OVERVIEW

AIICO Eurobond Fund is an open-ended Dollar denominated mutual fund, strategically investing in high-quality Nigeria sovereign & non-sovereign Eurobonds and in investment-grade money market instruments.

INVESTMENT OBJECTIVES

The investment objectives of the fund is to offer investors the opportunity to diversify their portfolios, ensure long term appreciation and capital preservation while generating a steady stream of income on USD denominated securities.

FUND PERFORMANCE

The AIICO Eurobond Fund closed March 2025 with a yield of 7.17%, reflecting an improvement from 7.02% in the previous month. This uptick was primarily driven by the reinvestment of coupons and strategic positioning in high-yielding Eurobonds acquired at attractive valuations, in line with our commitment to long-term value creation.

The Eurobond market exhibited notable volatility during the month, influenced by evolving global economic conditions and geopolitical uncertainties. Nigerian Eurobonds posted strong gains at the start of the month, supported by optimism surrounding Nigeria’s GDP growth, which reached a three-year high. However, the initial optimism faded mid-month as U.S. trade tensions escalated. The imposition of tariffs on major trading partners stoked fears of a global trade war, prompting broad-based sell-offs, particularly across Sub-Saharan African bonds.

The market saw brief rebounds, spurred by softer-than-expected U.S. inflation data and rising global oil prices, which initially buoyed Nigerian and Angolan bond yields. Nonetheless, the rally was short-lived, as trade tensions, weak job reports from the U.S., and geopolitical risks weighed heavily on market sentiment.

By the end of the month, the Nigerian Eurobond yields closed higher at 9.67%, up 76bps m/m, reflecting a distinct shift towards risk-off sentiment among global investors.

Outlook: The market remains sensitive to U.S. economic data and Fed policy signals. Any shift toward rate cuts could support Nigerian Eurobonds, but volatility is expected to persist. The AIICO Eurobond Fund remains well-positioned to navigate these conditions