October 2023 Unit Trust Update – UAP Old Mutual Umbrella Trust Fund Performance and Strategy

October 2023 was a stable month for investors in the UAP Old Mutual Umbrella Trust Fund. While the Ugandan shilling weakened slightly, interest rates fell across the board and inflation remained under control. The fund delivered a strong return of 11.24 percent, providing reliable income for conservative investors. For those looking for a safe, inflation-beating alternative to bank savings, this fund continues to deliver.

Fund Overview

The Umbrella Trust Fund, managed by UAP Old Mutual Investment Group – Uganda, is structured for capital preservation and consistent income.

Key details for October 2023:

Fund Size: UGX 1.557 trillion
Minimum Investment: UGX 1,000,000
Top-Up Amount: UGX 100,000
Liquidity: T+2 (withdraw funds in two business days)
Risk Profile: Low
October Yield: 11.24 percent
Management Fee: 2 percent
Initial Fee: 0 percent
Fund Inception: 20 August 2013

This fund remains a trusted choice for investors planning toward long-term financial goals like retirement, tuition, or land.

Performance Summary

The fund outperformed its benchmark once again in all key timeframes.

Period	Return (%)	Benchmark (%)
October 2023	11.24	8.96
Quarter to Date	11.51	8.63
Year to Date	11.85	9.82
Since Inception	11.89	8.45

These returns reflect the fund’s stability and efficient management through changing macroeconomic conditions.

What the Fund Invests In

The Umbrella Trust Fund focuses on fixed-income investments that balance safety with income generation.

Asset allocation as of October 2023:

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 structure helps the fund provide returns while protecting your capital.

Why This Fund Matters for Ugandan Investors

In October, the Uganda shilling weakened 0.47 percent, closing at UGX 3,774.04 due to increased import activity and concerns over fiscal constraints. However, Treasury yields dropped across all tenors, signaling reduced pressure on government borrowing:

91-day bill: 9.3 percent (down 28 bps)
182-day bill: 11.8 percent
364-day bill: 12.8 percent

With inflation expected to stay between 3 to 4 percent in early 2024, the Umbrella Trust Fund’s 11.24 percent return provided:

Real income above inflation
Monthly liquidity
Peace of mind in a changing economy

It’s ideal for:

Emergency fund savers
Parents preparing for school fees
Retirees seeking income
Cautious investors avoiding risky assets

How to Invest with Level Africa

Starting your investment journey is easy with Level Africa. Here’s how:

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

Final Thoughts

October’s results confirm that the UAP Old Mutual Umbrella Trust Fund is a reliable tool for Ugandans seeking stability and growth. With a strong yield, daily liquidity, and low entry point, it’s a smart way to protect and grow your money.

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Frequently Asked Questions

What is a unit trust?

A unit trust pools money from many investors and invests in safe, interest-earning assets like treasury bills, corporate bonds, and fixed deposits.

How do unit trusts work in Uganda?

You buy units in the fund. Your investment earns income and can be redeemed in two business days. You’re free to top up at any time.

How much do I need to invest?

Start with UGX 1,000,000 and add top-ups of UGX 100,000 or more.

Is this fund safe?

Yes. It is regulated by the Capital Markets Authority and categorized as low risk. Its focus on government and corporate debt keeps it stable.

Can I lose money?

While all investments carry some risk, this fund is structured to protect your capital and has delivered consistent positive returns since 2013.

How is this better than a bank savings account?

It offers higher returns, inflation protection, and professional fund management, while still giving you access to your money within two days.

How do I invest through Level Africa?

Sign up at Level Africa
Upload your ID
Fund your wallet
Select the Umbrella Trust Fund
Place your investment
Monitor your performance online