May 2024 Unit Trust Update – UAP Old Mutual Umbrella Trust Fund Performance and Strategy

In May 2024, the UAP Old Mutual Umbrella Trust Fund once again proved its value to investors seeking steady income and capital protection. Despite market volatility and a sovereign credit rating downgrade, the fund delivered a stable return and maintained its low-risk positioning. For Ugandans looking for a better alternative to savings accounts and fixed deposits, this fund remains a reliable choice.

Fund Overview

The Umbrella Trust Fund, managed by UAP Old Mutual Investment Group – Uganda, is structured to provide long-term investors with a safe way to earn returns without worrying about market shocks.

Key fund features as of May 2024:

Fund Size: UGX 2.051 trillion
Minimum Investment: UGX 100,000
Top-Up Amount: UGX 100,000
Liquidity: T+2 (withdraw funds in two business days)
Risk Profile: Low
May 2024 Yield: 11.25 percent
Management Fee: 2 percent
Initial Fee: 0 percent
Launch Date: 20 August 2013

This fund is ideal for anyone looking to earn interest without taking on unnecessary risk.

Performance Summary

The fund once again outperformed its benchmark, showing strong returns across all time periods.

Period	Return (%)	Benchmark (%)
May 2024	11.25	8.95
Quarter to Date	11.47	8.96
Year to Date	11.68	8.91
Since Inception	11.87	8.47

These results show how well the fund protects your money and delivers consistent, inflation-beating income.

What the Fund Invests In

The fund invests in a conservative mix of interest-bearing assets, mainly in government and corporate securities.

Asset allocation as of May 2024:

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

This diversified allocation ensures that your money works efficiently while remaining safe.

Why This Fund Matters for Ugandan Investors

In May, the Uganda shilling held relatively steady at UGX 3,815.71, despite intra-month volatility caused by a Moody’s downgrade. Treasury yields rose, with the 91-day rate closing at 9.997 percent, the 182-day at 12.99 percent, and the 364-day at 13.594 percent.

Even amid economic and geopolitical challenges, the Umbrella Trust Fund returned 11.25 percent, helping investors:

Beat inflation
Preserve capital
Avoid the risks of equity markets and forex speculation

This fund is a solid choice for:

Parents saving for school fees
Individuals planning for retirement or homeownership
Anyone building a low-risk emergency fund
Investors who prefer peace of mind and access to funds when needed

How to Invest with Level Africa

You can start investing with Level Africa in just a few minutes. Here’s how:

Create an account at Level Africa
Upload your National ID or Passport to complete verification
Go to the Unit Trusts section
Select the Umbrella Trust Fund
Deposit money into your wallet
Place your investment order
Track your performance from your dashboard

You can start with as little as UGX 100,000.

Final Thoughts

With strong returns and a low minimum investment, the UAP Old Mutual Umbrella Trust Fund continues to offer Ugandans a secure way to build wealth over time. If you’re looking to protect your money, earn monthly income, and avoid high-risk investments, this fund is a smart place to begin.

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Frequently Asked Questions

What is a unit trust?

A unit trust is a collective investment where many investors pool their money into a professionally managed fund that invests in government securities, corporate bonds, and other income-generating assets.

How do unit trusts work in Uganda?

You purchase units in the fund. As the fund earns interest or grows in value, so does your investment. You can withdraw your funds at any time, usually within two working days.

Why choose a unit trust instead of a savings account?

Unit trusts offer higher returns, are actively managed, and are more effective at preserving your purchasing power over time compared to most savings accounts.

Is the Umbrella Trust Fund safe?

Yes. It is regulated by the Capital Markets Authority and categorized as low-risk. The fund invests in stable, interest-earning assets like treasury bills and corporate paper.

What’s the minimum amount I need to invest?

You can get started with UGX 100,000 and continue to top up with the same amount or more.

Can I lose money in this fund?

While there’s always a small level of risk, the fund is designed to protect your capital. Its focus on secure, fixed-income investments minimizes potential losses.

How do I invest through Level Africa?

Sign up at Level Africa
Upload your ID for verification
Choose the Umbrella Trust Fund
Fund your wallet
Place your order
Track your returns from your dashboard