Biggest African Bond Fund Snaps Up MTN, Gains From Local Debt
This article is for subscribers only.
Cape Town-based Allan Gray’s Africa bond fund has managed to outdo its peers this year and protect itself against the selloff buffeting emerging markets largely by buying local debt in Nigeria, Egypt and Ghana.
The $430 million Africa ex-South Africa Bond Fund, the biggest with a focus solely on the continent, returned 2.8 percent through the first three quarters of the year. That compares with an 8.2 percent loss for the J.P. Morgan GBI-EM Diversified Index, against which the fund is benchmarked.