September 2023 Unit Trust Update – UAP Old Mutual Money Market Fund Performance and Strategy

In September 2023, the UAP Old Mutual Money Market Fund returned 11.07 percent, delivering consistent income for investors despite sharp currency depreciation and rising interest rates. As markets reacted to fiscal pressure and external funding challenges, this fund provided a safe place to park short-term savings while earning inflation-beating returns.

Fund Overview

The Money Market Fund, managed by UAP Old Mutual Investment Group – Uganda, is structured for investors who want stable returns, capital preservation, and quick access to cash.

Key highlights for September 2023:

Fund Size: UGX 5.88 billion
Minimum Investment: UGX 100,000
Top-Up Amount: UGX 100,000
Liquidity: T+2 (two business days)
Risk Profile: Medium
September Yield: 11.07 percent
Benchmark: 91-day Treasury Bill (closed at 9.607 percent)
Management Fee: 2 percent
Initial Fee: 0 percent
Fund Inception: 20 August 2013

Performance Summary

The fund outperformed its benchmark in every category.

Period	Fund Return (%)	Benchmark (%)
September 2023	11.07	9.61
Quarter to Date	11.49	9.71
Year to Date	11.76	10.04
Since Inception	11.05	9.99

This consistency reinforces the fund’s position as one of Uganda’s top-performing short-term investment options.

What the Fund Invests In

The fund allocates capital into short-term, interest-bearing securities to ensure both income and access.

Asset allocation:

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

Maturity profile:

59.0% matures within 3 months
21.0% in 3–6 months
20.0% in more than 12 months
0% in 6–12 months

This balance supports both performance and liquidity, especially in changing interest rate environments.

Why This Fund Matters for Ugandan Investors

In September, the Uganda shilling weakened by 2.43 percent, closing at UGX 3,756.21. The drop was due to the World Bank funding withdrawal, fiscal uncertainty, and rising government borrowing.

Treasury yields increased across the board:

91-day T-bill: 9.607%
182-day: 11.9%
364-day: 12.78%

The Bank of Uganda was expected to cut the policy rate in Q4 2023, with inflation projected to average between 3–4 percent into early 2024.

In this volatile climate, the fund’s 11.07 percent return gave investors:

Monthly income above inflation
Protection from currency depreciation
Immediate liquidity in T+2 days
A better return than SACCOs, savings, or fixed deposit accounts

How to Invest with Level Africa

Start investing with ease:

Create an account at Level Africa
Upload your National ID or Passport
Go to the Unit Trusts section
Select the Money Market Fund
Deposit funds into your wallet
Place your order
Track your performance anytime

Final Thoughts

September 2023 showed how resilient the UAP Old Mutual Money Market Fund is—even during high market stress. Its strong return, liquidity, and low-risk profile make it a dependable option for anyone in Uganda looking to grow short-term savings.

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Frequently Asked Questions

What is a money market fund?

A money market fund is a low-risk investment that earns interest from Treasury bills, corporate paper, and fixed deposits.

How fast can I access my money?

Withdrawals are processed within two business days (T+2).

What’s the minimum investment amount?

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

Is this fund safe?

Yes. It is regulated by the Capital Markets Authority and focuses on preserving your capital.

Who is this fund ideal for?

It’s suitable for short-term savers, emergency funds, businesses managing idle cash, and professionals who want better returns than a savings account.

How do I invest through Level Africa?

Sign up at Level Africa
Upload your ID
Fund your wallet
Select the Money Market Fund
Place your order
Track your performance online