UTT fund grows at pleasing pace

The Unit Trust of Tanzania (UTT) fund under management has doubled in less than five years, signifying the growing awareness and confidence of the fund’s products.

UTT’s fund under management (AuM) grew from 57bn/- of 2007 to 117bn/- as of Tuesday, an increase of 106 per cent increase mainly pushed by Umoja Fund. 

UTT acting Director of Marketing and Public Relation, Mfaume Kimario attributed the growth to aggressive marketing and promotion that gas gradually enable people to understand about the functions of the fund.

“Wise investments coupled with managing the fund’s resources well pushed the growth in the said duration,” Kimario said, hinting however that the fund still faces challenges due to lack savings and investing culture among the public.

Mr Kimario said the fund also encounters another saving related problem - people with interest to save and invest cannot do so because of insufficient incomes, “Those who are willing to save and invest later end up with nothing to invest because of their limited earnings.”

The Umoja Fund has contributed largely to the growth UTT which has doubled from 57bn/- in 2005 to 106bn/- as of Tuesday, showing investors’ growing confident of the unit. “The UTT’s AuM was boosted by Umoja Fund that even its unit net value surged from 70/- (during initial offer) to 236/- net value per unit.

It has over tripled in the last seven years,” Mr Kimario said. The Jikimu Fund is the only unit that pays income distribution and last year it paid 3/- but for investors that have invested over 1m/-. According to UTT, those who opt for quarterly income distribution have to have invested over 2m/-.

The fund size has reached 7.5bn/- as of the last week while net value per unit stands at 103/92. Wekeza Maisha and Watoto funds size has reached 2.25bn/- and 1.23bn/- while value per unit surged from 100/- each to 189/28 and 162/11 respectively.

The size of Liquid Fund that was launched last month reached 600m/- from 593m/-when the fund was opened. The LF is a short-term open-ended investment vehicle to the market, attracting neither entry nor exit fees. The fund, according to UTT, targets potential investors with idle funds.
Source: The Daily News, reported by Abduel Elinaza in Dar es Salaam
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