UTT explores wealth creation from equities

Dar es Salaam. UTT Asset Management and Investor Services (UTT-AMIS) has started wealth management services to explore the potential of wealth creation from equities and government securities.

Tanzanians with disposable income starting from Sh5 million will benefit from the service that has already started operations.

“From our research, we have established that there is huge market potential as there is enough idle cash in Tanzania,” said UTT marketing and public relations director Daud Mbaga.

“What we see is that most people do not have knowledge about investing in both equities and government securities and we want to help on that,” he told reporters yesterday. UTT-AMIS manages collective investment schemes like Umoja, Wekeza Maisha, Liquid, Watoto and Jikimu funds.

Investors like Muslims who are sensitive to investing in businesses like alcohol which they consider immoral will have a chance to discuss and agree on areas they would like their money to be channeled to, according to Mr Mbaga.

Tanzania has 25 companies listed on the Dar es Salaam Stock Exchange (DSE) with a market capitalisation of Sh21.8 trillion by yesterday.

Some counters like those of Tanzania Breweries Ltd (TBL) and National Microfinance Bank (NMB) gained by 13 and 10 per cent between January and September this year respectively.

The Tanga Cement (Simba) counter depreciated by 30 per cent during the same period. The risk-free government securities – both Treasury bills and bonds are still dominated by commercial banks, pension funds and insurance companies.

The auction of Treasury bills conducted yesterday recorded a total weighted average yield of 15.79 per cent per year meaning that investors could earn that much after 364 days.

The organisation was split in 2013 to have three organisations — UTT-AMIS, UTT Microfinance and UTT Projects and Infrastructure Development which are all operating.