Global Economic Review

Global Economic Growth Remains Relatively Stable

The available data for the third quarter of 2024 showed that global economic growth remained relatively stable yet underwhelming. We
witnessed mixed performance in Advanced Economies as growth remained relatively stable. For instance, the GDP of the United States
slowed down from 3.0% in Q2-2024 to 2.7% in Q3-2024, as high interest rates remained a major challenge to economic output during the
period. The setback in the United States was offset by the improved GDP growth in the Eurozone and the United Kingdom in Q3-2024 as they
grew by 0.9% (Q2-2024: 0.5%) and 0.9% (Q2-2024: 0.7%) respectively, mainly due to improved consumer spending. Meanwhile, Emerging
Market and Developing Economies (EMDEs) continued to struggle as GDP growth declined further in China (Q3’24: 4.7% vs Q2’24: 5.3%), India
(Q3’24: 5.4% vs Q2’24: 6.7%), Russia (Q3’24: 3.1% vs Q2’24: 4.1%) due to weak consumer spending and high inflation.

Central Banks Ease Further in Q4-2024

▪ Despite the rise in inflation in Q4-2024, the US Fed Reserve dropped fed fund rate by 50bps to 4.50% in Q4-2024 (Q3-2024: 5.00%) in a bid
to avoid economic recession.
▪ The Bank of England (BOE) also lowered its policy rate by 25bps to 4.75% in Q4-2024 (Q3-2024: 5.00%) to keep supporting fragile
economic growth in the country.
▪ The People's Bank of China cut key lending rates further: 1-year and 5-year loan prime rate (LPR) were cut to 3.1% (Q3-2024: 3.35%) and
3.6% (Q3-2024: 3.85%) respectively in Q4-2024.
▪ The European Central Bank (ECB) cut its key interest rate by 50bps to 3.15% in Q4-2024 (Q3-2024: 3.60%). The move reflected a more
favorable inflation outlook and improvement in monetary policy transmission.

Crude oil price falls further on weak demand

The quarterly average price of Brent crude oil and WTI fell by 5.97% and 6.58% to $74.01 and $70.32 per barrel respectively in Q4-2024 despite
the extension of production cut by the OPEC+ members. The decline in the price of crude oil was attributed to the expectation of increased oil
production from the non-OPEC members and waning demand in China (the world’s largest oil importer).
Surprise Rise in Inflation of Advanced Economies in Q4-2024
Advanced Economies witnessed elevated inflation in the fourth quarter of 2024 after most apex banks embraced accommodative monetary
policy. For instance, inflation in the United States grew by 30 bps to 2.7% in Q4-2024 from 2.4% in Q3-2024 due to high energy and food
prices. Inflation in the United Kingdom accelerated by 90 bps to 2.6% in Q4-2024 due to increase in prices of housing, foods and non-alcoholic
beverages. In addition, Inflation in the Eurozone increased by 50 bps to 2.2% in Q4-2024 mainly due to the increase in costs of non-energy
industrial goods. However, Emerging Markets & Developing Economies continued to witness mixed outcomes in Q4-2024. Inflation in China,
South Africa and Argentina fell by 20 bps, 90 bps and 4,300 bps to 0.2% and 2.9% and 166% respectively because of a slowdown in food prices
and effectiveness of the past monetary policy tightening. On the other hand, inflation in Russia, Brazil and Ghana grew by 30 bps, 45 bps and
150 bps to 8.9%, 4.87% and 23% respectively due to high food prices (Russia and Ghana) and increased government spending (Brazil).

