August 2023 Unit Trust Update – UAP Old Mutual Money Market Fund Performance and Strategy

The UAP Old Mutual Money Market Fund delivered a monthly return of 11.27 percent in August 2023, helping Ugandan investors navigate economic pressure from currency depreciation and rising interest rates. As uncertainty increased following the withdrawal of World Bank funding, this fund remained a reliable option for earning income while preserving capital.

Fund Overview

The Money Market Fund, managed by UAP Old Mutual Investment Group – Uganda, is designed for short-term investors looking to earn regular income with immediate liquidity.

Key highlights for August 2023:

Fund Size: UGX 5.95 billion
Minimum Investment: UGX 100,000
Top-Up Amount: UGX 100,000
Liquidity: T+2 (two business days)
Risk Profile: Medium
August Yield: 11.27 percent
Benchmark: 91-day Treasury Bill (closed at 10.03 percent)
Management Fee: 2 percent
Initial Fee: 0 percent
Fund Inception: 20 August 2013

Performance Summary

The fund outperformed its benchmark across every measured period.

Period	Fund Return (%)	Benchmark (%)
August 2023	11.27	10.03
Quarter to Date	11.51	9.74
Year to Date	11.68	10.08
Since Inception	11.05	10.00

What the Fund Invests In

The fund targets high-quality, short-term, interest-earning securities to generate consistent returns while maintaining liquidity.

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

Why This Fund Matters for Ugandan Investors

The Uganda shilling weakened by 1.16 percent, closing at UGX 3,710 in August 2023. This was triggered by the suspension of World Bank funding and concerns about Uganda’s fiscal position.

Yields rose sharply across the curve:

Short-term yields rose by 100 bps
Long-term yields rose by 110 bps
The CBR was lowered to 9.5 percent in August

Inflation remained under control, with expectations to average 4–5 percent in H2 2023 and remain below the Bank of Uganda’s 5 percent medium-term target.

The fund’s 11.27 percent return helped investors:

Stay ahead of inflation
Preserve capital during currency volatility
Keep funds accessible within two business days
Earn more than fixed deposits and SACCO savings accounts

How to Invest with Level Africa

Here’s how to get started today:

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 investment order
Track your returns directly from your dashboard

Final Thoughts

In a volatile economic environment, the UAP Old Mutual Money Market Fund continues to deliver reliable performance. August’s 11.27 percent return reinforces its position as one of the best options for short-term investors looking to earn, save, and stay liquid.

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Frequently Asked Questions

What is a money market fund?

It’s a low-risk investment that earns monthly income by placing money in short-term debt securities like Treasury bills, fixed deposits, and corporate paper.

How fast can I access my funds?

Withdrawals are processed within two business days (T+2).

What’s the minimum amount required to invest?

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

Is the fund regulated?

Yes. It’s regulated by the Capital Markets Authority and managed by UAP Old Mutual Investment Group.

Who should consider investing in this fund?

It’s ideal for short-term savers, businesses managing cash flow, and individuals looking for stable income without locking in their money.

How does it compare to SACCOs or fixed deposits?

The fund often offers better yields, daily tracking, and quicker access—without lock-in periods or early withdrawal penalties.

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
Monitor your returns online