Stanlib launches new unit trust in Uganda
March 15- Stanlib, an asset manager based in Johannesburg, but with a footprint in seven African countries including Uganda, has launched the Money Market unit trust that aims to maximise income over the short-to-medium term for potential investors.
Basically, a unit trust is a commonly held fund that can finance and hold assets with profits going straight to individual unit owners instead of reinvesting them back into the fund.
“When you invest with the Stanlib Money Market Fund, your money will be diversely invested in all sectors and yet don’t need a lot of money to save,” Japheth Katto, the former Chairman of the Capital Markets Authority said.
“The Fund which is a less risky venture compared to the Balanced Fund & Equity and will help potential investors who are looking for investment of returns on a short or medium term that are stronger than traditional savings schemes,” Annette Rumanyika the General Manager at Stanlib Uganda Limited said.
This fund will invest in a wide range of highly marketable short-term securities, which include treasury bills, bankers’ acceptances, negotiable certificates of deposit (NCDs), commercial paper and other debt securities whose maturity may not exceed 183 days and it will target corporates, institutions and private investors who have cash available to invest over the short to medium term and require the flexibility to withdraw at relatively shorter notice.
However, potential investors will be required to deposit a minimum investment amount of UGX100,000 (nearly $28) at a rate of 2 percent per annum. Kato cautioned that given society’s liking for consumerism, this continues to hinder the saving culture.
Katto said Stanlib Uganda will have to be at the forefront of financial literacy to influence people towards their products and improve Uganda’s saving culture. “If you’re earning a Ugandan income don’t spend like you’re earning in dollars,” Kato said.
Rumanyika said Stanlib will partner with the Stanbic Ugandan unit to help them reach a wider audience with the product by tapping banks’ already existing and potential customers. The Fund will be regulated by the Capital Markets Authority and licensed by the Uganda Retirements Benefits Authority. It will be overseen by a dedicated trustee custodian.