Domestic Economic Review

Nigeria Records Improved GDP Growth Despite Economic Challenges
• Nigeria maintained resilient economic growth as the country’s Gross Domestic Product (GDP) grew by 3.46% (year-on-year), in real terms,
in the third quarter of 2024. According to the data from the National Bureau of Statistics (NBS), the growth rate recorded in Q3-2024 is 27
bps higher than the 3.19% recorded in Q2-2024. On a year-on-year basis, the growth in the country’s GDP in Q3-2024 was driven by the
non-oil sector which grew by 3.37% (Q2-2023: 2.80%). However, the oil sector grew by 5.17% in Q3-2024, lower than 10.15% reported in Q2-
2024. In real terms, the non-oil sector contributed 94.43% to the nation’s GDP in the third quarter of 2024 while the oil sector contributed
5.57% to the nation’s GDP. The aggregate GDP at basic price stood at ₦71.13 trillion in nominal terms in Q3-2024. This performance is
17.26% higher than the aggregate nominal GDP of ₦60.65 trillion recorded in Q2-2024.
Consumer Price Index Reacts to High PMS Price as Inflation Rises in Q4-2024
• In line with our expectation, Nigeria’s headline inflation accelerated to 34.6% in Q4-2024 (year-on-year), which is an increase of 190 bps
from 32.70% recorded by the end of Q3-2024. The significant increase in the nation’s inflation in Q4-2024 was largely driven by the notable
increase in PMS prices. Food inflation grew from 37.77% in Q3-2024 to 39.93% in Q4-2024 due to the significant increase in the cost of
transportation, in addition to the shortages caused by insecurity in food producing regions. The higher cost of transportation reflected in
core inflation (all items less farm produce and energy) as it increased from 27.43% in Q3-2024 to 28.75% in Q4-2024. On a year-on-year
basis, headline inflation was highest in Bauchi (46.21%), followed by Kebbi (42.41%) and Anambra State (40.48%). Meanwhile, Delta
(27.47%), Benue (28.98%) and Katsina (29.57%) recorded the slowest rise in headline inflation in Q4-2024.
Monetary Policy Committee Raises MPR by 25 bps to 27.50% in Q4-2024
• The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) held only one meeting in Q4-2024 where it raised MPR by 25 bps
to 27.50%, from 27.25% in Q3-2024. The decision of the apex bank to raise monetary policy rate was to keep fighting the rise in Nigeria’s
headline inflation. However, the Committee retained the Cash Reserve Ratio (CRR) at 50% and 16% for commercial and merchant banks
respectively in Q4-2024 while Liquidity Ratio (LR) was retained at 30.0% during the period. In addition, the Committee left the Asymmetric
Corridor unchanged at +500/-100 bps around the MPR, as the Apex Bank continued to mop up excess liquidity in the system.
Naira Appreciates in Q4-2024 on improved Transparency
• On a quarter-on-quarter basis, naira appreciated against the greenback by 0.1% and 3.3% at the official NAFEM and parallel market to
close at ₦1,538.24 (Q3-2024: ₦1,541.94) and ₦1,670.00 (Q3-2024: ₦1,707.00) respectively in Q4-2024 as the newly introduced Bloomberg
BMatch trading platform (Daily Nigerian Foreign Exchange Market (NFEM)) by the CBN led to transparency and low speculation in the
market. Since the introduction of BMatch on December 2, 2024, naira has appreciated against the US dollar by 7.54% at the NFEM window
to close at ₦1,535.82.
• Nigeria’s foreign exchange reserves grew further by 6.58% (or $2.53 billion) to 40.88 billion in Q4-2024 (vs. $38.35 billion in Q3-2024), driven
by improved FX inflows arising largely from foreign investment inflows, issuance of Eurobonds and improved diaspora remittances during
the period.
Head Office
171, Moshood Olugbani Street, Off Ligali Ayorinde, Victoria Island, Lagos.
Tel: 08139855000, 08139855001
Q1 2025 Outlook
Global Economy
▪ We anticipate an improvement in global economic growth in the first quarter of 2025 mainly due to the
expectation of reduced crude oil prices, gradual easing of monetary policy in various countries, stimulus in
China (the world's second-largest economy) and the expectation of improved consumer demand. However,
possible escalation of current global geopolitical tensions remains a downside risk to our global economic
outlook.

