AIICO BALANCED FUND NEWSLETTER -NOVEMBER 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.

INVESTMENT OBJECTIVE

The investment objective of the Fund is to create medium to long term capital growth as well as yearly income streams from declared dividends for unit holders. The fund also provides investors with the opportunity diversify their investments into products that would hitherto have been more difficult to invest in.

FUND PERFORMANCE

The AIICO balanced fund sustained positive performance for the month under review, returning a net yield of 0.85% in November vs 0.63% month-on-month in October.

The Nigerian Equities Market saw positive performance in the month, as investors continued to take position on market bellwethers. Consequently, the Nigerian Stock Exchange All Share Index (NGX ASI) to gain 2.88% month-on-month, at 43,038.60pts, while market year-to-date gain extended to ca 7.39%.

The NTB secondary market saw significant demand in November, as market players sought to invest liquidity from maturities and bonds coupon payments. At the Primary Market Auction (PMA), the 364-day paper lost 110bps from 6.99% to close at 5.89%. In the same vein, unmet primary market demand filtered into the secondary market causing further decrease in yields in the secondary market.

Likewise, the FGN bonds secondary market was largely characterized by bullish sentiments as investors cherry-picked attractive yields in a bid to re-invest inflow from bonds coupon payments.

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