Nigeria’s Money Market Mutual Funds Deliver 20.58% Average Yield in January – Top Performers & Key Insights
Money Market Funds Outperform, But Inflation Remains a Challenge
Nigeria’s money market mutual funds have continued to attract investors with competitive returns, recording an average year-to-date (YtD) yield of 20.58% as of January 24, 2025. This is a sharp increase from 9.73% YtD yield in January 2024, according to the Securities and Exchange Commission (SEC) valuation reports.
Key Highlights:
✅ 38 money market funds collectively hold a Net Asset Value (NAV) of N1.887 trillion
✅ 28 funds recorded yields above 20%, showing strong performance across the sector
✅ The 2025 performance aligns closely with the 2024 full-year average YtD yield of 21.34%
However, despite these impressive yields, they still lag behind Nigeria’s December 2024 inflation rate of 34.80%, underscoring the challenge of achieving real returns in an inflationary environment.
What Are Money Market Mutual Funds?
Money market mutual funds are low-risk investment vehicles that pool investor funds to invest in short-term, high-quality financial instruments, such as:
Treasury Bills
Commercial Papers
Fixed Deposits
Other money market instruments
These funds prioritize liquidity, stability, and moderate returns, making them an attractive option, especially during economic uncertainty.
Top Performing Money Market Funds in January 2025
Several funds delivered above-average returns, positioning themselves as market leaders. Here are the top five performers:
1️⃣ EDC Money Market Fund Class B – 24.98% Yield YtD
• NAV: N1.967 billion (0.11% of total NAV)
• Unitholders: 9
• Concerns: High yield but small NAV and low investor base, raising liquidity risks.
2️⃣ CardinalStone Money Market Fund – 24.58% Yield YtD
• NAV: N2.375 billion
• Unitholders: 312
• ✅ Better diversification & liquidity than EDC Class B but still a mid-sized player.
3️⃣ Meristem Money Market Fund – 24.24% Yield YtD
• NAV: N20.961 billion (1.11% of total NAV)
• Unitholders: 3,386
• ✅ More stable than smaller funds, offering a balance of size and returns.
4️⃣ Anchoria Money Market Fund – 23.95% Yield YtD
• NAV: N1.358 billion
• Unitholders: 1,829
• Concerns: Small NAV limits long-term stability compared to bigger players.
5️⃣ EDC Money Market Fund Class A – 23.86% Yield YtD
• NAV: N32.547 billion (1.72% of total NAV)
• Unitholders: 3,089
• ✅ More stable than Class B, making it a preferred option for risk-averse investors.
Other High-Yielding Money Market Funds
• First Ally Money Market Fund – 23.81% YtD
• Chapel Hill Denham Money Market Fund – 23.65% YtD
• RMBN Money Market Fund – 23.30% YtD
• FBN Money Market Fund – 22.96% YtD
• Coral Money Market Fund – 22.76% YtD
Larger funds like Stanbic IBTC Money Market Fund (N865 billion NAV, 21.62% YtD) and FBN Money Market Fund (N386 billion NAV, 22.96% YtD) offer more stability compared to smaller, high-yield funds like EDC Class B and Anchoria.
Key Factors Influencing Money Market Fund Performance
1️⃣ Monetary Policy:
• The Central Bank of Nigeria (CBN) has maintained a tight monetary stance, keeping interest rates high and benefiting money market funds.
• If rates remain high, yields will stay competitive, but a shift toward rate cuts could reduce returns.
2️⃣ Inflation Impact:
• While yields have increased, they still lag behind 34.80% inflation, meaning real returns are negative.
• Investors must weigh the benefits of capital preservation against inflationary losses.
3️⃣ Fund Size & Investor Base:
• Larger funds (e.g., Stanbic IBTC, FBN, Zenith, ARM) have more stability and liquidity.
• Smaller funds (e.g., EDC Class B, Anchoria) face higher risk exposure and liquidity constraints.
What This Means for Investors
✅ Money market mutual funds remain attractive for stable, short-term returns amid economic uncertainty.
✅ Investors should prioritize fund stability, size, and liquidity before investing.
✅ Those seeking higher yields must be aware of potential liquidity risks, especially with smaller funds.
