In May 2025, the Sanlam Income Fund recorded an effective annual yield of 13.19%, with the fund’s portfolio standing at approximately UGX 387 billion.
Managed under the Sanlam Umbrella Unit Trust Scheme, the fund invests primarily in fixed-income securities, including Treasury Bills, Treasury Bonds, bank deposits and commercial paper.
The fund is designed for investors seeking income while prioritising capital preservation and access to their money.
Here is how the Sanlam Income Fund performed in May 2025, what was happening in the market at the time and what investors should understand about the reported return.
Sanlam Income Fund Performance in May 2025
The Sanlam Income Fund reported an effective annual yield of 13.19% in May 2025.
Key fund details for the month were:
| Fund Detail | May 2025 |
|---|---|
| Effective Annual Yield | 13.19% |
| Minimum Investment | UGX 100,000 |
| Portfolio Size | UGX 387 billion |
| Risk Profile | Conservative |
| Income Distribution | Monthly, compounded |
| Pricing | Daily, excluding weekends and public holidays |
| Transaction Cut-Off | 10:00 AM |
| Benchmark | 91-Day Uganda Treasury Bill |
| Management Fee | 1.5% |
| Inception Date | 13 October 2020 |
The 13.19% yield is the fund’s reported performance for May 2025. Unit Trust returns can change over time, so investors considering the fund today should compare its latest performance and terms.
What Is the Sanlam Income Fund?
The Sanlam Income Fund is a professionally managed Unit Trust that pools money from different investors and invests it according to a defined investment strategy.
Instead of individually selecting and managing the underlying securities, investors own units in the fund.
The fund is structured to generate income while seeking to preserve investor capital.
In May 2025, the fund had grown to approximately UGX 387 billion, making it a sizeable professionally managed investment pool.
Investors looking for broader information about SanlamAllianz funds, rather than the May 2025 performance covered here, can explore our Sanlam Unit Trust Uganda guide.
What Did the Sanlam Income Fund Invest In?
The fund focused on fixed-income investments, with its investment parameters allowing for:
- Treasury Bills: 0–50%
- Treasury Bonds: 0–90%
- Bank Deposits: 0–50%
- Commercial Paper: 0–20%
This gives the fund manager flexibility to allocate money across different fixed-income instruments depending on market conditions.
The fund’s benchmark was the 91-Day Uganda Treasury Bill.
Its allocation to government securities was particularly relevant during May 2025, when government bond yields remained elevated.
What Was Happening in Uganda's Market in May 2025?
Investment returns do not happen in isolation. Interest rates, inflation, government borrowing and movements in the Uganda shilling can all influence fixed-income markets.
Several developments shaped the environment in May 2025.
Inflation Rose to 3.8%
Inflation increased from 3.5% in April to 3.8% in May 2025.
Core inflation also increased to 4.2%.
For fixed-income investors, inflation matters because it affects the purchasing power of the returns generated by an investment.
The Uganda Shilling Strengthened
The Uganda shilling appreciated by approximately 0.8% during May and 4.9% year-on-year, according to the fund’s market commentary.
Lower demand for US dollars and stronger commodity export inflows contributed to the currency’s performance during the period.
The Central Bank Rate Remained at 9.75%
The Central Bank Rate was maintained at 9.75%.
Interest-rate conditions influence the yields available across Treasury securities and other fixed-income investments.
Government Bond Yields Remained Elevated
The government raised approximately UGX 3.2 trillion through private bond placements, according to the May commentary.
Yields on 10-year government bonds during the period ranged from approximately 16.5% to 18.25%.
Against this environment, the Sanlam Income Fund maintained an overweight allocation to government securities to support returns and liquidity.
What Does a 13.19% Effective Annual Yield Mean?
An effective annual yield expresses an investment’s return on an annualised basis while accounting for compounding.
For the Sanlam Income Fund, the 13.19% effective annual yield provides a useful measure of the fund’s performance in May 2025.
It should not, however, be interpreted as a guaranteed return for the following 12 months.
Unit Trust performance can change as:
- Interest rates move
- Government-security yields change
- The fund adjusts its portfolio
- Market conditions change
- The underlying investments generate different returns
The 13.19% figure therefore provides a snapshot of the fund’s performance at that point in time.
What Would a 13.19% Return Mean on UGX 10 Million?
To put the percentage into perspective, consider an investment of UGX 10,000,000.
If that investment generated a 13.19% return over a full year, the return would be approximately:
UGX 1,319,000
That would bring the investment value to approximately:
UGX 11,319,000
before considering applicable taxes, fees or other factors.
This is simply an illustration of what a 13.19% annual return would mean mathematically. Actual Unit Trust returns depend on the fund’s performance during the period in which the money is invested.
Is the Sanlam Income Fund Interest Rate Fixed?
No.
Although investors commonly refer to Unit Trust interest rates, a Unit Trust does not necessarily work like a bank fixed deposit with a predetermined interest rate.