▪ Again, we maintain that Global inflation will continue to trend downward in Q1-2025 due to the effectiveness
of the past monetary policy tightening in various countries. Consequently, most countries in Advanced
Economies are expected to achieve the 2% inflation target in Q1-2025. Although we anticipate a slight
slowdown in consumer price index in Emerging Market and Developing Economies, we maintain that
inflation will remain above the target of most of these countries in Q1-2025 due to the impact of geopolitical
tensions, weak local currencies, and poor fiscal policies.

▪ With the expectation of tempered inflation, we anticipate accommodative monetary policy regimes in most
countries in Q1-2025. In Advanced Economies, we expect most countries to extend policy rate cut to Q1-2025
as inflation is currently close to the targets of most apex banks. Although, inflation is expected to remain
relatively high in EMDEs, we expect most countries to be less aggressive in tightening in Q1-2025 in a bid to
avoid economic recession. Nevertheless, we maintain that benchmark interest rates will remain high in
EMDEs in a bid to attract foreign portfolio investors and strengthen local currencies.

▪ Despite the decision of the OPEC+ to extend oil production cut to 2025, we anticipate a slowdown in crude
oil prices in Q1-2025 due to the slow demand in China and Donald Trump’s decision to improve oil drilling and
production output in the United States.
Domestic Economy
▪ We expect slight improvement in Nigeria’s GDP growth in Q1-2025 due to the weak base and expectation of
improvement in the non-oil and oil sector. We expect the non-oil sector to benefit from the inward-looking
policies of the government and multiplier effect of the new additional capital raised by the banks. In
addition, the decision of the Federal Government of Nigeria to raise crude oil production target to about 2.06
million barrels per day in 2025 may have positive impact on the Nation’s oil sector in Q1-2025.

▪ We maintain that inflation will remain above 30% in Q1-2025 due to high energy prices, a weak local
currency, higher minimum wage and insecurity in food producing regions. Although, we expect inflation to
be above 30% in Q1-2025, inflation may likely fall below the current level of 34.60% due the effects of the
past tight monetary policy regime and the sustenance of a stable FX market.

▪ We maintain that the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) will sustain the
current contractionary monetary policy in Q1-2025 in a bid to keep fighting high inflation, reduce money
supply, and attract foreign portfolio investors into the country.

▪ With the introduction of Bloomberg BMatch, which resulted in improved transparency, we expect the naira
to be relatively stable against the US dollar at the foreign exchange market in Q1-2025. In addition, the
expectation of improved foreign portfolio investments may support the stability of naira at the foreign
exchange market in Q1-2025.

Head Office
171, Moshood Olugbani Street, Off Ligali Ayorinde, Victoria Island, Lagos.
Tel: 08139855000, 08139855001
MONEY MARKET FUND
Fund Overview Fund Manager’s Remark
The Money Market Fund is an open-ended Fund authorized and registered by the Securities The Fund’s asset size increased during the quarter under review due to more subscriptions and
and Exchange Commission on November 28, 1990. Its diversified portfolio consists of quality the AuM grew by 20.14% from N39.81Billion to close at N47.83Billion. The net return for the Fund
money market instruments including short-term government securities, commercial papers increased by 120bps to close at 22.45% at the end of Q4’2024.
and bank placements.
We witnessed yields trend upward during the quarter as the CBN made a conscious effort to
The Fund is most suitable for Investors with a short-term investment horizon and offers an mop up liquidity which resulted in higher stop rates across standard tenors. The average stop
alternative to short-term deposits and savings accounts with the added benefit of enjoying rate of treasury bills in the primary market rose by 66bps to close at 19.39% in Q4-2024 (vs.
decent returns from the professional management of the Fund’s assets. 18.73% average primary auction stop rate in Q3-2024).
The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) held only one
meeting in Q4-2024 where it raised MPR by 25bps to 27.50%, from 27.25% in Q3-2024. The
decision of the apex bank to raise monetary policy rate was to keep fighting the rise in Nigeria’s
headline inflation. However, the Committee retained the Cash Reserve Ratio (CRR) at 50% and
16% for commercial and merchant banks respectively, while Liquidity Ratio (LR) was retained at
30.0% during the period. In addition, the Committee left the Asymmetric Corridor unchanged at
+500/-100 bps around the MPR, as the Apex Bank continued to mop up excess liquidity in the
system.

