Bellevue 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
Please find a more detailed description of share classes here.
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: 20.05.2022)
NAV: EUR 195.08 (19.05.2022)
Rolling performance (19.05.2022)
|19.05.2021 - 19.05.2022||8.20%||11.66%|
|19.05.2020 - 19.05.2021||4.13%||15.57%|
|17.05.2019 - 19.05.2020||-17.80%||-11.78%|
|18.05.2018 - 17.05.2019||-8.53%||-11.32%|
Annualized performance (19.05.2022)
|Since Inception p.a.||3.51%||3.23%|
Cumulative performance (19.05.2022)
Facts & Key figures
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
|Investment Manager||Bellevue Asset Management AG|
|Custodian||RBC Investor Services, Luxembourg|
|Fund Administrator||RBC Investor Services, Luxembourg|
|Year end closing||30. Jun|
|NAV Calculation||Daily "Forward Pricing"|
|Cut of time||15:00 CET|
|Subscription Fee (max.)||5.00%|
|Total expense ratio (TER)||2.36% (29.04.2022)|
|Legal form||SICAV Luxembourg jurisdiction|
|SFDR category||Article 8|
Key data (29.04.2022, base currency EUR)
|No. of positions||47|
Top 10 positions
Breakdown by sector
Opportunities & Risks
- 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.
- 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.
Review / Outlook
Fears of a slowdown of the Chinese economy due to protracted lockdown measures weighed negatively on commodities prices, particularly industrial metals. South Africa, a key beneficiary of the commodities rally in 1Q 22, was the main victim of this reversal of fortunes, ending April as the worst performer among our core markets. More headwinds to performances came from the notable US Dollar strengthening (Bloomberg USD Index up 4.7% mom vs. +7.6% ytd) which negatively affected our markets’ USD returns. Despite a challenging month, the fund’s ytd performance in USD remained above that of Emerging, Frontier and DM indices.
On top of the global macro challenges, South Africa faced heavy rainfalls causing severe flooding in KwaZulu Natal, the country’s 2nd largest province by GDP size and home to the Durban port handling 60% of the local container traffic. The damages from the flooding led Sasol – SA’s leading oil & chemicals group – and Transnet – the state-owned transport company – to call force majeure on their chemicals and coal exports infrastructure. Furthermore, power rationing returned last month, worsening domestic economic woes with a clear risk of GDP contraction in 2Q 2022. Inflation reached 5.9% yoy in March, closing on the Reserve Bank’s upper band target (6%), which, combined with the weaker ZAR/USD rate in April (-8.1%) could lead the institution to raise its main policy rate (4.25%) for a fourth consecutive meeting in May. Equities fell 4.1% mom.
TotalEnergies is the latest oil major to announce its intention to sell part of its onshore and shallow waters fields in Nigeria, citing sabotage and crude theft as the main reasons behind its divestment plans. This decision is a reminder of the structural issues hampering the country’s oil production, and showcases the reason why Nigeria missed its OPEC+ quotas for most of 2021 and this year. Under these circumstances, there was no improvement in the USD supply for foreign capital repatriation, hence foreign investors reinvested part of their “trapped” dividends into equities. The stock index added 5.6% last month, helped by 1Q 22 earnings from the main banks and consumers names surprising positively.
Italy’s Eni signed a deal with the Egyptian Natural Gas Holding Company to increase Egypt’s gas exports to Europe, targeting 3 bn cubic meter (bcm) this year. The 50% rise in annual gas flow from Israel to Egypt (+2.5 bcm since 1Q 22) and the restart of the Damietta gas liquefaction plant in 2021 (7.6 bcm capacity per year) allowed the country to position itself as a gas exporting hub helping the EU cut its reliance on Russian gas. These developments combined with successful reforms of the energy sector (energy trade balance flipped to a surplus in less than 5 years) could reignite a strong FDIs drive into the oil & gas sector, benefiting Egypt’s current account prospects in the medium term. The EGX 30 fell 1.7% mom on the quite market activity during the holy period of Ramadan and the lack of catalysts to lift valuation multiples from their historical lows. On the corporate front, the picture remains encouraging with Commercial International Bank and Obour Land – the largest white cheese producer – reporting double-digits earnings growth in 1Q 22 and positive forward guidance.
Higher food and energy prices pushed Moroccan inflation to 5.8% yoy last March, its highest level since 2008, but a brighter spot came from the tourism sector as the latest data showed a pick-up in tourists arrivals last February. This coincides with the removal of most COVID-19 restrictions in Europe and Morocco, which bodes well for the summer season. Equities gained 2.5% last month. The MAD lost 3.1% against the USD but gained 1.7% vs. the EUR.
Moving East, concerns on Kenya’s external balances drove relentless selling from foreign investors while local investors took a back seat, cherry picking only a few names. Equities fell 3.6% mom.
We reduced our exposure to commodities names as the momentum in global prices faded. In case commodities prices continue on a downward trend, we will again seize the attractively priced structural opportunities in countries that are net importers of commodities such as Egypt, Morocco and Kenya, in particular if they resume their ambitious reform programs. On the other end, if commodities prices resume their upward trend, we will once again increase our tactical allocation to commodities-related stocks and countries.
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