The Old Mutual Dollar Trust Fund - Unit Trust Edition.
March 4, 2024
Friends,
When it comes to Unit Trust Investments in Uganda, the UAP Old Mutual Dollar Trust Fund stands out as the only Dollar Denominated Unit Trust, with Assets under Management totaling close to USD 12 Million and an unbeatable return of over 5.35% consistently delivered to clients Month in Month out.
But what makes the UAP Old Mutual Dollar Unit Trust Fund so exceptional?
At a time when we have seen the UGX depreciating significantly against the Dollar that in the last 6 months, we have seen a 5.5% depreciation from the lows of UGX 3,720 to the current ranges of UGX 3,910 for every dollar, hedging against such a depreciation while still investing is unbeatable.
UGX Depreciation against the Dollar in the last 6 months.
The Fund has experienced remarkable growth over the past 6 months since it’s launch in September 2023, growing to its current USD 11 Million (December 2023 Fund Fact sheet) with Investors in the USD Fund earning an annualized return of 5.35% per annum as of December 2023 before factoring in the Foreign exchange gains that are attributable to the UGX depreciation against the Dollar.
Investment Strategy:
What does UAP Old Mutual Dollar Fund Invest in?
The Fund has significant exposure to the Regional Euro Bonds contributing over 24% of the total Asset allocation, and Fixed Deposits contributing over 49% of the total Assets under Management.
For those who earn in Dollars, spend in Dollars or the importers that use Dollars in your daily operations, UAP Old Mutual Dollar Trust Fund might be the best bet for you to earn in Dollars and hedge against Depreciation of the local currency.
Happy investing Everyone!
Alex Kakande
This is very nice, hope other unit trusts follow suite. What are some of the risks of investing in a Unit Trust that invests in Euro Bonds, given that some countries default on euro bonds?