Stanbic IBTC Money Market Fund Rated Aa(f)

Stanbic IBTC Money Market Fund, one of the six Mutual Funds managed by Stanbic IBTC Asset Management Limited and regulated by the Securities & Exchange Commission (“SEC”) has recently been assigned a fund rating AA(f) by Agusto & Co., Nigeria’s reputable credit rating agency. This is the highest rating so far conferred on a Mutual Fund managed in Nigeria by the rating agency.
 
According to the Agusto & Co., the rating denotes a fund with “minimal exposure to downside risk (i.e. impairment of the net asset)”. Established in 2009, the fund is ideal for conservative investors looking to optimize cash balances that might be required in a short period of time. The Fund has a capable Investment Management team with an average of 10 years financial services experience and a well established investment process.
 
Yinka Sanni, chairman, Stanbic IBTC Asset Management Limited while commenting on the feat said the company will continually leverage its robust risk management framework to safeguard and ensure optimal return on investment for investors in the company’s Mutual Funds.  This, he said, is anchored on strict adherence to global best practices by the fund manager.
 
“Stanbic IBTC Asset Management Limited is committed to implementing initiatives that improve corporate governance for the benefit of all stakeholders. We remain steadfast in implementing governance practices that comply with international best practice”, Mr. Sanni said.
 
According to Olumide Oyetan, chief executive officer of Stanbic IBTC Asset Management Limited, “the Stanbic IBTC Money Market Fund is a collective investment scheme that invests in a wide range of very liquid short-term money market instruments such as Guaranteed Commercial Papers, Bankers’ Acceptance, Term Deposits and Certificates of Deposit, among others, with domestic banks in Nigeria”.
 
He said the Fund invests 100% of its assets in low risk money market securities (including treasury bills) with financial institutions in Nigeria rated “A” and above by credit rating agencies recognized by the SEC. The Fund is geared to rival direct money market placements and has the added advantage of making quarterly distribution of income which is very important for investors who require periodic liquidity. The effective yield net of fees on Stanbic IBTC Money Market Fund as at 31 December 2011 was a competitive 15.44% which was available to subscribers with a minimum investment of N50,000.
 
Other mutual funds under management by Stanbic IBTC Asset Management Limited include: Stanbic IBTC Nigerian Equity Fund, which is currently Nigeria’s largest mutual fund; Stanbic IBTC Ethical Fund, Nigeria’s first socially responsible quoted mutual fund, which allows subscribers to make long-term investments without compromising their religious beliefs or principles; Stanbic IBTC Guaranteed Investment Fund; Stanbic IBTC Bond Fund and more recently Stanbic IBTC Balanced Fund. Stanbic IBTC Asset Management Limited, a subsidiary of Stanbic IBTC Bank Group is a member of Standard Bank Group.
 
Overall, the Stanbic IBTC Group has managed funds for Pension Funds, Retirement Benefit Schemes and High Net worth Individuals since the late 1980s. Stanbic IBTC Asset Management Limited’s current list of portfolio management clients includes many large multinationals and blue chip companies.