UAP Old Mutual Financial Services gathered shareholders, investors, and stakeholders at its Annual General Meeting (AGM) to reflect on the exceptional progress achieved during the past year. 

Despite challenging economic conditions, UAP Old Mutual demonstrated resilience and strategic acumen, positioning itself for continued growth and success in the financial services sector.

Addressing the AGM, Professor Samuel Sejjaaka, Chairman of UAP Old Mutual, highlighted the economic landscape and its impact on the company's performance. 
He noted that 2022 marked a year of macro deviations and global uncertainties, with Uganda's economic growth rate rebounding to 4.6%, a significant increase from 3.5% in the previous period.

Despite the challenges posed by the Russia-Ukraine crisis, global supply chain disruptions, elevated commodity prices, and adverse weather patterns, UAP Old Mutual weathered the storm and emerged stronger. Headline and core inflationary pressures peaked at 10.7% and 8.9%, respectively, while the local currency depreciated by 4.83% against the US Dollar. Nonetheless, the company navigated these complexities adeptly, showcasing its expertise in risk management and financial prudence.

Interest Rates and Equities
According to Prof. Samuel Sejjaaka, the year 2022 witnessed a mid-year deterioration in the balance of risks, leading to a more stringent monetary stance, with the Central Bank Rate raised to 10% at year-end. 

“In this challenging environment, UAP Old Mutual efficiently managed its interest rate exposure, ensuring optimal returns for investors. Despite a challenging equities market, characterized by muted foreign investor appetite, UAP Old Mutual demonstrated strategic agility and made significant strides in managing its equities portfolio. The Ugandan Stock Exchange All Share Index (USE ALSI) and the USE LCI declined by 11.45% and 13.04%, respectively. Despite these setbacks, UAP Old Mutual managed to maintain a solid performance, and the total turnover increased to UGX 39.41 billion for the fiscal year 2022,” explained Sejjaaka.

Fund Growth and Strategy
While explaining to a group of stake holders and Old Mutual clients, Sejjaaka added that the flagship umbrella trust fund experienced an 80% growth, contributing significantly to the overall 79% growth in fund size, which closed the year at UGX 1,098 billion in Assets Under Management. He explained further that UAP Old Mutual strategically allocated investments, focusing on government securities that provided improved yields compared to other assets. By maintaining a bias towards the medium to longer end of the yield curve, the company managed to optimize returns for its investors.

The company's participation in the Nairobi Securities Exchange (NSE) shares remained cautious, aligning with the equity market outlook. Despite these challenges, UAP Old Mutual achieved fund returns of 11.63%, 11.07%, and 11.63% for the Umbrella Trust Fund, Money Market Fund, and Balanced Fund, respectively, outperforming benchmark returns.

Confidence in the Future
Jovita Babirye, Associate Director, KPMG confirmed that the financial statements, Balanced fund, money market funds, and Unit Trust Fund were audited. 

“In our opinion, the financial statements present fairly, in all material aspects, the financial position of the Unit Trust Funds as at 31st December 2022, and of its financial performance and its cash flows for the year ended in accordination with international Financial Reporting Standards and in the manner required by the capital Markets Authority Act 2016 Law of Uganda and the collective Investment Schemes (Financial and Accounting) Regulations 2003 Laws of Uganda,” said Babirye.