December 2023 Unit Trust Update – UAP Old Mutual Umbrella Trust Fund Performance and Strategy

The UAP Old Mutual Umbrella Trust Fund ended 2023 with a solid performance, offering a monthly return of 11.49 percent. Despite some currency pressures and yield fluctuations, the fund remained consistent in delivering reliable, low-risk income. For Ugandan investors looking to grow their savings safely and earn passive income, this fund continues to be a smart choice.

Fund Overview

The Umbrella Trust Fund, managed by UAP Old Mutual Investment Group – Uganda, is built to deliver long-term income and capital preservation through professional fund management.

Key features for December 2023:

Fund Size: UGX 1.668 trillion
Minimum Investment: UGX 1,000,000
Top-Up Amount: UGX 100,000
Liquidity: T+2 (two business days)
Risk Profile: Low
December Yield: 11.49 percent
Management Fee: 2 percent
Initial Fee: 0 percent
Fund Inception: 20 August 2013

This fund is ideal for individuals seeking an alternative to fixed deposits or savings accounts, while keeping their money secure and accessible.

Performance Summary

The fund outperformed its benchmark once again across all major timeframes.

Period	Return (%)	Benchmark (%)
December 2023	11.49	8.56
Quarter to Date	11.56	8.47
Year to Date	11.76	9.26
Since Inception	11.89	8.45

These results reflect the strength of consistent fund management and a disciplined income-generating strategy.

What the Fund Invests In

The fund’s portfolio is made up of interest-earning assets that provide both income and safety. As of December 2023, the fund’s asset allocation was:

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 ensures strong yield potential with minimal risk to investor capital.

Why This Fund Matters for Ugandan Investors

In December 2023, the Uganda shilling depreciated by 2 percent to a mid-rate of UGX 3,782.21, though it remained 1.2 percent stronger year-on-year. Treasury bill yields were mixed, with the 91-day bill rising to 9.938 percent, while longer tenors slightly declined.

Inflation is expected to remain below 5 percent through the first half of 2024, creating a favorable environment for fixed-income investors.

With its 11.49 percent return, the Umbrella Trust Fund offers:

Inflation protection
Monthly income
Low market risk
Daily liquidity

It’s an excellent fit for:

Tuition savings
Retirement planning
Emergency funds
Income-seeking investors avoiding risky assets

How to Invest with Level Africa

You can start investing in the UAP Old Mutual Umbrella Trust Fund through Level Africa by following these simple steps:

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

Final Thoughts

The Umbrella Trust Fund’s performance in December capped off a year of consistent, low-risk returns. With a solid yield, inflation-beating results, and easy entry, it’s a dependable way to grow your savings while staying in control of your financial goals.

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Frequently Asked Questions

What is a unit trust?

A unit trust pools money from many investors and invests it in fixed-income securities like treasury bills, bonds, and corporate paper. It is managed by professionals to generate returns with minimal risk.

How does a unit trust work in Uganda?

When you buy units in the fund, your money is invested in income-generating assets. You earn returns and can withdraw your investment with just two business days’ notice.

Is the Umbrella Trust Fund safe?

Yes. It’s a low-risk investment regulated by the Capital Markets Authority and primarily focused on secure government and corporate debt.

What is the minimum investment?

You can start with UGX 1,000,000 and top up with a minimum of UGX 100,000.

Can I lose money?

While all investments carry some level of risk, this fund is structured for capital preservation and has consistently returned positive performance since inception.

How do I invest with Level Africa?

Sign up at Level Africa
Upload your ID
Fund your wallet
Select the Umbrella Trust Fund
Place your order
Track your progress