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New wealth creation fund for post pandemic Uganda

Sanlam Investment East Africa last week unveiled an Income Fund that it says will boost the creation of wealth and investment in the capital markets for Ugandans.

The launch that was held in Kampala on September  7, was presided over by Keith Kalyegira, the chief executive officer, Capital Markets Authority with other notable contributors in the financial sector in attendance.

Dubbed the Sanlam Income Fund, the product will be accessible to prospective investors in Uganda, for as low as Shs 100, 000 and yet offer returns above the prevailing inflation rate.

Mark Mulatya, the chief operating officer Sanlam Investments East Africa said while speaking at the launch,  Mulatya noted that financial stability through wealth creation is something Sanlam is looking to run by its clientele.

“There’s no better time to respond to the current needs of Ugandan investors than now when many traditional investment opportunities are threatened by the Covid-19 pandemic and its adverse effects.”

Adding: “We have witnessed a sharp rise in demand and uptake of the Sanlam Income Fund to a tune of over Shs 8 billion We, therefore, look forward to emulating the strong growth we have seen in similar products that we offer elsewhere in the East African region, where in total Sanlam Investments East Africa is responsible for the investment of over $3.3 billion in clients’ assets”

The product is expected to become popular among prospective investors as a wide range of benefits like capital preservation, access their money anytime without any loss of interest, and a  monthly compounded interest

Kalyegira also encouraged investors to safeguard their investments by trusting products that are managed by unit trust managers as they have experience in managing the volatility in the markets. He also called for more investment in equity markets considering the potential they have to grow the industry.

“I think there are 14 schemes altogether and you are the 15th and if my memory serves me right there’s only one equity fund. We want to receive more equity funds to catalyze activity in the equity markets as well.”

Kalyegira further says that CMA in wanting to see more liquidity in the equity and debt capital markets more has to be done to see to it that investors get value for money.

“We want to make sure that anytime you want to exit any of these markets there is no doubt about the valuation or the pricing that you will be able to obtain in the secondary market.

As a solution for pension funds seeking to diversify their holdings in an effective and timely manner, Sanlam’s Income Fund is a well regulated fund that promotes sustainable wealth creation and growth, for individuals and institutions in Uganda.

Martin Nsubuga, chief executive officer, Uganda Retirement Benefits Regulatory Authority (URBRA), applauded Sanlam for their timely addition to the growing options for pensioners to invest in  

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