ACM HIGH YIELD FUND 31st August 2014

www.afrasiacm.com / Mauritius
ACM HIGH YIELD FUND
31st August 2014
FUND OBJECTIVE
FUND FACTS
The Fund is a low risk open-ended fund which invests primarily in
A prospective investor can access the Fund either by a Lump Sum Investment and/or a Regular Investment Plan. Through a
MUR denominated debt securities and other cash equivalent
instruments. The Fund invests only in highly rated debt instruments
regular investment plan the investor contributes a monthly minimum fixed amount into the fund which is done by standing
after a thorough screening process. The investment objective of the
order. The aim of the regular investment plan is to build up capital steadily over a medium to long-term period by being
Fund is to generate regular income to investors and seek growth, by
exposed to very little risks and yielding interest rates that are more attractive than a simple savings rate. In both cases, i.e
investing in a diversified portfolio of high yield securities taking into
consideration duration analysis. The Fund aims at outperforming its
Lump Sum Investment and Regular Investment Plan, an investor has option to either cash in or reinvest any dividend payment.
benchmark AfrAsia Savings Rate + 2% over time.
FUND FEATURES
PERFORMANCE (Since Inception)**
Fund Size :
MUR 252.1 million
NAV/unit:
MUR 10.0938
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
14%
12%
10%
8%
6%
4%
2%
0%
Aug-14
Jun-14
Mar-14
Jan-14
Oct-13
Aug-13
May-13
Mar-13
Dec-12
Oct-12
Jul-12
ACM High Yield Fund
AfrAsia Savings Rate + 2%
* *Assuming dividends were re-invested
CUMMULATIVE AND ANNUALISED (*) PERFORMANCE
1-Month
0.45%
0.41%
ACM High Yield Fund
AfrAsia Savings Rate+2%
3-Month
1.37%
1.29%
6-Month
2.77%
2.60%
YTD
3.71%
3.46%
1-Yr
5.70%
5.25%
2-Yr
12.06%
10.95%
2-Yr*
5.86%
5.33%
Incep
12.98%
11.53%
Incep*
6.01%
5.36%
FUND MANAGER'S COMMENTS
Over the month, the Fund outperformed its benchmark posting returns of 0.45% against 0.41%. Since its inception, the Fund generated an annualized return of 6.0% against 5.4% for its benchmark.
Over the past few months, ample liquidity on the domestic market has created concerns over the effectiveness of the monetary policy mechanism. Consequently the Ministry of Finance and Economic
Development and the Bank of Mauritius have put a series of measures to address this issue including amongst others the issue of 5-year Government savings bonds and the issue of Bank of Mauritius
securities. According to the latest BOM Financial Stability Report the banking system is still experiencing excess liquidity. Consequently the Bank of Mauritius issued a 3 year Government of Mauritius
Savings Note to mop-up this extra liquidity.
On another note, this surplus liquidity led to reduced yields on Government of Mauritius treasury bills. Over the month, the weighted average yields of 182-day Treasury bill dropped from 1.75% in July to
0.92% in August, the 273-day Treasury bill fell from 2.19% in July to 0.96% in August and the 364-day Treasury bill declined from 2.08% in July to 1.30% in August.
PORTFOLIO MIX
MONTHLY RETURNS
8%
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%
0.45%
-
-
-
-
Benchmark
0.42%
0.41%
0.44%
0.42%
0.42%
0.44%
0.44%
0.41%
-
-
-
-
10%
Quoted Securities
15%
Unquoted Securities
Fixed Deposits
67%
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

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