January 2024 Unit Trust Update – UAP Old Mutual Umbrella Trust Fund Performance and Strategy

January 2024 kicked off with strong performance from the UAP Old Mutual Umbrella Trust Fund, offering low-risk investors a secure and rewarding way to grow their money. As the shilling faced depreciation and short-term interest rates shifted, the fund continued to deliver inflation-beating returns. For investors seeking a dependable start to the year, this fund stood out once again.

Fund Overview

The Umbrella Trust Fund, managed by UAP Old Mutual Investment Group – Uganda, is designed for income-seeking investors who want capital preservation, low volatility, and above-average returns.

Key fund details:

• Fund Size: UGX 1.719 trillion

• Minimum Investment: UGX 1,000,000

• Top-Up Amount: UGX 100,000

• Liquidity: T+2 (withdrawable within two business days)

• Risk Level: Low

• January 2024 Yield: 11.33 percent

• Management Fee: 2 percent

• Initial Fee: 0 percent

• Launch Date: 20 August 2013

This fund is particularly suitable for investors with medium- to long-term goals who want steady income without unnecessary risk.

Performance Summary

The Umbrella Trust Fund performed strongly across all major timeframes and remained well ahead of its benchmark.

These results demonstrate the fund’s long-term consistency, offering attractive risk-adjusted returns even during macroeconomic uncertainty.

What the Fund Invests In

The fund allocates capital into stable, interest-earning securities with a focus on protecting investor capital while generating consistent income.

As of January 2024, the portfolio was allocated as follows:

• Treasury Bonds: 33.98 percent

• Treasury Bills: 29.89 percent

• Corporate Paper: 26.20 percent

• Fixed Deposits: 5.14 percent

• Cash and Call: 4.70 percent

This mix of instruments helps ensure safety, liquidity, and steady earnings for all investors.

Why This Fund Matters for Ugandan Investors

In January, the Uganda shilling depreciated by 0.84 percent, closing at 3,814.04. Meanwhile, inflation was projected to remain below the Bank of Uganda’s 5 percent target in the near term. Amid this backdrop, the fund’s 11.33 percent yield provided a strong cushion for capital preservation and real income growth.

This fund is a reliable choice for:

• Planning for tuition, land, or retirement

• Saving toward a long-term financial goal

• Building a stable emergency fund

• Investors seeking better returns than fixed deposits

How to Invest with Level Africa

Investing through Level Africa is simple and accessible. Here’s how to get started:

1. Create an account at Level Africa

2. Upload your National ID or Passport to complete KYC

3. Go to the Unit Trusts section

4. Select the Umbrella Trust Fund

5. Deposit funds into your wallet

6. Place your investment order

7. Track your fund performance from your dashboard

Final Thoughts

Despite currency headwinds and inflationary concerns, the UAP Old Mutual Umbrella Trust Fund delivered steady returns in January 2024. If you’re looking to start the year with a low-risk, inflation-beating investment, this fund continues to be a strong and reliable choice.

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Frequently Asked Questions

What is a unit trust?

A unit trust is a professionally managed investment fund where multiple investors pool their money to invest in fixed-income instruments like treasury bills, bonds, and corporate paper.

How does a unit trust work in Uganda?

You buy units in the fund, which increase or decrease in value based on how the fund’s investments perform. You can cash out your investment at any time, typically within two working days.

What are the benefits of investing in a unit trust?

• Low-risk with professional management

• Strong returns compared to traditional savings

• Easy to access and liquid

• Regulated by the Capital Markets Authority

• Ideal for medium- to long-term financial planning

Is the Umbrella Trust Fund safe?

Yes. It is categorized as low risk and invests primarily in government and corporate fixed-income instruments, which are considered secure.

What is the minimum investment required?

As of January 2024, the minimum investment was UGX 1,000,000 with top-ups from UGX 100,000.

Can I lose money in a unit trust?

While all investments carry some risk, this fund is designed to preserve your capital. Losses are highly unlikely unless there is a drastic economic downturn.

How do I start investing with Level Africa?

1. Sign up at Level Africa

2. Upload your ID

3. Choose a fund

4. Fund your wallet

5. Place your order

6. Track your returns online

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