June 2025 Unit Trusts in Uganda Update – UAP Old Mutual Umbrella Trust Fund Performance and Strategy

The UAP Old Mutual Umbrella Trust Fund continued to deliver stable, inflation-beating returns in June 2025, posting a 12.55% yield. As government securities remain attractive and inflation edges upward, this fund proves valuable for investors looking to preserve and grow their wealth in Uganda’s current market environment.

Fund Overview

The Umbrella Trust Fund is a medium- to long-term unit trust designed to provide capital preservation and steady income while offering better returns than short-term money market instruments.

Key details for June 2025:

• Yield: 12.55%

• Fund Size: UGX 2.796 trillion

• Minimum Investment: UGX 100,000

• Top-up Amount: UGX 100,000

• Liquidity: T+2 (access funds within 2 business days)

• Risk Profile: Low

• Management Fee: 2%

• Initial Fee: 0%

• Benchmark: Weighted average of 91-day T-bill (40%), average call rate (40%), and inflation (20%)

• Fund Manager: UAP Old Mutual Investment Group – Uganda

• Launch Date: 20 August 2013

Fund Performance Summary

The fund has consistently outperformed its benchmark, reflecting strong portfolio management and selection of yield-enhancing assets.

What the Fund Invests In

The Umbrella Trust Fund maintains a balanced allocation across various fixed-income instruments, with a bias toward long-term government securities:

Asset Allocation (June 2025):

• Treasury Bonds: 33.98%

• Treasury Bills: 29.89%

• Corporate Paper: 26.20%

• Fixed Deposits: 5.14%

• Cash & Call: 4.70%

Maturity Profile:

• Less than 1 year: 17.58%

• 1–5 years: 16.32%

• 5–10 years: 44.10%

• Over 10 years: 21.99%

This structure helps the fund provide both steady income and long-term capital protection.

Market Context – June 2025

Currency

The Uganda shilling appreciated by 1%, closing at UGX 3,594.41/USD. This was driven by global dollar weakness, strong remittances, and offshore investor inflows.

Inflation

Headline inflation rose slightly to 3.9%, driven by energy costs and outpatient service prices. Food prices eased, offering a partial offset.

Interest Rates

Short-term yields were mixed:

• 91-day T-bill: down 38.2 bps to 11.31%

• 182-day and 364-day: rose slightly

• Long-term bond yields declined due to fiscal year-end portfolio rebalancing.

Outlook

Yields are expected to remain elevated but soften slightly from Q2 highs due to pre-election government spending and high budgetary requirements.

Why This Fund Matters for Ugandan Investors

The Umbrella Trust Fund is suitable for:

• Investors planning for medium to long-term goals like land, retirement, or education

• Risk-averse savers looking for inflation protection

• Professionals and institutions aiming to preserve capital while earning strong income

With its UGX 2.796 trillion fund size, low-risk structure, and T+2 liquidity, this fund offers one of the most consistent and accessible long-term unit trust options in Uganda.

How to Invest in the UAP Old Mutual Umbrella Trust Fund via Level Africa

Level Africa makes it easy to invest in the Umbrella Trust Fund from anywhere:

1. Create an account at Level Africa

2. Upload your National ID or Passport

3. Go to the Unit Trusts section

4. Select the UAP Old Mutual Umbrella Trust Fund

5. Deposit funds into your Level wallet

6. Place your investment order

7. Track your returns and fund performance from your dashboard

Final Thoughts

In a market full of uncertainty, the UAP Old Mutual Umbrella Trust Fund continues to offer low-risk investors a clear edge. With a 12.55% return in June 2025, inflation protection, and quick access to funds, it’s a solid choice for wealth preservation and growth in Uganda.

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Frequently Asked Questions

What is the UAP Old Mutual Umbrella Trust Fund?

It is a conservative unit trust that invests in government securities, corporate paper, and deposits for long-term income and capital preservation.

What was its return in June 2025?

It returned 12.55 percent, well above its benchmark of 9.30 percent.

What’s the minimum investment?

UGX 100,000 to start, and UGX 100,000 for top-ups.

How soon can I withdraw?

The fund offers T+2 liquidity, meaning funds are accessible within two business days.

Who is this fund ideal for?

It’s best suited for savers, long-term planners, and institutions that want low-risk, inflation-beating returns.

Is it regulated?

Yes. The fund is managed by UAP Old Mutual Investment Group – Uganda, under the regulation of the Capital Markets Authority.