The fund rose 4.2% in February, compared to MSCI EFM Africa ex South Africa Net TR Index which rose 4.5%. The fund received a positive contribution during this month primarily from its positions in South Africa (Shoprite and Nampak, both rising more than 10%); and in Egypt where Dice Sport & Casual Wear rose by almost 20%, while Juhayna, MM Group, Ezz Steel and Arabian Cement, all rose more than 10%. The fund lost relative returns through its underweights in Kenya and Morocco. No new holdings were added during the month.
The African news flow was dominated by South Africa where President Jacob Zuma resigned. The outcome was expected but there was a great deal of speculation about the timing of the announcement. Faced with vote of no confidence, Zuma confirmed his decision to step-down on February 14th. Since the end of November, the South African rand has strengthened close to 20% against the US dollar and 15% against the Euro on expectations of Zuma’s exit. Other African markets developed favourably in line with the recovery in global equity markets. Among Tundra’s core markets, Kenya, Egypt and Nigeria rose 6.5%, 4.5% and 4.3% respectively.
Kundgrupp / Investortype:
* Ontario and Quebec