March 2025 Unit Trusts in Uganda Update – Sanlam Income Fund Performance and Strategy

The Sanlam Income Fund continues to serve as a stable investment for Ugandans seeking low-risk income. In March 2025, the fund posted a 13.06% annualized return, comfortably outperforming its benchmark and offering monthly income in a rising inflation environment.

Fund Overview

The fund is a conservative, fixed-income unit trust that focuses on short- and medium-term interest-bearing securities. It is designed to help investors grow their savings steadily while preserving capital.

Key details for March 2025:

• Annualized Return: 13.06%

• Minimum Investment: UGX 100,000

• Fund Size (AUM): UGX 23.2 billion

• Risk Profile: Conservative

• Income Distribution: Monthly

• Liquidity: T+2

• Benchmark: 91-day Treasury Bill

• Management Fee: 2%

• Fund Manager: Sanlam Investments East Africa

• Fund Launch: May 2009

Performance

The fund continues to outperform the 91-day Treasury Bill benchmark, making it a reliable option for yield-seeking investors in Uganda.

What the Fund Invests In

To maintain its low-risk profile and generate consistent returns, the fund invests in:

• Government securities (treasury bills and bonds)

• Fixed deposits

• Commercial paper

In March, the portfolio strategy favored shorter-term investments, protecting capital while responding to anticipated shifts in interest rates.

March 2025 Market Commentary

Inflation

Uganda’s inflation rate rose slightly to 3.6%, driven mainly by energy prices. Still, the overall environment remained favorable for fixed-income investing.

Currency

The UGX appreciated marginally, supported by increased remittances and lower fuel import demand.

Interest Rates

The 91-day Treasury Bill yield closed at 11.58%, reflecting a stable short-term interest rate environment. Long-term rates also declined slightly due to portfolio rebalancing across institutions.

Fund Strategy

The Sanlam Income Fund remained focused on yield preservation, locking in attractive short- to medium-term rates before expected declines in Q2. The fund held high-quality commercial paper and government instruments to maintain income generation while staying liquid.

Why This Fund Matters for Ugandan Investors

The Sanlam Income Fund is ideal for:

• Retirees looking for monthly income

• Professionals and business owners saving toward medium-term goals

• SACCOs and institutions seeking capital-safe instruments

• First-time investors starting their journey

Benefits include:

• Consistent monthly payouts

• Low-risk exposure

• Flexibility to top up or withdraw

• T+2 liquidity for fast access to cash

• Better returns than savings accounts or fixed deposits

How to Invest in the Sanlam Income Fund via Level Africa

You can invest in just a few steps:

1. Create an account at Level Africa

2. Complete your KYC by uploading a National ID or Passport

3. Go to the Unit Trusts section

4. Select Sanlam Income Fund

5. Deposit money via mobile money, card, or bank

6. Place your order

7. Track your income and performance from your dashboard

Final Thoughts

The 13.06% return in March 2025 reinforces the Sanlam Income Fund’s status as one of Uganda’s most dependable unit trusts. With a conservative strategy, monthly income, and high liquidity, it’s the ideal investment vehicle for those who want stable returns without volatility.

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Frequently Asked Questions

What is the Sanlam Income Fund?

It’s a conservative unit trust that invests in government and fixed-income securities to deliver monthly income.

What return did it offer in March 2025?

The fund returned 13.06% annualized, outperforming the 91-day Treasury Bill.

Who is it suitable for?

Professionals, retirees, SACCOs, and anyone seeking safe and predictable income.

What’s the minimum investment?

UGX 100,000.

How quickly can I access my money?

Funds are accessible within 2 business days (T+2 liquidity).

Is it regulated?

Yes — it’s managed by Sanlam Investments East Africa and regulated by the Capital Markets Authority of Uganda.