Over the year 2016 the share price of the Africa fund declined 1.91% while the benchmark index fell 5.12%, both measured in euro and based on total return. The fund had a net inflow and issued 27,199 ... Read more
Intereffekt Emerging Africa is called TCM Africa High Dividend Equity since November 2015.
TCM Africa High Dividend Equity is an equity fund, investing in listed shares in the northern and sub-Sahara regions of Africa. Initially it will focus on Egypt, Morocco and Nigeria. In addition, it will invest in Kenya, Ghana, Botswana and Mauritius. In principle, its portfolio will have limited exposure to South Africa. The relationship between global financial markets and African markets is low, because the latter are less sensitive to international developments. The funds investment policy will be aimed at achieving capital growth as well as dividend pay outs. The benchmark of the fund is the Africa ex South Africa Index (Total Return). The risk profile is very high, due to investments being channelled into frontier/emerging markets in Africa.
TCM Africa High Dividend Equity is a subsidiary fund of Intereffekt Investment Funds N.V (IIF)., established with a so-called umbrella structure.
TCM has entered into an agreement with Sustainalytics for the screening of the portfolios of the TCM equity funds on ESG criteria (UN Global Compact and Controversial Weapons).
Over the year 2016 the fund share price declined 1.91% while the benchmark index fell 5.12%, both measured in euro and based on total return. The fund had a net inflow and issued 27,199 shares in 2016, lifting the total amount of outstanding shares to 586,081. The AuM declined a bit from 7.6 to 7.3 million euro. Furthermore, in May a dividend per share of EUR 0.58 was paid. Based on the year-end-closing price this amounts to a dividend yield of 4.6%.
Last month, African markets recovered strongly lead by Morocco and Egypt, whereby the fund price rallied with 9.01% compared to a gain of 4.59% for the benchmark. The rally in Morocco might be caused by the higher weighting of the country in the benchmark since de weightings of Egypt and Nigeria declined due to the devaluation of their currencies earlier. After the devaluation of the Egyptian currency on November 3, the EGX30 index has risen by 13%, measured in euro. Within the fund we added to our holding in Guaranty Trust bank in Nigeria and United Bank for Africa. Furthermore, we also added to our holding in KCB Group in Kenya. The stock is trading at 4.3 times expected earnings and has a dividend yield of 6.9%.
Currently the fund has 36 stocks in portfolio, spread over 7 different countries. The countries with the largest weightings are now Morocco (21.41%), Egypt (20.34%), Nigeria (17.41%) and South Africa (15.05%). In these markets we currently find the most interesting high dividend stocks, which meet our quality requirements. The country weightings are thus mainly determined by the relative attractiveness of the market as a whole relative to other countries. Consequently, the fund differs significantly from the Africa ex SA Index.
Among the winners this month were Standard Chartered Bank (+52.40%) in Ghana, Alexandria Mineral Oil (+23.19%) in Egypt and Douja Prom Addoha (+19.76%) in Morocco. The losers this month were Eastern Tobacco (-4.27%) in Egypt and KCB Group (-4.24%) in Kenya, all measured in euro and based on total return.
No rights may be derived from this publication. You are referred to the prospectus and Key Investor Information Document for the fund's terms and conditions. These documents may be obtained from the website or the address mentioned below. The manager of IIF has obtained a licence for this fund from the Netherlands Authority for the Financial Markets in accordance with the provisions of the Financial Supervision.