Uganda: Low Fees, Payouts Starve Uganda Pensions Industry

Oct 11, 2019 | The East African; All Africa

Latest data compiled by Uganda's pension industry regulator has revealed shifts in market share rankings posted by local fund managers, underlying revenue risks and skewed opportunities enjoyed by big banks against small peers in terms of access to fat, short term deposits supplied by pension schemes.

The data shows Sanlam Investments Uganda Ltd recorded the highest share of pension scheme assets under management between April and June 2019, amounting to Ush822.4 billion ($222 million) followed by GenAfrica Asset Managers with Ush428.4 billion ($115.7 million) during the same period.

Stanlib Uganda registered total assets worth Ush376.6 billion ($101.7 million) while Britam Asset Managers posted overall assets valued at Ush81.5 billion ($22 million).

UAP-Old Mutual Financial Services recorded total assets valued at Ush57.3 billion ($15.5 million) and ICEA Asset Management registered total assets worth Ush43.3 billion ($11.7 million) at the end of June 2019.

Fierce competition

Whereas Sanlam Investments Uganda controls assets belonging to 21 pension schemes compared to 11 pension schemes enrolled by GenAfrica Asset Managers, ICEA Asset Management Uganda serves only two pension schemes in its client portfolio.

The data covers eight licensed fund managers including the National Social Security Fund plus 62 of 63 licenced pension schemes captured on the Uganda Retirement Benefits Regulatory Authority (URBRA) database.

Total assets held by the retirement benefits industry rose from Ush12.5 trillion ($3.4 billion) to Ush13 trillion ($3.5 billion) between April and June 2019, according to URBRA figures.

More than 50 per cent of Ugandan pension scheme assets under management are held by schemes with assets exceeding Ush80 billion ($21.6 million)... Read more on All Africa

Source: All Africa