November 2023 Unit Trust Update – UAP Old Mutual Money Market Fund Performance and Strategy

In November 2023, the UAP Old Mutual Money Market Fund returned 11.02 percent, continuing to provide investors with low-risk, inflation-beating income in the face of a weakening shilling and rising yields. As the government maintained its appetite for short-term borrowing, this fund remained a steady option for individuals and businesses seeking capital protection and liquidity.

Fund Overview

The Money Market Fund, managed by UAP Old Mutual Investment Group – Uganda, is tailored for short-term savers who want to preserve capital while earning consistent returns.

Key highlights for November 2023:

• Fund Size: UGX 6.07 billion

• Minimum Investment: UGX 100,000

• Top-Up Amount: UGX 100,000

• Liquidity: T+2 (two business days)

• Risk Profile: Medium

• November Yield: 11.02 percent

• Benchmark: 91-day Treasury Bill (closed at 9.61 percent)

• Management Fee: 2 percent

• Initial Fee: 0 percent

• Fund Inception: 20 August 2013

Performance Summary

The fund outperformed its benchmark consistently.

What the Fund Invests In

The fund invests in short-term interest-bearing instruments that offer income with minimal volatility.

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

Why This Fund Matters for Ugandan Investors

In November, the Uganda shilling weakened by 1.12 percent, breaching the 3,800 mark and closing at UGX 3,816.25 due to interbank and corporate dollar demand. Interest rates remained elevated:

• 364-day T-bill: ~13%

• 15-year bond: 15.631%

• 20-year bond: 15.544%

Despite inflation forecasts between 3–4 percent for H1 2024, risks from oil prices and global markets remain. Yet the fund’s 11.02 percent return helped investors:

• Beat inflation

• Preserve capital in a volatile FX environment

• Maintain access to their funds

• Earn more than call deposits and SACCO savings

How to Invest with Level Africa

You can start investing in just a few minutes:

1. Create an account at Level Africa

2. Upload your National ID or Passport

3. Go 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

November’s 11.02 percent return shows why the UAP Old Mutual Money Market Fund is a smart option for conservative investors in Uganda. Whether you’re managing short-term savings, parking idle cash, or preparing for near-term expenses, this fund continues to deliver.

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Frequently Asked Questions

What is a money market fund?

A money market fund is a low-risk investment that earns interest from short-term government and corporate securities like Treasury bills, corporate paper, and fixed deposits.

How fast can I access my money?

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

What’s the minimum investment?

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

Is the fund safe?

Yes. It’s regulated by the Capital Markets Authority and invests in high-quality, short-term assets designed to preserve your capital.

Who is this fund ideal for?

It’s perfect for emergency savings, business float management, or anyone who wants low-risk returns with high liquidity.

How does it compare to fixed deposits or SACCOs?

It typically offers better returns, daily valuation, and the flexibility to withdraw without penalties.

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. Monitor your returns online

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