Chapel Hill Denham Money Market Fund Assets Hit N20.9bn in Q1, 2025

Chapel Hill Denham Money Market Fund (CHDMMF’s) asset under management (AUM) grew by 73.3% to N12.6 billion (USD8.1 million) as of 31 December 2024 and further to N20.9 billion (USD13.1 million) in the first three months of 2025.

This growth was supported by increasing demand for money market instruments by Nigerian investors due to the high-yield investment climate as well as the manager’s increased focus on retail expansion strategy.

CHDMMF is an open-ended collective investment scheme actively managed by Chapel Hill Denham Management Limited (Chapel Hill or the manager) under Securities and Exchange Commission (SEC) requirements.

The Chapel Hill Denham Money Market Fund serves as a suitable investment option for risk-averse individuals and corporate investors by investing in a diversified pool of money market instruments, typically with maturities up to one year.

Chapel Hill Denham ranks among the top five asset managers in Nigeria by AUM and has a track record spanning over two and a half decades, providing a range of financial services such as financial advisory, asset management, and investment banking to corporate and individual clients.

The fund has consistently outperformed its benchmark, underpinned by the managers’ skills and expertise. However, the fund underperformed the relative benchmark: the 91-day Nigerian treasury bill rate in April and May 2024, due to the benchmark reaching higher levels. The fund’s investments are in line with the provisions of the trust deed, and there have been no regulatory breaches.

Weighted Average Credit Quality (WACQ): The Weighted Average Credit Quality (WACQ) improved to 9.27 as of 31 December 2024 (December 2023: 8.48), primarily driven by increased exposure to FGN treasury bills amid the high-interest-rate environment. However, in the first three months of 2025, the WACQ moderated to 9.08, reflecting a shift in the portfolio toward bank placements, followed by FGN treasury bills and investment-grade commercial papers.

Weighted Average Maturity (WAM) and Interest Rate Risk: CHDMMF’s maturity profile is flexible, with c.70% of its investment pool held in the 3-month maturity bucket, in line with its mandate to remain liquid while maintaining good returns. The Weighted Average Maturity (WAM) and Weighted Average Duration (WAD) of the fund improved to 84 days as of Q1 2025 (December 2024: 85 days).

Liquidity: The fund is concentrated in short-dated securities with maturities ranging between 30 and 365 days, providing adequate liquidity buffers. Per management, fund holders hold their units for a minimum of 30 days, and there are no pre-liquidation charges.

As of 31 December 2024, investor concentration in the Chapel Hill Denham Money Market Fund was moderate, with the top 10 investors accounting for 22.6% (December 2023: 30.2%) of the total AUM. As of Q1 2025, the call account maintained to manage redemptions accounted for 3.6% (2023: 2.4%) of the fund.

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