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: 03.12.2021)
NAV: EUR 175.53 (02.12.2021)
Rolling performance (02.12.2021)
|02.12.2020 - 02.12.2021||11.56%||11.93%|
|02.12.2019 - 02.12.2020||-16.86%||-6.40%|
|02.12.2018 - 02.12.2019||4.69%||9.87%|
|02.12.2017 - 02.12.2018||-5.95%||-7.20%|
Annualized performance (02.12.2021)
|Since Inception p.a.||2.77%||2.85%|
Cumulative performance (02.12.2021)
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)||2.37% (30.11.2021)|
|Legal form||SICAV Luxembourg jurisdiction|
|SFDR category||Article 8|
Key data (30.11.2021, base currency EUR)
|No. of positions||52|
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
Our core markets in Africa ended October in the green as the global risk-off sentiment of last September waned and local investors deployed more cash to equities. The latter move was particularly visible in Egypt, where foreign investors’ net buying (specially from GCC institutions) also improved. Total active COVID-19 cases in the region fell again to reach 430000 last month, according to the John Hopkins University database. Still at the forefront of the fight against the pandemic, Morocco introduced a vaccine pass system similar to that in developed nations.
A series of hikes in the price of regulated items took place in Egypt, starting with a 5% price increase in all domestic fuels, followed by a 28% upward revision in the tariff of natural gas (to USD 5.75/mmBtu) for industrials in the steel, cement and fertilizer sectors. On food, cooking oil price was raised to EGP 25/liter (up 19%) for ration card holders. These decisions remind us of the authorities’ commitment to fiscal discipline in the context of higher global commodities prices. Headline inflation stood at 6.6% yoy in September, up from 5.7% in August, a trajectory likely to carry on in the coming months as higher regulated prices filter through. Despite the upside risks to domestic inflation, the Central Bank kept its main policy rate unchanged at 8.75% whilst 12-month T-Bill rates remained in the 13.0-13.5% range they trade at since early this year, hence the lower real yields mom. Lastly, Egypt’s ability to attract/retain foreign Fixed Income flow should improve with the country returning to the JP Morgan’s EM Global Bond Index in January 2022 at an estimated weight of 1.8%. The EGX30 gained 8.6% mom, driven by a growing appetite from local and foreign institutions in stock heavyweights. The EGX70 and EGX100 fell 16.7% and 12.6% respectively given small and mid caps were affected by a regulatory crackdown on alleged market manipulations.
In South Africa, the resumption of power rationing by the state-owned utility Eskom made the headlines and spilled over into politics with the opposition seizing the opportunity to attack the ruling party in the run-up to the metropolitan elections (early November). For the first time since the end of the apartheid, local polls suggest that the ANC could fail to secure 50% of the vote, a prospect that would come at a critical time due to the need to hold onto fiscal consolidation targets. Equities shrugged off domestic uncertainties and gained 5% mom whereas the Rand lost 1% against the USD.
Tier-1 banks in Nigeria appear to have overcome the worse of the low-interest rate environment with net interest margins bottoming out in Q3 2021. In the manufacturing sector, Q3 publications showed the unabated pressure on margins coming from the FX situation and years of double-digit inflation. Furthermore, products distribution in Eastern Nigeria was disrupted by civil disobedience acts instigated by secessionist movements, that, over the past decade, regularly disturbed economic activities. The local stock index gained 4.5% mom, supported by the banks. The Naira was stable at NGN 413/USD on the official I&E window, but anecdotal evidence showed some FX repatriation transactions for foreign investors booked at spot and forward rates (150-days) of NGN 443 and NGN 452 per USD respectively.
In Kenya, authorities lifted the nationwide curfew in place since the onset of the pandemic and extended the operating hours for bars and restaurants to 11 p.m. The restrictions relief came with a KES 25 bn stimulus package to accelerate the economic recovery in the agricultural and livestock farming sectors that remain key for domestic employment. Equities were steady last month.
October was a quiet month in Morocco. The Q3 results released thus far came in line with market expectations and local investors kept on adding more equities. The stock Index was up 2.8% mom.
We reduced our exposure to South Africa and added to Saudia Arabia via the banks and the petrochemical complex. We participated in the IPO of the state-owned fintech company, e-finance, which successfully listed 26% of its share capital in Egypt. The transaction was 10x oversubscribed and triggered a strong interest from both foreign and local investors that we have not seen in years. The recovery in Egyptian equities last month was a welcome outcome which we think could be sustained should real yields continue on their downward trend.
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