AIICO BALANCED FUND NEWSLETTER – JULY 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 July with a positive performance reinforcing a steady recovery. The Nigerian Stock Exchange All Share Index (NSE ASI) gained 1.69% month-on-month to close at 38,547.08pts, while market year-to-date loss pared to -4.28%.

Stop rates at the Nigerian Treasury Bills (NTB) Primary auction for May were unchanged for the 91-day and 182-day maturities, but trended lower by 47 bps for the 364-day maturity. As a result, the average rates for these maturities were 2.50%, 3.50%, and 8.20%, respectively.

Mixed sentiments were seen at the FGN bonds secondary market, as demand was initially seen predominantly at the long end of the curve, following the massive liquidity that hit the system. Although, toward the end of the month, market players indulged in profit-taking activities taking advantage of the lower yields.

The fund’s net yield marginally improved month on month to -4.83% at the end of July 2021, from -4.89% p.a. recorded in June. The fund’s performance was influenced by the slight recovery in the equity market as well as the drag in bond yield levels observed in July.

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