Ugandans Told to Embrace Fund Management

1639 Views Kampala, Uganda

In short
Although this is in in-thing in developed and emerging markets, in Uganda fund management is just taking root with just six fund managers licensed.

Funds management, although a new phenomenon in Uganda's pension sector, is a great way of investing and earning big, according to the Uganda Retirement Benefits Regulatory Authority (URBRA).
 
A fund under management is the total amount of money investors have trusted to a fund manager to invest across all their investment products.
 
Also known as unit trusts, they are collective investment schemes through which savers earn interests after the fund managers have invested strategically in assets or businesses that yield strong returns.
 
Although this is common in developed and emerging markets, in Uganda fund management is just taking root with just six fund managers licensed.
 
The Chief Executive of URBRA, David Nyakundi Bonyi, says fund management is not only lucrative but also less risky, just like other pension schemes.
 
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Bonyi says expertise in fund management in particular and the pension sector generally is poor, adding that Ugandans, especially the young people, need to pick interest because many opportunities abound.
 
According to Bonyi, there is still a lot of gaps by indigens in asset market, a situation that needs to improve.
 
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Bonyi reveals that fund and asset management is still dominated by foreign companies, adding that it makes sense for Ugandans to take charge of the sector.
 
The six licensed fund managers - all foreign - are: PineBridge Investments East Africa Limited, Genesis Kenya Investment Management Limited, African Alliance Uganda Limited, ICEA Asset Management Limited, Stanlib Uganda Limited, and UAP Financial Services Limited.
 
How it works is that if you have got some disposable income - say from gratuity, NSSF or profits - you entrust the money to a fund manager of your choice with a knack for lucrative investment. This could be in real estate, government securities, or shares in a profitable company.
 
In return, the investor gets relatively higher interests which she or he can reinvest or use for other purposes. A retiree, for example, can keep earning as if he or she is in full employment. The investments can also be passed to one's children or other beneficiaries.
 
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About the author

David Rupiny
In his own words, David Rupiny says, "I am literally a self-trained journalist with over 12 years of experience. Add the formative, student days then I can trace my journalism roots to 1988 when as a fresher in Ordinary Level I used to report for The Giraffe News at St Aloysius College Nyapea in northern Uganda.


In addition to URN for which I have worked for five years now, I have had stints at Radio Paidha, Radio Pacis, Nile FM and KFM. I have also contributed stories for The Crusader, The New Vision and The Monitor. I have also been a contributor for international news organisations like the BBC and Institute for War and Peace Reporting. I am also a local stringer for Radio Netherlands Worldwide.


I am also a media entrepreneur. I founded The West Niler newspaper and now runs Rainbow Media Corporation (Rainbow Radio 88.2 FM in Nebbi). My areas of interest are conflict and peacebuilding, business, climate change, health and children and young people, among others."