Fund Manager's Report

At the June Monthly Bond Auction, the Debt Management Office (DMO) offered a total of N100Bn with total allotments at c.N99.999Bn, across the 19.30% FGN APR 2029, and the 17.95% FGN JUNE 2032 papers allotted at marginal rates of 17.75% and 17.95%, respectively.

Similarly, the Central Bank of Nigeria (CBN), representing the FGN, conducted the last NTB auction of the month by issuing 91-day (Offer: ₦22.02bn; Subscription: ₦72.63bn; Sale: ₦37.98bn), 182-day (Offer: ₦40.0bn; Subscription: ₦63.56bn; Sale: ₦40.54bn), and 364-day (Offer: ₦100.0bn; Subscription: ₦1,097.38bn; Sale: ₦83.50bn) instruments with stop rates of 17.8000%, 18.3500%, and 18.8400%, respectively.

In June, the NGX-ASI rose by 7.37% to print at 119,978.57 points, and YTD performance grew to 16.58% (previously: 8.60%) while market capitalization rose 21.01% to ₦75.95tn. The rally was fueled by greater investor interest in specific stocks, supported by relatively strong corporate earnings.

Also, the NGX Pension Broad and NGX-30 indices registered gains of 19.32% and 16.03%, respectively. Commencing the year at 1,826.89 points and 3,811.94 points, they concluded the period at 2,179.87 points and 4,423.04 points, respectively.

Furthermore, several companies paid dividends during the month as follows: Airtel Africa Plc|2024FY: N61.75k, Beta Glass Plc|2024FY: N2.95k, Dangote Cement Plc|2024FY: N30.0k, Japaul Gold and Ventures Plc|2024FY: N0.04k, and Industrial & Medical Gases Nig. Plc |2024FY: N0.80k, among others.

The chart below shows the trend of the NGX ASI and market capitalization:

In the currency market, the performance of the Naira was impressive. Specifically, the Naira gained 3.54% m/m against the base currency to ₦1,530.00/$1.00 at the NAFEM window, driven by FDI supply and the CBN’s intervention. Also, it appreciated by 3.10% m/m at the parallel market to close at ₦1,565.00/$1.00.

Elsewhere, Nigeria's foreign exchange reserves fell by 3.22% month-over-month to close at $37.21 billion at the end of the month. Next month, we expect the Naira to perform similarly across FX segments, supported by ongoing reforms aimed at boosting investor confidence and maintaining foreign inflows, to improve FX market liquidity.

Find below the key economic indicators for your perusal:

The Asset Allocation and performance of our NLPC PFA – RSA Fund I as at 30th June, 2025 stood as follows:  

Quoted Equities 5%, Government Securities 63%, Money Market 27%, Cash & Others 5%. The unit price grew from N1.8884 in March, 2025     to N1.9976 as at 30^th June, 2025; translating to a year-to-date positive growth of 10.91% and an annualized return of 22.00%.

The Asset Allocation and performance of our NLPC PFA – RSA Fund II as at 30th June, 2025  stood as follows:

Quoted Equities 9%, Government Securities 57%, Money Market 18% and Cash & Others 16%. The unit price grew from N7.4220 in March, 2025 to N7.8065 as at 30^th June 2025, translating to a year-to-date positive growth of 9.21% and an annualized return of 18.57%.

The Asset Allocation and performance of our NLPC PFA – RSA Fund III as at 30th June, 2025  stood as follows:

Quoted Equities 6%, Government Securities 67%, Money Market 17% and Cash & Others 10%. The unit price grew from N2.2480 in March, 2025 to N2.3394 as at 30^th June, 2025, translating to a year-to-date positive growth of 7.47% and an annualized return of 15.07%.

The Asset Allocation and performance of our NLPC PFA – RSA Fund IV as at 30th June, 2025  stood as follows:

Quoted Equities 2%, Government Securities 72%, Money Market 20% and Cash & Others 6%. The unit price grew from N6.5774 in March, 2025 to N6.8108 as at 30^th June, 2025 translating to a year-to-date positive growth of 6.75% and an annualized return of 13.61%.

The Asset Allocation and performance of our NLPC PFA – RSA Fund V as at 30th June, 2025  stood as follows:

Quoted Equities 6%, Money Market 88%, and Government Securities   6%. The unit price grew from N1.8203 in March, 2025 to N1.9241 as at 30^th June, 2025 translating to a year-to-date positive growth of 11.98% and an annualized return of 24.17%.

The Asset Allocation and performance of our NLPC PFA – RSA Fund VI - Active as at 30th June, 2025  stood as follows:

Quoted Equities 2%, Government Securities 63%, Money Market 30% and Cash & Others 5%. The unit price grew from N1.6783 in March, 2025 to N1.7715 as at 30^th June, 2025 translating to a year-to-date positive growth of 11.21% and an annualized return of 22.60%.

The Asset Allocation and performance of our NLPC PFA – RSA Fund VI - Retiree as at 30th June, 2025  stood as follows:

Quoted Equities 0%, Government Securities 60%, Money Market 36% and Cash & Others 4%. The unit price grew from N1.5011 in March, 2025 to N1.5788 as at 30^th June, 2025 translating to a year-to-date positive growth of 10.86% and an annualized return of 21.91%.

• Amid trade tensions and high policy uncertainty, the path forward for the global economy will be determined by how challenges are confronted and opportunities embraced. That said, we expect increasingly divergent growth and risk patterns across regions in July 2025.

• Africa is projected to grow slightly in the coming period, with easing inflation and loose policy aiding recovery. Growth remains uneven, with service-led economies performing better than commodity-dependent peers. Inflation is expected to fall from 18.1% to 13.4%, creating room for selective rate cuts. Key risks include climate shocks, security concerns and tighter external financing conditions.

• In the local market, Nigeria’s inflation is expected to remain softer compared to the 2024 average, due to structural reforms, the removal of protectionist policies, anticipated monetary policy adjustments, baseline effects, improvements in foreign exchange dynamics, and the fading impact of earlier government reforms, should support medium-term economic growth. Therefore, we project that interest rates may likely decline in the coming period.

• We expect the sentiments across the financial market to be positive in July 2025, most especially in the equities market, as more investors will take positions in anticipation of half-year results and corporate benefits.

• Given the declining yields in the fixed income market space, we expect the buying sentiment to be sustained at the mid and long end of the curve, pending when MPC will fully embrace the loose monetary policy, or when there is improved system liquidity, robust foreign reserve, and surplus balance of payment.

• Our strategy in the coming period would be to increase our exposure to fixed-income securities, with bias for those at the mid and long ends of the yield curve, and scale up our exposure to variable income securities, at the same time, ensuring we balance risk and opportunity while diversifying across different asset classes, including our responsibilities of meeting all financial obligations as and when due.