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

In September 2024, the UAP Old Mutual Money Market Fund delivered a monthly return of 10.56 percent, continuing its track record of stability and income for short-term investors. Amid stable exchange rates and elevated domestic yields, the fund remains an attractive choice for those seeking capital preservation with low risk and fast access.

Fund Overview

The Money Market Fund, managed by UAP Old Mutual Investment Group – Uganda, is ideal for investors looking to earn steady interest while maintaining liquidity.

Key features as of September 2024:

Fund Size: UGX 8.426 billion
Minimum Investment: UGX 100,000
Top-Up Amount: UGX 100,000
Liquidity: T+2 (two business days)
Risk Profile: Medium
September Yield: 10.56 percent
Benchmark: 91-day Treasury Bill (closed at 10.57 percent)
Management Fee: 2 percent
Initial Fee: 0 percent
Fund Inception: 20 August 2013

Performance Summary

The fund remained highly competitive over long-term periods.

Period	Return (%)	Benchmark (%)
September 2024	10.56	10.57
Quarter to Date	11.19	9.90
Year to Date	11.39	9.63
Since Inception	11.08	9.95

This highlights the consistency and discipline in fund strategy execution.

What the Fund Invests In

The fund maintains a conservative mix of interest-earning securities to deliver stable income and preserve capital.

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:

52.02% of assets mature within 3 months
10.53% in 3–6 months
8.70% in 6–9 months
2.43% in 9–12 months
26.32% above 12 months

This structure ensures flexibility and responsiveness to rate changes.

Why This Fund Matters for Ugandan Investors

The Uganda shilling remained stable in September, trading within the UGX 3,700–3,720 range, supported by balanced interbank demand and supply. Treasury yields stayed elevated:

1-year Treasury bill: ~13.75 percent
20-year bond: ~16.5 percent

Meanwhile, inflation eased to 3.5 percent in August (down from 4 percent in July). Core inflation dropped to 3.2 percent.

The fund’s 10.56 percent return helped investors:

Beat inflation
Preserve capital
Access funds within two days
Avoid long-term market exposure

It’s a practical choice for:

Savers with short-term goals
Businesses holding working capital
Emergency fund planners
Investors rotating out of equities or long bonds

How to Invest with Level Africa

Start investing with these simple steps:

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

Final Thoughts

With strong risk controls, short-term focus, and consistent monthly income, the UAP Old Mutual Money Market Fund remains one of Uganda’s top options for conservative investors. September’s return reinforces its value in a high-yield, low-inflation environment.

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Frequently Asked Questions

What is a money market fund?

It’s a short-term investment fund that places money in safe, interest-earning instruments like Treasury bills and fixed deposits.

How fast can I withdraw my money?

Withdrawals are processed within two business days (T+2).

What is the minimum amount to invest?

You can start with UGX 100,000 and top up with the same amount or more.

Who should invest in this fund?

It’s ideal for emergency savers, short-term planners, and businesses managing liquidity.

Is this investment safe?

Yes. The fund is classified as medium risk and is regulated by the Capital Markets Authority. It focuses on secure fixed-income investments.

How does it compare to SACCOs or bank deposits?

It typically offers better returns, more flexibility, and faster access without penalties.

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 investment
Track your performance online