May 2025 Unit Trusts in Uganda Update – Sanlam Dollar Fund Performance and Strategy

For investors looking to preserve value in US dollars while earning steady income, the Sanlam Dollar Fund delivered a 7.18 percent effective annual yield in May 2025. This conservative fund continues to provide a stable option for Ugandans holding or saving in USD—especially in a time when global interest rates are in flux and inflation is cooling off.

Fund Overview

The Sanlam Dollar Fund is a conservative fixed-income unit trust under the Sanlam Umbrella Fund – Unit Trust Scheme. It’s designed for investors who want to earn dollar-denominated income, preserve capital, and keep their investments liquid.

Key facts for May 2025:

• Effective Annual Yield: 7.18%

• Minimum Investment: USD 1,000

• Fund Size (AUM): USD 2.7 million

• Risk Profile: Conservative

• Income Distribution: Monthly (compounded)

• Income Price Dates: Daily (excluding holidays and weekends)

• Transaction Cut-Off Time: 10:00 AM

• Benchmark: 3-Month SOFRA

• Management Fee: 1.5%

• Inception Date: October 2024

What the Fund Invests In

The Sanlam Dollar Fund focuses on stable, income-generating USD assets such as:

• Eurobonds

• Corporate Bonds

• Bank Deposits

• Money Market Instruments (incl. Commercial Paper)

Allocation flexibility:

In May 2025, the fund maintained a preference for Eurobonds and Deposits, targeting both income stability and liquidity.

Market Commentary – May 2025

Inflation

US inflation rose slightly to 2.4 percent, up from 2.3 percent in April, but remains close to the Federal Reserve’s target. This indicates a stabilizing economic outlook with less upward price pressure.

Currency

The US dollar weakened by 0.14 percent, with the Dollar Index (DXY) closing at 99.33 (down from 99.47). This reflects improved investor confidence in other global currencies and shifting interest rate expectations.

Interest Rates

The US Fed held its benchmark rate at 4.25% – 4.50%, but markets continue to price in future rate cuts. Long-term Treasury yields rose slightly, affecting demand for longer-dated fixed-income instruments.

Why This Fund Matters for Ugandan Investors

The Sanlam Dollar Fund is especially valuable for:

• Diaspora investors with USD inflows

• Exporters or freelancers earning in dollars

• Parents or institutions saving for international obligations (e.g., tuition, imports, travel)

• Savvy savers looking to preserve value in hard currency

With a 7.18 percent USD yield, the fund offers:

• Inflation-beating income

• Capital protection

• Daily valuation and monthly compounding

• Flexibility for top-ups and redemptions

• An alternative to holding idle dollars in a savings account

How to Invest in the Sanlam Dollar Fund with Level Africa

Investing is simple through the Level Africa platform:

1. Create an account at Level Africa

2. Upload your National ID or Passport

3. Visit the Unit Trusts section

4. Select “Sanlam Dollar Fund”

5. Fund your wallet in USD via mobile money, bank, or card

6. Place your investment order

7. Track your income and performance from your dashboard

Final Thoughts

In a market where FX volatility and interest rate changes continue to make headlines, the Sanlam Dollar Fund’s 7.18 percent return proves its reliability for investors seeking dollar-denominated income and capital safety. Whether you earn, save, or plan in USD, this fund delivers consistent value.

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Frequently Asked Questions

What is the Sanlam Dollar Fund?

It’s a conservative unit trust fund that invests in US dollar-denominated securities like Eurobonds, deposits, and commercial paper to earn income and preserve capital.

What is the minimum investment?

USD 1,000 to start.

How is the income paid?

Income is calculated daily and compounded monthly. You can choose to reinvest or withdraw.

Can I access my funds at any time?

Yes. Orders are processed daily (except weekends and holidays), with a transaction cut-off at 10:00 AM.

Who should invest in this fund?

It’s ideal for anyone earning or saving in US dollars—especially diaspora investors, exporters, tuition planners, and professionals.

What was the fund’s yield in May 2025?

The fund delivered an effective annual yield of 7.18 percent, net of fees.

How do I invest through Level Africa?

1. Sign up at Level Africa

2. Upload your ID

3. Fund your wallet in USD

4. Choose the Sanlam Dollar Fund

5. Place your order

6. Track your performance in real time