Objectives of the Fund
Generate high returns by investing in an African focused fund with exposure to a wide portfolio of local currency bonds issued by several African governments and corporates.
The base currency of this fund is US Dollar.
To outperform the return on the MCB 1-5 yr Africa Bond Index by utilising the risk parameters available to the manager such as (and not limited to) currency risk, interest rate risk, and credit risk.The manager creates a diversified portfolio of fixed and floating rate instruments that provide attractive yields and are denominated in a variety of currencies that are expected to appreciate over the long term.
We focus on the available investment opportunities (typically government auctions) and assess the opportunity to secure bonds at attractive yields during these auctions versus the opportunity to transact at an attractive FX rate.
The Fund gives investors a diversified exposure to African fixed income and currency markets
The investment universe is based on the attractive return and risk trade-off that is unique to the short end of yield curves
An independent consultant is handling the creation and maintenance of a benchmark which will be used to determine the investment universe
The Fund creates an environment supportive of fixed income securities and currency appreciation while being focused on countries where there is better macroeconomic policies, stronger governance, and increased FDI
Increasing levels of competition in Africa’s banking sector should result in narrowing credit spreads and benefits corporate bond investors
The Fund is domiciled in Mauritius to leverage on the favourable Double Taxation Agreements (DTAs) and Investment Promotion & Protection Agreements (IPPAs)