{"id":786897,"date":"2024-08-15T06:59:41","date_gmt":"2024-08-15T04:59:41","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=786897"},"modified":"2024-08-15T07:00:41","modified_gmt":"2024-08-15T05:00:41","slug":"invest-in-high-yield-frontier-african-markets-with-laurium-capital","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/industry-news\/786897\/invest-in-high-yield-frontier-african-markets-with-laurium-capital\/","title":{"rendered":"Invest in high-yield frontier African markets with Laurium Capital"},"content":{"rendered":"\n<p>Laurium Capital\u2019s Africa USD Bond Fund provides an excellent way to access great returns by investing in frontier African market sovereign bonds.<\/p>\n\n\n\n<p>The fund allows investors to benefit from Africa\u2019s high-growth economies via debt markets \u2013 specifically, US-dollar-denominated fixed-income instruments called eurobonds.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/fund.lauriumcapital.com\/v\/Laurium-Africa-USD-Bond-Fund?utm_source=BusinessTech&amp;utm_medium=Article&amp;utm_term=August+2024\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Contact Laurium Capital to learn more about its Africa USD Bond Fund.<\/strong><\/a><\/li>\n<\/ul>\n\n\n\n<p>\u201cOver time, the fund\u2019s USD Eurobonds have performed very well,\u201d said Laurium Africa USD Bond Fund portfolio manager Paul Robinson.<\/p>\n\n\n\n<p>\u201cYes, there will be some short-term volatility, but over the long term, you have been, and we believe will continue to be, paid to take on this risk.\u201d<\/p>\n\n\n\n<p>This is evident when looking at the performance over the past 15 years, with the Africa-focused sovereign eurobonds delivering 7.6% annualised returns in USD.<\/p>\n\n\n\n<p>With global high-yield bonds only achieving 6.5% annual USD growth &#8211; and more established emerging market bonds in countries like South Africa, Turkey, and Brazil under 5% USD growth per year \u2013 the Africa USD Bond Fund has been the superior investment choice.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Investing in Africa<\/strong><\/h3>\n\n\n\n<p>Sociopolitical improvements in frontier African markets are the driving force behind the growth potential of African eurobonds.<\/p>\n\n\n\n<p>\u201cAfrican governments are getting far more involved with the IMF and the World Bank, which they have previously been more suspicious of,\u201d said Robinson.<\/p>\n\n\n\n<p>He cited the transition from bilateral loans, which were often unclear in their terms, to more multilateral loans, and borrowing via eurobonds, which make it easier to identify and manage a country\u2019s debts.<\/p>\n\n\n\n<p>\u201cThe bottom line is that African eurobonds have been a great asset over time, even during the recent trying times,\u201d said Robinson.<\/p>\n\n\n\n<p>\u201cIf you had invested $100 in Africa bonds in 2019, just before COVID started, you would have $115 &#8211; whereas the same investment into the so-called safe haven of US treasuries would only be worth about $95.\u201d<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Africa versus South Africa<\/strong><\/h3>\n\n\n\n<p>The Laurium Africa USD Bond Fund is notable for excluding South Africa from its asset allocation, despite the country being one of the most prominent markets in Africa.<\/p>\n\n\n\n<p>Robinson explained that including South Africa in the Africa USD Bond Fund would require many South African investors to mix their offshore and onshore investments, complicating regulatory compliance.<\/p>\n\n\n\n<p>Even more important is that South Africa offers a very different investment opportunity from the rest of Africa.<\/p>\n\n\n\n<p>\u201cSouth Africa is well-developed as far as emerging markets go, and many of its largest companies have global presences,\u201d said Robinson.<\/p>\n\n\n\n<p>\u201cOur Africa USD Bond Fund focuses on giving investors access to frontier markets, where there is higher growth potential.\u201d<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Laurium Capital<\/strong><\/h3>\n\n\n\n<p>Laurium Capital is a leading boutique fund manager with R56 billion in assets under management.<\/p>\n\n\n\n<p>It has invested in African markets for over 16 years, both in fixed income and equities, and has seen incredible performance from its Africa-focused funds.<\/p>\n\n\n\n<p>\u201cOur success is driven by our commitment to understanding the markets in which we invest,\u201d said Robinson.<\/p>\n\n\n\n<p>\u201cWe frequently travel to these African countries and meet with various companies, organisations, and policymakers in these regions.\u201d<\/p>\n\n\n\n<p><a href=\"https:\/\/fund.lauriumcapital.com\/v\/Laurium-Africa-USD-Bond-Fund?utm_source=BusinessTech&amp;utm_medium=Article&amp;utm_term=August+2024\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Contact Laurium Capital to learn more about its Laurium Africa USD Bond Fund.<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Over the past 15 years, eurobonds from frontier African markets have outperformed global high-yield bonds and emerging market bonds.<\/p>\n","protected":false},"author":57,"featured_media":786898,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10459],"tags":[19603],"class_list":["post-786897","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industry-news","tag-laurium-capital"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/786897","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/57"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=786897"}],"version-history":[{"count":3,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/786897\/revisions"}],"predecessor-version":[{"id":786941,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/786897\/revisions\/786941"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/786898"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=786897"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=786897"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=786897"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}