Old Mutual Chair: More Ugandans embracing financial services

Uganda’s economy is poised for growth as more citizens embrace financial services, according to Samuel Ssejjaaka, Chairman of the Old Mutual Investment Group (OMIG).

Speaking at the OMIG Annual General Meeting for Uganda’s Unit Trust Holders, held on Sept. 5 at Kampala Serena Hotel, Ssejjaaka shared updates on the performance of their funds.

Ssejjaaka reported that OMIG Uganda closed 2023 with 30,165 unit holders, marking a 42.5% increase from 21,167 in 2022.

He highlighted that this growth reflects a rising interest among Ugandans in financial services for savings.

Addressing Unit Trust Holders, Ssejjaaka explained that, given the mixed economic conditions of 2023, OMIG’s investment strategy centered on government securities.

These provided better yields compared to other assets, delivering strong returns for investors. Specifically, the Umbrella Trust Fund yielded 11.76%, the Money Market Fund 11.62%, the Balanced Fund 11.03%, and the Dollar Unit Trust Fund 5.48%.

Ssejjaaka also said that OMIG experienced significant growth in 2023, with fund size increasing by 53% to reach Shs1.678 trillion in Assets Under Management, up from Shs1.098 trillion in 2022.

The Umbrella Trust Fund was the primary driver of this growth, also increasing by 53%. In addition, Uganda’s first Dollarized Unit Trust Fund, launched by OMIG, grew to US$11.86 million, while the Balanced Fund expanded by 20%. However, the Money Market Fund saw a 25% decline.

Looking ahead to 2024, Ssejjaaka expressed optimism despite global economic challenges.

He anticipates smooth economic progress, with domestic growth fueled by strong investments, particularly in preparation for Uganda’s oil production.