As part of its strategic efforts towards deepening financial inclusion in Nigeria by providing cutting edge investment solutions, Norrenberger, a leading financial services group in Nigeria, has launched its Money Market Fund.
The Norrenberger Money Market Fund is a collective investment scheme, registered with the Securities and Exchange Commission (SEC). The fund invests in Nigerian short-term money market instruments such as Federal Government Treasury Bills, Bankers’ Acceptance, Commercial Papers, Certificate of Deposit, and other instruments introduced and approved by the Central Bank of Nigeria (CBN) from time to time.
The Fund provides significant value to investors as they enjoy competitive returns on their investment, professional expertise from fund managers, and an online access to monitor and manage their investment which puts them in total control of their portfolio. These benefits have been designed for clients looking to grow their money with a low-risk investment option.
Commenting on the launch of the product, Abigail Utomi, Head, Norrenberger Investment and Capital Management Limited stated that “The Norrenberger Money Market Fund will give investors the exposure to a diversified portfolio of money market instruments, while also providing capital preservation, high returns, liquidity, safety of funds and quarterly dividend payments.”
“The Fund was launched to meet the changing needs of our clients. In line with our vision to simplify wealth creation, our strategic focus is to continue to provide a wide range of financial solutions targeting the need of every single household in Nigeria. This further solidifies Norrenberger’s position as masters in wealth creation in the investment space in Nigeria. The fund is affordable as investors can subscribe with as low as N5,000 and subsequently, multiples of N5,000,” she stated.
In 2020, returns on money market fund fell to record level as yield on treasury bills declined below 1% due to CBN policy to boost economic activities in the face of the pandemic. Accordingly, investment in money market fund became unattractive in 2020.
More recently, developments in the policy environment have changed and the market has seen CBN adjust its policy that has pushed yields on money market funds higher. As such, rates on Treasury bills have rebounded from less than 1% in 2020 to close to 10% (364 bill) as of June 2021.
Given the above, investors who have shifted their focus from money market funds to other securities such as equities and bonds are beginning to aggressively buy into the money markets funds in expectations that rate will climb higher due to over 17% headline inflation rate which may compel the CBN to hike its policy rate.
According to the Group CEO, Tony Edeh, “Our team of highly qualified and experienced portfolio managers supported with in depth investment research continue to design investment opportunities through the development of strategic products to hedge against inflation and provide better returns despite the tough economic situation in the country.”
“We are extremely excited to present our Money Market Fund to the public as I strongly believe the launch of the fund comes at the right time following the excellent performance of our Islamic Fund,” he added.