Key Players in the Capital Markets: Unit Trust Managers

Ever wondered who’s who in the world of collective investment schemes (CIS) ? From unit trust managers to custodians, each plays a pivotal role in ensuring that your savings are safe. Join us in this series of articles as we dissect the world of collective investment schemes and provide a simple and clearer understanding of the roles of those who participate in it.

In this installment, we shall discuss unit trust managers and elaborate on their role in the capital markets.

What is a unit trust manager?

To begin with, a unit trust manager is a licensed person or entity who manages the funds collected through a unit trust scheme. A unit trust scheme is a collective investment scheme (CIS) , which pools contributions from investors with a common investment objective. These are held and invested in trust for the participants in this scheme.

What do unit trust managers do?

The primary role of unit trust managers is to analyze market trends, select suitable investment opportunities and make informed investment decisions on behalf of investors.

Unit trust managers are also responsible for other activities such as actively monitoring investment portfolios, selling units to the public and pricing units to sell to or buy back from investors.

Why are unit trust managers important?

Having professional unit trust managers handle unit trusts is important because it makes it possible for average individuals to tap into the wealth of knowledge these experts have. By entrusting their investments to qualified professionals, investors ensure that their funds are used as effectively as possible.

Unit trust managers are also important because they are licensed professionals who prioritize transparency and compliance when making investment decisions. As a result, investors can be confident that their investments are properly handled and secured.

Therefore, when investing in Uganda’s unit trusts schemes, it is critical that investments are made only through unit trust managers who are licensed and regulated by the Capital Markets Authority. You can find a full list of licensed unit trust managers on our website : https://cmauganda.co.ug/supervision/licensing-approvals/licensed-firms/

In conclusion, unit trust managers are an integral part of capital markets and help ensure that your money is effectively put to use while continuously remaining complaint to the regulatory framework.