Norrenberger, an investment firm, has called on investors to take advantage of the current high yield in treasury bills.
Head of Asset Management, Norrenberger, Abigail Utomi, made this call while speaking at the launch of Norrenberger’s money market fund in Abuja at the weekend.
Utomi explained that the money market fund will give investors exposure to a diversified portfolio of money market instruments, while also providing capital preservation, competitive returns, liquidity, safety of funds and quarterly dividend payments.
Utomi, however, noted that last year, returns on money market funds fell to record level as yield on treasury bills declined below one per cent due to the CBN’s policy to boost economic activities in the face of the pandemic.
She added that recent developments in the policy environment have changed and the market has seen CBN adjusting its policy that has pushed yields on money market funds higher.
According to her, “As such, yields on treasury bills have increased from below one per cent to above nine per cent as of 15th July 2021 auction.
As a result of this increase in returns on investment in treasury bills, 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 per cent headline inflation rate.
“The asset class Norrenberger is bringing offers opportunities for financial inclusivity as the financially excluded are offered opportunities for investment with minimal funds.
“We are targeting a wide range of investors, and online access is provided for investors to monitor their fund investments.
“The fund was launched to meet the changing needs of our clients and provide a wide range of financial solutions targeting the need of every single household in Nigeria. Investors can subscribe with as low as N5,000 and subsequently, multiples of N1,000.”
She explained further that the fund was designed for clients looking to grow their money with a low-risk investment option.