AIICO MONEY MARKET FUND NEWSLETTER -SEPTEMBER 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

In September, the AIICO Money Market Fund recorded a net yield of 10.08% p.a, outperforming its benchmark’s average rate of 2.50% and improving from previous month’s closing rate of 7.23% p.a. This comes as the fund’s treasury bills and other short-term securities holdings returned higher yields, with the 364-day paper closing at 7.50% for the month. Weighted Average tenor of the assets in the fund closed at ca 84.16 days, while year-to-date returns settled at +8.27%.

Interbank System liquidity averaged ca ₦84.39bn in September, higher than ca ₦76.83bn recorded tin August, due to increased 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 12.18% and 12.87% from 13.28% and 13.73% in August. Average Nigeria Treasury bills rate for the 91-day tenor in the primary market was maintained at 2.50%.

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