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
AIICO Money Market Fund recorded a net yield of 8.31% p.a in March 2022, slightly lower than previous month’s closing yield of 8.48%. Nevertheless, outperforming its benchmark’s average rate of 1.75%. This can be attributed to the fund’s investment in high yielding treasury bills and other short-term securities, with the 364-day paper closing at 4.45% for the month under review, from 4.10% the previous month. Weighted Average tenor of the assets in the fund closed at ca 60.48 days.
With inflows of ca ₦965.70bn recorded from Open Market Operations (OMO), Nigerian Treasury Bills (NTB) maturities and bonds coupon payments, interbank System liquidity averaged ca ₦239.66bn in March lower than ca ₦286.14bn recorded in February. 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 6.54% and 7.02% from 6.29% and 6.70% in February 2022.
The NTB secondary market traded mixed to bullish in March, as OMO maturities and consecutive decline in 1- year stop rates at the first set (2) of NTB auctions, spurred buyside activity. However, the last NTB auction conducted in Q1 2022 ensured a slightly bearish end to the month, with stop rates on the 91 and 364-day papers increasing by 1bp and 45bps to settle at 1.75% and 4.45% respectively, while the 182-day paper was left unchanged at 3.00%. The total subscription by investors was ca 1.73 times the amount on offer (₦143.29billion), with the CBN selling ca ₦174.19billion across the three maturities.
