February 2025 Unit Trust Update – UAP Old Mutual Money Market Fund Performance and Strategy

February 2025 was another solid month for the UAP Old Mutual Money Market Fund, returning 10.81 percent. In a period of rising inflation and lower government borrowing, the fund continued to deliver safe, competitive returns for investors seeking short-term income and liquidity.

Fund Overview

The Money Market Fund, managed by UAP Old Mutual Investment Group – Uganda, is a low-volatility option that offers interest income and capital preservation for individuals and institutions.

Key features for February 2025:

Fund Size: UGX 10.621 billion
Minimum Investment: UGX 100,000
Top-Up Amount: UGX 100,000
Liquidity: T+2 (withdrawable in two business days)
Risk Profile: Medium
February Yield: 10.81 percent
Benchmark: 91-day Treasury Bill (closed at 10.391 percent)
Management Fee: 2 percent
Initial Fee: 0 percent
Fund Inception: 20 August 2013

Performance Summary

The fund continued its outperformance against its benchmark.

Period	Return (%)	Benchmark (%)
February 2025	10.81	10.39
Quarter to Date	11.03	10.51
Year to Date	11.22	10.51
Since Inception	11.08	9.97

This consistency makes it a strong candidate for savers looking to protect and grow idle cash.

What the Fund Invests In

The Money Market Fund invests in short-term, interest-bearing instruments with high liquidity and low risk.

Asset allocation:

Treasury Bonds: 33.98 percent
Treasury Bills: 29.89 percent
Corporate Paper: 26.20 percent
Fixed Deposits: 5.14 percent
Cash & Call: 4.70 percent

Maturity profile:

65.83% matures within 3 months
7.04% matures in 3–6 months
23.15% matures in 9–12 months
3.98% matures above 12 months

This blend allows for strong yields and fast liquidity when needed.

Why This Fund Matters for Ugandan Investors

The Uganda shilling appreciated 0.15 percent, ending February at UGX 3,679.73. Strong coffee and cocoa exports supported the currency. Meanwhile, Treasury yields declined, driven by a drop in government borrowing and demand from offshore investors.

91-day T-bill: 10.391 percent
182-day: 13.519 percent
364-day: 14.853 percent

Inflation ticked up slightly to 3.7 percent, largely due to food price increases. Despite this, the fund’s return of 10.81 percent continued to outpace inflation and outperform traditional savings products.

This makes it ideal for:

Professionals looking for low-risk returns
Business owners managing operational cash
Families building emergency savings
Anyone parking funds temporarily while waiting for better investment opportunities

How to Invest with Level Africa

You can invest in the Money Market Fund in just a few 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 performance anytime from your dashboard

Final Thoughts

February’s 10.81 percent return proves that the UAP Old Mutual Money Market Fund remains a reliable option for short-term investing. With liquidity, consistent income, and strong risk controls, it’s an excellent alternative to bank deposits or fixed-term products.

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Frequently Asked Questions

What is a money market fund?

A money market fund invests in low-risk, short-term securities like Treasury bills, commercial paper, and fixed deposits to earn stable interest income.

How quickly can I access my money?

Withdrawals are processed in two business days (T+2), ensuring high liquidity.

Who should invest in this fund?

Anyone looking to preserve capital while earning regular income—ideal for both individuals and businesses.

How much do I need to start?

You can invest with UGX 100,000, and top up with UGX 100,000 or more.

Is this fund safe?

It’s considered medium risk and is regulated by the Capital Markets Authority. It invests in secure debt instruments.

How does it compare to fixed deposits or SACCOs?

It typically offers better returns and more flexibility, with no lock-in period and professional management.

How do I invest using Level Africa?

Sign up at Level Africa
Upload your ID
Fund your wallet
Choose the UAP Old Mutual Money Market Fund
Place your order
Monitor your progress from your dashboard