What you need to know:
- UAP Old Mutual retuned a 79 percent growth in assets under management, rising from Shs615.4b in 2021 to Shs1.09 trillion
UAP Old Mutual Financial Services registered a Shs483.0b growth in assets under management for the period ended December 2022.
The growth, Prof Samuel Sejjaaka, the UAP Old Mutual Financial Services’ chairman, said was achieved despite a difficult business environment “marked by macro deviations and global uncertainties”, occasioned by the Russia-Ukraine crisis, global supply chain disruptions, elevated commodity prices, and adverse weather patterns.
Speaking during the company’s annual general meeting in Kampala Thursday, Prof Sejjaaka also indicated that UAP Old Mutual had “weathered the storm and emerged stronger,” noting that the growth had been achieved amid heightened inflationary pressures that saw headline and core inflation peak at 10.7 percent and 8.9 percent, respectively, in addition to a 4.83 percent deprecation of the shilling against the dollar.
During the period, UAP Old Mutual retuned a 79 percent growth in assets under management, rising from Shs615.4b in 2021 to Shs1.09 trillion.
The growth was largely driven by an 80 percent increase in the size of the UAP Umbrella Trust Fund, whose value rose to Shs1.08 trillion from Shs604.2b while assets under the UAP Balanced Fund rose by 10 percent from Shs3.35b to Shs3.68b.
However, the UAP Money Market Fund experienced a 33 percent decline, with the fund’s value dropping from Shs7.77b to Shs5.18b.
Prof Sejjaaka said that the challenges notwithstanding, UAP Old Mutual had navigated the complexities, stressing the company’s expertise in risk management and financial prudence.
“In this challenging environment, UAP Old Mutual efficiently managed its interest rate exposure, ensuring optimal returns for investors,” he said, noting that despite muted foreign investor appetite, the company made significant strides in managing its equities portfolio, which despite a decline in the Ugandan Stock Exchange All Share Index and Local Company Index by 11.45 percent and 13.04 percent, respectively, returned a total turnover of Shs39.41b.
However, the company noted that participation in the Nairobi Securities Exchange shares had remained cautious, due to a mixed equity market outlook, which has seen a lot of turbulence in the last three years.
Mr John Ggolooba, the UAP Old Mutual chief financial officer, said the company was confident in its strategic direction, that will continue to deliver above-market returns over the long term through sustained financial prudence, risk management, and innovation.