Laurium Africa USD Bond Fund (UCITS)

The Laurium Africa USD Bond Fund direct US Dollar investment vehicle was launched on the Prescient Global funds ICAV UCITS Platform in April 2021.

Laurium Capital launched the Laurium Africa USD Bond Prescient Fund in South Africa in December 2019 for clients looking for exposure to a pure fixed income Africa CIS fund to achieve competitive USD yields and diversify their portfolios. Due to the significant interest received from offshore investors and South African investors wishing to access the fund in foreign currency, Laurium has registered the Laurium Africa USD Bond Fund, an Irish regulated collective Investments scheme, pursuant to the UCITS Regulations. The Laurium Africa USD Bond Fund is denominated in USD and has received FSCA approval under Section 65 of CISCA. Reasons to invest in African Fixed Income:

  • Attractive risk adjusted USD yields and returns
  • Liquid market, with investible universe of over $120bn and daily liquidity, of around $500mn
  • 20 countries issuing eurobonds across Africa with over 83 different issuances
  • Our Fund is currently offering higher USD Yields than Global High Yield and Global EM Fixed Income
  • Actively managed Fund combining majority Africa eurobonds with opportunistic trades
  • Sovereign-backed drives lower default rates than high yield, both historically and going forward

Fund Details

The Fund invests primarily in USD and EUR denominated fixed income instruments (Eurobonds) issued by African sovereigns, excluding South Africa. A Eurobond is a USD denominated bond issued outside of the United States. There are over 20 African sovereigns issuing Eurobonds via the Euroclear markets in Europe. 

The Fund aims to outperform the Standard Bank Africa Sovereign Eurobond (excl. South Africa) USD Total Return Index at lower levels of volatility over time. 

Africa Eurobonds

Since 2006, the African sovereign eurobond market has grown significantly to over $150bn. It has generated USD annualised returns of 8.9% p.a. The African Eurobond market trades around $500mn a day. These USD denominated, sovereign-backed instruments are settled via the Euroclear markets in Europe, carry no local currency risks, nor operational indecencies.

Investment Approach

The fund uses fundamental bottom-up research, with a valuation bias, to generate a concentrated portfolio with high conviction ideas with a focus on stock picking and risk mitigation. The Fund will be invested in a minimum of 75% in Eurobonds, typically with a higher weighting over time. It may also invest opportunistically in local currency sovereign and corporate fixed income securities up to a maximum of 25%.

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