BB African Opportunities (Lux)

Africa – a still largely untouched continent with attractive growth potential

 Lower correlation to global markets, especially compared to other emerging markets

 Structural change, reforms, raw material reserves and infrastructure investments as primary growth drivers

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Please find a more detailed description of share classes here.

Investment Focus

ISIN-No. LU0433847679

The Fund invests primarily in listed companies operating out of the emerging markets of Africa. At present, these are mainly countries in Northern Africa and the Sub-Sahara. Experienced emerging market experts, some of whom are from the region itself, focus on profitable large and mid-cap companies that stand to benefit from the region's strong growth momentum.

Indexed performance (as at: 26.10.2021)

NAV: CHF 137.08 (25.10.2021)


Fonds (Brutto)
01 Jan 2010 - 01 Jan 2010
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Rolling performance (25.10.2021)

I-CHFBenchmark
25.10.2020 - 25.10.202116.10%19.82%
25.10.2019 - 25.10.2020-22.13%-11.66%
25.10.2018 - 25.10.20198.20%8.77%
25.10.2017 - 25.10.2018-6.32%-8.67%

Annualized performance (25.10.2021)

I-CHFBenchmark
1 year16.10%19.82%
3 years-1.11%4.49%
5 years0.57%2.72%
Since Inception p.a.0.75%0.32%

Cumulative performance (25.10.2021)

I-CHFBenchmark
1M4.61%8.56%
YTD8.96%12.18%
1 year16.10%19.82%
3 years-3.31%14.09%
5 years2.91%14.38%
Since Inception9.66%4.04%

Annual performance

I-CHFBenchmark
2020-14.68%-6.78%
20195.37%11.67%
2018-14.02%-17.12%
201724.15%18.21%

Investment Focus

The Fund invests primarily in listed companies operating out of the emerging markets of Africa. These are mainly countries in Northern Africa and the Sub-Sahara that are benefiting from progressive structural change, economic reform, infrastructure investment and their bountiful natural resources. They also offer largely untapped investment potential. The Fund additionally invests in attractive opportunities in South Africa. Experienced emerging market experts, some of whom are from the region itself, focus on profitable large and mid-cap companies that stand to benefit from the region's strong growth momentum. Using a fundamental bottom-up and top-down approach the investment specialists screen out the most attractive companies and construct a portfolio containing 50 to 70 stocks, broadly diversified across the various countries and sectors.Show moreShow less

Investment suitability & Risk

Low risk

High risk

The Fund’s investment objective is to generate attractive and competitive long-term capital growth. It is particularly suited to investors with an investment horizon of at least 5 to 7 years who want to diversify their portfolio with investments in emerging market equities. The Fund is exposed to the risks typical of emerging market equity investments.

General Information

Investment ManagerBellevue Asset Management AG
CustodianRBC Investor Services, Luxembourg
Fund AdministratorRBC Investor Services, Luxembourg
AuditorPriceWaterhouseCoopers
Launch date30.06.2009
Year end closing30. Jun
NAV CalculationDaily "Forward Pricing"
Cut of time15:00 CET
Management Fee0.90%
Subscription Fee (max.)5.00%
ISIN numberLU0433847679
Valor number10264529
BloombergBBAFOIC LX
WKNA0RP3G
Total expense ratio (TER)2.37% (30.09.2021)

Legal Information

Legal formSICAV Luxembourg jurisdiction
SFDR categoryArticle 8

Key data (30.09.2021, base currency EUR)

Beta0.66
Volatility14.20
Tracking error10.26
Active share50.48
Correlation0.80
Share ratio-0.14
Information ratio-0.58
Jensen's alpha-4.77
No. of positions55

Top 10 positions

First Quantum Miner.
Label Vie
Sothema
Commercial Intl. Bank
Attijariwafa Bank
Marsa Maroc
Equity Group
Safaricom
B2Gold
Firstrand
5.2%
5.2%
4.3%
4.3%
4.2%
3.9%
3.6%
3.6%
3.1%
2.9%

Market capitalization

0 - 1 bn
1 - 2 bn
2 - 5 bn
5 - 15 bn
15 - 20 bn
> 20 bn
Others
26.1%
23.6%
14.2%
26.5%
0.9%
7.4%
1.3%

