Why banks are joining unit trusts party

Banks are steadily taking positions, establishing in-house collective investment schemes that have, for long, been traditionally a reserve of fund managers, the majority of which are insurance firms. 

The move creates a new dimension, in which assets under management – especially by insurance firms managed under unit trusts – have grown exponentially in over four years since their first establishment in Uganda.

Data from Capital Markets Authority (CMA) indicates that as of June, assets under management stood at Shs3 trillion, a 10.4 percent increase from Shs2.78 trillion in March,…