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 to to diversify their investments into products that would hitherto have been more difficult to invest in.
FUND PERFORMANCE
The AIICO balanced fund closed the month of June ’26 with a YTD return of 18.37%.
The Nigerian Exchange (NGX) market capitalization fell by roughly N13.94 trillion in June 2026, driven by sustained profit-taking after a record-breaking rally, elevated valuations following the market’s historic peak, and moderating investor sentiment as institutional players locked in gains.
The month opened on a bearish note, with the first trading session of June alone erasing N1.81 trillion from market capitalization, as the NGX All-Share Index declined 1.13%, continuing a pullback that had already contracted the market from its May peak of N160.9 trillion to N158.7 trillion. The selling pressure persisted through the month, as market capitalization fell 0.64% to close at N149.888 trillion and lost a further 1.60% to close the week at N148.905 trillion the next day. In addition, according to the National Bureau of Statistics (NBS), Nigeria’s inflation rate rose to 15.93% in May 2026, marking the third consecutive monthly increase, up from 15.69% in April, as food prices continued to pressure household budgets, weighing on investors’ real returns even as market activity stayed elevated. Although the correction wiped out a significant portion of the year’s gains, the stock market still closed the first half strongly: market capitalization rose from N99.94 trillion at the beginning of the year to N146.56 trillion at the close of trading on June 30, a gain of N46.6 trillion in six months, with the correction in June alone erasing more than N13 trillion from market value from its May peak.
The Treasury Bills market traded rather bearish following the inflation figure release during the month, as heavy sell-offs were witnessed from market participants amid aggressive debt raises. At the closing NTB auction, stop rates increased notably: 91-day at 16.28% (up 23bps), 182-day at
16.50% (up 31bps), and 364-day at 17.34% (up 99bps).
Activity in the FGN bonds market was mixed to bearish, with bond yields rising across the curve in June as inflation concerns, NTB repricing, and supply pressures drove bearish secondary-market sentiment despite improved turnover. Demand at the June auction remained solid, with ₦1.41 trillion in subscriptions against a ₦1.2 trillion offer, but stop rates climbed sharply to around 18.34%–18.35%.
Overall, investor appetite for FGN securities stayed strong but became more selective, while benchmark yields closed higher amid active repricing.
