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

October 2024 saw the UAP Old Mutual Money Market Fund deliver a monthly return of 10.62 percent, providing investors with steady income amid stable interest rates and a strengthening Ugandan shilling. With fiscal pressures still looming and global markets in flux, this fund remained a secure option for savers and short-term investors looking to preserve capital.

Fund Overview

The Money Market Fund, managed by UAP Old Mutual Investment Group – Uganda, continues to offer an attractive blend of liquidity, income, and low volatility.

Key details for October 2024:

Fund Size: UGX 10.064 billion
Minimum Investment: UGX 100,000
Top-Up Amount: UGX 100,000
Liquidity: T+2 (two business days)
Risk Profile: Medium
Yield (October): 10.62 percent
Benchmark: 91-day Treasury Bill (closed at 10.04 percent)
Management Fee: 2 percent
Initial Fee: 0 percent
Fund Inception: 20 August 2013

Performance Summary

The fund outperformed its benchmark across key timeframes.

Period	Return (%)	Benchmark (%)
October 2024	10.62	10.04
Quarter to Date	11.05	10.01
Year to Date	11.33	9.67
Since Inception	11.08	9.95

This steady outperformance underscores the value of professionally managed short-term investments in volatile markets.

What the Fund Invests In

The Money Market Fund invests in a mix of secure, interest-earning assets that preserve capital and generate monthly income.

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:

55.29% matures within 3 months
11.59% in 3–6 months
0.00% in 6–9 months
23.92% in 9–12 months
9.19% beyond 12 months

This ensures high liquidity and responsiveness to changes in interest rates.

Why This Fund Matters for Ugandan Investors

In October, the Uganda shilling strengthened 0.82 percent, closing at UGX 3,664.68. This was supported by inflows from coffee exports, NGOs, remittances, and a generally weak US dollar after a 50-basis-point Federal Reserve rate cut.

Short-term rates remained flat:

91-day T-bill: 10.472 percent
182-day: 12.916 percent
364-day: 14.33 percent

Inflation was projected to average 3.2 percent, driven by a stronger shilling and lower oil prices. These factors worked in favor of fixed-income investors, and the fund’s 10.62 percent return offered:

Inflation-beating income
Liquidity for short-term needs
A lower-risk alternative to equities or long-term bonds
Safe capital preservation

It’s a solid choice for:

Emergency savers
Businesses managing idle funds
Parents saving for school fees
Investors avoiding volatility

How to Invest with Level Africa

You can start investing in just a few steps:

Create an account at Level Africa
Upload your National ID or Passport
Visit the Unit Trusts section
Select the UAP Old Mutual Money Market Fund
Deposit money into your wallet
Place your investment order
Track your returns from your dashboard

Final Thoughts

With global and local markets adjusting to shifting interest rates, the UAP Old Mutual Money Market Fund continues to provide stability and value for Ugandan investors. Its strong October performance highlights its role as a reliable, short-term income generator with easy access and minimal risk.

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Frequently Asked Questions

What is a money market fund?

It’s a low-risk investment that earns income by placing your money in short-term government and corporate debt instruments like Treasury bills and deposits.

How soon can I withdraw my funds?

You can access your money within two business days (T+2).

What’s the minimum to start?

UGX 100,000. You can top up with as little as UGX 100,000 anytime.

Who should invest in this fund?

It’s suitable for professionals, businesses, and anyone saving for near-term goals who needs better returns than a bank account.

Is this investment safe?

Yes. The fund is regulated by the Capital Markets Authority and invests in secure fixed-income assets.

How does it compare to fixed deposits or SACCOs?

It typically offers better returns, more flexibility, and professional fund management.

How do I invest through Level Africa?

Sign up at Level Africa
Upload your ID
Fund your wallet
Choose the Money Market Fund
Place your order
Track your earnings in real time