Old Mutual Launches Unit Trust Product with Integrated Life Cover

KAMPALA — Old Mutual Uganda, through its investment arm Old Mutual Investment Group (OMIG) in partnership with Old Mutual Life Assurance Uganda (OMLAU), has officially launched an enhanced Unit Trust product integrating life and education protection benefits for investors.

The new product was unveiled on Thursday at Protea by Marriott Skyz Hotel in Naguru, where executives from Old Mutual, regulators, investors, and financial sector stakeholders gathered to witness the launch of what the company described as a new approach to combining investment growth with financial protection.

The offering integrates life cover and education protection into Old Mutual’s existing Uganda Shilling Unit Trust funds, allowing investors who maintain their balances to access insurance benefits without paying additional premiums.

Speaking at the launch, Zacchaeus Kisesi, Managing Director of Old Mutual Investment Group (OMIG), said the enhancement was developed after the company observed a pattern among investors withdrawing their savings prematurely to handle unexpected life events.

“We enhanced the Unit Trust because we recognised a recurring challenge among investors,” Kisesi said. “Many customers withdraw their investments prematurely to respond to emergencies such as funeral expenses, disability, or urgent family obligations.”

He said the innovation aims to ensure clients can continue growing their investments while having a safety net during difficult circumstances.

“These enhancements transform the unit trust from a standalone investment vehicle into a more holistic financial solution,” he said. “They help reduce the need for premature withdrawals during times of crisis, allowing clients to remain invested while still having meaningful financial protection.”

Unit trusts are collective investment schemes that pool funds from multiple investors and place them in professionally managed portfolios such as government securities, fixed income instruments and other financial assets. In Uganda, the products have increasingly become popular among individuals, companies, SACCOs and institutional investors seeking steady returns and diversified investment options.

Kisesi noted that since Old Mutual introduced its interest funds in 2014, the asset class has experienced steady growth despite economic disruptions such as the COVID-19 pandemic.

“Unit trusts have grown tremendously because of their simplicity, daily compounded returns, and ease of access,” he said. “But today’s client is not the client of yesterday. Today’s client is informed and always asking us what more we can offer.”

The enhanced product introduces three key benefits linked to the investor’s unit trust account balance.

These include the Life Care Benefit, which provides financial support to beneficiaries if the account holder dies; the Lifetime Benefit, which supports investors in the event of disability or critical illness; and the Scholar Benefit, which helps pay school fees for dependents if the account holder passes away.

According to Old Mutual, investors who maintain the required minimum balance for at least three months automatically qualify for the benefits, which are reviewed quarterly and increase depending on the size of the investment portfolio.

Patrick Kimathi, Managing Director of Old Mutual Life Assurance Uganda, said the product represents a strategic partnership between the company’s asset management and insurance arms.

“This enhancement is the result of a deliberate partnership between Old Mutual Investment Group and Old Mutual Life Assurance,” Kimathi said. “By combining investment expertise with life assurance capabilities, we are delivering a solution that addresses both wealth growth and financial protection.”

Kimathi noted that insurance remains underutilised in many markets because customers rarely seek it out proactively. “Life insurance is a product that is usually pushed rather than purchased,” he said. “Rarely do people walk into our offices asking to buy life insurance, yet it is extremely important for individuals, families and communities.”

He said embedding life cover within an existing investment product makes it easier for clients to benefit from protection without going through a separate application process.

“It is seamless because the benefit is embedded directly into your existing investment portfolio,” he added. “Customers are not paying anything extra, yet they are receiving meaningful protection.”

Regulators present at the event welcomed the innovation, saying integrated financial solutions could play a key role in strengthening Uganda’s financial markets.

Denis Kizito, Director of Market Supervision at the Capital Markets Authority (CMA), said the product demonstrates how financial institutions can design solutions that address real-life challenges faced by investors.

“Unexpected life events and financial shocks can sometimes force investors to liquidate their investments prematurely,” Kizito said. “By combining investment with a layer of financial protection, this solution acknowledges the realities investors face while supporting their ability to maintain long-term financial goals.”

He added that collective investment schemes such as unit trusts have become an important gateway for ordinary citizens to participate in capital markets. “Unit trusts allow individuals to access professionally managed portfolios, diversify risk and participate in the long-term growth of the economy,” Kizito said.

Officials from the Insurance Regulatory Authority (IRA) also praised the initiative, saying innovation in financial services should ultimately improve protection for consumers.

“Insurance exists to turn uncertainty into resilience,” said Charles Katabira Muhwezi, a representative of the authority. “Embedding protection within investment solutions represents the kind of forward-thinking approach that strengthens financial inclusion and expands the role of insurance in people’s lives.”

Old Mutual officials said investors will be able to monitor their investment balances and corresponding protection levels through the company’s client portal, with plans to extend access through a mobile application.

While the embedded life cover provides an additional layer of protection, Kimathi noted that it may not replace comprehensive insurance policies for customers with larger financial obligations.

“This cover is an appreciation for customers saving with us,” he said. “For broader needs such as full education plans or larger protection requirements, we still encourage clients to explore our wider range of insurance products.”

The company said the initiative forms part of its broader strategy of positioning itself as a “financial wellness” provider, offering integrated services that cover savings, investment, insurance and financial planning.

For Old Mutual, executives said the launch represents both a milestone and a starting point for further innovation. “You asked us, ‘What else?’” Kisesi told customers at the event. “Today, we have provided an answer.”