Q1’ 25 Outlook
We expect rates to remain high this quarter due to the decision of the Central Bank of Nigeria to
raise monetary policy rate in Q4-2024 and the expectation of further tightening in Q1-2025.
Consequently, the Money Market Fund should benefit from the elevated interest rate
environment in Q1-2025.

Fund Composition and Performance Fund Features

91 days Tbills Benchmark
18.00% 18.00%
16.30% 17.00% 17.00%
16.24%

Launch Date 1990

7.00%
5.00% Net Assets N47.83billion

Domiciliary Nigeria

Currency NG Naira
Dec’23 Jan’24 Mar’24 Jun’24 Sep’24 Oct’24 Nov’24 Dec’24
Objective Interest Income
Guaranteed Principal
Financial Year End December
Fund Performance
Minimum Initial Investment N1,000
22.26% 22.45%
21.25% Aa-(f)
20.86% Fund Rating
20.81% Agusto & Co.
Rating Agency
15.16%
13.51% 1% of Net Asset Value (NAV)
Management Fee
11.86%
Incentive Fee 15% of Excess Return above 10%

Risk Tolerance Low

Bank Placement (15% - 75%)

Permissible Asset Class Short Term Govt. Instr. (25% - 85%)
Others* (0% - 60%)

Dec’23 Jan’24 Mar’24 Jun’24 Sep’24 Oct’24 Nov’24 Dec’24 Composite Benchmark 91D Treasury Bill

Fund Price (31-Dec-24) Bid/Offer:N100/N100

Custodian Citibank Nigeria Ltd

Fund Composition 1.59%
Trustee United Capital Trustees Limited

*Other refers to money market investments such as commercial papers, banker’s acceptances,
certificates of deposits, collaterized repurchase agreements

23.35%

75.06%
Who Should Invest?
∙ Individuals in Nigeria (including Children) and the diaspora
∙ Pension Fund Administrators
∙ Insurance firms
∙ Endowment Funds
TREASURY BILL
∙ Religious Organizations
FIXED DEPOSIT ∙ Cooperatives, Trusts and Wealth Managers

CASH

Head Office
171, Moshood Olugbani Street,
Off Ligali Ayorinde, Victoria Island, Lagos. Tel: 08139855000, 08139855001
FIXED INCOME FUND
Fund Overview Fund Manager’s Remark
The Fixed Income Fund was launched on June 13, 2007 and is licensed by the Securities The Fund’s Asset under Management (AuM) improved by 2.34% to close at N11.83Billion at the
and Exchange Commission (SEC). The fund is designed to provide a pre-stated return on end of Q4’2024 from N11.56Billion in Q3’2024.
investment. It was initially a principal-guaranteed Fund that delivered a return equivalent
to the Standing Deposit Facility rate (SDF). The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) held only one
meeting in Q4-2024 where it raised MPR by 25 bps to 27.50%, from 27.25% in Q3-2024. The
This fund seeks to achieve its objective by investing a minimum of 70% in Fixed Income decision of the apex bank to raise monetary policy rate was to keep fighting the rise in Nigeria’s
instruments, maximum of 30% in money market instruments and up to 10% in headline inflation. However, the Committee retained the Cash Reserve Ratio (CRR) at 50% and
fundamentally sound stock of blue-chip organizations. 16% for commercial and merchant banks respectively in Q4-2024 while Liquidity Ratio (LR) was
retained at 30.0% during the period. In addition, the Committee left the Asymmetric Corridor
unchanged at +500/-100 bps around the MPR in Q4-2024 as the Apex Bank continued to mop up
excess liquidity in the system.

