Collective investment funds under UTT swim in profits

Unit Trust of Tanzania-- Assets Management and Investor Service (UTT-AMIS) scheme has grown by 25 per cent, thanks to the good performance of the Dar es Salaam Stock Exchange in the last half of 2014.

The scheme, the largest in the country, attributed the good performance on DSE due to investment in the equity market which between July and December, last year, rallied to new highs after the opening of capital account.

The fund, managed five collecting schemes, which ballooned from 179bn/- of first half to 227bn/- of second half of same 2014.

The UTT-AMIS, Chief Operation Officer, Mr Simon Migangala, said the DSE performance was the key factor but debt market return also contributed significantly.

“Generally, the financial performance of the scheme has been exceptionally good and has provided very high returns to our investors,” Mr Migangala told journalists.

The best performing scheme was Watoto Fund that grew by 51.19 per cent, followed by Wekeza Maisha 45.23 per cent. On the third position was Umoja Fund which grew by 38.46 per cent, the fourth was Jikimu Fund by 36.77 per cent and Liquid Fund by 11.46 per cent.

“We are very happy with the returns our investors obtained during the last six months (of last year),” Mr Migangala said. For the said period, Net Asset Value (NAV) for all the schemes increase considerably where Umoja value increased from 365/68 to 435/90, Wekeza Maisha from 237/53 to 291/15, and Watoto Fund from 213/75 to 268/31.

Others which also increased exceptionally are Jikimu from 118/17 to 131/14- -with dividend of 4/- per quarter--and Liquid Fund from 114/36 to 120/93.

“The figures show significant increase,” Mr Migangala said, “though the gains are nominal, but minus inflation the increase is still high than a number of interest rates on financial markets.”

The UTT-AMIS benchmarked its schemes on government securities and DSE’s Tanzania Share Index (TSI) which on average the return on investment was higher than the threshold.

Despite the exceptional performance in the last half of 2014, UTT-AMIS still is struggling to increase wouldbe- investors awareness as still the total number of its clients is slightly over 100,000.

The Unit Trust of Tanzania (UTT) was incorporated in 2003. But some three years ago was split into three companies to better serve the people. Others are UTT Project and Infrastructure Development and UTT Microfinance.
Source: Daily News, reported by Abduel Elinaza, from Dar es Salaam, Tanzania
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