Financial Resilience

Financial Resilience

Our financial resilience will enable us to continue to create value not only for the organisation but for our members, communities, our broader stakeholder base and future members. Through prudent investment decisions, we are committed to growing our members’ savings and offering a competitive return and stimulating the economic growth in Uganda. The focus is on the long-term sustainability of the Fund. The Fund has adopted a robust investment strategy to ensure long-term performance and good returns for retirement benefits.

Strong financial performance enables us to deliver on all our strategic priorities and sustainability drivers.

The Fund continues to make a vast contribution and impact on Uganda’s economic frontier. Through our investments, we, directly and indirectly, create immense opportunities for Ugandans. The Fund is the largest investor in Uganda’s bond and equity markets and has a large footprint in the real estate market. The Fund contributes 14% of all deposits in the commercial bank critical for credit financing and 40% of government debt through its investment in stocks and Bonds issued by the Central Bank.

These investments, and the returns they generate, additionally contribute to Uganda’s fiscal revenue by way of various taxes paid, interest paid to members, salaries of our employees, and payment to suppliers of goods and services provided to the Fund.
Responsible investment is an integral part of the Fund’s investment thesis. We aim to identify long-term investment opportunities to reduce the Fund’s exposure to unacceptable risks. Climate change is a major risk and mitigating it is the responsibility of all.

In most of our equity investment decision-making, to the extent possible, we assess how companies impact the environment, society and opportunities. We look at companies that enable more environmentally friendly economic activity favourably. Through our active engagement model, we can directly engage with our portfolio companies on a wide range of material ESG-related considerations to enhance their long-term value to the Fund. We align these efforts to the value drivers of our portfolio companies, tailoring our approach to connect the issues that are most material to the companies’ long-term value creation and preservation. There are also companies we may choose not to invest in for sustainability or ethical reasons, for example, tobacco companies. On the other hand, we see merit in investing in companies with solutions that enable more environmentally friendly economic activity and sustainability.

These investments can have positive effects on other companies in the portfolio. These positive externalities can include reduced pollution, lower energy costs and more efficient use of resources.