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 improved performance of the fund in September, can be closely tied to the sustained improvement in the equities market. The fund’s net yield improved month on month to  -1.59% at the end of September 2021, from -2.87% in August.

Investor sentiment remained largely positive in September as increased bargain hunting spurred buying activity. Overall, the Nigerian Stock Exchange All Share Index (NSE ASI) gained 2.55% month-on-month to close at 40,829.15pts, while market year-to-date loss pared to -0.12%.

The NTB secondary market traded on mixed to bearish sentiments, as the DMO moved the stop rate for 364-day NTB paper by another 30bps to close the month while the rates were maintained for the 91-day and 182-day maturities, respectively. Overall, average secondary NTB market rates inched up by c.23bps month-on-month to 5.11%.

Trading activities in the FGN bonds secondary market was majorly bearish, particularly on the long tenor bonds. Overall, the average yields in the secondary market inched up by c.19bps month-on-month to 11.5%.

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