UAP declares 12.27% interest on funds under retirement benefits scheme
Mr Stephen Lubowa (L), who represented the administrator, UAP Old Mutual Life Assurance and Ms Nantongo (R) unveil the interest rate for the year ended 2022 during the annual general meeting in Nakawa, Kampala. Photo / Courtesy
What you need to know:
- The scheme is managed by Housing Finance Bank, as the custodian, KCB (trustee), Old Mutual Investment Group (fund manager) and UAP Old Mutual Life Assurance Uganda, as the sponsor and administrator.
The UAP Life Umbrella Retirement Benefits Scheme has declared a 12.27 percent interest on funds under management.
Speaking during a hybrid annual general meeting in Nakawa, Kampala Friday, Ms Ramlah Nantongo, who represented the trustee - KCB Bank- said the scheme had managed to return a 12.27 percent interest, amid a turbulent economic environment, which had been characterised by high inflation, dampened economic growth and high commodity prices.
The scheme, which was established in 2015, is managed by Housing Finance Bank, as the custodian, KCB (trustee), Old Mutual Investment Group (fund manager) and UAP Old Mutual Life Assurance, as the sponsor and administrator.
It is regulated by Uganda Retirement Benefits Regulatory Authority
Mr Patrick Kimathi, the UAP Old Mutual Life Assurance managing director, who spoke on behalf of the administrator and sponsor, said the scheme membership in terms of participating employers had grown from 20 in 2015 to 52, noting that more effort was now being put into ensuring that the scheme invests in the right assets to ensure that member returns grow faster than the sector in general.
“The scheme has consistently declared annual interest above the market average, which speak into the commitment to deliver [better],” he said, highlighting that in 2022 alone, the administrator had received six new members.
Mr Kimathi also said that yields on short term government debt had dropped in the last quarter of 2022 due to moderation in inflation and an uptick in liquidity on the short tenors, noting that they are further expected to remain range bound due to external factors, among which include a widening fiscal deficit and continued budget constraint amplified by the expanding public debt.
Growth is expected to return across East Africa in the next financial year, however, Ms Nantongo said scheme will only invest in areas where returns shall be guaranteed.
