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

In March 2024, the UAP Old Mutual Umbrella Trust Fund continued to deliver reliable returns, even as Uganda’s currency weakened and inflation risks remained on the horizon. With a low-risk profile and a strong track record, the fund remains a dependable choice for investors looking to preserve capital while earning consistent income.

Let’s break down how the fund performed this month and what that means for you as a smart investor in Uganda.

Fund Overview

The Umbrella Trust Fund, managed by UAP Old Mutual Investment Group – Uganda, is ideal for medium- to long-term investors who want steady income with low volatility.

Here’s a snapshot of key facts as of March 2024:

• Fund Size: UGX 1.850 trillion

• Minimum Investment: UGX 1,000,000

• Top-Up Amount: UGX 100,000

• Liquidity: T+2 (you can withdraw in two business days)

• Risk Profile: Low

• March 2024 Yield: 11.23 percent

• Management Fee: 2 percent

• Initial Fee: 0 percent

• Launch Date: 20 August 2013

This fund is designed to protect your money while delivering better returns than most traditional savings options.

Performance Summary

The fund continued to outperform its benchmark, showing strong consistency over time.

The benchmark is based on a weighted average of the 91-day T-bill rate, average call rate, and inflation. The Umbrella Trust Fund’s returns continue to exceed this benchmark, giving investors an edge over inflation and short-term deposit products.

What the Fund Invests In

The fund is built around high-quality, interest-generating assets that offer stability and yield. It maintains a well-diversified portfolio across government and corporate fixed-income instruments.

Asset allocation as of March 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 balanced allocation helps the fund provide consistent income while reducing risk.

Why This Fund Matters for Ugandan Investors

March 2024 saw the Uganda shilling close 3.3 percent weaker at UGX 3,939.75, and treasury yields continued to rise due to budgetary pressures and growing demand for domestic borrowing. Even with these challenges, the Umbrella Trust Fund delivered a yield of 11.23 percent, which is well above inflation and typical savings products.

This fund is a practical choice if you are:

• Planning for long-term goals like school fees, land, or retirement

• Building an emergency fund

• Seeking low-risk, monthly income

• Looking for a better option than fixed deposits or SACCO savings

How to Invest with Level Africa

Starting your investment journey through Level Africa is quick and accessible:

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 performance on your dashboard

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

Final Thoughts

The UAP Old Mutual Umbrella Trust Fund continues to show resilience in a volatile economic climate. With strong performance, daily liquidity, and low entry requirements, it’s one of the best low-risk investments for Ugandans seeking long-term financial growth.

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Frequently Asked Questions

What is a unit trust?

A unit trust is a type of pooled investment fund where investors contribute money that is professionally managed and invested in secure assets like treasury bills, bonds, and corporate paper.

How do unit trusts work in Uganda?

You buy units in the fund. As the fund earns interest or grows in value, so do your units. You can redeem your units anytime, and the money is typically available within two business days.

Why choose a unit trust instead of a savings account?

Unit trusts provide better returns, professional management, and stronger inflation protection compared to a traditional savings account.

Is the Umbrella Trust Fund safe?

Yes. It is regulated by the Capital Markets Authority and invests in low-risk instruments such as government bonds and corporate debt, making it suitable for cautious investors.

What’s the minimum investment required?

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

Can I lose money in this fund?

While no investment is entirely risk-free, the Umbrella Trust Fund is designed to protect capital and provide steady returns. It’s categorized as a low-risk fund.

How do I invest using Level Africa?

1. Sign up at Level Africa

2. Upload your ID

3. Choose the fund

4. Fund your wallet

5. Place your order

6. Monitor your returns anytime

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