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”) endured another trying month in June, with both the local and foreign portfolios posting negative returns. Overall, IGF shed 2.1% during the period and its twelve months performance now stands at +0.4%.
Locally, the SEMTRI recorded a second consecutive down month in June, with -2.1%. Market moves in recent weeks have eroded a good portion of the gains experienced earlier in the year. Nevertheless, the local index is still in positive territory on a YTD basis (+2.7%), which is a notable performance given the steep drops seen in markets internationally. Whether the domestic index will continue to hold up in coming quarters however remains to be seen. Otherwise, in terms of portfolio changes for the month, we have continued to top up our position in The Bee Equity Partners Ltd and have also increased our exposure to Promotion and Development Ltd (PAD). Please also note that our top holdings MCBG and Phoenix Beverages Group* traded ex-div in June.
On the international front, there are increasing concerns that central banks might tip the global economy into a recession as they attempt to battle inflation, which has, so far, not showed any signs of peaking. In the US, the FED hiked rates by 75 bps in June, its most aggressive hike in 28 years. As expected, markets continued to remain volatile. The MSCI All Country World Index was down 8.4% in June. IGF’s foreign holdings declined too, but less compared to the index. This, together with foreign currency gains, helped mitigate losses from the international portfolio.
On a more positive note, IPRO Growth Fund Ltd. (“IGF”) paid a dividend of MUR 0.68 per share in June. The Fund has been able to keep its dividend per share stable over the previous 5 years. This year’s payout represents a dividend yield of 2.3% to shareholders.