KAMPALA – Capital Markets Authority – CMA has awarded two companies and one Investor Resource Person at its inaugural Collective Investment Schemes (CIS) Awards.
The awardees include Sanlam Investments East Africa Limited which scooped two awards; 2022/23-Year-On-Year Growth in CIS Accounts and 2022/23-Year-On-Year Growth in Assets Under Management (AUM).
UAP Old Mutual Financial Services Ltd was recognized as 2022/23-Cis Manager of the Year whereas Mr. Andrew Mwima went away with 2022/23-Investor Resource Person of the Year.
Speaking at the CIS CMA awards breakfast on Tuesday morning, Mr. Keith Kalyegira – CEO CMA commended the winners and all their stakeholders, noting that their hard work and commitment have not only brought them recognition but also played a crucial role in shaping the financial landscape and contributing to the prosperity of investors.
He said that the CIS industry Assets Under Management have grown tremendously over the last 5 years.
“Five years ago, Ugx 1.75 trillion AUM was a dream. To put this in perspective, at the end of the financial year 2015/2016, AUM stood at Ugx 21.9 billion.”
He attributed this to increased awareness of Collective Investment Schemes among local investors, which he says has seen more Ugandans open CIS accounts and save through them.
“The increased awareness is due to the public education campaigns run by both the CMA and CIS managers. Additionally, regulatory oversight has given Ugandans confidence to invest through CIS.”
Mr. Kalyegira said that the CIS industry has long been an essential component of capital markets, providing individuals and institutions with the opportunity to grow their wealth and achieve their financial goals.
He called for efforts to make CIS a mass-market product similar to that of Ghana which he revealed has over 900,000 CIS accounts with the average savings per account being the equivalent of Ugx 3.7 million.
“In contrast, In Uganda, with 56,787 CIS accounts, the average savings per account is Ugx 31.25 million. The unanswered question in the room is, “What must we improve to democratize CIS Accounts?”
He added, “Continuous innovation, improved turnaround time, and integration of mobile technology services will be key in ensuring the general population in Uganda is able access CIS.”
Mr. Saul Seremba – Board Chairman, CMA also congratulated the winners, noting that unwavering dedication to excellence, investor protection and growth has propelled the collective investment schemes industry to new heights of success.
“Through your expertise and commitment, you have played a pivotal role in providing investors with a trusted avenue to participate in the capital markets and achieve their financial goals.”
He noted that Collective Investment Schemes have the ability to change lives, shape futures, as well as providing financial security by empowering individuals to achieve their goals, “whether it is funding a child’s education, saving for retirement, or realizing their dreams.”
“Collective investment schemes, with their diverse range of investment vehicles, have significantly contributed to the development and growth of our capital markets. These schemes have opened up opportunities for individuals and institutions to pool their resources and access professional fund management expertise, thereby facilitating broader participation and enhancing market liquidity,” said Mr. Seremba.
According to him, the current AUM of UGX 1.75 trillion by the CIS industry was a dream that, even the third National Development (NDPIII) did not envision.
“It is because of your collective efforts that the UGX 1.02 trillion target of the NDP III was achieved three years ahead of time.”
To stay ahead, Mr. Seremba said they must continually innovate and adapt to the changing dynamics of the financial world.
“The challenges we face may evolve, but our shared goal of fostering a robust and thriving Collective Investment Schemes industry remains constant.”
He called for collaboration and knowledge sharing as vital components for industry development.
“I urge you to leverage this event as a platform for networking, fostering relationships, and exchanging ideas. By coming together, we can collectively address challenges, seize opportunities, and further elevate the collective investment schemes industry in Uganda.”