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 positive performance of the fund was sustained in October. The fund net yield improved month on month to 0.63% at the end of October 2021, from -1.59% in September.

Although sentiment in the market was largely mixed, the overall trend remained positive, on the back of investors increasingly taking position in market bellwethers. Consequently, the Nigerian Stock Exchange All Share Index (NGX ASI) to gain 4.52% month-on-month, at 42,038.60pts, while market year-to-date gain extended to ca 4.38%.

The NTB secondary market saw significant demand in October, with trading traction observed at the long end of the NTB curve as market players sought-after attractive rates. Bullish dominance was backed by improved liquidity from maturities and coupon payments.

Bullish sentiments prevailed the FGN bonds secondary as investors looked out for attractive yields across the curve while also re-investing coupon payments received during the month. Overall, the average yield dipped up by c.7bps month-on-month to 11.68%.

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