Uganda: Stanlib Uganda Rolls Out Unit Trust to Raise Funds

Stanlib Uganda, a fund management firm, has rolled out a unit trust targeting middle and low-income earners.

The product, officially referred to as a money market fund, allows investors to pool small savings and mobilise large-scale funds to generate high returns on investment in low-risk, fixed-income securities such as Treasury bills and bonds, fixed deposits and corporate bonds.

Financial experts say that the product bears a conservative investment model — an arrangement that favours more investment in fixed income assets than high risk, fluctuating income assets such as shares and currency trading portfolios.

As a result, most of the conservative unit trust funds invest more than 80 per cent of their assets in fixed income securities.

Key features of Stanlib Uganda’s money market fund include a monthly contribution of Ush100,000 ($27) from participating investors, a withdrawal turnaround time of four days, online application forms and access to members’ accounts, zero initial fees and annual management fees of two per cent of asset value. The fund offers an annual return on investment equivalent to the averaged 91-day Treasury bill yield plus a two per cent margin. The 91-day Treasury bill yield fell to 10.7 per cent last week. This means total return on investment […]

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