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

The UAP Old Mutual Money Market Fund delivered a 10.97 percent return in December 2023, capping off a year of strong performance. Despite a weakening shilling and shifting market conditions, the fund provided investors with stability, income, and fast access to funds—making it a reliable option in a volatile economic climate.

Fund Overview

Managed by UAP Old Mutual Investment Group – Uganda, the Money Market Fund offers a secure way to earn monthly income without locking up your money.

Key highlights for December 2023:

Fund Size: UGX 6.49 billion
Minimum Investment: UGX 100,000
Top-Up Amount: UGX 100,000
Liquidity: T+2 (two business days)
Risk Profile: Medium
December Yield: 10.97 percent
Benchmark: 91-day Treasury Bill (closed at 9.938 percent)
Management Fee: 2 percent
Initial Fee: 0 percent
Fund Inception: 20 August 2013

Performance Summary

The fund continued to outperform its benchmark.

Period	Fund Return (%)	Benchmark (%)
December 2023	10.97	9.28
Quarter to Date	11.35	9.24
Year to Date	11.62	9.69
Since Inception	11.06	9.98

This performance confirms the fund’s value as a low-risk, high-yield investment option.

What the Fund Invests In

The fund focuses on short-term, interest-bearing securities to protect capital while earning regular returns.

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% above 12 months

This structure helps the fund stay flexible while benefiting from rising interest rates.

Why This Fund Matters for Ugandan Investors

In December, the Uganda shilling depreciated by 2 percent, closing at UGX 3,782.21. Still, the currency was 1.2 percent stronger than in November.

Key interest rate trends:

91-day T-bill: 9.938% (up 33 bps)
182-day T-bill: 11.88% (up 1 bp)
364-day T-bill: 12.72% (down 6 bps)

Treasury bond yields also fell 8–40 bps across various maturities. Inflation remained low, with core inflation projected between 2.5–3.5 percent for FY23/24. The Bank of Uganda was expected to cut the policy rate by 50 bps in Q1 2024, unless oil prices rose significantly.

The fund’s 10.97 percent return provided:

Income above inflation
Safety from currency risk
Fast access to capital
A better alternative to savings accounts and fixed deposits

How to Invest with Level Africa

Start investing with these quick steps:

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

Final Thoughts

With 2023 ending on a strong note, the UAP Old Mutual Money Market Fund proved itself a top choice for Ugandans seeking steady income and liquidity. Its 10.97 percent December return and consistent outperformance made it a standout low-risk investment for businesses, individuals, and savers alike.

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Frequently Asked Questions

What is a money market fund?

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

How quickly can I get my money?

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

What is the minimum amount to invest?

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

Is the fund regulated?

Yes. It’s regulated by the Capital Markets Authority and managed professionally.

Who should consider this fund?

It’s ideal for salary earners, businesses, and anyone saving for short-term goals or emergency needs.

How does it compare to SACCOs or fixed deposits?

It typically offers higher returns, daily valuation, and greater flexibility—no penalties or lock-ins.

How do I invest through Level Africa?

Sign up at Level Africa
Upload your ID
Fund your wallet
Select the Money Market Fund
Place your order
Track your investment performance online