Glacier Money Market Fund Comment- Sep 07 - Fund Manager Comment19 Nov 2007
Market rates during October increased across the curve. The 3 months Jibar increased from 10.30% to 10.71% and the 12-month Jibar from 10.93% to 11.26%. This was mainly due to the expected increase in the Repo rate on the 11th of October.
Looking at the 3 month forward rates the market expects the Repo rate to remain unchanged at the next MPC meeting in December while the long-term forwards suggest that we could see some relief over the next 6 months. Our expectation is for the Repo rate to remain unchanged over the short term.
During the month major maturities were invested in the short end of the yield curve while investing a small portion in the 1-year to take advantage of higher yield and keeping a minimum balance in the current account.
Name Change - Official Announcement27 Sep 2007
The Innofin Money Market Fund changed its name to the Glacier Money Market Fund on 07/08/2007.
Innofin Money Market comment - Jun 07 - Fund Manager Comment18 Sep 2007
During May the 3- and 12-month Jibar rates increased from 9.21% to 9.36% and 9.71% to 9.95% respectively.
The major increase in yields only took place at the end of the month after the initial releases of inflation (CPIX and PPI) that was much higher than expected and money supply and private sector credit staying at high levels.
Looking forward we expect the MPC to raise the Repo rate from 9% to 9.50% in June. Current forward rates already price in a Repo of at least 9.50%.
During the month we invested only in the short end of the market. And continue to invest in yield enhancing Jibar- linked instruments at the short end, while keeping minimum balances in the current account.
Innofin Money Marrket comment - Mar 07 - Fund Manager Comment28 May 2007
During March the 3 and 12 month Jibar rates increased from 9.07% to 9.17% and 9.57% to 9.75% respectively. The increase in interest rates could be mainly subscribed to the MPC meeting that will take place on the 12th of April. The money market remains concerned about Money Supply and Private Sector Credit Extension - although it seems to have subsided slightly - while food prices, oil and the current account deficit remain problematic. Looking forward we expect the the MPC to keep the Repo rate unchanged at 9%. Current forward rates in the money market suggest that the Repo rate will be unchanged. We invested a portion of the cash in our portfolios in the long end of the money market curve at the higher levels and continued to invest in yield enhancing Jibar - linked instruments.