In January the Africa fund share price rose 1.43% while the benchmark index fell 1.90%, both measured in euro and based on total return. The amount of outstanding shares declined slightly to 586,081 s... 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).
In January the fund share price rose 1.43% while the benchmark index fell 1.90%, both measured in euro and based on total return. The amount of outstanding shares declined slightly to 586,081 shares and the AuM of the fund were unchanged at 7.3 million euro.
Last month the markets in Morocco and South Africa contributed the most to this month’s return. The Morocco index rose with 3.53%, in euro and was one of the best performing markets in the Africa universe, thereby continuing the rally from last month. Within the fund we took some profit in Douja Promotion Groupe in Morocco as the shares from the real estate developer almost doubled in value in one years’ time. On the other hand, the start of the year in Kenya was rather disappointing. The market fell 12.1% as investors realized that the rate of economic growth is slowing down due to a declining credit growth. Last year Kenyan President Uhuru Kenyatta signed into law a bill limiting how much interest banks can charge for loans, which is hurting the sector.
Currently the fund has 35 stocks in portfolio, spread over 7 different countries. The countries with the largest weightings are now Nigeria (21.23%), Egypt (19.96%), Morocco (19.81%), and South Africa (15.53%). 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 was Eastern Tobacco (+34.53%) in Egypt as the stock was profiting from solid earnings growth expectations. Other winners were Astral Foods (+17.47%) in South Africa and Marsa (+15.25%) in Morocco. The losers this month were Kenyan names such as Equity Group Holdings (-22.06%) and KCB Group (-22.86%), 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.