Q1’ 25 Outlook
We maintain that yields in the bonds and treasury bills market will remain high in Q1-2025 due to
the anticipation of high inflation and an extension of a tight monetary policy regime. Therefore,
we anticipate improved performance for fixed Income Fund in Q1-2025.

Fund Composition and Performance Fund Features

GUARANTEED RETURN ADDITIONAL YIELD Launch Date 2007

DATE
(P.A.) (PAID AT FYE)
Net Assets N11.83Billion

Jan - Mar 2022 4.50% N/A Nigeria

Domiciliary
Apr – Jun 2022 4.50% N/A
Currency NG Naira
Jul – Sep 2022 6.00% N/A
Objective Interest Income
Capital Appreciation
Oct- Dec 2022 6.00% N/A
Financial Year End December
Jan– Mar 2023 6.00% N/A
Minimum Initial Investment 50,000 Units
Apr–Jun 2023 6.00% N/A

Jul–Sep 2023 6.00% N/A Income Distribution Bi-Annual

Oct–Dec 2023 6.00% N/A Current Return 6.00% p.a.

Jan – Mar 2024 6.00% N/A Management Fee 50% of Excess Return above SDF

Apr– Jun 2024 6.00% N/A Revenue Reserve 50% of Excess Return above SDF

Jul – Sep 2024 6.00% N/A Risk Tolerance Moderate

Oct – Dec 2024 6.00% N/A Fixed Income (70% - 100%)

Permissible Asset Class Equities (0% - 10%)
Money Market (0%-30%)

Composite Benchmark Standing Deposit Facility (SDF)

Fund Composition
Fund Price (31-Dec-24) N1.00
0.07%
Custodian Citibank Nigeria Ltd
12.34%
Trustee FBN Quest Trustees Limited

Who Should Invest?

∙ Individuals in Nigeria (including Children) and the diaspora
∙ Pension Fund Administrators
FIXED INCOME
∙ Insurance firms
MONEY MARKET ∙ Endowment Funds
∙ Religious Organizations
CASH ∙ Cooperatives, Trusts and Wealth Managers
87.59%

Head Office
171, Moshood Olugbani Street, Off
Ligali Ayorinde, Victoria Island, Lagos. Tel: 08139855000, 08139855001
EQUITY INCOME FUND
Fund Overview Fund Manager’s Remark
The asset size for the period under review closed at N617.98 million. The Fund has invested
The Equity Income Fund is a registered open-ended Unit Trust Scheme that was 82.43% in equities, 17.39% in money market instruments while 0.17% remained as cash.
launched in 2018 and is licensed by the Securities and Exchange Commission (SEC).
The Nigerian equities market appreciated, with the All-Share Index (ASI) growing by 3.73% in Q4-
Its objective is to provide regular income and long-term capital appreciation from
investments in dividend knights and high-quality equity instruments quoted on the NGX, 24 as high dividend paying stocks drove investor interest. The NGX All-Share Index and Market
where the issuers have an investment grade rating from a credit rating agency Capitalization increased to close at 102,926.40pts and N62.76 Trillion respectively as at 31st
registered by SEC. December 2024.

Q1’25 Outlook
We expect bullish sentiments to dominate the Nigeria’s equities market in Q1-2025, as investors
position for final dividend payments. Consequently, we expect the Equity Income Fund to benefit
from the bullish sentiments in the Nigeria’s stock market during the period.

