Through-the-cycle private credit strategy investing in Africa and other emerging markets
Investment Approach
Invests in senior private and opportunistic credit, targeting leading entities with low financial leverage
Investment Opportunity
Africa is a large and growing market that is still untapped
Investment Universe
Uncrowded African (75%) and other emerging market (25%) private-credit markets
Africa is on track to be the world’s largest population and an economy worth US$3 trillion
Aims to deliver attractive returns while contributing to poverty reduction and sustainability
Focuses on uncrowded African and other emerging private credit markets
Targets high-yield opportunities with low-risk profiles in an uncorrelated market segment
Changes in the relative values of different currencies may adversely affect the value of investments and any related income.
There is a risk that the issuers of fixed income investments (e.g. bonds) may not be able to meet interest payments nor repay the money they have borrowed. The worse the credit quality of the issuer, the greater the risk of default and therefore investment loss.
The use of derivatives may increase overall risk by magnifying the effect of both gains and losses leading to large changes in value and potentially large financial loss. A counterparty to a derivative transaction may fail to meet its obligations which may also lead to a financial loss.
These markets carry a higher risk of financial loss than more developed markets as they may have less developed legal, political, economic or other systems.
The value of fixed income investments (e.g. bonds) tends to decrease when interest rates rise.
There may be insufficient buyers or sellers of particular investments giving rise to delays in trading and being able to make settlements, and/or large fluctuations in value. This may lead to larger financial losses than might be anticipated.
Sustainable, impact or other sustainability-focused portfolios consider specific factors related to their strategies in assessing and selecting investments. As a result, they will exclude certain industries and companies that do not meet their criteria. This may result in their portfolios being substantially different from broader benchmarks or investment universes, which could in turn result in relative investment performance deviating significantly from the performance of the broader market.