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

May 2024 was another month of strong returns for the UAP Old Mutual Money Market Fund, which delivered a monthly yield of 10.92 percent. In a period marked by higher interest rates and global uncertainty, the fund continued to offer capital preservation and reliable income for Ugandan investors looking for liquidity and low risk.

Fund Overview

The Money Market Fund, managed by UAP Old Mutual Investment Group – Uganda, is tailored for short-term investors seeking income with minimal volatility and easy access to their funds.

Key details for May 2024:

Fund Size: UGX 9.059 billion
Minimum Investment: UGX 100,000
Top-Up Amount: UGX 100,000
Liquidity: T+2 (two business days)
Risk Profile: Medium
May Yield: 10.92 percent
Benchmark: 91-day Treasury Bill (closed at 9.997 percent)
Management Fee: 2 percent
Initial Fee: 0 percent
Fund Inception: 20 August 2013

Performance Summary

The fund continued to outperform its benchmark over the short and long term.

Period	Fund Return (%)	Benchmark (%)
May 2024	10.92	9.28
Quarter to Date	11.26	9.19
Year to Date	11.50	9.54
Since Inception	11.08	9.95

These results confirm the fund’s consistency in offering better returns than call deposits and typical fixed deposit accounts.

What the Fund Invests In

The fund invests in a conservative mix of short-term, interest-earning instruments.

Asset allocation:

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

Maturity profile:

52.02% matures within 3 months
19.90% in 3–6 months
3.76% in 6–9 months
0.00% in 9–12 months
24.32% beyond 12 months

This allocation strategy helps balance yield with access, especially during interest rate changes.

Why This Fund Matters for Ugandan Investors

The Uganda shilling closed the month at UGX 3,815.71, staying relatively stable despite intra-month volatility caused by a Moody’s downgrade of Uganda’s credit rating. Treasury bill yields rose across the board:

91-day T-bill: 9.997%
182-day: 12.99%
364-day: 13.594%

These increases came in response to higher-than-expected government borrowing and external market pressures. Meanwhile, inflation is expected to average 3.5 percent, though long-term risks remain due to weather disruptions and infrastructure-driven demand growth.

In this environment, the fund’s 10.92 percent return provided:

Inflation-beating income
Lower volatility compared to long bonds or equities
Easy access to cash
A better alternative to traditional bank savings

How to Invest with Level Africa

You can begin investing in just a few simple 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 money into your wallet
Place your order
Track your investment anytime from your dashboard

Final Thoughts

May 2024’s performance reaffirms the UAP Old Mutual Money Market Fund as one of the best low-risk options for short-term investors in Uganda. It continues to deliver income and capital protection in uncertain times—whether you’re managing cash for your business or saving for a near-term goal.

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Frequently Asked Questions

What is a money market fund?

It’s a short-term investment fund that earns interest by investing in safe, interest-bearing securities like Treasury bills, corporate paper, and fixed deposits.

How soon can I access my funds?

Withdrawals are processed within two business days (T+2), making the fund highly liquid.

What is the minimum investment amount?

You can start with UGX 100,000, and top up with at least the same amount.

Is this a safe investment?

Yes. It’s a medium-risk fund regulated by the Capital Markets Authority, and focuses on short-term, high-quality investments.

Who should consider this fund?

Ideal for emergency savers, small business owners, and anyone with short-term savings goals who wants better returns than a savings account.

How does it compare to a fixed deposit?

It offers better flexibility, usually higher yields, and allows you to withdraw money without waiting for a term to end.

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 performance from your dashboard