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

February 2024 saw the UAP Old Mutual Money Market Fund deliver a strong 11.02 percent return, providing investors with a dependable short-term income option in the face of a depreciating shilling and rising yields. As global and domestic funding pressures mounted, the fund continued to deliver safety, liquidity, and interest income for Ugandan investors.

Fund Overview

The Money Market Fund, managed by UAP Old Mutual Investment Group – Uganda, is designed to give you consistent income and capital preservation in all market environments.

Key features for February 2024:

• Fund Size: UGX 6.812 billion

• Minimum Investment: UGX 100,000

• Top-Up Amount: UGX 100,000

• Liquidity: T+2 (two business days)

• Risk Profile: Medium

• February Yield: 11.02 percent

• Benchmark: 91-day Treasury Bill (closed at 9.224 percent)

• Management Fee: 2 percent

• Initial Fee: 0 percent

• Fund Inception: 20 August 2013

Performance Summary

The fund outperformed the benchmark across every key time period.

What the Fund Invests In

The fund invests in short-term, interest-earning instruments to preserve capital and ensure immediate access to your money.

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% above 12 months

This balance gives the fund a flexible structure that can adjust to rising interest rates while maintaining liquidity.

Why This Fund Matters for Ugandan Investors

In February, the Uganda shilling depreciated by 3.3 percent, closing at UGX 3,939.75. This was largely due to strong corporate demand for USD from the manufacturing and energy sectors, coupled with weaker supply.

Yields reflected tightening funding conditions:

• 91-day T-bill: 9.224% (down 8.2 bps)

• 182-day: 11.928% (up 15 bps)

• 364-day: 13.14% (up 37 bps)

Investors also priced in expectations of more government borrowing and a 50 bps policy rate hike by the Bank of Uganda.

Despite the volatility, the fund’s 11.02 percent return helped investors:

• Beat inflation (expected to average 3.5–4.0%)

• Avoid currency risk with shilling-based investments

• Stay liquid with two-day access to their funds

• Earn better returns than SACCOs or bank deposits

How to Invest with Level Africa

Start investing with these simple steps:

1. Create an account at Level Africa

2. Upload your National ID or Passport

3. Navigate to the Unit Trusts section

4. Select the Money Market Fund

5. Deposit funds into your wallet

6. Place your order

7. Track your performance from your dashboard

Final Thoughts

With interest rates rising and inflation trending upward, the UAP Old Mutual Money Market Fund continues to be a go-to option for short-term savers. February’s strong return, along with liquidity and capital protection, makes it an excellent parking place for your idle funds.

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Frequently Asked Questions

What is a money market fund?

It’s a type of investment that earns interest by placing money in secure, short-term instruments like Treasury bills, corporate paper, and fixed deposits.

How quickly can I access my money?

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

What’s the minimum investment?

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

Is the fund safe?

Yes. It’s regulated by the Capital Markets Authority and invests in low-risk, high-quality assets.

Who should invest in this fund?

It’s suitable for salary earners, SMEs, emergency fund savers, and anyone looking for low-risk, inflation-beating returns.

How does it compare to SACCOs and fixed deposits?

It usually offers higher returns, more flexibility, and faster access to your money—without penalties or lock-in periods.

How do I invest through Level Africa?

1. Sign up at Level Africa

2. Upload your ID

3. Fund your wallet

4. Select the Money Market Fund

5. Place your investment

6. Track your earnings in real-time

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