Uganda’s assets managed under CIS expanded significantly as at the end of December 2024, the latest quarterly Bulletin by the Capital Markets Authority (CMA) indicates.
The AUM exceeded the equivalent of US$ 1 billion for the first time, marking a milestone in Uganda’s journey to mobilize savings through CIS.
The report shows that CIS Managers had a total of UGX 3.85 trillion (US $ 1.05 billion) AUM at the end of December 2024, representing a growth of 9.6% from UGX 3.51 trillion, at the close of September 2024.
On an annualized basis, the Bulletin indicated that AUM expanded by 63.2% from UGX 2,357.5 billion at the end of December, 2023.
The total number of funded CIS accounts at the end of December 2024 was 113,445, compared to 101,637 investor accounts at the end of the previous quarter, an increase of 11.6%.
On an annualized basis, the number of accounts increased from 70,771 at the end of December, 2023, an increase of 60.29%.
Robust regulatory safeguards that have cultivated investor trust and confidence, channeling of NSSF midterm funds accessed by members into CIS and increased investor awareness of the advantages of investing through CIS have contributed to the growth in AUM and CIS accounts. Additionally, the licensing of 7 CIS managers (who include; Britam Asset Managers Uganda Limited, ICEA Lion Asset Management Limited, Sanlam Investments East Africa Limited, SBG Securities Limited, Old Mutual Investment, Cornerstone Asset Managers and Xeno Technologies Uganda Limited) has also been a key driver.
Regionally, the Quarterly Bulletin noted that Kenya had the highest level of AUM at US $ 2.44 billion while Tanzania’s AUM stood at US $ 1.05 billion.
Commenting on the developments, Josephine Okui Ossiya, CEO of the Capital Markets Authority, stated: “We continue to see remarkable growth in CIS AUM as more Ugandans recognize the advantages of investing through pooled savings vehicles. The strong regulatory framework has boosted investor confidence by ensuring protection when investing in regulated financial products like CIS funds. We urge Ugandans to invest only in regulated financial products or engage with licensed entities to safeguard and grow their hard-earned savings.”
