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

In May 2025, the Sanlam Income Fund delivered a strong effective annual yield of 13.19 percent, positioning itself as one of the top conservative fixed-income investment options in Uganda. With inflation rising slightly and global financial uncertainty persisting, the fund continues to serve income-seeking investors who value capital preservation and flexibility.

Fund Overview

The Sanlam Income Fund, managed under the Sanlam Umbrella Unit Trust Scheme, is structured to provide regular income while preserving your capital. It’s ideal for risk-averse investors who want more than what a traditional savings account offers—without tying up their money long term.

Key facts for May 2025:

Effective Annual Yield: 13.19%
Minimum Investment: UGX 100,000
Portfolio Size: UGX 387 billion
Risk Profile: Conservative
Income Distribution: Monthly (compounded)
Income Price Dates: Daily (excluding weekends and public holidays)
Transaction Cut-Off Time: 10:00 AM
Benchmark: 91-day Uganda Treasury Bill
Management Fee: 1.5%
Inception Date: 13 October 2020

What the Fund Invests In

The fund focuses on high-quality fixed income securities to deliver stable returns with minimal risk:

Treasury Bills: 0–50%
Treasury Bonds: 0–90%
Bank Deposits: 0–50%
Commercial Paper: 0–20%

This diverse allocation strategy helps balance income generation and liquidity—key for investors who may need to withdraw without penalty.

May 2025 Market Context and Portfolio Commentary

According to Sanlam’s May 2025 commentary:

Inflation: Rose to 3.8%, up from 3.5% in April. Core inflation also ticked up to 4.2%. Despite this, inflation remains within the Bank of Uganda’s 4.5%–5.0% target.
Currency: The Uganda shilling appreciated by 0.8% in May and 4.9% year-on-year, driven by lower demand for USD and strong commodity export inflows. More appreciation is expected heading into the coffee season.
Interest Rates: The Central Bank Rate was held at 9.75%, and the government raised UGX 3.2 trillion through private bond placements. Notably, 10-year bond yields ranged from 16.5% to 18.25%.
Fund Strategy: The Income Fund maintained its overweight allocation to government securities to protect returns and ensure liquidity.

Why This Fund Matters for Ugandan Investors

With Treasury bill and bond rates still elevated, this fund gives investors:

Access to steady monthly income
Low volatility even during global uncertainty
A better return than typical savings or call accounts
Daily pricing for better transparency
Flexibility on top-ups and redemptions

The fund’s large portfolio size (UGX 387 billion) and consistent yield show investor confidence and institutional-grade management.

How to Invest in the Sanlam Income Fund with Level Africa

You can invest in the Sanlam Income Fund directly through Level Africa in just a few simple steps:

Create an account at Level Africa
Upload your National ID or Passport for verification
Go to the Unit Trusts section
Select “Sanlam Income Fund” from the list of available funds
Deposit money into your Level Africa wallet
Place your investment order with just a few clicks
Track your income and fund performance anytime from your dashboard

No paperwork. No office visits. Just straightforward investing from anywhere.

Final Thoughts

The Sanlam Income Fund remains one of Uganda’s best low-risk fixed income options for May 2025. With a 13.19% yield, strong regulatory backing, and capital preservation focus, it’s a smart choice for income seekers and conservative investors alike.

Start Now – Create an Account on Level Africa
Join our community of like minded investors like yourself today Building Wealth With Level Africa.
Stay updated by following our WhatsApp channel.

Frequently Asked Questions

What is the Sanlam Income Fund?

It’s a conservative unit trust fund that invests in Treasury bills, bonds, fixed deposits, and commercial paper to deliver monthly income while protecting your capital.

What’s the minimum investment amount?

UGX 100,000.

How often is income paid?

Income is calculated daily and compounded monthly. You can withdraw it or reinvest it.

Is this a safe investment?

Yes. The fund is regulated by the Capital Markets Authority and focuses on low-risk fixed income assets.

What return did it offer in May 2025?

An effective annual yield of 13.19 percent, net of fees.

Can I access my funds anytime?

Yes. The fund allows flexible top-ups and redemptions. Just ensure transactions are placed before 10:00 AM.

How is it different from a money market fund?

While both are low-risk, the Income Fund may hold longer-dated bonds and can offer slightly higher yields, especially in rising rate environments.