Geographic breakdown

Morocco
Egypt
South Africa
Kenya
Zambia
Saudi Arabia
Burkina Faso
Mali
DR Congo
Ghana
Rwanda
Nigeria
Cash
25.8%
22.6%
18.1%
8.1%
5.2%
4.2%
3.4%
3.1%
2.9%
1.8%
1.7%
0.5%
2.7%

Breakdown by sector

Financials
Materials
Consumer Staples
Healthcare
Consumer Discretion.
Communication Services
Industrials
Real Estate
Energy
Telecommunication Services
Utilities
Others
Cash
26.2%
22.4%
14.1%
8.3%
8.3%
5.6%
4.7%
2.3%
1.8%
1.4%
1.1%
1.1%
2.7%

Currency

MAD
EGP
ZAR
CAD
KES
USD
SAR
GBP
EUR
NOK
24.1%
20.0%
17.0%
14.6%
8.1%
5.5%
4.2%
2.8%
2.7%
1.1%

Opportunities

  • Africa – a still largely untouched continent with attractive growth potential.
  • Structural change, reforms, raw material reserves and infrastructure investments as primary growth drivers.
  • Local experts - emerging market specialists, including from the region, with a competitive track record.
  • Active fund management that is not based on a benchmark index, but on an in-depth analysis of individual companies.
  • Low correlation, in particular to the equity markets of other emerging countries.

Risks

  • Equities are subject to price fluctuations and so are also exposed to the risk of price losses.
  • The fund may invest in financial instruments that might have a relatively low level of liquidity, which can in turn affect the fund’s liquidity.
  • Investments in foreign currencies are subject to currency risks.
  • Investing in emerging markets entails the additional risk of political and social instability.
  • The fund may engage in derivatives transactions. The increased opportunities gained come with an increased risk of losses.

The risk-off sentiment last month, driven by fears of tighter global financial conditions and a slower domestic activity in China (the world’s largest commodities importer), hit EM markets and affected African equities. On the COVID-19 front, vaccination is gathering pace across Africa in line with improving vaccine supply. South Africa fully vaccinated 15% of its population as of last month. In Egypt, the government gave a 2-month notice to all its civil servants (5% of the population) to receive their 2 doses while it plans to start vaccinating those under 18-year old before year-end. Total active cases across the region fell from a peak of 740000 last August to 460000, according to the John Hopkins university database.

The continued decrease in new COVID-19 cases led South African authorities to relax their lockdown measures. However, this decision is unlikely to have a positive impact on the economy due to the lasting effects of both the pandemic and the July social unrests on investor confidence and job creation. Citing these negative developments, the South African Reserve Bank revised its 2022 and 2023 GDP growth forecasts from 2.3% and 2.4% respectively to 1.7% and 1.8%. The stock Index fell 4.7% mom and the Rand lost 2.7% against the USD.

Nigeria appears to be missing out on the oil price rally as its August oil exports of 1.3 mbpd came well below its OPEC+ monthly quota of 1.6 mbpd because of operational issues at key oil fields and export terminals. The nation raised USD 4.0 bn in Eurobonds via a triple-tranche offering across maturities ranging from 7 to 30 years, priced between 6.1% and 8.3%. There was no major improvement in the USD availability locally despite a combined inflow of USD 7.3 bn from the Eurobond issuance and USD 3.3 bn received from the IMF in August. Reports suggest that the parallel market rate weakened to NGN 560/USD in late September vs. the official rate of NGN 413/USD. Equities added 2.6% mom, after a 3.5% gain in the last two days of the month.

In Kenya, higher fuel and food prices drove headline inflation to a post-pandemic high of 6.9% yoy in September. Although second-round effects could push near-term inflation beyond the upper end of its target range (2.5%-7.5%), the Central Bank retained its main policy rate at 7%. Equities fell 2.2% mom in a quiet month as buying appetite from local investors faded in the second part of September.

The latest parliamentary elections in Morocco saw the Islamist ruling party lose more than 90% of the seats it won during the 2016 elections. This outcome puts a new coalition of three liberal parties at the government helm and raises hopes of an acceleration in the domestic reform agenda. Indeed, the governing parties and the King share a common economic agenda, which bodes well for the implementation of structural reforms. A post-elections enthusiasm likely contributed to the stock Index adding 3.9% mom, with local investors deploying more cash to equities.