What are your thoughts on these high-yield money market funds? Will you be investing in any? Drop your comments below! ⬇️
Money Market Funds Outperform, But Inflation Remains a Challenge
Nigeria’s money market mutual funds have continued to attract investors with competitive returns, recording an average year-to-date (YtD) yield of 20.58% as of January 24, 2025. This is a sharp increase from 9.73% YtD yield in January 2024, according to the Securities and Exchange Commission (SEC) valuation reports.
Key Highlights:
✅ 38 money market funds collectively hold a Net Asset Value (NAV) of N1.887 trillion
✅ 28 funds recorded yields above 20%, showing strong performance across the sector
✅ The 2025 performance aligns closely with the 2024 full-year average YtD yield of 21.34%
However, despite these impressive yields, they still lag behind Nigeria’s December 2024 inflation rate of 34.80%, underscoring the challenge of achieving real returns in an inflationary environment.
What Are Money Market Mutual Funds?
Money market mutual funds are low-risk investment vehicles that pool investor funds to invest in short-term, high-quality financial instruments, such as:
Treasury Bills
Commercial Papers
Fixed Deposits
Other money market instruments
These funds prioritize liquidity, stability, and moderate returns, making them an attractive option, especially during economic uncertainty.
Top Performing Money Market Funds in January 2025
Several funds delivered above-average returns, positioning themselves as market leaders. Here are the top five performers:
1️⃣ EDC Money Market Fund Class B – 24.98% Yield YtD
• NAV: N1.967 billion (0.11% of total NAV)
• Unitholders: 9
• Concerns: High yield but small NAV and low investor base, raising liquidity risks.
2️⃣ CardinalStone Money Market Fund – 24.58% Yield YtD
• NAV: N2.375 billion
• Unitholders: 312
• ✅ Better diversification & liquidity than EDC Class B but still a mid-sized player.
3️⃣ Meristem Money Market Fund – 24.24% Yield YtD
• NAV: N20.961 billion (1.11% of total NAV)
• Unitholders: 3,386
• ✅ More stable than smaller funds, offering a balance of size and returns.
4️⃣ Anchoria Money Market Fund – 23.95% Yield YtD
• NAV: N1.358 billion
• Unitholders: 1,829
• Concerns: Small NAV limits long-term stability compared to bigger players.
5️⃣ EDC Money Market Fund Class A – 23.86% Yield YtD
• NAV: N32.547 billion (1.72% of total NAV)
• Unitholders: 3,089
• ✅ More stable than Class B, making it a preferred option for risk-averse investors.
Other High-Yielding Money Market Funds
• First Ally Money Market Fund – 23.81% YtD
• Chapel Hill Denham Money Market Fund – 23.65% YtD
• RMBN Money Market Fund – 23.30% YtD
• FBN Money Market Fund – 22.96% YtD
• Coral Money Market Fund – 22.76% YtD
Larger funds like Stanbic IBTC Money Market Fund (N865 billion NAV, 21.62% YtD) and FBN Money Market Fund (N386 billion NAV, 22.96% YtD) offer more stability compared to smaller, high-yield funds like EDC Class B and Anchoria.
Key Factors Influencing Money Market Fund Performance
1️⃣ Monetary Policy:
• The Central Bank of Nigeria (CBN) has maintained a tight monetary stance, keeping interest rates high and benefiting money market funds.
• If rates remain high, yields will stay competitive, but a shift toward rate cuts could reduce returns.
2️⃣ Inflation Impact:
• While yields have increased, they still lag behind 34.80% inflation, meaning real returns are negative.
• Investors must weigh the benefits of capital preservation against inflationary losses.
3️⃣ Fund Size & Investor Base:
• Larger funds (e.g., Stanbic IBTC, FBN, Zenith, ARM) have more stability and liquidity.
• Smaller funds (e.g., EDC Class B, Anchoria) face higher risk exposure and liquidity constraints.
What This Means for Investors
✅ Money market mutual funds remain attractive for stable, short-term returns amid economic uncertainty.
✅ Investors should prioritize fund stability, size, and liquidity before investing.
✅ Those seeking higher yields must be aware of potential liquidity risks, especially with smaller funds.
What are your thoughts on these high-yield money market funds? Will you be investing in any? Drop your comments below! ⬇️