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

The UAP Old Mutual Money Market Fund returned 11.03 percent in July 2024, marking another month of strong, low-risk income for short-term investors in Uganda. Even as inflation edged upward and yields softened across the board, the fund continued to deliver inflation-beating returns with daily liquidity and capital preservation.

Fund Overview

The Money Market Fund, managed by UAP Old Mutual Investment Group – Uganda, offers consistent interest earnings and quick access to your cash.

Key features for July 2024:

Fund Size: UGX 9.712 billion
Minimum Investment: UGX 100,000
Top-Up Amount: UGX 100,000
Liquidity: T+2 (two business days)
Risk Profile: Medium
Yield (July): 11.03 percent
Benchmark: 91-day Treasury Bill (closed at 9.7 percent)
Management Fee: 2 percent
Initial Fee: 0 percent
Fund Inception: 20 August 2013

Performance Summary

The fund continued to outperform its benchmark.

Period	Return (%)	Benchmark (%)
July 2024	11.03	9.42
Quarter to Date	11.12	9.83
Year to Date	11.43	9.48
Since Inception	11.08	9.95

This steady outperformance reinforces the fund’s value as a low-volatility savings and income tool.

What the Fund Invests In

The fund holds short-term, interest-bearing instruments that balance income generation with fast access to cash.

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 conservative portfolio structure allows the fund to respond quickly to market changes while preserving principal.

Why This Fund Matters for Ugandan Investors

In July, the Uganda shilling depreciated 0.4 percent, closing at UGX 3,726.36 due to strong inter-bank demand. Despite a stable start to the month, commercial banks increased their dollar holdings ahead of fiscal year-end volatility.

Short-term yields dropped:

91-day T-bill: 9.7% (down 36 bps)
182-day: 12.456%
364-day: 13.43%

Inflation rose slightly to 4.0 percent, driven by food and transport prices, while core inflation stood at 3.9 percent. However, inflation is expected to fall to 3.5 percent by year-end due to improving FX stability and food supply.

In this environment, the fund’s 11.03 percent return provided:

Income that beats inflation
Fast access to cash (within 2 business days)
Safety during currency fluctuations
A better alternative to fixed deposits or SACCOs

How to Invest with Level Africa

Getting started takes just a few minutes:

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

Final Thoughts

With rising inflation, easing yields, and currency pressure, July’s 11.03 percent return proves the value of the UAP Old Mutual Money Market Fund. It’s a smart choice for anyone who wants low-risk, inflation-beating income while keeping funds accessible.

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Frequently Asked Questions

What is a money market fund?

It’s a low-risk investment that puts money into short-term debt instruments like Treasury bills, fixed deposits, and corporate paper to earn monthly income.

How quickly can I access my money?

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

What’s the minimum investment amount?

UGX 100,000 to start, with additional top-ups of UGX 100,000 or more.

Is this fund safe?

Yes. It’s regulated by the Capital Markets Authority and focuses on secure, interest-earning assets.

Who should invest?

It’s ideal for short-term savers, businesses, and anyone needing safe, liquid returns above typical savings rates.

How does it compare to SACCOs or fixed deposits?

It typically offers better returns, daily valuation, and easy access without 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
Track returns from your dashboard