Log in
Updated minutes ago

Stanbic’s investment fund to foster financial inclusion, wealth creation

L-R: Grace Semakula(L), the chief executive of SBG Securities, Mona Ssebuliba, the SBG Securities board member, Francis Karuhanga, the chief executive of Stanbic Uganda Holdings Limited and Aggie Konde, the board chairperson of SBG Securities at the launch at Kampala Serena hotel in Kampala

L-R: Grace Semakula(L), the chief executive of SBG Securities, Mona Ssebuliba, the SBG Securities board member, Francis Karuhanga, the chief executive of Stanbic Uganda Holdings Limited and Aggie Konde, the board chairperson of SBG Securities at the launch at Kampala Serena hotel in Kampala

Today, most Ugandans shy away from conventional investment tools such as stock investment, preferring investment in land or rental construction.

However, recent trends have seen a surge in uptake in unit trusts as they find them more transparent and affordable. According to the Capital Markets Authority of Uganda, the unit trust industry is showing strong growth with assets under management increasing by 20 per cent in the past year alone.

It is against this backdrop that SBG Securities, a subsidiary of Stanbic Uganda Holdings Limited, has launched the Stanbic Unit Trust (SUT), an innovative investment vehicle that empowers Ugandans to pool their money together with other investors to be invested in the capital markets by a professional fund manager (SBG Securities).

According to key stakeholders, the trust has the potential to transform Uganda’s economy by fostering financial inclusion, enhancing capital market development, promoting economic growth, and encouraging wealth creation.

The fund managers aim to deliver a favourable return on investment through investing in a range of securities that include treasury bills, treasury bonds, fixed deposits and shares.

With a minimum investment requirement of Shs 100,000 and subsequent deposits of Shs 50,000, SBG Securities chief executive Grace Semakula told patrons at the launch event that the Stanbic Unit Trust shatters traditional barriers to entry, making investment accessible to a wider audience.

“The Stanbic Unit Trust is designed to be an affordable and reliable investment option, making it an attractive choice for Ugandans seeking financial growth. Our team of experienced 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,” said Semakula.

The Trust accommodates various investment goals and needs; offering three distinct funds including Money Market Fund (short-term; under 12 months), Bond Fund (medium-term; 2 to 5 years) and Balanced Fund (long-term; over 10 years). Clients can also invest jointly, for minors, or as part of a savings group.

According to Semakula, investors will be able to earn daily competitive interest rates on their returns with those who stay longer investing in the Trust getting extra benefits from compound interest. He further assured potential investors of fast access to their funds when they need them with a redemption process of 24 to 48 hours.

“We will give you fast access to your funds when you need them. We will process your redemption in very good time and if you are a Stanbic bank customer, you will have your money in a few hours should you request for it. When you withdraw your funds, there will be no penalties; so, any interest you would have accumulated is credited to your account,” he said.

Meanwhile, Denis Kizito, the director, Market Supervision at Capital Markets Authority, noted that the Collective Investment Schemes (CIS) ecosystem in Uganda has and continues to see tremendous growth in terms of assets under management, number of operators, investors and innovations in the distribution systems.

The total assets under management for the collective investment schemes sector grew from Shs 155 billion in March 2019 to Shs 2.8 trillion in March 2024 while the number of CIS managers has since doubled from three to six, SBG being the latest on board and currently, there are 130,000 registered investors in the CIS market segment.

“CMA remains committed to supporting the growth of the CIS market segment through facilitative legislation, regulation and promoting awareness of the CIS product. We look forward to working with Stanbic and SBG in fostering a transparent, accessible and effective capital markets.”

Potential investors can on-board the Stanbic Unit Trust either physically at SBG Securities’ offices or digitally through their website by providing a national identification card, passport size photographs and completing the requisite forms.

jjingoernest1@gmail.com

Comments are now closed for this entry