Tapping into Africa's long-term growth and development story
Investment Approach
Bottom-up high-conviction ideas are used to build the portfolio in line with top-down targets.
Investment Opportunity
Provides direct access to Africa's longer term growth and development story
Investment Universe
Africa's diverse bond (local and hard currency) and currency markets - spanning more than 20 countries
Target Return
Outperform the performance comparison index (net of fees) over a full market cycle
Growth of 3-5% p.a.in GDP over last 10 years
Africa's bond markets are still relatively untapped, yet the potential they offer investors is significant
High-conviction approach pursues mispricing opportunities in a market that offers a premium and low duration
Africa's bond markets have a low correlation with global capital markets, as country specific factors tend to drive market moves
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.