Fund Composition and Performance Fund Features

EQUITY SECTORAL ALLOCATION

Sector Exposure
Launch Date 2018
Banking 31.50%
Net Assets N617.9million
Agriculture 28.92%
20.41% Domiciliary Nigeria
FMCG
I.C.T 9.84% Currency NG Naira
Industrial 5.02%
Objective Dividend Income
4.31% Growth Stock
Oil & Gas
Financial Year End December
Fund Composition
0.17%
Minimum Initial Investment N5,000

Subsequent Multiples of N1,000

17.39%
EQUITIES Management Fee 1.5% of Net Asset Value (NAV)
MONEY MARKET
Risk Tolerance High
CASH
Permissible Asset Class Equities (70% - 95%)
Money Market(5% - 30%)
Cash (0% - 5%)

82.43% Composite Benchmark Equities (ASI) – 70%

Fixed Income – 30%

Fund Performance Bid: 2.0542

Fund Price (31-Dec- 24) Offer: 2.0912
24.54%
18.82%
Custodian Citibank Nigeria Ltd
13.42%
12.41%
12.23% Trustee FBN Quest Trustees Limited

4.79%
3.81%
-1.22%

Dec’23 Jan’24 Mar’24 Jun’24 Sep’24 Oct’24 Nov’24 Dec’’24

Who Should Invest?
∙ Individuals in Nigeria (including Children) and the diaspora
EIF HISTORICAL UNIT PRICE
• Insurance firms
2.2 • Endowment Funds
• Religious Organizations
2.0 • Cooperatives, Trusts and Wealth Managers

1.8

1.6

1.4

1.2

1.0
Dec'23 Jan'24 Mar'24 Jun'24 Sep'24 Oct'24 Nov'24 Dec'24

Head Office
171, Moshood Olugbani Street, Off
Ligali Ayorinde, Victoria Island, Lagos. Tel: 08139855000, 08139855001
BALANCED FUND
Fund Overview Fund Manager’s Remark
The Guaranty Trust Balanced Fund was launched in 2002 and is a fund licensed by the The Nigerian equities market appreciated, with the All-Share Index (ASI) growing by 3.73% in Q4-
Securities and Exchange Commission (SEC). It is focused on long term capital 24 as high dividend paying stocks drove investor interest. The NGX All-Share Index and Market
appreciation, which is achieved by maintaining a flexible diversified portfolio of equities, Capitalization increased to close at 102,926.40pts and N62.76 Trillion respectively as at 31st
fixed income securities and money market instruments. December 2024. The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) held
only one meeting in Q4-2024 where it raised MPR by 25 bps to 27.50%, from 27.25% in Q3-2024.
Funds are deployed into quality equity instruments quoted on the NGX, while the bond The decision of the apex bank to raise monetary policy rate was to keep fighting the rise in
issuers have an investment grade rating from a credit rating agency registered by SEC. Nigeria’s headline inflation.

At the end of the period under review, the fund’s Asset under Management (AuM) closed at
N3.11Billion in Q4’ 2024 improving from N2.92Billion in Q3’2024.

Q1’25 Outlook
We anticipate growth in the Balanced Fund in Q1-2025, due to the expectation of impressive
performance in equities and fixed-income market during the period. A high interest rate
environment and buy interest in the Nigerian equities market will support decent growth in the
Balanced Fund this quarter.

Fund Composition and Performance Fund Features

EQUITY SECTORAL ALLOCATION

Sector Exposure

Banking 45.65%
Launch Date 2002
FMCG 16.74%
Net Assets N3.11billion
I.C.T 16.49%
Agriculture 14.35% Domiciliary Nigeria

Industrial 6.76% Currency NG Naira

0.15%
Fund Composition Objective Interest Income
Capital Appreciation

17.37% Financial Year End December

Minimum Initial Investment N10, 000

EQUITY
45.15% Subsequent
MONEY MARKET Multiples of N1,000

FIXED INCOME Management Fee 2.0% of Net Asset Value (NAV)

CASH
37.34% Incentive Fee 15% of Excess Return above 10%

Risk Tolerance Moderate

Fund Performance Fixed Income (20% - 60%)

