Business
Uganda Unit Trusts surge by 40% in 2025
This surge reflects a profound shift in investor behaviour, a recalibration of risk appetite, and the growing maturity of Uganda’s capital markets.
Uganda Unit Trusts surge by 40% in 2025
By: Lydia Labanya, Journalist @New Vision
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Uganda’s unit trust industry has entered a new era as assets under management soared by 40% to sh3.34 trillion in 2025, marking one of the most significant expansions in the country’s financial sector history.
This surge reflects a profound shift in investor behaviour, a recalibration of risk appetite, and the growing maturity of Uganda’s capital markets.
“Economic growth remained robust at approximately 6.3%, supported by agriculture, services, and infrastructure investment. Inflation declined sharply to 3.1% by year-end, well below the Bank of Uganda target of 5%,” observed Zaccheus J. Kisesi, managing director of Old Mutual Investment Group (U) Ltd.
The flagship Old Mutual Investment Group (OMIG) Umbrella Trust Fund was the anchor, climbing 37% to sh3.29 trillion. Yet the most striking performance came from the OMIG Money Market Fund, which surged 279% to sh38.77b. This extraordinary growth underlines a clear investor preference for short duration instruments that preserve capital while delivering consistent yield. The Balanced Fund grew 78% to sh9.53b, while the Dollar Umbrella Trust Fund expanded 63% to $64.09m, highlighting the role of dollar denominated assets in hedging against currency volatility.
“Nothing has come to the attention of the Fund Manager to indicate that the Fund will not remain a going concern for at least twelve months from the date of this statement,” emphasised Kenneth Kitariko, Chairman of the Audit and Risk Committee.
Returns reinforced the growth story. The Umbrella Fund delivered 12.56%, the Balanced Fund 13.62%, and the Money Market Fund 11.77%. Even the Dollar Fund, with its conservative positioning, achieved 5.15%. These results demonstrate disciplined portfolio management in a high yield environment.
Trustees added weight to investor confidence. Roseline Ochola of Standard Chartered Bank Uganda confirmed that “every statement of financial position prepared by the manager fairly represents the assets and liabilities, as well as the income and distribution of income of every portfolio.”
The broader context matters. Uganda’s macroeconomic fundamentals held firm in 2025, with export receipts rising to $12.0b, driven by gold and coffee. The Uganda Shilling appreciated by 1.4% over the year, while equities delivered concentrated gains, with the Uganda Security Exchange All Share Index rising 36.58%. Against a backdrop of global uncertainty, Uganda’s financial markets stood out as resilient and attractive.
Looking ahead, 2026 presents a more complex landscape. Growth is projected at 6.5%, supported by advancing oil developments. Yet fiscal pressures linked to the electoral cycle are expected to widen the deficit to 6.4% of GDP, keeping yields elevated. The oil sector represents a structural turning point, but execution risk remains.
“Nothing has come to the attention of the Fund Manager to indicate that the Fund will not remain a going concern for at least twelve months from the date of this statement,” emphasised Kenneth Kitariko, Chairman of the Audit and Risk Committee.
Returns reinforced the growth story. The Umbrella Fund delivered 12.56%, the Balanced Fund 13.62%, and the Money Market Fund 11.77%. Even the Dollar Fund, with its conservative positioning, achieved 5.15%. These results demonstrate disciplined portfolio management in a high yield environment.
Trustees added weight to investor confidence. Roseline Ochola of Standard Chartered Bank Uganda confirmed that “every statement of financial position prepared by the manager fairly represents the assets and liabilities, as well as the income and distribution of income of every portfolio.”
The broader context matters. Uganda’s macroeconomic fundamentals held firm in 2025, with export receipts rising to $12.0b, driven by gold and coffee. The Uganda Shilling appreciated by 1.4% over the year, while equities delivered concentrated gains, with the Uganda Security Exchange All Share Index rising 36.58%. Against a backdrop of global uncertainty, Uganda’s financial markets stood out as resilient and attractive.
Looking ahead, 2026 presents a more complex landscape. Growth is projected at 6.5%, supported by advancing oil developments. Yet fiscal pressures linked to the electoral cycle are expected to widen the deficit to 6.4% of GDP, keeping yields elevated. The oil sector represents a structural turning point, but execution risk remains.
Uganda’s unit trust industry is no longer simply riding macroeconomic tailwinds. It is actively reshaping investor psychology, offering differentiated risk return profiles, and proving that disciplined strategy can transform volatility into opportunity. With assets now above sh3 trillion, Uganda’s funds are growing and setting the stage for a new chapter in frontier market investing.