Kampala, Uganda | THE INDEPENDENT | Julius Businge | XENO Investment Management Limited has reported Shs8bn as assets under management for the year ended December 2019.
Speaking at the virtual Annual General Meeting held today (Oct.26) in Kampala, Aeko Ongodia, founder and chief executive officer at Xeno said, the company recorded 164% growth in assets under management from 2018 to 2019.
It has been in operation for only three years.
It basically receives money from members of the public and invests it on their behalf in different asset classes across the East African region. Investors earn a return on their money per year depending on the company’s performance.
Ongodia said, the average yields on the money market side grew from 9.35% in 2018 to 11.79% in 2019. Bond funds had their yield grow from 14.5% in 2018 to 15.82% in 2019.
On the other hand, returns for the domestic funds dropped to -13.2% in 2019 from 15.6% in 2018. For regional equity funds, yields were recorded as 39.10% in 2019 compared to -7.50% a year before.
The key performance drivers for the money markets, according to Ongodia were, low inflation (2.9%) and robust GDP growth of 5.6%. A stable exchange rate also supported growth.
Meanwhile, the firm noted negative market sentiment on domestic equities, resulting in low demand and low activity.
The lifting of interest rate caps in Kenya resulted in a surge in the regional equities, according to Ongodia.
On a daily, Xeno executives help a person/investor to think through their financial dreams and recompose them into achievable goals with timelines.
It also guides investors on developing a customised plan for achieving their goals. It also builds and provides the technology to achieve investment goals.
“We are the only fund manager where all clients have a free personalised investment plan to achieve their goals,” Ongodia said.
He said, majority (93%) of their clients do not withdraw their funds. The firm currently has slightly over 900 investors, 10% of that figure are institutions.
The firm’s investment activities are regulated by Capital Markets Authority and Uganda Retirement Benefits Regulatory Authority.