Ugandan local startup XENO grows to sh8 billion as individuals join to save as little as sh10,000

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By close of October, 2017, Xeno, a technology driven local investment management firm had only 8 investors on board.

Nearly three years down the road, the local firm has grown its investor base to 6,000 investors. By end of December 2019, the firm had about 4,000 investors comprising of institutions and individuals.

Xeno chief executive officer Aeko Ongodia told journalist during the firm’s annual virtual general meeting in Kampala that the diversification of its investment portfolio has given chance to ordinary Ugandans invest regional markets.

Xeno help clients to plan, save, and invest for financial goals so that clients can achieve the financial security to confidently live the life you deserve.

As of December 2019, XENO’s total assets under management grew by 164% to sh 8 billion from sh 3.3 billion in 2018.

The firm invests client funds through four unit trust funds including; money market, bonds, domestic Equity Fund, and regional equities.

“In 2019, the XENO Uganda Money Market Fund had an average yield of 11.79% compared to 9.35% in 2018 and the XENO Uganda Bond Fund had average yield of 15.82% compared to 14.5% in 2018,” Ongodia said.

“The XENO Uganda Domestic Equity Fund returned –13.2% compared to 15.6% in 2018 and the XENO Uganda Regional Equity Fund returned 39.1% compared to decline of 7.5% in 2018,” he added.

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Ongodia explained the yields in the money markets and bond markets were underpinned by stable inflation averaging 2.9%, GDP growth rate of 5.6% and a stable Uganda shilling that appreciated modestly against all other major currencies.

The performance in the regional equity markets was powered by a late rally by the Kenyan banking stocks following the lifting of the interest caps by the Kenyan parliament in November 2019.

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