BrandArena: MCB Investment Management Co. Ltd makes its mark on African Fixed Income

Friday 1 November 2019

MCB Investment Management Co. Ltd makes its mark on African Fixed Income

MCB Investment Management Co. Ltd has reported an excellent investment performance of the African Domestic Bond Fund (ADBF), the first multi-jurisdictional fixed income Exchange Traded Fund in Africa, launched by by the company in partnership with the African Development Bank in September 2018.

ADBF aims to encourage government bond issuances in local currencies by giving investors access to this asset class through a cost effective vehicle listed on the Official Market of the Stock Exchange of Mauritius. Since launch, ADBF has generated a total return of 18.72% in USD which includes an income return of 11.47%.

MCBIM has been investing in pan-African local and hard currency corporate and government bonds since February 2014, when it launched the MCB Africa Bond Fund, a collective investment scheme. ADBF was launched on the back of the strong investment performance and experience of managing the MCBABF.

Abhimanyu Yadav, Head of Fixed Income & Currency at MCBIM commented: “We remain confident about African fixed income going forward. The asset class should continue to exhibit low correlation with both emerging and developed markets. While African local currencies tend to be more volatile than their developed market counterparts, high yields on African bonds, strong economic growth, political and fiscal reforms and increasing capital inflows all point to the potential for diversified and attractive positive returns”. For more insights on this asset class watch this video:

This document is provided for information purposes only and does not constitute investment, legal, tax or other advice or any recommendation to buy or sell the securities herein mentioned. Investments in the securities herein are to be made after consulting the terms and conditions of the relevant prospectus (in its full or simplified version) which are available free of charge upon request. Any past performance figures published in this document are not to be taken as a guide to future returns. As is true of any investment in any collective investment scheme, investment in the securities herein is not guaranteed. The value of the investment may go up as well as down and the investor may not get back his initial capital. In certain circumstances an investor’s right to redeem his investment may be suspended.

MCB Africa Bond Fund (“MCBABF”) is authorised by the Financial Services Commission (“FSC”) as an Expert Fund. African Domestic Bond Fund (“ADBF”) is authorised by the FSC as a “Collective Investment Scheme” and further categorised as a “Global Scheme”. MCBABF and ADBF (collectively the “Funds”) are suitable only for those persons described in the relevant prospectus. The FSC does not vouch for the financial soundness of the Funds or for the correctness of any statements made or opinions expressed with regard to them.

Investors are not protected by a statutory compensation arrangement from the FSC in Mauritius in the event of the Funds’ failure. The Funds are promoted by MCB Investment Management Co. Ltd, a company licensed by the FSC as a CIS Manager. MCB Stockbrokers Limited is the market maker for ADBF and is duly licensed by the FSC as Investment Dealer (Full Service Dealer including Underwriting).

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