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
Explained in 90 seconds
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: 01.12.2023)
NAV: EUR 162.35 (30.11.2023)
Rolling performance (30.11.2023)
|30.11.2022 - 30.11.2023||-14.00%||-9.90%|
|30.11.2021 - 30.11.2022||-2.56%||2.89%|
|30.11.2020 - 30.11.2021||12.76%||12.92%|
|30.11.2019 - 30.11.2020||-18.01%||-8.05%|
Annualized performance (30.11.2023)
|Since Inception p.a.||1.83%||1.93%|
Cumulative performance (30.11.2023)
Facts & Key figures
The fund’s aim is to achieve capital growth in the long term. 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 reforms, 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. The fund takes ESG factors into consideration while implementing the aforementioned investment objectives.Show moreShow less
Investment suitability & Risk
|Investment Manager||Bellevue Asset Management AG|
|Custodian||CACEIS Investor Services Bank, Luxembourg|
|Fund Administrator||CACEIS Investor Services Bank, 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)||1.63% (31.10.2023)|
|Legal form||Luxembourg UCITS V SICAV|
|SFDR category||Article 8|
Key data (31.10.2023, base currency EUR)
|No. of positions||40|
Top 10 positions
Breakdown by sector
Benefits & 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.
- The fund invests in equities. Equities are subject to price fluctuations and so are also exposed to the risk of price losses.
- The fund may invest a proportion of its assets in financial instruments that might under certain circumstances have a relatively low level of liquidity, which can in turn affect the fund’s liquidity.
- The fund invests in foreign currencies, which means a corresponding degree of currency risk against the reference currency.
- 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
Indeed, the Egyptian EGX30 index rose 11.8% in local currency, which on paper translates to an equally impressive performance in hard currency since the EGP is de facto pegged to the USD since late January when it was devalued. That performance is particularly surprising given the regional backdrop after the Hamas terror attack on Israel and the unprecedented military response of the latter in the Gaza strip. Egypt, already in the midst of an economic storm, finds itself uncomfortably exposed to this intense neighboring conflict. Local investors are the drivers of that rally as they continue to hedge their assets against inflation – which peaked at 38% year on year in September – by purchasing stocks of corporates with hard currency revenues such as fertilizer producers and real-estate and industrial companies with operations outside Egypt. This move was further fueled by an accelerating devaluation of the EGP on the black market most probably in response to the regional tensions. Interestingly, the yields on the Egypt Eurobonds widened at the onset of the conflict but recovered quickly as investors assumed the country can benefit from its position as an intermediary.
Moroccan equities closed the month up 1.3% in local currency with the Dirham stable against both the EUR and USD. The country continues to shine with its macro-economic stability, despite the devastating earthquake in September. Inflation is on a downward trend coming at 4.9% year on year last month. The central bank is most probably done hiking rates and could have the option to loosen as early as 2024. The current account deficit in Q2 was the smallest since 2007 on strong tourism and auto exports, which are the fruits of a successfully implemented industrial policy.
After three months of respite, Nigerian authorities have once again let the Naira devalue with the USD crossing the 800 Naira mark. The 3.7% devaluation is small compared to the 39% devaluation in June but it remains far from clear the exchange rate reached a market clearing level. It is unclear where such a level lies as the black market and official exchange rate seem engaged in a cat and mouse game. Inflation already at 26.7% year on year in September is bound to rise further pulling interest rates higher. Nevertheless, the equity market continues to compensate foreign investors for FX losses with the NGX up 4.3% in October. The assumption that the equity market can continue to look through the economic damage the FX adjustment dovetails is very risky.
The South African market mirrored the moves on global markets with equities posting a 3.8% local currency loss in October and the Rand gaining 1.25% and 1.2% versus the USD and EUR following a return of risk appetite during the last days of the month. In Kenya, equities lost 7% in local currency as the macro-economic challenges continue to darken the mood and the Kenyan Shilling shows nothing else than a steady decline versus the USD with another 1.5% loss against the USD in October.
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