Egyptian investors sold-off the market at the start of the month after a government decree announced a 10% capital gain tax on the trading of stocks and treasury securities to be levied starting from January 2022. The fall in the EGX30 was exacerbated by the global risk-off sentiment leading to a 5.6% mom loss. For the second time this year, the country issued Eurobonds – with a total nominal value of USD 3 bn, maturities ranging from 6 to 30 years tranches and yields between 5.8% and 8.8%. On the structural reforms front, new legislation and regulatory changes in the digital payments space is triggering a strong wave of fintech investments. E-Finance, a state-owned fintech company is expected to list on the market in October, which should allow investors to benefit from that trend in the country.

We reduced our exposure to gold mining names in favor of the oil complex, including petrochemicals and oil distribution names in Saudi Arabia. In Egypt, the lack of valuation multiples expansion despite strong H1 earning releases remains a disappointment for investors. Corporate management teams are increasingly turning their attention to this issue by rolling more aggressive share buy-back plans. At Cleopatra Hospital, one of our core Egyptian holdings, management decided to use the growing cash pile to buy up to 10% of its share capital. While that money could easily and profitably be invested in the real economy, the equity market needs such support to cushion the high real yield imposed by the Central Bank.

Past performance is not a reliable indicator of future results and can be misleading. As the sub-fund is denominated in a currency that may differ than an investor’s base currency, changes in the rate of exchange may have an adverse effect on prices and incomes. Performance is shown net of fees and expenses for the relevant share class over the reference period. All performance figures reflect the reinvestment of dividends and do not take into account the commissions and costs incurred on the issue and redemption of shares, if any. Individual costs are not taken into account and would have a negative impact on the performance. With an investment amount of EUR 1,000 over an investment period of five years, the investment result in the first year would be reduced by the front-end load of up to EUR 50 (5%) as well as by additional individual custody charges. In subsequent years, the investment result would also be reduced by the individual custody account costs incurred. The reference benchmark of this class is used for performance comparison purposes only (dividend reinvested). No benchmark is directly identical to a sub-fund, thus the performance of a benchmark is not a reliable indicator of future performance of the sub-fund it is compared to. There can be no assurance that a return will be achieved or that a substantial loss of capital will not be incurred. All figures in base currency in %, calculated by the total return / BVI method.Show moreShow less

  • Lead Portfolio Manager

    Malek Bou-Diab

    Malek Bou-Diab joined Bellevue Asset Management in June 2009 as portfolio manager new markets. He is lead portfolio manager for the BB African Opportunities Fund. Prior to that, he worked as investment specialist at Julius Baer, where he was responsible for managing an African equity fund. From 2003 to 2007 he worked as a quantitative risk analyst at Deutsche Bank AG in London. Between 1999 and 2003 he prepared his PhD thesis in theoretical physics at the Swiss Federal Institute of Technology Zurich (ETH). He spent a large part of his youth in the Middle East, where he received an international education and studied Arabic.
  • Portfolio Manager

    Andy Gboka

    Andy Gboka joined Bellevue Asset Management as Analyst / Portfolio Manager of the BB African Opportunities Fund in January 2015. From 2011 to 2014 he was Senior Analyst at Exotix LLP covering the brewers and cement companies listed in Africa. He previously worked for Societe Generale Corporate and Investment Banking as Equity Analyst in the European utilities team covering the regulated sector. He holds a Msc specialised in Finance, Bordeaux Business School, now Kedge Business School since the merger with Euromed Marseille in July 2013.
  • Product Specialst

    Jean-Pierre Gerber

    Jean-Pierre Gerber joined Bellevue Asset Management early 2009 as a product specialist. Prior to this he had spent 10 years with Julius Baer, where he assumed various responsibilities including head of fund research and senior product specialist equities / emerging markets. He is Board Member of the Swiss African Business Circle which supports companies with their business engagements in Africa. Before, he worked as an assistant auditor and consultant at Ernst & Young. Jean-Pierre Gerber has a master's degree in business administration and economics after studies at the universities of Berne and Warwick, UK.
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