iPRO Growth Fund is an investment fund combining a majority of Mauritian and foreign stocks, and a minority of fixed income investments aimed at reducing performance volatility.
The Net Asset Value of IPRO Growth Fund Ltd. (“IGF”) declined by 1.4% in October. Performance this month was dragged down by the local portfolio whose negative return wiped out the gains recorded by the international segment of the fund.
In Mauritius, MCBG, our top local holding, was one of the few stocks in the SEMTRI which appreciated (+0.5%) in October. The broad equities market was otherwise down, as evidenced by the SEMTRI’s return of -2.8%. The main detractor to IGF’s performance was The Bee Equity Partners Ltd which experienced a significant share price correction (-18%) in October after rallying heavily (+33%) in September. The Bee Equity Partners Ltd nevertheless remains one of IGF’s top performers this calendar year, with a share price return of +70%. On the trading front, we added to our position in Alteo Limited this month, taking advantage of the current weakness in the stock’s share price.
Internationally, the equities markets rebounded in October amid speculations that the FED might start to slow the pace of its rate hikes. The MSCI All Country World Index rose by 6.0%, driven by developed market equities (+7.2%). Emerging markets (-3.1%) lagged behind due to the performance of China. Chinese equities tumbled after it was indicated at the Congress of the Communist Party that the country’s zero-COVID policy was to be maintained, and also on fears that market-unfriendly policies might prevail in the future.
We highlight that macroeconomic conditions remain challenging and, as such, the rebound observed in foreign equities in October could prove to be short-lived. Markets are expected to remain shaky in the short-term. On the positive side, the current volatility could provide advantageous entry points to long-term investors.