Permissible Asset Class Equity (40% - 60%)
21.89% Money Market (0% - 40%
Cash (0% - 5%)
12.43%
9.08%
7.88% Composite Benchmark Equities (ASI) – 50%
7.21%
Fixed Income – 50%
5.23% 5.27% 6.02%
Bid: 4.2353
Fund Price (31-Dec-24) Offer: 4.3696

Dec’23 Jan’24 Mar’24 Jun’24 Sep24 Oct’24 Nov’24 Dec’24 Custodian Citibank Nigeria Ltd

BF HISTORICAL UNIT PRICE

Trustee FBN Quest Trustees Limited
4.5

4.0
Who Should Invest?
∙ Individuals in Nigeria (including Children) and the diaspora
3.5 • Insurance firms
• Endowment Funds
• Religious Organizations
• Cooperatives, Trusts and Wealth Managers
3.0
Dec'23 Jan'24 Mar'24 Jun'24 Sep'24 Oct'24 Nov'24 Dec'24

Head Office
171, Moshood Olugbani Street,
Off Ligali Ayorinde, Victoria Island, Lagos. Tel: 08139855000, 08139855001
DOLLAR FUND
Fund Overview Fund Manager’s Remark
Nigeria’s foreign exchange reserves grew further by 6.58% (or $2.53 billion) to 40.88 billion in
The Dollar Fund is a SEC registered open-ended Unit Trust Scheme that was launched in 2018. Q4-2024 (vs. $38.35 billion in Q3-2024), driven by improved FX inflows arising largely from
foreign investment inflows, issuance of Eurobonds and improved diaspora remittances during
The Fund seeks to provide investors with a bias for Dollar denominated investments access to the period. The Naira appreciated against the greenback by 0.1% and 3.3% at the official
such securities, which ordinarily would be inaccessible to them by virtue of the minimum NAFEM and parallel market to close at ₦1,538.24 (Q3-2024: ₦1,541.94) and ₦1,670.00 (Q3-2024:
amount typically required to make such investments. ₦1,707.00) respectively in Q4-2024, as the newly introduced Bloomberg BMatch trading
platform (Daily Nigerian Foreign Exchange Market (NFEM)) by the CBN led to transparency and
Funds are primarily deployed in Corporate and Sovereign Eurobonds of entities listed in
low speculation in the market. Since the introduction of BMatch on December 2, 2024, naira
Nigeria and money market instruments of highly rated financial institutions.
has appreciated against the US dollar by 7.54% at the NFEM window to close at ₦1,535.82.
At the end of the period under review, the fund’s Asset under Management (AuM) increased by
6.25% to close at $50.39 million from $47.43 million in Q3’2024, while return on this fund closed
at 5.61% at the end of Q4’ 2024.

Q1’25 Outlook
We maintain that improved demand for Nigeria’s Eurobonds will extend to Q1-2025, as we
expect capital inflows from Advanced Economies due to the downward trend of interest rates
caused by the policy rate cut in the United States, United Kingdom, and Eurozone. In addition,
the persistent growth in Nigeria’s external reserves may continue to encourage foreign
portfolio investors interest in the nation’s Eurobonds this quarter.

Fund Composition and Performance Fund Features

Launch Date 2018

Net Assets $50.39 million

Fund Composition
0.76% Domiciliary Nigeria

Currency US Dollars
13.89%
Interest Income
Objective
Capital Appreciation

MONEY MARKET Financial Year End December

FIXED INCOME
Minimum Initial Investment $1,000
CASH
Management Fee 1% of NAV

Incentive Fee 20% of Excess Return above 10%

Risk Tolerance Moderate

85.34% Eurobonds (70% - 100%)

Permissible Asset Class
Money Market (0% - 30%)

Asset Class Rating Eurobond – A (S&P)

Money Market – BBB (Fitch)

Bid: 100
Fund Price (31-Dec-24)
Offer: 100
Fund Performance
Custodian Citibank Nigeria Ltd
7.38% 6.99%
7.15% 7.15% 6.72% 5.32%
7.09% 5.61% Trustee FBN Quest Trustees Limited

Dec’23 Jan’24 Mar’24 Jun’24 Sep’24 Oct’24 Nov’24 Dec’24

Who Should Invest?
∙ Individuals in Nigeria such as employees & SM Entrepreneurs
∙ Institutional investors
∙ Contributory schemes
∙ Funds and Trusts
∙ Insurance companies
∙ Government parastatals, etc.

