Old Mutual Uganda’s funds surge on rising investor demand and macroeconomic stability

A surge in investor demand and solid returns across its unit trust funds have propelled Old Mutual Investment Group Uganda’s assets as the firm pivots to digital innovation and new investment frontiers to sustain growth.

The firm’s latest abridged financial report shows strong growth across its unit trust funds in 2025, driven by rising investor appetite, improved macroeconomic stability, and increased uptake of professionally managed investment products.

The flagship OMIG Umbrella Trust Fund posted total income of Shs 419.6 billion, up from Shs 295.0 billion in 2024, while profit after tax rose to Shs 336.1 billion from Shs 231.9 billion. Its asset base expanded to Shs 3.31 trillion, up from Shs 2.44 trillion, largely supported by increased allocations to government securities and deposits with financial institutions.

Performance across other funds remained robust. The OMIG Balanced Fund recorded total income of Shs 1.16 billion, up from Shs 715.9 million, with profit after tax rising to Shs 937.2 million. Its total assets nearly doubled to Shs 9.64 billion.

The OMIG Dollar Fund also delivered strong results, with total income increasing to $3.2 million (Shs11.7 billion) from $1.6 million (Shs6.0 billion). Profit after tax stood at $2.45 million (Shs8.93 billion), while total comprehensive income rose to Shs10.38 billion. Assets grew to $64.3 million (Shs 237.9 billion), reflecting higher investments in fixed-income instruments.

Managing Director Zac Kisesi said the company is repositioning itself to align with a rapidly evolving investment landscape, placing technology and accessibility at the centre of its strategy.

“We have made deliberate investments in innovation, technology, and product development to ensure that accessing investment solutions is simpler, faster, and more rewarding,” Kisesi said.

A key milestone in this strategy is the rollout of the OmicWealth mobile app, which enables clients to open accounts, track portfolios, and transact remotely. The platform has also been integrated with major commercial banks, including Standard Bank, Equity Bank and Centenary Bank, allowing seamless transfers between bank accounts and unit trust investments.

Kisesi said the company aims to break down traditional barriers that have limited participation in formal investment channels.

“We believe that removing barriers to investing is key to encouraging greater participation in the capital markets,” he said.

Beyond digital access, the firm is also diversifying its offerings by bundling investment products with life assurance benefits, providing protection against risks such as death, disability, and critical illness.

Old Mutual has also secured approval from the Capital Markets Authority to manage alternative investment funds, opening new opportunities in sectors such as renewable energy, affordable housing, and infrastructure.

“If we don’t develop our country, no one will do it for us. It has to be locally generated capital,” Kisesi said.

Board chairman Geoffrey Kahuru attributed the company’s strong performance to a stable macroeconomic environment, noting that Uganda’s economy grew by about 6.3 percent while inflation eased to 3.1 percent.

He said strong exports, particularly gold and coffee, have supported investor confidence, alongside solid returns in financial markets, especially in banking and telecom stocks.

With assets under management now exceeding Shs4 trillion, Old Mutual maintains a market share of over 60 percent, cementing its position as Uganda’s largest asset manager.

The firm has also expanded into private wealth management, targeting high-net-worth individuals with tailored investment solutions.

Chief Finance Officer John Goloba said the umbrella fund grew by 34 percent to Shs3.3 trillion, generating investment income of about Shs255 billion.

The money market fund registered the fastest growth, with assets and returns more than doubling amid rising demand for short-term, liquid investment options.

Goloba added that the balanced fund continues to attract long-term investors seeking exposure to both equities and government securities, delivering competitive returns despite market volatility.

Overall, the company’s funds have grown more than fivefold over the past five years, underscoring increasing confidence among Ugandan investors.

Looking ahead, Old Mutual plans to deepen innovation, maintain disciplined investment strategies, and expand into new asset classes as Uganda prepares for oil production and navigates global economic uncertainties.

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