In a landmark move set to revolutionize Uganda’s investment landscape, SBG Securities, a subsidiary of Stanbic Uganda Holdings Limited (SUHL), has launched the Stanbic Unit Trust (SUT). This investment vehicle enables Ugandans to pool their resources, leveraging professional fund management to achieve favorable returns.
SBG Securities, one of the five businesses under SUHL, joins Stanbic Bank Uganda, Stanbic Properties Uganda, Stanbic Business Incubator, and FlyHub in contributing to Uganda’s financial growth. SUHL is a listed entity on the Uganda Stock Exchange, reflecting its robust presence in the financial sector.
Breaking Barriers to Investment
At the launch event, SUHL Chief Executive Francis Karuhanga highlighted SBG Securities’ recent successes, including the MTN Uganda IPO in 2022, Africa’s largest IPO that year, and the subsequent oversubscribed secondary market offering. “Tonight, we are here to celebrate the success of one of our young businesses—SBG Securities, the entity specialized in investment management and advisory,” Karuhanga said.
SBG Securities Chief Executive Grace Semakula emphasized the accessibility of the SUT, which requires a minimum investment of just UGX 100,000 and subsequent deposits as low as UGX 50,000.
“The SUT shatters traditional barriers to entry, making investment accessible to a wider audience,” Semakula stated.
She added that their team of experienced fund managers will navigate the investment environment by diversifying portfolios across treasury bills, bonds, fixed deposits, and shares to minimize risk and maximize returns.
Flexible and Transparent Investment Options
The Stanbic Unit Trust offers three distinct funds to cater to various investment goals: the Money Market Fund (short-term), the Bond Fund (medium-term), and the Balanced Fund (long-term). Investors can also participate jointly, for minors, or as part of a savings group.
With an annual management fee of 2%, SBG Securities ensures professional oversight and management, further bolstered by its affiliation with the Standard Bank Group—Africa’s largest commercial bank by assets. The affordability and reliability of the SUT make it an attractive option for Ugandans seeking financial growth.
Rising Popularity of Unit Trusts
Traditionally, many Ugandans have favored investments in land or rental construction over conventional investment tools like stocks. However, unit trusts are gaining traction due to their transparency and affordability. Globally, the mutual fund industry manages over $60 trillion in assets, while Africa’s collective investment scheme (CIS) industry has grown to $120 billion, according to a 2022 survey by Africa CIS.
In Uganda, the unit trust industry has shown strong growth, with assets under management increasing by 20% in the past year, according to the Capital Markets Authority Uganda. “At Stanbic Uganda Holdings, we want to enable our customers to tap into this impressive growth,” Karuhanga said, emphasizing the importance of accessible financial investment services.
Join the Investment Revolution
Potential investors can easily onboard either physically at SBG Securities’ offices or digitally through their website. Required documents include a National ID, passport photographs, and completed forms.
“The Stanbic Unit Trust is a game-changer for Ugandan investors,” said SBG Securities Board Chair Aggie Konde.
“Our team of young expert professionals, led by our Chief Executive Grace Semakula, will ensure you enjoy a low-risk investment experience for your savings, coupled with flexible contribution options enabling individuals to steadily grow their funds.”
The launch of the Stanbic Unit Trust marks a significant step forward in making investment opportunities accessible to all Ugandans, promising a future of financial growth and stability.
