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

The UAP Old Mutual Umbrella Trust Fund continued its strong start to 2024 with another month of reliable performance. In February, the Ugandan shilling weakened and short-term interest rates rose slightly, yet the fund still delivered a stable return for income-seeking investors. If you’re looking for an investment that protects your capital while offering better-than-average yields, this fund continues to deliver.

Fund Overview

Managed by UAP Old Mutual Investment Group – Uganda, the Umbrella Trust Fund is built for investors who value capital preservation, regular income, and peace of mind.

Key features as of February 2024:

Fund Size: UGX 1.770 trillion
Minimum Investment: UGX 1,000,000
Top-Up Amount: UGX 100,000
Liquidity: T+2 (funds accessible within two business days)
Risk Level: Low
February 2024 Yield: 11.14 percent
Management Fee: 2 percent
Initial Fee: 0 percent
Launch Date: 20 August 2013

This fund is ideal for long-term investors, retirees, and savers looking to beat inflation without taking on high risk.

Performance Summary

The fund once again outperformed its benchmark across all key periods.

Period	Return (%)	Benchmark (%)
February 2024	11.14	8.60
Quarter to Date	11.58	8.58
Year to Date	11.72	8.90
Since Inception	11.88	8.46

These numbers show the fund’s ability to generate consistent income in a volatile economic environment.

What the Fund Invests In

The fund is diversified across secure, interest-earning investments, providing stability and steady returns.

Asset allocation as of February 2024:

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 blend balances short-term liquidity with medium- and long-term income generation.

Why This Fund Matters for Ugandan Investors

February saw the Uganda shilling depreciate by 3.3 percent, closing at UGX 3,939.75. At the same time, the 364-day Treasury bill rate rose to 13.14 percent, reflecting market concerns over government borrowing. Against this backdrop, the Umbrella Trust Fund’s 11.14 percent return still delivered value above inflation and above most bank savings products.

The fund is especially useful for:

Saving toward school fees, land, or a major purchase
Building a secure emergency fund
Retirees seeking income without volatility
Anyone looking for an alternative to fixed deposits or SACCOs

How to Invest with Level Africa

Investing in the UAP Old Mutual Umbrella Trust Fund through Level Africa is quick and straightforward.

Here’s how to begin:

Create an account at Level Africa
Upload your National ID or Passport to complete KYC
Go to the Unit Trusts section
Select the Umbrella Trust Fund
Deposit funds into your wallet
Place your investment order
Track your performance from your dashboard

You can start investing with UGX 1,000,000.

Final Thoughts

Despite exchange rate volatility and rising yields, the UAP Old Mutual Umbrella Trust Fund delivered another strong month of low-risk, inflation-beating returns. For investors looking to grow and protect their money, this fund remains a safe and smart choice.

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Frequently Asked Questions

What is a unit trust?

A unit trust is a collective investment where many investors pool their money to be professionally managed and invested in government securities, bonds, and fixed deposits.

How do unit trusts work in Uganda?

You buy units in the fund. The value of your units grows as the fund earns returns. You can sell your units at any time and access your money in two working days.

Why choose a unit trust over a savings account?

Unit trusts offer higher returns, expert management, and better inflation protection than a typical savings account.

Is the Umbrella Trust Fund safe?

Yes. It is classified as low risk and regulated by the Capital Markets Authority. The fund primarily invests in safe, interest-earning assets.

What is the minimum amount to invest?

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

Can I lose money in a unit trust?

While returns can vary slightly, low-risk unit trusts are structured to preserve your capital. The Umbrella Trust Fund aims to deliver steady income with minimal downside.

How do I get started on Level Africa?

Sign up at Level Africa
Upload your ID
Select the Umbrella Trust Fund
Deposit money
Place your order
Monitor your investment anytime