- Saving culture among Ugandans is steadily improving
- Ugandans are learning that there is more value of saving in financial assets
- Old Mutual Investment Group annual announces a 53% growth in the year ended 2023
Prof. Samuel Sejjaaka, the chairperson of Old Mutual Investment Group in Uganda says that saving culture among Ugandans is steadily improving.
According to professor, current statistic in the financial sectors indicate that the collective investment schemes in the country have registered a growth rate of 50% and this explains that majority of Ugandans are now adopting to save in financial assets.
''Ugandans are learning that there is more value of saving in financial assets but also i think it is important to appreciates the role of central bank in managing inflation because if inflation is not managed so your savings get eroded that is a message, yes there are alternative ways of saving other than just buying land, building a house and these methods of saving have been proven so with the growth of 50% we remain the leading Unit trust providers in the country with over 70% of savers''. he said.
Prof. Samuel Sejjaaka was speaking during Old Mutual Investment Group annual general meeting where the company announced a 53% growth in the year ended 2023
He said that the Old Mutual Investment Group in Uganda has expanded by 53%, reaching 1.678 trillion shillings in assets under management for the year ending 2023.
Prof Sejjaaka, attributed the strong performance to the group’s investments in debt-based instruments and government bonds, which offer stable returns with low risk.
Other high-performing segments include the umbrella trust fund, money market fund, balanced funds, and the newly launched dollar unit trust fund.
‘’These new figures released by Old Mutual Investment Group Uganda has indicated that Ugandans are increasingly turning to financial service products to save’’. Said Prof. Samuel Sejjaaka, the company’s chairman
He announced a 53% growth in fund size, reaching UGX 1.678 trillion in assets under management in 2023, up from UGX 1.098 trillion in 2022.
According to him, the Umbrella Trust Fund yielded an 11.76% return, the Money Market Fund 11.62%, the Balanced Fund 11.03%, and the Dollar Unit Trust Fund 5.48% for the year.
Prof. Sejjaaka noted that the group launched Uganda’s first Dollar Unit Trust Fund, which grew to USD 11.86 million. The Balanced Fund experienced a 20% growth, while the Money Market Fund decreased by 25%.
The figures show that Old Mutual Investment Group Uganda ended 2023 with 30,165 unit holders, a 42.5% increase from 21,167 in 2022.
This growth is attributed to the company’s investment strategy, which focuses on government securities, offering better yields than other assets and providing strong returns for unit trust holders.
“Ahead of 2024, we anticipate a smooth economic transition. We expect domestic growth to be supported by strong investments, particularly in preparation for Uganda’s oil production,” Prof. Sejjaaka said.