IGF went up by 1.1% in March 2021, thanks again to its international portfolio. Over one year, the NAV rose by 12.2%. In Mauritius, IGF increased its stake in The Bee Equity Partners, a listed investment company having a private equity strategy, at an attractive discount. The debt to equity ratios and interest covers of the main local groups operating in the hospitality industry are unsustainable and are weighing on MCB Group Ltd, our main individual stock holding representing 12.4% of the NAV.
International investments fared relatively well. Rising long-term yields in the US have strengthened the US Dollar and the growth outlook for the US economy in 2021 now exceeds 6%, as a result of the USD 1.9 trillion stimulus package and a successful vaccination campaign. Optimism in the US and in Asia are however leading to chip shortages, given the high demand witnessed by electronic goods distributors and car producers. Another feature is the creation of financial bubbles in themes like cryptocurrencies, green energy, electric vehicles and medical cannabis.