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.
IPRO Growth Fund Ltd. (“IGF”) ended the year on a strong note, with its Net Asset Value climbing by 2.4% in December. The Fund’s return over the last twelve months consequently rose up to 14.9%. Both the local portfolio (46% of Fund) and foreign portfolio (54% of Fund) contributed positively to performance, recovering from the previous month’s slump as initial concerns around the Omicron variant receded and investors became more optimistic about the prospects of the global economic recovery getting back on track.
In Mauritius, December also brought positive news for the local tourism industry as French authorities removed the country from its list of “scarlet” destinations. The SEMTRI resumed its march upwards, gaining 4.7% over the month. With regards to IGF’s local portfolio, we initiated a position in PAD (Promotion & Development Limited) in December and also added to our existing position in MCB Group, by subscribing to their scrip dividend programme.
Internationally, the MSCI ACWI index returned 4.0% in December and 18.5% for calendar year 2021. These solid numbers however belie a challenging investment landscape, which is likely to persist in 2022, with elevated volatility levels, inflation risks and hawkish moves by major central banks around the world. At its mid-December meeting, the FED confirmed that it would speed up its tapering programme such that asset purchases are now likely to end by March 2022. The FED furthermore signalled that it may increase rates sooner than expected with multiple hikes not excluded for 2022. As we enter the new year, we therefore continue to advocate a cautious approach, favouring a balanced and diversified foreign portfolio.