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 17.41%, compared to the benchmark rate of 16.28% set by the 91-day NTB paper
June marked a notable shift in the money market, as short term yields moved higher amid changing liquidity conditions and increase supply across the fixed income market. Treasury Bills yields strengthened through the month, with 364-day NTB stop rate rising to 17.34% from 16.35%, creating more attractive entry points for fund manager to lock in higher yields and improve the portfolio return. Fixed deposit rates also remained relatively attractive during the period, as banks competed for stable funding. The attractive yield environment provided the fund manager with opportunities to selectively redeploy maturing investments into instruments offering improved returns while maintain9ng adequate liquidity. Overall, the upward movement in marker rates during the month created a favourable environment for portfolio good returns.