Head Office
171, Moshood Olugbani Street,
Off Ligali Ayorinde, Victoria Island, Lagos. Tel: 08139855000, 08139855001
GT INVESTMENT FUND 724
Fund Overview Fund Manager’s Remark
Guaranty Trust Investment Fund 724 is an open-ended regulated investment scheme that The Fund manager floated the Guaranty Trust Investment Fund 724 during the quarter and
offers returns benchmarked at the preceding month’s average 91-day Nigerian Treasury Bill's closed with an AuM of N160.44Million. The net return for the Fund closed at 19.68% at the end of
rate with around the clock (24/7) accessibility on funds up to N200,000.00. Funds in the Q4’2024.
product will be invested in Money Market Instruments.
We witnessed yields trend upward during the quarter as the government made a conscious
effort to mop up liquidity which resulted in primary auction stop rates inching higher across
The Fund will provide simple investments for every Nigerian. It is a Naira-denominated
standard tenors. The average stop rate of treasury bills in the primary market rose by 66bps to
investment which will be offered to retail customers who seek competitive rates on
close at 19.39% in Q4-2024 (vs. 18.73% average primary auction stop rate in Q3-2024).
investment opportunities with the flexibility on subscriptions and redemptions.
The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) held only one
meeting in Q4-2024 where it raised MPR by 25 bps to 27.50%, from 27.25% in Q3-2024. The
decision of the apex bank to raise monetary policy rate was to keep fighting the rise in Nigeria’s
headline inflation.

Q1’ 25 Outlook
Due to the Central Bank of Nigeria's decision to raise the monetary policy rate in Q4 2024 and the
anticipation of additional tightening in Q1 2025, we expect that rates will continue to be high in
the money market. Therefore, we anticipate that in Q1 2025, GTI “Fund 724” will continue to profit
from the high interest rate environment.

Fund Composition and Performance Fund Features

91 days Tbills Benchmark

18.00% 18.00%
17.00%
Launch Date 2024

Net Assets N160Million

Domiciliary Nigeria

Currency NG Naira

Objective Interest Income

Oct’24 Nov’24 Dec’24 Guaranteed Principal
Financial Year End December
Fund Performance
Minimum Initial Investment N1,000
19.68%
19.43%
Fund Rating N/A
18.94%
Rating Agency N/A

Management Fee 1.5% of Net Asset Value (NAV)

Incentive Fee 20% of Excess Return above Benchmark

Risk Tolerance Low

Money Market Instruments (30% - 75%)

Permissible Asset Class Short Term Govt. Instr. (25% - 60%)
Cash* (0% - 5%)

Composite Benchmark 91D Treasury Bill

Oct’24 Nov’24 Dec’24
Fund Price (31-Dec-24) Bid/Offer:N100/N100

Custodian RMB Nominees Ltd

Fund Composition 0.10%
Trustee STL Trustees Limited

*Other refers to money market investments such as commercial papers, banker’s acceptances,
certificates of deposits, collaterized repurchase agreements

46.34%

53.56%
Who Should Invest?
∙ Individuals in Nigeria (including Children) and the diaspora
∙ Pension Fund Administrators
∙ Insurance firms
∙ Endowment Funds
TREASURY BILL
∙ Religious Organizations
FIXED DEPOSIT ∙ Cooperatives, Trusts and Wealth Managers

CASH

Head Office
171, Moshood Olugbani Street,
Off Ligali Ayorinde, Victoria Island, Lagos. Tel: 08139855000, 08139855001