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.
Investment Focus
ISIN-No. LU0433847323
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: 02.06.2023)
NAV: EUR 164.06 (31.05.2023)
Rolling performance (01.06.2023)
I-EUR | Benchmark | |
01.06.2022 - 01.06.2023 | -15.64% | -12.17% |
01.06.2021 - 01.06.2022 | 7.19% | 9.66% |
29.05.2020 - 01.06.2021 | 8.26% | 20.32% |
31.05.2019 - 29.05.2020 | -19.05% | -11.57% |
Annualized performance (01.06.2023)
I-EUR | Benchmark | |
1 year | -15.64% | -12.17% |
3 years | -0.71% | 5.02% |
5 years | -6.12% | -1.75% |
10 years | -1.16% | -0.44% |
Since Inception p.a. | 2.03% | 2.08% |
Cumulative performance (01.06.2023)
I-EUR | Benchmark | |
1M | -1.87% | -2.14% |
YTD | -6.13% | -2.15% |
1 year | -15.64% | -12.17% |
3 years | -2.11% | 15.89% |
5 years | -27.10% | -8.47% |
10 years | -11.05% | -4.27% |
Since Inception | 32.27% | 33.30% |
Annual performance
I-EUR | Benchmark | |
2022 | -11.62% | -6.74% |
2021 | 11.67% | 11.82% |
2020 | -14.25% | -6.52% |
2019 | 9.24% | 15.82% |
Facts & Key figures
Investment Focus
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, Show moreShow less
Investment suitability & Risk
Low risk
High risk
General Information
Investment Manager | Bellevue Asset Management AG |
Custodian | RBC Investor Services, Luxembourg |
Fund Administrator | RBC Investor Services, Luxembourg |
Auditor | PriceWaterhouseCoopers |
Launch date | 30.06.2009 |
Year end closing | 30. Jun |
NAV Calculation | Daily "Forward Pricing" |
Cut of time | 15:00 CET |
Management Fee | 0.90% |
Subscription Fee (max.) | 5.00% |
ISIN number | LU0433847323 |
Valor number | 10264503 |
Bloomberg | BBAFOIE LX |
WKN | A0RP3F |
Total expense ratio (TER) | 1.81% (31.05.2023) |
Legal Information
Legal form | Luxembourg UCITS V SICAV |
SFDR category | Article 8 |
Key data (31.05.2023, base currency EUR)
Beta | 0.67 |
Volatility | 12.30 |
Tracking error | 8.25 |
Active share | 46.46 |
Correlation | 0.85 |
Sharpe ratio | -0.09 |
Information ratio | -0.79 |
Jensen's alpha | -4.98 |
No. of positions | 47 |
Portfolio
Top 10 positions
Market capitalization
Geographic breakdown
Breakdown by sector
Opportunities & Risks
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
- 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
Egyptian equities were up 7.6% mom in EGP as local investors remain net buyers of the stock market, especially of names such as El Sewedy (electrical engineering and power infrastructure) or Alexandria Container (port operations) whose USD revenue streams are a tailwind in the context of a weakening EGP. Foreign inflows remain held back by the lack of progress on currency and structural reforms, which adds to the worries about Egypt’s ability to tackle its balance of payment issues. S&P Global Ratings voiced these concerns in its downgrade of Egypt’s outlook from stable to negative, stressing the urge for local authorities to deliver on their reform promises. Further, a swift implementation of the reform plan agreed under the latest IMF program would address concerns investors have around the nation’s debt.
Moving West, Morocco received the IMF board’s approval for a two-year USD 5 bn flexible credit line that will strengthen its FX buffers against external shocks. Another good news came from the pick-up in agricultural output leading headline inflation lower to 8.2% yoy last March from 10.1% yoy in February, the largest drop since early 2020. Lastly, tourists arrivals reached a new record of 2.9 million in 1Q 2023, up 17% vs. 1Q 2019, and are likely to provide a boost to domestic activity through their trickledown effect. This conducive backdrop supported another month of net inflows by local investors despite the usually low trading activity during the holy month of Ramadan. The stock Index was up 1.3% mom and the MAD gained 1.8% vs the USD.
South Africa suffered another episode of acute electricity rationing with almost half of the country’s generation capacity cut off the grid at some point adding to corporates’ struggle to operate without disruptions. On the consumers front, Capitec, a financial institution banking the mid-to-low income portion of the population, released a study showing that pressures on the purchasing power of its 20-million retail clients force the latter to arbitrate between their spending. Indeed, in the 12 months to last February, spending on pharmacy, education and home maintenance were cut by 30%, 15% and 13% respectively whereas spending on home loans, vehicle financing and fuel grew by 20%, 15% and 16%. The tough macroeconomic environment led the bank to book an impairment charge of ZAR 8.3 bn in its FY23 accounts, well above the ZAR 7.4 bn booked in FY21 which included the impact of the COVID-19 crisis. Equities gained 2.8% mom, driven by precious metal mining companies and a few other index heavyweights while the rand lost 2.7% against the USD.
Recent economic and earnings publications highlighted the negative impact the failed attempts of Naira demonetization had on business activity in Nigeria. Companies in the consumer space reported strong margin contractions in 1Q 23 and appeared as the main victims of the crisis. With an inflation still above 20% and no return to more orthodox policies in sight, prospects for Nigeria as an investment destination remain dire. The stock index fell 4.5% mom.
The Kenyan market fell 4.5% last month as a backdrop of slower GDP growth and a continued weakening of the shilling (-2.6% vs the USD mom) led foreign investors to continue exiting the market. This situation was exacerbated by growing fears related to the country’s debt sustainability, more specifically that of its USD borrowings given the country is still locked out of international markets by prohibitive interest rates.
Documents
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. Show moreShow less