Investment in treasury bills now attractive - Norrenberger

Norrenberger, an investment firm, has advised investors to take advantage of current high yield in treasury bills.

Head of Asset Management, Norrenberger, Abigail Utomi, who spoke at the launch of Norrenberger’s money market fund in Abuja at the weekend, said the money market fund will give investors the exposure to a diversified portfolio of money market instruments, while also providing capital preservation, competitive returns, liquidity, safety of funds and quarterly dividend payments.

Speaking on developments in the money market between 2020 and 2021, Utomi noted that last year, returns on money market fund fell to record level as yield on treasury bills declined below one per cent due to Central Bank of Nigeria (CBN)’s policy to boost economic activities in the face of the pandemic. Accordingly, investment in money market fund became unattractive in 2020.

She, however, pointed out 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.

As such, yields on treasury bills have increased from below one per cent to above nine per cent as of 15th July 2021 auction.

She added that 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.

She pointed out that 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,” Utomi said.

She explained that the fund was designed for clients looking to grow their money with a low-risk investment option.

ADVERTISEMENTThe Norrenberger Money Market Fund is a collective investment scheme, registered with the Securities and Exchange Commission (SEC). It 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).

Investors in Norrenberger money market fund will receive professional advice from  fund managers, and online access to monitor and manage their investment to puts them in total control of their portfolio.