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As a part of a listing of short-term funding choices, Cash Market funds are a well-liked selection for buyers in search of stability and liquidity.
They sometimes supply larger rates of interest in comparison with common financial savings accounts and infrequently present easy accessibility to your funds.
These funds put money into short-term debt securities akin to Treasury payments, business papers, government-issued bonds, mounted deposit accounts, and different financial institution placements.
Whereas they purpose to keep up a steady web asset worth (NAV), it’s important to notice that they aren’t completely risk-free and should be topic to some market fluctuations.
Nairametrics has tracked 10 of the cash market funds in Nigeria to look out for in 2024, based mostly on their fund sizes, most accessible yield information, and scores from respected credit standing businesses.
Be aware that each one the funds listed below are all registered with the Securities and Exchanges Fee.
AIICO Cash Market Fund
AIICO Cash Market Fund is managed by AIICO Capital Restricted with UBA serving because the fund custodian. The fund is rated A+(NG)f with a steady outlook by GCR Scores.
As of December 22, 2023, the fund reached a measurement of N4.71 billion, with a whopping yield of 14.24%. The AIICO MMF contains a portfolio of 37% mounted deposits, 25% treasury payments, and 24% business papers.
The minimal funding quantity allowed in AIICO MMF is N10,000.
ARM Cash Market Fund
ARM Cash Market Fund (ARM MMF) is managed by ARM Funding Managers, with the custodian being Citibank Nigeria Restricted. The fund has a ranking of A+(f) from Agusto & Co.
As of January 7, 2024, the efficient yield of the fund was put at 10.52% each year, with the fund measurement being N79.94 billion.
ARM MMF portfolio options solely authorities securities and cash market devices (certificates of deposits, business papers, and treasury payments, amongst others).
The minimal funding allowed within the ARM Cash Market Fund is N1,000.
AXA Mansard Cash Market Fund
Managed by AXA Mansard Investments Restricted, the AXA Mansard MMF was launched in 2016, with fund custodians being RMB Nominees. The fund has a ranking of A+(f) by Agusto & Co.
As of January 8, the fund presently has a web yield of 11.66% each year, with the fund measurement being about N43.71 billion.
AXA Mansard MMF invests in a portfolio of belongings which incorporates 67.18% mounted deposits, 25.59% treasury payments, and 6.65% business paper. The minimal funding quantity allowed in AXA Mansard MMF is N2000.
Chapel Hill Denham Cash Market Fund
Chapel Hill Denham Cash Market Fund is managed by Chapel Hill Denham Administration Restricted, with UBA serving as custodians. The fund has a ranking of A(F) from Agusto & Co. and AA- from GCR Scores.
As of December 22, 2023, the fund had a measurement of N7.3 billion with a yield of 10.38%. The fund has a minimal funding quantity of N5000 with a minimal holding interval of 30 days.
Its portfolio boasts short-term funding securities, financial institution placements, and different money-market devices.
FBN Cash Market Fund
FBN Cash Market Fund is managed by FBNQuest Asset Administration, a subsidiary of FBN Holdings Plc. It was launched in 2012, and it presently has a ranking of Aa-(f) assigned by Agusto & Co.
The FBN MMF as of December 22, 2023, had a measurement of N195.78 billion. And, as of January 4, 2024, it had an efficient yield of 12.15%.
The fund’s portfolio options 7% business papers, 15% treasury payments, and 78% financial institution placements.
Stanbic IBTC Cash Market Fund
Stanbic IBTC MMF is the most important cash market fund in Nigeria, when it comes to fund measurement, positioned at about N375.7 billion.
The fund was launched in 2010 by Stanbic IBTC Asset Administration Restricted, and it presently has a ranking of Aa-(f) ranking from Agusto & Co. As of December 22, 2023, it had a yield of 13.25%.
The minimal funding quantity in Stanbic IBTC MMF is N5000, and the revenue distribution is quarterly. The Stanbic IBTC MMF options an asset class of 27.98% Bonds, 3.77% Fairness, 67.74% Cash Market, and 0.51% money.
United Capital Cash Market Fund
United Capital Cash Market Fund is managed by United Capital Asset Administration Restricted. The fund has a ranking of A(f) by Agusto & Co.
The fund had a measurement of N44.26 billion, with a yield of 11.70% as of December 22, 2023. The minimal funding quantity allowed is N10,000.
The fund’s portfolio options 26.1% treasury payments, 59.0% mounted deposits, and 15.0% business papers.
Zenith Cash Market Fund
Quantum Zenith Asset Administration and Investments Restricted manages the Zenith MMF, which was launched in 2017 and depends on Stanbic Nominees Restricted for custodian companies. The fund has a ranking of A-(f) by Agusto & Co.
As of December 22, 2023, the fund had a measurement of N27.19 billion with a yield of 11.91%. And the minimal funding quantity allowed is N10,000
Its numerous portfolio encompasses money equivalents, financial institution placements, short-term authorities securities, and different cash market devices.
Meristem Cash Market Fund
Meristem Cash Market Fund is managed by Meristem Wealth Administration Restricted, with Normal Chartered Financial institution serving because the custodian.
The fund has a ranking of A(f) from Agusto & Co.
As of December 22, 2023, the fund had a measurement of N3.63 billion with a yield of 12.73%. Meristem MMF has a minimal entry quantity of N10,000.
The fund’s portfolio options about 48.3% treasury payments, 17.14% business papers, 32.7% mounted deposits, and 1.8% money.
Norrenberger Cash Market Fund
Norrenberger Cash Market Fund is managed by Norrenberger Funding and Capital Administration Restricted, with UBA serving because the custodian.
The fund has a ranking of Bbb+(f) from Agusto & Co.
The fund has a measurement of N4.71 billion with a yield of 12.54% as of December 22, 2023.
The minimal subscription quantity allowed in Norrenberger MMF is N5,000 with subsequent funding contributions of N1000.
Be aware
Topic to potential market fluctuations, the cash market funds included on this compilation have been meticulously chosen, contemplating their scores offered by established credit standing businesses, their substantial fund sizes, and probably the most lately accessible yield information.
Please notice that whereas these elements point out the funds’ efficiency and stability, market circumstances can impression their future yields and total efficiency.
Subsequently, the knowledge offered serves as a information and could also be topic to adjustments influenced by market dynamics.
Additionally, every fund listed inside this compilation operates below the regulatory oversight of the SEC (Securities and Change Fee).
Moreover, all these funds have their belongings safeguarded by esteemed banking establishments throughout the nation.
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