Total assets held by investment schemes in Uganda rise to UGX2.6 trillion  

A new report shows that the Assets Under Management (AUM) by collective investment schemes (CIS) in Uganda have increased by 15% between December 2023 and March 2024.

According to the Quarterly Bulletin for the quarter ended March 2024 released by the Capital Markets Authority (CMA) on Wednesday, June 19, 2024, the assets under management as of March 2024 amounted to UGX 2.668 trillion, up from UGX 2.312 trillion at the close of December 2023.

“This increase indicates that Uganda’s capital markets are growing as more Ugandans are choosing to save and invest through Collective Investment Schemes,” the report indicates.

Collective Investment Schemes are financial products where money from several investors is pooled and then invested by a fund manager according to specific criteria.

According to the report, by March 2024, there were a total of 79,854 funded collective investment scheme accounts, an increase of 12.8% from the prior figure of 70,771 at the end of December 2023.

The six fund managers are UAP-Old Mutual Financial Services Limited holding Shs1.875.9 trillion,  ICEA Lion Asset Management Limited holding  Shs373.4 billion, Britam Asset Managers Uganda Limited holding Shs164b, Sanlam Investments East Africa Limited holding Shs163b, Xeno Technologies Uganda Limited holding Shs58.6b and SBG Securities Limited holding 33.1 billion.

A breakdown of AUM at the end of March 2024 reveals that Government of Uganda bonds accounted for 68.4% of the total AUM. Fixed Deposits accounted for 18.4% and Government of Uganda Treasury Bills accounted for 6.2%. This implies that CIS funds with interest-bearing instruments as the underlying assets remain dominant in the market

The growth in investor accounts is attributed to increased awareness among local investors about the benefits of investing through CIS managers; an increase in the number of CIS managers to six; and investor confidence stemming from robust regulatory protection measures.

At the end of the first quarter of 2024, fund managers regulated by the CMA saw their AUM reach UGX 5 trillion, reflecting a 4.1% increase from UGX 4.8 trillion in December 2023.

“This growth can be attributed to two main factors: an increase in the value of underlying assets held and new members joining the managed funds schemes. Additionally, member contributions continue to exceed member withdrawals, creating net inflows,” the bulletin adds.

The Capital Markets Authority (CMA) is a statutory body established by the Capital Markets Authority Act, Cap 84 of the Laws of Uganda.

Its role is to promote and facilitate the development of an orderly, fair and efficient capital markets industry in Uganda.