fixed deposits, and shares to minimize risk and maximize returns for our customers.”
Its convenience is derived from the fact that prospective investor needs just 100,000 shillings to start saving and then deposit as low as 50,000 shillings, which makes Investment “accessible to a wider audience”, according to Semakula.
The Trust will charge an annual management fee of 2 percent.
The Stanbic Unit Trust accommodates various investment goals and needs, offering three distinct funds including Money Market Fund (short-term), Bond Fund (medium-term), and Balanced Fund (long-term).
Semakula said that clients can also invest jointly, for minors, or as part of a savings group.
Today, most Ugandans shy away from conventional investment tools such as stock investment, preferring investment in land or rental construction.
However, recent trends, both in Uganda and globally, have seen a surge in uptake in unit trusts as they find them more transparent and affordable.
For instance, the global mutual fund industry manages over 60 trillion dollars in assets, according to the Investment Company Institute reporting for 2022.
In Africa, the CIS industry has also grown significantly, with assets under management reaching 120 billion dollars, according to a 2022 survey by Africa Collective Investment Scheme.
According to the Capital Markets Authority, in Uganda, the unit trust industry is showing strong growth, with assets under management increasing by 20 percent in the past year alone.
CISs also come with another advantage where the investor or saver can monitor or track their investment on a daily basis as the interest is calculated daily.
The investor also finds it easy and convenient to invest and withdraw, as they can easily have access to their funds within 48 hours of asking, on top of the periodic statements provided.
“At Stanbic Uganda Holdings, we want to enable our customers tap into this impressive growth and not be left behind, ensuring that they have access to financial investment services and that’s why we have designed the Stanbic Unit Trust,” said Karuhanga.
Prospective customers can join the trust either physically at SBG Securities offices or digitally through their website.