May 2025 Unit Trust Update – UAP Old Mutual Money Market Fund Performance and Strategy

The UAP Old Mutual Money Market Fund offered a solid monthly return of 10.95 percent in May 2025, continuing its reputation as a stable, short-term investment option for income-seeking investors in Uganda. With inflation creeping up and yields staying elevated, the fund remains a smart choice for capital preservation and liquidity.

Fund Overview

The Money Market Fund, managed by UAP Old Mutual Investment Group – Uganda, is designed for investors who want a low-volatility, interest-earning vehicle with quick access to their money.

Key features as of May 2025:

Fund Size: UGX 12.931 billion
Minimum Investment: UGX 100,000
Top-Up Amount: UGX 100,000
Liquidity: T+2 (withdraw in two business days)
Risk Profile: Medium
May Yield: 10.95 percent
Benchmark: 91-day Treasury bill (closed at 11.688 percent)
Management Fee: 2 percent
Initial Fee: 0 percent
Fund Inception: 20 August 2013

The fund is suitable for individuals and businesses looking to earn interest on short-term savings without locking funds in for long durations.

Performance Summary

The Money Market Fund remained competitive against its benchmark:

Period	Fund Return (%)	Benchmark (%)
May 2025	10.95	11.69
Quarter to Date	10.87	10.76
Year to Date	11.09	10.35
Since Inception	11.08	9.99

Its consistent performance shows the fund’s ability to deliver strong returns with lower risk and greater liquidity than fixed deposits or long-term bonds.

What the Fund Invests In

The Money Market Fund invests in interest-bearing assets with short maturities to ensure quick access to funds and capital preservation.

Asset allocation as of May 2025:

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

The maturity profile is heavily weighted toward short-term instruments (below 12 months), with:

66.58% maturing within 3 months
21.72% between 3 to 12 months
11.70% above 12 months

This ensures both yield and liquidity for investors.

Why This Fund Matters for Ugandan Investors

In May, the Uganda shilling appreciated by 0.95 percent, closing at UGX 3,630.86, supported by strong dollar inflows, export earnings (especially from coffee), and financial market reforms. Treasury yields remained elevated across most tenors as government borrowing increased following approval of a UGX 4.86 trillion supplementary budget.

91-day T-bill: 11.688 percent
182-day: 12.419 percent
364-day: 15.281 percent

Inflation rose to 3.8 percent, the highest since August 2024, driven by food and transport prices. Core inflation also edged up to 4.2 percent.

Amid these pressures, the Money Market Fund provided investors:

Liquidity within 2 business days
Higher income than most bank deposits
A buffer against rising inflation
Diversified short-term exposure

How to Invest with Level Africa

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

Create an account at Level Africa
Upload your National ID or Passport
Go to the Unit Trusts section
Select the UAP Old Mutual Money Market Fund
Deposit funds into your wallet
Place your order
Track your returns from your dashboard

Final Thoughts

With elevated yields and rising inflation, the UAP Old Mutual Money Market Fund offers a safe way to earn competitive returns on short-term cash. It’s ideal for anyone who needs their money accessible but still wants it to grow.

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Frequently Asked Questions

What is a money market fund?

A money market fund is a short-term investment that invests in secure interest-bearing assets like Treasury bills, fixed deposits, and corporate paper. It’s designed to provide income and preserve capital.

Who is the Money Market Fund for?

It’s ideal for savers, businesses, and investors who want better returns than a savings account but still need access to their money.

What’s the minimum investment?

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

How quickly can I access my money?

Withdrawals are processed within two business days (T+2), offering flexibility and liquidity.

Is this fund safe?

It’s a medium-risk fund regulated by the Capital Markets Authority. It invests in secure government and corporate short-term instruments.

How does it compare to fixed deposits or SACCOs?

The Money Market Fund usually pays higher interest than most fixed deposits or SACCO accounts, and allows easier withdrawals.

How do I invest using Level Africa?

Sign up at Level Africa
Upload your ID
Fund your wallet
Choose the UAP Old Mutual Money Market Fund
Place your order
Track your performance online