The Independent Business, In The Magazine
Kampala, Uganda | THE INDEPENDENT | On Sept.21 Old Mutual Investment Group launched the first-ever dollar unit fund in Uganda, a move aimed to diversify and add to the quality of the investment opportunities on the market. The account was launched with an effective 5% annual interest rate, compared to the 11% rate for the local shilling accounts. A unit trust is a collective investment scheme that pools contributions from investors who share a common investment objective.
The pooled funds are strategically invested in a diversified portfolio of financial securities, including equities (shares), bonds, cash, bank deposits, and more so it generates income that is directly transferred to investors as interest income on their savings.
The UAP Old Mutual Investment Group Managing Director Simon Mwebaze, noted that in recent years Unit trusts have gained traction on the local market as a low-risk, cost-effective access to both fixed income and stock markets investment options.
The Board Chairman Samuel Sejjaaka highlighted some of the main reasons that set UAP Old Mutual Investment Group apart from other sector players, making the dollar unit fund a viable option. He said, “UAP Old Mutual Investment Group is a trusted and experienced manager with a proven track record in managing investments, making us the ideal partner for securing your financial future.” He said their team conducts thorough and up-to-date research to optimise investment decisions for investment funds, ensuring that “you make informed choices among all the investment options we manage.” At the national level, the introduction of the Dollar Unit Trust Fund holds great promise for stimulating economic growth by attracting foreign investments, expanding the capital market, and boosting foreign exchange reserves.
