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

January 2024 opened the year with a strong return of 11.21 percent for the UAP Old Mutual Money Market Fund. Against a backdrop of weakening shilling and mixed interest rate signals, the fund continued to provide steady income and a safe haven for conservative investors across Uganda.

Fund Overview

The Money Market Fund, managed by UAP Old Mutual Investment Group – Uganda, is designed to provide immediate liquidity and capital protection while earning better-than-average returns.

Key features for January 2024:

Fund Size: UGX 6.35 billion
Minimum Investment: UGX 100,000
Top-Up Amount: UGX 100,000
Liquidity: T+2 (two business days)
Risk Profile: Medium
January Yield: 11.21 percent
Benchmark: 91-day Treasury Bill (closed at 9.32 percent)
Management Fee: 2 percent
Initial Fee: 0 percent
Fund Inception: 20 August 2013

Performance Summary

The fund outperformed the benchmark across all key timeframes.

Period	Fund Return (%)	Benchmark (%)
January 2024	11.21	9.32
Quarter to Date	11.32	9.24
Year to Date	11.59	9.66
Since Inception	11.07	9.97

This performance confirms the fund’s role as a high-yield, low-volatility investment.

What the Fund Invests In

The fund’s strategy focuses on short-term, high-quality assets for income and liquidity.

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 mix allows the fund to adapt to interest rate movements while ensuring fast access to funds.

Why This Fund Matters for Ugandan Investors

In January, the Uganda shilling weakened by 0.84 percent, closing at UGX 3,814.04 due to strong USD demand from energy and manufacturing sectors.

Interest rates moved as follows:

91-day T-bill: 9.319% (down 62 bps)
182-day: 11.775% (down 10 bps)
364-day: 12.7% (up 6 bps)

With inflation expected to remain below the Bank of Uganda’s 5 percent target in H1 2024, markets anticipate a potential policy rate cut. Despite market uncertainty, the fund’s 11.21 percent return gave investors:

A shield against currency depreciation
Steady monthly income
Liquidity within two business days
Higher returns than most SACCOs and savings accounts

How to Invest with Level Africa

Investing is simple and fast:

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 order
Track your returns from your dashboard

Final Thoughts

January 2024 confirmed the UAP Old Mutual Money Market Fund as a consistent performer in uncertain times. With rising inflation risks and currency pressures, this fund remains a strong choice for income-seeking investors who value capital preservation and liquidity.

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Frequently Asked Questions

What is a money market fund?

It’s a short-term investment fund that puts money into safe, interest-earning assets like Treasury bills, corporate paper, and fixed deposits.

How quickly can I withdraw my money?

Funds are accessible within two business days (T+2).

What’s the minimum investment?

You can start with UGX 100,000, with optional top-ups of UGX 100,000 or more.

Is this fund safe?

Yes. It is regulated by the Capital Markets Authority and managed professionally with a focus on capital preservation.

Who should invest in this fund?

It’s ideal for businesses, emergency savers, professionals, and anyone who needs a low-risk, income-generating investment.

How does it compare to SACCOs or bank savings?

It often offers higher returns, better access to your money, and no withdrawal penalties.

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 returns from your dashboard