April 2024 Unit Trust Update – UAP Old Mutual Money Market Fund Performance and Strategy

The UAP Old Mutual Money Market Fund delivered an 11.00 percent return in April 2024, helping investors stay ahead of inflation and rising interest rates. With global monetary tightening and increased domestic borrowing, the fund offered a low-risk way to earn monthly income while preserving capital.

Fund Overview

The Money Market Fund, managed by UAP Old Mutual Investment Group – Uganda, is designed for conservative investors seeking stable returns and immediate access to cash.

Key features for April 2024:

Fund Size: UGX 8.284 billion
Minimum Investment: UGX 100,000
Top-Up Amount: UGX 100,000
Liquidity: T+2 (two business days)
Risk Profile: Medium
April Yield: 11.00 percent
Benchmark: 91-day Treasury Bill (closed at 9.28 percent)
Management Fee: 2 percent
Initial Fee: 0 percent
Fund Inception: 20 August 2013

Performance Summary

The fund consistently outperformed its benchmark.

Period	Fund Return (%)	Benchmark (%)
April 2024	11.00	9.28
Quarter to Date	11.29	9.19
Year to Date	11.52	9.54
Since Inception	11.07	9.95

These returns reflect the fund manager’s effective short-duration strategy during a rising rate environment.

What the Fund Invests In

The fund invests in short-term, high-quality interest-bearing instruments to protect capital and earn stable income.

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% beyond 12 months

This strategy ensures flexibility and the ability to benefit quickly from changes in market interest rates.

Why This Fund Matters for Ugandan Investors

The Uganda shilling appreciated by 3.28 percent in April, closing at UGX 3,814.75. This was due to effective central bank policies and strong inflows in the interbank market. However, interest rates rose slightly:

91-day T-bill: 9.681%
182-day: 12.4%
364-day: 13.366%

At the same time, inflation remained under control, averaging 3.5 percent, though upward pressure is expected from infrastructure spending and food supply risks.

Despite the volatility, the fund’s 11.00 percent return offered:

Better income than most call or fixed deposits
Safety from market volatility
Fast access to cash
A strong hedge against inflation

How to Invest with Level Africa

Start investing today in just a few steps:

Create an account at Level Africa
Upload your National ID or Passport
Visit the Unit Trusts section
Select the Money Market Fund
Deposit funds into your wallet
Place your order
Track your performance from your dashboard

Final Thoughts

April’s return of 11.00 percent confirmed the UAP Old Mutual Money Market Fund’s role as one of the most consistent low-risk investment options in Uganda. If you’re looking for income, capital safety, and liquidity in uncertain times, this fund remains a top choice.

Start Now – Create an Account on Level Africa
Join our community of like minded investors like yourself today Building Wealth With Level Africa.
Stay updated by following our WhatsApp channel.

Frequently Asked Questions

What is a money market fund?

A money market fund invests in low-risk, short-term debt instruments like Treasury bills, corporate paper, and fixed deposits to earn interest.

How fast can I access my money?

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

What’s the minimum investment?

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

Is this fund safe?

Yes. It’s regulated by the Capital Markets Authority and focuses on capital preservation.

Who should invest in this fund?

It’s great for businesses, salary earners, emergency fund savers, and anyone with short-term goals.

How does it compare to bank savings or SACCOs?

It typically offers higher returns, better liquidity, and no penalties for early withdrawal.

How do I invest through Level Africa?

Sign up at Level Africa
Upload your ID
Fund your wallet
Choose the Money Market Fund
Place your order
Track your returns from your dashboard