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 17.09%, compared to the benchmark rate of 16.30% set by the 91-day NTB paper.
In July 2026, the money market experienced rate volatility, with yields initially rising before moderating toward the end of the month. The early-month increase in rates was driven by substantial liquidity sterilization through Treasury bill and OMO auctions. This contributed to tighter liquidity conditions and pushed the 364-day NTB stop rate higher to 17.70% at the July 8 auction. However, as OMO maturities provided intermittent liquidity injections into the banking system, funding conditions gradually improved, and short-term rates began to moderate. The reversal was particularly evident toward month-end, with the 364-day NTB stop rate declining to 17.35% at the July 29 auction. The changing liquidity conditions also influenced fixed deposit pricing, as banks adjusted rates in response to fluctuations in their funding requirements and the broader moderation in market yields.
