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

The Sanlam Dollar Fund delivered a 5.38% annualized yield in February 2025, sustaining its value as a go-to USD-based investment for Ugandans. With the shilling appreciating and global rates easing slightly, the fund maintained strong performance through a conservative allocation strategy.

Fund Overview

The fund is structured to provide:

• Capital preservation

• Monthly income

• Flexibility for top-ups and withdrawals

It invests in USD-denominated instruments such as Eurobonds, corporate bonds, and money market assets.

Key facts for February 2025:

• Annualized Yield: 5.38%

• Minimum Investment: USD 1,000

• Fund Size (AUM): USD 2.7 million

• Risk Profile: Conservative

• Income Distribution: Monthly (compounded)

• Valuation Days: Daily (excluding weekends & holidays)

• Transaction Cut-off: 10:00 AM

• Management Fee: 1.5%

• Benchmark: 3-Month SOFRA

• Inception Date: October 2024

• Fund Manager: Sanlam Investments East Africa

What the Fund Invests In

In February, the fund maintained exposure to Eurobonds and USD bank deposits, aiming to preserve liquidity and generate stable yield.

February 2025 Market Commentary

Inflation

US inflation rose slightly to 3.0%, up from 2.9% in January, keeping the pressure on monetary policy outlooks.

Currency

The US Dollar remained relatively strong, with the DXY closing at 107.61 (down slightly from 108.37). This stability supported the fund’s strategy of holding steady-yield assets.

Interest Rates

Interest rates declined by an average of 0.2%. The US Federal Reserve maintained its benchmark range of 4.25% – 4.50%, but markets continued to expect future rate cuts.

Fund Strategy

The Sanlam Dollar Fund took a cautious position, maintaining a balance between Eurobonds and deposits to preserve liquidity and avoid volatility — especially important in the context of fluctuating global inflation and rate uncertainty.

Why This Fund Matters for Ugandan Investors

This fund is ideal for:

• Exporters, freelancers, and consultants earning in USD

• Diaspora families planning long-term goals in Uganda

• Investors hedging against shilling depreciation

• Parents saving for foreign currency tuition or healthcare

Key benefits:

• Monthly USD income

• Capital preservation

• Daily valuation for flexibility

• Seamless access to global fixed-income assets

How to Invest in the Sanlam Dollar Fund via Level Africa

You can invest in just a few steps:

1. Create an account at Level Africa

2. Upload your National ID or Passport

3. Go to the Unit Trusts section

4. Select Sanlam Dollar Fund

5. Deposit USD using card, mobile money, or bank transfer

6. Place your order

7. Track your income and returns via your Level dashboard

Final Thoughts

A 5.38% return in February 2025 highlights the Sanlam Dollar Fund’s ability to deliver solid performance in a low-risk, USD-denominated structure. For Ugandans managing dollar income or savings, this fund offers both safety and growth potential.

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Frequently Asked Questions

What is the Sanlam Dollar Fund?

A conservative unit trust that invests in USD-based securities like Eurobonds and deposits to preserve capital and earn monthly income.

What return did it offer in February 2025?

An annualized yield of 5.38%.

How much do I need to start?

Minimum investment is USD 1,000.

Who is this fund for?

Ideal for anyone holding USD — such as diaspora families, exporters, freelancers, and international school planners.

Can I withdraw anytime?

Yes, the fund offers daily valuation and high liquidity, with fast settlements.

Is this fund licensed in Uganda?

Yes. It is part of the Sanlam Umbrella Trust Scheme, licensed by the Capital Markets Authority of Uganda.