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.
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.
In January, the AIICO Money Market Fund recorded a net yield of 9.78%, outperforming its benchmark’s average rate of 2.48%. This comes off the back of investment in high yielding treasury bills and other short-term securities, with the 364-day paper closing at 5.399% for the month under review, from 4.90% the previous month. Weighted Average tenor of the assets in the fund closed at ca 38.76 days.
Interbank System liquidity averaged ca ₦122.96bn in January 2022, higher than ca ₦34.88bn recorded in December 2021, due to increased inflows from OMO maturities, bonds maturities and bonds coupon payments. As a result, Interbank rates closed higher for the month under review, as the Overnight Policy Rate (OPR) and Overnight (ON) rates closed at an average of 9.33% and 9.91% from 12.94% and 13.42% in December 2021.
During the month, the Primary Market Auction saw an increase in stop rate of the long-dated maturity. The 364-day paper gained ca 50bps from 4.90% to close at 5.399%. The 91-day and 182-day stop rates lost ca 1bp each to 2.48% and 3.33% from 2.49% and 3.45% respectively, in December 2021. In the same vein, unmet primary market demand filtered into the secondary market causing further decrease in yields in the secondary market.