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 December, the AIICO Money Market Fund recorded a net yield of 10.18%, on track as one of the top-performing money market funds and outpacing the benchmark’s average yield of 3.78%. This performance is leaned towards the portfolio’s strategic positioning in strong asset classes with high yielding rates.

In the secondary market space, the average tenor for the 91-day Nigerian Treasury Bills (NTBs) paper closed at 3.78% for the month under review while the weighted average tenor of the assets in the fund closed at 69.29 days.

Due to the absence of significant flows during the month, interbank system liquidity averaged ca. 34.88 billion in December, lower than the ca.103.25 billion recorded the prior month. As a result, Interbank rates closed higher for the month under review, as the Open Buy Back (OBB) and Overnight (ON) rates settled at an average of ca 12.94% and 13.42% from 10.96% and 11.56%, respectively in November.

At the recently concluded Primary Market Auction (PMA), the stop rates for the 91-day and 182-day were maintained at 2.49% and 3.45%, respectively, while the 364-day paper declined by 10bps to settle at 4.90%. In the same vein, unmet primary market demand trickled into the secondary market, driving rates southwards.

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