Fixed Income and Africa-focused Funds Lead Resurgence in Q1 2017
HedgeNews Africa Q2 2017 Publication – Fixed Income Funds in the HedgeNews Africa database continued to make gains through March 2017, the HedgeNews Africa Quarterly Journal of the African Alternatives and Hedge Fund Community publication noted. The publication furthermore announced that Africa-focused funds also had a solid start to the year, with the HedgeNews Africa Pan-Africa/AME Index sitting 2.82% higher for the quarter.
Amongst a difficult quarter for global markets given an array of political and financial pressures, Fixed Income Funds, with a particular focus on African, remained a strong force to be reckoned with as performance continued to outperform analysts and speculators, HedgeNews Africa reported. Both the FTSE/JSE All Share Index and the MSCI Emerging Markets Index were well over the 2% level for the first quarter of 2017. The MSCI Emerging Markets Index is not sitting at over 11% YTD, showing that there is strong appetite to still be bullish on this focus.
Fixed Income was the best performing South African strategy in March (sitting at 2.88% for the year), with the month being a particularly strong month for the region and strategies, with gains helping several funds to finish the quarter on a strong footing. It was noted earlier on in the publication that the fact remains that active mangers – particularly hedge funds – have more instruments and strategies at their disposal and can mitigate against market risks to continue delivering returns, even in the toughest of conditions. None is truer that an effectively managed, fixed income strategy focused on EM.
In a global landscape that has seen beta strategies buoyed by but volatile and some unsustainable levels, investors should take note of the significant performance that African-focused Fixed Income funds have continued to produce into the new year. Barak’s STF Fund and its other shorter and medium-term funds continue to provide consistently risk-adjusted net returns on the premium opportunities that the region and strategy provides, and it’s no surprise that interest into Barak’s performance is gaining some growing traction.