The Sanlam Income Fund invests across a portfolio of fixed-income securities.
The returns generated by those investments influence the fund’s overall performance.
As market conditions change, the fund’s yield can also change.
This means the 13.19% reported in May 2025 should not be assumed to be the fund’s current return.
For current performance, see our Unit Trust Interest Rates in Uganda comparison.
How Does the Fund Generate Income?
The underlying investments held by the fund generate income in different ways.
Treasury Bills, Treasury Bonds, bank deposits and commercial paper can all generate returns for the portfolio.
Those returns contribute to the overall performance of the Unit Trust.
For May 2025, income in the Sanlam Income Fund was calculated daily and compounded monthly.
This means the fund’s performance could build on previously accumulated income over time.
Can You Withdraw Money From the Sanlam Income Fund?
The fund is structured to provide investors with liquidity alongside income generation.
According to the May 2025 fund information, investments were priced daily, excluding weekends and public holidays, with a 10:00 AM transaction cut-off time.
Investors should check the current redemption and processing terms when making an investment, particularly if access to the money is an important part of their investment goal.
What Should You Consider Beyond the Return?
The return is important, but it should not be the only factor considered when choosing a Unit Trust.
Investment Strategy
Understand what the fund invests in and how those investments generate returns.
Risk
The fund was classified as conservative in May 2025, but investors should still understand the risks associated with the underlying investments.
Liquidity
Consider how quickly you may need the money and the fund’s current redemption terms.
Investment Period
Think about how long you intend to keep your money invested.
Fees
The Sanlam Income Fund reported a 1.5% management fee for the period covered by this update.
Current Performance
Historical performance provides useful context, but the latest fund performance is more relevant when comparing investment options today.
Looking at these factors together provides a better picture than simply choosing the fund with the highest reported return.
Sanlam Income Fund vs Other Unit Trusts in Uganda
SanlamAllianz is one of several Unit Trust providers whose funds investors can access through Level Africa.
Other Unit Trust opportunities available through Level include funds managed by:
- Old Mutual
- ICEA
- Cornerstone
Each fund can differ in its investment strategy, underlying assets, returns, minimum investment, currency and liquidity.
This means there is no single Unit Trust that is automatically suitable for every investor.
An investor prioritising liquidity may evaluate the options differently from someone investing for a longer-term goal.
Current Sanlam Unit Trust Information
The Sanlam Income Fund’s 13.19% effective annual yield in May 2025 provides a useful view of how the fund was performing at the time.
Returns and fund conditions can change.
For current information about SanlamAllianz Unit Trusts, including available funds, minimum investments, returns and how they work, see our Sanlam Unit Trust Uganda guide.
You can also compare current Unit Trust rates in Uganda across the funds available through Level Africa.
How to Invest in Unit Trusts Through Level Africa
Unit Trust opportunities from different fund managers are available through Level Africa.
Investing follows four main steps.
1. Create & Verify
Create your Level Africa account and complete the required verification.
2. Fund Your Wallet
Add money to your Level wallet.
3. Choose a Unit Trust
Compare the available funds based on their current performance, investment strategy, currency, minimum investment and other terms.
4. Invest & Track
Complete your investment and track it through your Level dashboard.
Explore Current Unit Trust Opportunities
The Sanlam Income Fund’s May 2025 performance shows how professionally managed fixed-income funds can respond to prevailing interest rates and market conditions.
For an investor considering Unit Trusts today, the next step is to compare the latest performance, investment strategy, liquidity, minimum investment and risk of the funds currently available.
Through Level Africa, you can compare Unit Trust opportunities from different fund managers and invest digitally.
Frequently Asked Questions
What is the Sanlam Income Fund?
The Sanlam Income Fund is a professionally managed Unit Trust that invests primarily in fixed-income securities such as Treasury Bills, Treasury Bonds, bank deposits and commercial paper.
What return did the Sanlam Income Fund report in May 2025?
The fund reported an effective annual yield of 13.19% in May 2025
What was the minimum investment?
The minimum investment reported for the fund in May 2025 was UGX 100,000.
What was the size of the Sanlam Income Fund?
The fund had a reported portfolio size of approximately UGX 387 billion in May 2025.
Is the Sanlam Income Fund return fixed?
No. Unit Trust performance can change as the performance of the underlying investments and market conditions change. The 13.19% effective annual yield represents the fund’s May 2025 performance.
How often was income compounded?
According to the May 2025 fund information, income was calculated daily and compounded monthly.
Can I withdraw from the Sanlam Income Fund?
The fund provides for redemptions subject to its applicable terms and processing requirements. Investors should check the current redemption terms before investing.
What is the Sanlam Income Fund return today?
The 13.19% yield in this article applies to May 2025. For current performance, see Level Africa’s Unit Trust Interest Rates in Uganda page.
How can I invest in Sanlam Unit Trusts in Uganda?
Through Level Africa, you can create and verify an account, fund your wallet, compare the Unit Trusts currently available and complete your investment digitally.