Laurium Capital (Pty) Ltd (Laurium), one of South Africa’s leading hedge fund and long only fund managers has launched its first Irish-domiciled UCITS fund, the Laurium Africa USD Bond Fund, on the Prescient Global Funds ICAV platform.
The fund seeks to generate long term capital growth with low volatility and low correlation to equity markets by primarily investing in African (ex-South Africa) sovereign USD debt. The fund’s reference benchmark is The Standard Bank Africa Sovereign Eurobond (ex-South Africa)
The fund can also invest in sovereign local currency debt as well as corporate credit in order to take advantage of the full opportunity set of debt securities across Africa (ex-South Africa).
“With global investors on the hunt for yield, African Eurobonds currently provide access to a liquid asset class which is offering some of the most attractive USD yields globally. The asset class has grown immensely over the past decade with over USD100 billion in outstanding issuance across 20 countries in Africa excluding South Africa. Covid-19 has provided an opportunity that has not happened since the Global Financial Crisis; spreads have widened providing an attractive entry point, similar to what investors are seeing in the global high yield space but at half the volatility and risk,” says Paul Robinson, Portfolio Manager.
Laurium has been investing across the African markets since the company was founded in 2008. The team’s deep understanding and research across the African region, where data is scarce, provides a competitive edge by producing insights into the health of the underlying regional economies and their ability to pay back debt. Laurium has a strong network of contacts ranging from underlying corporates to African sovereign policy makers. The firm maintains a flexible investment approach which has proven to be successful when investing in African markets.
“Laurium has an entrenched partnership with the team at Prescient, one that has led to much growth and success in South Africa. We are now looking forward to achieving our international ambitions with them, starting with our Africa USD Bond Fund which we’re very excited about,” says Mark Preston, Director.
“Having worked with the Laurium team since 2013, Prescient is proud to now support their international growth plans with this first Irish UCITS fund,” says Rob Childs, Head of Business Development at Prescient Fund Services Ireland.
