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 the safety of the principal.
FUND PERFORMANCE
The AIICO Money Market Fund returned a net yield of 20.81%, compared to the benchmark rate of 15.00% set by the 91-day NTB paper. The fund’s return was attributed to prudent investments in high-yielding fixed deposits and short-term securities, such as commercial papers and Treasury bills, resulting in a weighted average tenor of approximately 87.76 days.
Short-dated fixed income instruments saw renewed demand in July as investors sought to lock in attractive yields amid improved market liquidity. Nigerian Treasury Bills stop rates eased to 15.74% (91-day) and 16.20% (182-day), reflecting a moderation in average market yields to around 16.4%, down 184bps month-on-month. Liquidity in the banking system closed the month at approximately ₦1.35 trillion, supporting softer money market rates and increased participation in short-term auctions. Commercial papers in the high-yield segment also attracted strong interest, offering investors an opportunity to capture elevated returns with shorter duration risk.
