ICEA LION Asset Management Money Market Fund Fact Sheet

Rwenzori Courts, Ground Floor

Nakasero Road November 2023

May
April 2022
2022
Market Commentary Fund Facts Contacts | Tel: 256 (0) 414 232 337 |
E-mail: iam@icea.co.ug

Treasury bill yields were stable during the month of November mainly due
Fund Size
to under-allocations in the primary auctions to cut back on interest costs
UGX 313 Billion
by the Ministry of Finance.

T-bill Inception Date Fund Custodian

Nov-22 Dec-22 Oct-23 Nov-23 Manager Custodian
91-day 11.301% 10.56% 9.301% 9.31% February
182-day 13.000% 12.31% 12.362% 12.362%
364 –day 15.303% 14.93% 12.852% 12.802% 2014
Headline Inflation 10.6% 10.2% 2.4% 2.6%

Trustee Auditors Minimum

The subscription rate at the auctions declined to 244% in November 2023
Investment
from 284% in October 2023. The Treasury is planning to more than
UGX
double its level of domestic market borrowing to 6.8 trillion Ugandan 100,000/=
shillings ($1.79 billion) in the 2023/24 financial year to help finance new
spending, the Ministry of Finance said. Expect yields to edge up across the Fund
Minimum Top
curve in the 2023/24 financial year. Up Objective
Headline inflation came in at 2.6% y/y in November, an increase from Achieve optimal
UGX 50,000
2.4% in October. We expect headline inflation to remain stable around the returns while
preserving capital
current levels and end the year at 2.5% y/y, driven by favorable base
effects. Management Risk Profile Benchmark
Fees
(UGX Bn) Bids Bids Bids Bids Bids Bids 2%
Accepted Accepted Accepted
91
T-bill Nov-22 Dec-22 Nov-23 Initial Fees day
T-bill
91-Day 42 15 94 44 42 6.8 0%

182-Day 69 24 164 77 137 122

Fund Assets
364-Day 607 476 1,324 591 399 315
Total
Amount 718 515 1,583 712 578 505
1%
What does this mean for the Money Market Fund?
The rise in yields has a positive impact on the return of the fund.
However, the marginal increase in inflation translates to slightly lower real 30%
44%
rates of return. We shall seek to invest at higher rates in the primary
26%
auctions to grow the cash return of the fund.

Fund Performance
14.0%
11.5% 11.6% 12.3% 11.2%
12.0% 11.4%
9.9% 10.2% 10.5% Bonds Deposits T-bills Cash
9.5%
10.0%
8.5%
8.0% Disclaimer: Past performance is not
necessarily a guide to future performance.
6.0%
There are no guarantees on the investor’s
4.0% capital as the value of investments can fall as
well as rise depending on the performance of
2.0% underlying investments.
0.0%
1 Month 3 Months YTD 1 Year Since All returns are net of fund management fees
Inception and tax exempt.
ICEA Money Market Fund Benchmark