AIICO MONEY MARKET FUND NEWSLETTER – August 2021

Overview

AIICO Money Market fund is an open-ended collective investment vehicles that pools investment monies from various individuals, Corporate organizations and High Net-worth Clients (HNC) for the purpose of investing in money market securities, designed to produce short to medium term growth, income or a combination of the two.

Investment Objective

The investment objective of the Fund is to generate regular income for unit holders by investing in high-quality, liquid, and short tenored fixed income instruments whilst ensuring safety of principal.

Fund Performance

System liquidity averaged ca ₦76.83bn in August, lower than ca ₦131.77bn recorded the previous month, due to reduced inflows from OMO maturities and bonds coupon payments. As a result, Interbank rates closed higher for the month under review, as the Open Buy Back (OBB) and Overnight (ON) rates closed at an average of 13.28% and 13.73% from 12.70% and 13.20% in July. Average Nigeria Treasury bills rate for the 91-day tenor in the primary market was maintained at 2.50%.

In August, the fund recorded a net yield of 7.23% p.a.  higher than 7.07% p.a. recorded the previous month, and higher than its benchmark’s average rate of 2.50%. This comes as the fund’s treasury bills and other short-term securities holdings returned higher yields, with the 364-day paper closing at 6.80% for the month. Average tenor of the assets in the fund closed at ca 72.46 days.

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