As part of a list of short-term investment options, Money Market funds are a popular choice for investors seeking stability and liquidity.
They typically offer higher interest rates compared to regular savings accounts and often provide easy access to your funds.
These funds invest in short-term debt securities such as Treasury bills, commercial papers, government-issued bonds, fixed deposit accounts, and other bank placements.
While they aim to maintain a stable net asset value (NAV), it’s essential to note that they aren’t entirely risk-free and may still be subject to some market fluctuations.
Nairametrics has tracked 10 of the money market funds in Nigeria to look out for in 2024, based on their fund sizes, most available yield data, and ratings from reputable credit rating agencies.
Note that all the funds listed here are all registered with the Securities and Exchanges Commission.
AIICO Money Market Fund
AIICO Money Market Fund is managed by AIICO Capital Limited with UBA serving as the fund custodian. The fund is rated A+(NG)f with a stable outlook by GCR Ratings.
As of December 22, 2023, the fund reached a size of N4.71 billion, with a whopping yield of 14.24%. The AIICO MMF features a portfolio of 37% fixed deposits, 25% treasury bills, and 24% commercial papers.
The minimum investment amount allowed in AIICO MMF is N10,000.
ARM Money Market Fund
ARM Money Market Fund (ARM MMF) is managed by ARM Investment Managers, with the custodian being Citibank Nigeria Limited. The fund has a rating of A+(f) from Agusto & Co.
As of January 7, 2024, the effective yield of the fund was put at 10.52% per annum, with the fund size being N79.94 billion.
ARM MMF portfolio features only government securities and money market instruments (certificate of deposits, commercial papers, and treasury bills, among others).
The minimum investment allowed in the ARM Money Market Fund is N1,000.
AXA Mansard Money Market Fund
Managed by AXA Mansard Investments Limited, the AXA Mansard MMF was launched in 2016, with fund custodians being RMB Nominees. The fund has a rating of A+(f) by Agusto & Co.
As of January 8, the fund currently has a net yield of 11.66% per annum, with the fund size being about N43.71 billion.
AXA Mansard MMF invests in a portfolio of assets which includes 67.18% fixed deposits, 25.59% treasury bills, and 6.65% commercial paper. The minimum investment amount allowed in AXA Mansard MMF is N2000.
Chapel Hill Denham Money Market Fund
Chapel Hill Denham Money Market Fund is managed by Chapel Hill Denham Management Limited, with UBA serving as custodians. The fund has a rating of A(F) from Agusto & Co. and AA- from GCR Ratings.
As of December 22, 2023, the fund had a size of N7.3 billion with a yield of 10.38%. The fund has a minimum investment amount of N5000 with a minimum holding period of 30 days.
Its portfolio boasts short-term investment securities, bank placements, and other money-market instruments.
FBN Money Market Fund
FBN Money Market Fund is managed by FBNQuest Asset Management, a subsidiary of FBN Holdings Plc. It was launched in 2012, and it presently has a rating of Aa-(f) assigned by Agusto & Co.
The FBN MMF as of December 22, 2023, had a size of N195.78 billion. And, as of January 4, 2024, it had an effective yield of 12.15%.
The fund’s portfolio features 7% commercial papers, 15% treasury bills, and 78% bank placements.
Stanbic IBTC Money Market Fund
Stanbic IBTC MMF is the largest money market fund in Nigeria, in terms of fund size, placed at about N375.7 billion.
The fund was launched in 2010 by Stanbic IBTC Asset Management Limited, and it presently has a rating of Aa-(f) rating from Agusto & Co. As of December 22, 2023, it had a yield of 13.25%.
The minimum investment amount in Stanbic IBTC MMF is N5000, and the income distribution is quarterly. The Stanbic IBTC MMF features an asset class of 27.98% Bonds, 3.77% Equity, 67.74% Money Market, and 0.51% cash.
United Capital Money Market Fund
United Capital Money Market Fund is managed by United Capital Asset Management Limited. The fund has a rating of A(f) by Agusto & Co.
The fund had a size of N44.26 billion, with a yield of 11.70% as of December 22, 2023. The minimum investment amount allowed is N10,000.
The fund’s portfolio features 26.1% treasury bills, 59.0% fixed deposits, and 15.0% commercial papers.
Zenith Money Market Fund
Quantum Zenith Asset Management and Investments Limited manages the Zenith MMF, which was launched in 2017 and relies on Stanbic Nominees Limited for custodian services. The fund has a rating of A-(f) by Agusto & Co.
As of December 22, 2023, the fund had a size of N27.19 billion with a yield of 11.91%. And the minimum investment amount allowed is N10,000
Its diverse portfolio encompasses cash equivalents, bank placements, short-term government securities, and other money market instruments.
Meristem Money Market Fund
Meristem Money Market Fund is managed by Meristem Wealth Management Limited, with Standard Chartered Bank serving as the custodian.
The fund has a rating of A(f) from Agusto & Co.
As of December 22, 2023, the fund had a size of N3.63 billion with a yield of 12.73%. Meristem MMF has a minimum entry amount of N10,000.
The fund’s portfolio features about 48.3% treasury bills, 17.14% commercial papers, 32.7% fixed deposits, and 1.8% cash.
Norrenberger Money Market Fund
Norrenberger Money Market Fund is managed by Norrenberger Investment and Capital Management Limited, with UBA serving as the custodian.
The fund has a rating of Bbb+(f) from Agusto & Co.
The fund has a size of N4.71 billion with a yield of 12.54% as of December 22, 2023.
The minimum subscription amount allowed in Norrenberger MMF is N5,000 with subsequent investment contributions of N1000.
Note
Subject to potential market fluctuations, the money market funds included in this compilation have been meticulously chosen, considering their ratings provided by established credit rating agencies, their substantial fund sizes, and the most recently available yield data.
Please note that while these factors indicate the funds’ performance and stability, market conditions can impact their future yields and overall performance.
Therefore, the information provided serves as a guide and may be subject to changes influenced by market dynamics.
Also, each fund listed within this compilation operates under the regulatory oversight of the SEC (Securities and Exchange Commission).
Furthermore, all these funds have their assets safeguarded by esteemed banking institutions within the country.
[Nairamterics]
