The main objective of the African Domestic Bond Fund is to track the performance of the AfDB/AFMISM Bloomberg® African Bond Index 25% Capped before fees and expenses.
The Manager invests in a diversified portfolio using a stratified sampling approach to match the index’s characteristics and returns. ADBF invests in debt obligations issued or guaranteed by an African Government, by an agency of an African Government, by an African Government sponsored entity or quasi-Government entity and are denominated in an African currency.
The Fund Manager will endeavour to invest only in the most liquid maturities in each market whether these bonds are included in the Index or not. However, given liquidity constraints and in order to optimise the operation of redemption and creation of shares, the country-weighting of the portfolio can deviate by up to 5% from the Index. The Fund may also invest up to 20% in Non-Member Securities.
The objective of this exchange-traded fund makes it suitable for institutional and individual investors who:
- Are looking to access the sovereign bond markets within Africa, in a diversified, transparent and cost efficient manner, thereby potentially enhancing returns and adding correlation benefits to their global portfolios;
- Have an investment horizon of at least 3 years; and
- Are looking for regular returns in USD from coupon income and potential long-term gains from capital appreciations of the underlying bonds.
ADBF Daily NAV
Price as at: 19 Mar 2020