December 2024 Unit Trust Update – UAP Old Mutual Money Market Fund Performance and Strategy

The UAP Old Mutual Money Market Fund closed the year strong with a monthly return of 10.81 percent in December 2024. Amid election-related volatility, rising yields, and shifting inflation expectations, the fund continued to provide investors with a safe and stable income-generating option.

Fund Overview

Managed by UAP Old Mutual Investment Group – Uganda, the Money Market Fund is designed to protect capital while offering immediate liquidity and monthly income.

Key details for December 2024:

Fund Size: UGX 10.23 billion
Minimum Investment: UGX 100,000
Top-Up Amount: UGX 100,000
Liquidity: T+2 (two business days)
Risk Profile: Medium
Yield (December): 10.81 percent
Benchmark: 91-day Treasury Bill (closed at 10.744 percent)
Management Fee: 2 percent
Initial Fee: 0 percent
Fund Inception: 20 August 2013

Performance Summary

The fund outperformed its benchmark over multiple periods.

Period	Return (%)	Benchmark (%)
December 2024	10.81	10.74
Quarter to Date	10.93	10.45
Year to Date	11.28	9.83
Since Inception	11.08	9.96

This highlights the fund’s long-term consistency and its ability to respond quickly to interest rate movements.

What the Fund Invests In

The fund targets short-term, high-quality, income-generating assets to balance liquidity with return.

Asset allocation:

Treasury Bonds: 33.98 percent
Treasury Bills: 29.89 percent
Corporate Paper: 26.20 percent
Fixed Deposits: 5.14 percent
Cash & Call: 4.70 percent

Maturity profile:

79.79% matures in under 3 months
11.64% matures in 3–6 months
4.06% matures in 6–9 months
0.00% matures in 9–12 months
4.51% above 12 months

This structure ensures fast liquidity and optimized returns in volatile interest rate environments.

Why This Fund Matters for Ugandan Investors

In December, the Uganda shilling strengthened by 0.67 percent, closing at UGX 3,670.27, supported by remittances and portfolio inflows. However, global market volatility and pre-election jitters caused some depreciation in November. Meanwhile, Treasury yields continued to rise:

91-day T-bill: 10.744 percent
182-day: 13.116 percent
364-day: 14.944 percent
20-year bond: touched 17.5 percent

Inflation ended the year at 3.3 percent, with core inflation rebounding to 3.8 percent, largely due to rising service and maize prices.

Despite these pressures, the fund’s 10.81 percent return offered:

Protection against inflation
Steady monthly income
Quick access to capital
A better alternative to savings or fixed deposits

How to Invest with Level Africa

You can start investing in minutes by following these steps:

Create an account at Level Africa
Upload your National ID or Passport
Go to the Unit Trusts section
Select the Money Market Fund
Deposit funds into your wallet
Place your investment order
Track your returns anytime

Final Thoughts

December’s performance wraps up a strong year for the UAP Old Mutual Money Market Fund. It proved itself again as a smart, low-risk vehicle for anyone in Uganda looking to earn passive income while staying liquid and secure.

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Frequently Asked Questions

What is a money market fund?

A money market fund is a low-risk investment that earns interest by placing money in short-term securities like Treasury bills, corporate paper, and fixed deposits.

How fast can I access my money?

You can withdraw within two business days (T+2).

What is the minimum investment?

UGX 100,000. You can top up with the same amount or more at any time.

Who should invest in this fund?

It’s ideal for emergency savers, businesses with idle cash, professionals saving short-term, or anyone seeking stable, short-term returns.

Is the fund safe?

Yes. It’s regulated by the Capital Markets Authority and focuses on secure, fixed-income investments.

How does it compare to bank savings or SACCOs?

It typically offers higher returns, better flexibility, and fast access without lock-in terms.

How do I invest through Level Africa?

Sign up at Level Africa
Upload your ID
Fund your wallet
Select the Money Market Fund
Place your order
Track your returns from your dashboard