Fixed income team

Africa Fixed Income Opportunities Strategy

Tapping into Africa's long-term growth and development story

Strategy overview

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

Antoon de Klerk
Portfolio Manager
Thys Louw
Portfolio Manager

The role the strategy can play in portfolios

Exposure to African growth story

Growth of 3-5% p.a.in GDP over last 10 years

Diversified growth solution

Africa's bond markets are still relatively untapped, yet the potential they offer investors is significant

Yield pick-up and low duration

High-conviction approach pursues mispricing opportunities in a market that offers a premium and low duration

Portfolio diversification

Africa's bond markets have a low correlation with global capital markets, as country specific factors tend to drive market moves

Investment Philosophy

01

Africa's share of global GDP will continue to grow, and fixed income is the most direct and risk-efficient way to gain exposure to this

02

Market inefficiencies combined with a lack of research coverage and limited focus on Africa creates opportunities for active investors

03

The frontier nature of African markets mean country fundamentals can be the biggest driver of asset returns - a bottom-up approach is key

04

A wide range of independent ideas leads to more consistent risk-adjusted returns - diversification is vital in portfolio construction

Performance

Why Ninety One for Africa Fixed Income Opportunities Strategy

01

With an African business that spans public and private markets we are able to harness knowledge across countries and sectors when forming an investment view

02

Our presence across the region allows us to actively engage with policymakers

03

Leveraging global expertise: since inception Africa has played an important role within our global EMD strategies given the alpha potential in the region

04

Our robust, repeatable and transparent approach can be adapted to different markets and environments

Key facts

  • Asset Subclass

    Sovereign

  • Currency

    USD

  • Inception date

    01/10/2011

  • Team

    Fixed income team

  • Geographical Focus

    Emerging Markets

  • ESG Classification

    ESG Integration

  • Comparative Benchmark

    70% S&P AFRICA SOVEREIGN BOND EX SA EX TANZANIA (15% CAPPED) + 30% NEXGEM – AFRICA (Prior to 28th Feb 2023 Concerto index)

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