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

March 2024 saw the UAP Old Mutual Money Market Fund deliver a return of 11.09 percent, continuing its streak of providing stable, low-risk income for short-term investors in Uganda. With yields rising and the Uganda shilling facing depreciation pressure, this fund proved its value in helping investors protect capital and stay liquid.

Fund Overview

Managed by UAP Old Mutual Investment Group – Uganda, the Money Market Fund offers daily liquidity, strong risk management, and inflation-beating interest.

Key features for March 2024:

• Fund Size: UGX 7.048 billion

• Minimum Investment: UGX 100,000

• Top-Up Amount: UGX 100,000

• Liquidity: T+2 (two business days)

• Risk Profile: Medium

• March Yield: 11.09 percent

• Benchmark: 91-day Treasury Bill (closed at 9.224 percent)

• Management Fee: 2 percent

• Initial Fee: 0 percent

• Fund Inception: 20 August 2013

Performance Summary

The fund beat its benchmark across all measured timeframes.

This consistency shows the advantage of active management and a short-duration strategy in changing markets.

What the Fund Invests In

The fund targets safe, short-term, interest-bearing instruments designed to earn income while keeping investor funds readily available.

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 allocation balances liquidity and yield, allowing the fund to quickly adapt to market shifts.

Why This Fund Matters for Ugandan Investors

The Uganda shilling depreciated by 3.3 percent, closing at UGX 3,939.75 in March 2024 due to strong corporate demand for USD and limited supply. Short-term interest rates showed mixed movements:

• 91-day T-bill: 9.224%

• 182-day: 11.928%

• 364-day: 13.14%

Market sentiment was cautious, driven by concerns over fiscal deficits, rising government borrowing needs, and uncertainty in external funding.

Despite these pressures, the fund’s 11.09 percent return helped investors:

• Protect their savings from inflation

• Preserve capital in a depreciating currency environment

• Avoid the volatility of long-term bonds

• Keep their funds accessible within two days

How to Invest with Level Africa

You can start investing with just a few simple steps:

1. Create an account at Level Africa

2. Upload your National ID or Passport

3. Go to the Unit Trusts section

4. Select the Money Market Fund

5. Deposit funds into your wallet

6. Place your order

7. Track your returns from your dashboard

Final Thoughts

The UAP Old Mutual Money Market Fund continues to deliver stability and performance in uncertain market conditions. With strong March returns, low risk, and high liquidity, it remains one of Uganda’s best options for short-term investors seeking steady income.

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Frequently Asked Questions

What is a money market fund?

It’s a short-term investment fund that earns interest from secure instruments like Treasury bills, fixed deposits, and corporate paper.

How soon can I get my money?

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

What is the minimum investment?

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

Who should invest in this fund?

It’s ideal for businesses, emergency savers, professionals, and anyone looking to earn interest without locking up their funds.

Is this investment safe?

Yes. The fund is regulated by the Capital Markets Authority and invests in secure, interest-bearing assets.

How does it compare to SACCOs or fixed deposits?

It usually offers better returns, easier access to funds, and no lock-in penalties.

How do I invest through Level Africa?

1. Sign up at Level Africa

2. Upload your ID

3. Fund your wallet

4. Choose the Money Market Fund

5. Place your investment

6. Track your returns online

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