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: 29.09.2022)
NAV: EUR 161.69 (28.09.2022)
Rolling performance (28.09.2022)
|28.09.2021 - 28.09.2022||-3.54%||-2.98%|
|28.09.2020 - 28.09.2021||7.66%||11.95%|
|27.09.2019 - 28.09.2020||-20.90%||-13.16%|
|28.09.2018 - 27.09.2019||4.89%||7.35%|
Annualized performance (28.09.2022)
|Since Inception p.a.||1.96%||2.05%|
Cumulative performance (28.09.2022)
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)||2.35% (31.08.2022)|
|Legal form||SICAV Luxembourg jurisdiction|
|SFDR category||Article 8|
Key data (31.08.2022, base currency EUR)
|No. of positions||45|
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
The fading hopes of a Fed pivot and subsequent reversal in the global risk-on sentiment weighed negatively on our commodities exposure with mining companies and South African equities suffering the most. Morocco and Egypt ended August in the green and capped the fund’s USD losses below 1% vs. a mid-single digits decrease for developed markets.
The Egyptian president reshuffled his cabinet, replacing most ministers except the key Premier Minister and Finance Minister. Moreover, the Central Bank governor handed over his resignation and was replaced by Hassan Abdallah. This change at the institution helm occurs after years of a tight grip on the EGP which exacerbated Egypt’s external imbalances following the double shock from the COVID-19 crisis and the Russia/Ukraine war. It also opens a window for a reset in monetary policies away from the country’s reliance on the costly and volatile foreign fixed income flows towards the more sustainable direct investments. In the first weeks under Mr Abdallah’s watch, discussions to solve the issues behind the buildup of imports backlog got a new impetus while high level meetings between policymakers suggest Egypt made good progress in its talks with the IMF. Although it is too early to have a clear view on the next wave of reforms, local investors felt confident enough to reallocate some cash to equities. The EGX30 added 5.6% mom and the EGP lost 1.5% against the USD.
In Morocco, consumers names reported a double-digits top line growth on steady volumes in a higher prices environment and the leading banks managed to expand their loan book by 4/5% yoy. This performance looks encouraging when compared to local authorities’ GDP growth forecasts of 1% this year. In the waiting of more color on corporates’ net results, the market extended its July rebound to add 2.6% last month. The Dirham weakened 2.5% mom vs. the USD.
William Ruto won the presidential elections in Kenya, a result challenged by Raila Odinga who petitioned before the Supreme Court. Notwithstanding the legal hurdles, the August vote brought two main takeaways. First, Mr Ruto benefited from a rejection of the elites by the voters with his modest background playing in his favor against Raila Odinga who, like the incumbent president, comes from “the political families” that ruled Kenya since the independence. Second, Mr Ruto won the majority of the votes in ethnic groups which usually vote for the alliance supporting his main opponent, a sign that his victory transcended tribal divisions which is positive for the Kenyan democracy. Foreign investors accelerated their net selling after the elections results raised the odds of protracted legal battles, driving a 2.5% mom drop in equities. The Kenyan shilling was 1% weaker against the USD, lifting its cumulated losses for the year to 6.2%.
The Nigerian economy expanded by 3.5% yoy in Q2 2022, a slight acceleration qoq thanks to small gains in oil outputs and the non-oil sector holding up. However, corporates still struggle to access sufficient FX for their operations or to repatriate their profits with the case of foreign airlines making the headlines last month. Indeed, the Nigerian authorities cleared a combined USD 265 mn repatriation backlog out of a total of USD 460 mn only after Emirates, the UAE airline, threatened to suspend all its flights to and from Nigeria. Price pressures continued in the food space and spilled over to other categories, pushing July inflation to 19.6% yoy. H1 2022 publications failed to reinvigorate investors’ interest for equities and the main Index fell 1% mom.
The South African stock market was up 2% mom until the risk-off mood triggered by the Fed Chair’s hawkish tone at the Jackson Hole meeting led to a 4.3% drop in equities which ended the month down 2.4%. The rand lost 3% against the USD, bearing the brunt of the fall in the price of coal, iron ore and gold, all three being part of South Africa’s exports basket.
The continued weakness in China’s economic activity and the risks of tighter global financial conditions led us to cut our exposure to copper and gold mining names. On the other hand, external pressures stemming from the Ukraine/Russia increased the need for net commodity importing nations with limited buffers to adjust their macroeconomic imbalances. We are closely monitoring these countries that are entering this adjustment phase and we will use our cash position to seize the opportunities once reform catalysts become clearer.
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