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 is categorised within the Regional Multi-Asset Income sector.
The Fund aims to outperform the Standard Bank Africa Sovereign Eurobond (excl. South Africa) USD Total Return Index converted to rands at lower levels of volatility over time. The Fund qualifies for the 10% African exposure allocation as provided for in the South African Reserve Bank offshore allowance.
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%.