AIICO BALANCED FUND NEWSLETTER – JUNE 2021

Overview

AIICO Balanced Fund is an open-ended mutual fund, investing in Fixed income instruments, Money market instruments, and both Quoted and Unquoted equities.

Fund Performance

The domestic bourse closed trading activities for the month of June in the red, as the Nigerian Stock Exchange All Share Index (NSE ASI) lost 1.38% month-on-month to close at 37,907.28pts, while market year-to-date loss expanded to -5.87%.

Activities in the domestic bond market were largely bullish in June, due to reinvestment plans from maturity of the special bill, short-sellers closing out positions, and spillover demand from May’s bond auction, which resulted in a dip in the yield curve.

The fund’s net yield increased month on month to -4.89% at the end of June 2021 an improvement from -6.38% in May. This improvement was closely tied to the bullish yield trend in the bonds market as well as strategic positioning in some defensive stocks that ensured the fund was able to withstand the shock from the downtrend in the local bourse.

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