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 June 2022, the AIICO Money Market Fund generated a net yield of  8.35% p.a, outperforming the 91-day NTB paper benchmark closing rate of 2.40%. This can be attributed to the fund’s investment in high yielding short-term securities such as Fixed deposit, Commercial papers as well as Treasury Bills. The fund closed the month with a weighted average tenor of ca 62.67 days.

Interbank System liquidity averaged ca ₦13.71bn in June, lower than ca ₦157.73bn recorded in May, which signaled that liquidity in the system was weak over the month with interbank rates at double-digit levels. Consequently, the Open Buy Back (OBB) and Overnight (ON) rates averaged 11.24% and 11.55% in June, from 9.35% and 9.73% recorded in May.

Three NTB primary auctions were held in June 2022, which is typical of the final month in every quarter. The 91-day and 182-day papers dipped by 10bps each M-o-M, to close at 2.40% and 3.79% respectively. Additionally, the 364-day paper closed at 6.07%, which is 37bps and 42bps down from 6.44% earlier in the month and 6.49% at the end of May 2022. Given the level of maturities in Q3, we anticipate that the Debt Management Office (DMO) may expand market supply through auctions in the upcoming quarter.

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