www.afrasiacm.com / Mauritius ACM HIGH YIELD FUND 31st July 2014 FUND OBJECTIVE FUND FACTS The Fund is a low risk open-ended fund which invests primarily in MUR denominated debt securities and other cash equivalent instruments. The Fund invests only in highly rated debt instruments after a thorough screening process. The investment objective of the Fund is to generate regular income to investors and seek growth, by investing in a diversified portfolio of high yield securities taking into consideration duration analysis. The Fund aims at outperforming its benchmark AfrAsia Savings Rate + 2% over time. A prospective investor can access the Fund either by a Lump Sum Investment and/or a Regular Investment Plan. Through a FUND FEATURES PERFORMANCE (Since Inception)** Fund Size : MUR 234.7 million NAV/unit: MUR 10.0490 Inception Date: 29-Jun-12 Currency: MUR Dealing frequency: Weekly Benchmark: Afrasia Savings Rate + 2% Entry Fee 0.75% Redemption fee: 0.25% Annual Mgmt fee: 0.75% Min Lump sum: MUR 50,000 Min monthly contriution: MUR 3,000 Investment Manager: AfrAsia Capital Management Fund Administrator: FWM International Limited Dividend: Payable half-yearly Distribution (Dec 12): 28.25 cts Distribution (Jun 13): 29.75 cts Distribution (Dec 13): 28.83 cts Distribution (June 14): 27.49 cts regular investment plan the investor contributes a monthly minimum fixed amount into the fund which is done by standing order. The aim of the regular investment plan is to build up capital steadily over a medium to long-term period by being exposed to very little risks and yielding interest rates that are more attractive than a simple savings rate. In both cases, i.e Lump Sum Investment and Regular Investment Plan, an investor has option to either cash in or reinvest any dividend payment. 14% 12% 10% 8% 6% 4% 2% 0% Jul-14 May-14 Mar-14 Jan-14 Nov-13 Sep-13 Jul-13 May-13 Mar-13 Jan-13 Nov-12 Sep-12 Jul-12 ACM High Yield Fund AfrAsia Savings Rate + 2% * *Assuming dividends were re-invested CUMMULATIVE AND ANNUALISED (*) PERFORMANCE 1-Month 0.49% 0.44% ACM High Yield Fund AfrAsia Savings Rate+2% 3-Month 1.37% 1.31% 6-Month 2.77% 2.60% YTD 3.25% 3.03% 1-Yr 5.71% 5.28% Incep 12.48% 11.07% Incep* 6.02% 5.36% FUND MANAGER'S COMMENTS The Fund has outperformed its benchmark for the month to post returns of 0.5% against 0.4%. The Mauritian banking system is still experiencing excess liquidity, which remained at a high level of Rs 9.9 billion on average. Money market interest rates declined and the weighted overnight interbank interest rate reached a low of 1.25%. During the month, the weighted average yields of 182-day, 273-day and 364-day Government of Mauritius Treasury Bills were 1.75%, 2.19% and 2.08% respectively. Over the month, the Bank of Mauritius left its Key Repo Rate unchanged at 4.65% following its July’s meeting. A weak private investment and low savings rate coupled with negative real interest rates were among the key issues addressed during the meeting. Consequently the central bank issued a five year government bond with a fixed rate of return of 6% per annum in an attempt to mop-up the excess liquidity on the retail market. PORTFOLIO MIX MONTHLY RETURNS 1.6% 10.7% 16.5% Quoted Securities Unquoted Securities 2013 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Fund 0.53% 0.45% 0.41% 0.54% 0.51% 0.51% 0.49% 0.46% 0.47% 0.47% 0.46% 0.49% Benchmark 0.46% 0.41% 0.43% 0.47% 0.46% 0.43% 0.37% 0.44% 0.42% 0.44% 0.41% 0.45% 2014 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Fund 0.47% 0.44% 0.48% 0.45% 0.44% 0.43% 0.49% - - - - - Benchmark 0.42% 0.41% 0.44% 0.42% 0.42% 0.44% 0.44% - - - - - Fixed Deposits 71.2% Cash Disclaimer: This document is brought to you by AfrAsia Capital Management Limited for information purposes only. Neither the information nor any opinion expressed constitutes an offer or an invitation to make an offer, to buy or sell the investment products. Prospective investors should not construe the contents of this document as containing legal, tax, or financial advice. To be clear on the contents and obligations contained within the document, prospective investors should consult their financial advisors. Investors should seek financial advice regarding the appropriateness of investing in any investment product described in this document and should understand that future expectations may not be realized. Past performance is not a guide to future performance. Investing in international markets may involve additional risks, such as social and political instability, market illiquidity, exchange-rate fluctuations, a higher level of volatility and limited regulation. Investments in emerging markets are by their nature higher risk and potentially more volatile than those inherent in established market. AfrAsia Capital Management Ltd / Bowen Square / 10 Dr. Ferrière Street / Port Louis / Mauritius BRN: C07045898 / Tel (230) 211 3311 / Fax (230) 210 3311 / [email protected] / www.afrasiacm.com Mauritius - Zimbabwe - South Africa