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”) retreated by 4.3% in April, dragged down by the performance of the foreign portfolio. The Fund’s return over twelve months remains in double-digit territory nevertheless, at 10.4%.
Despite the challenges on the investment landscape internationally and the high levels of inflation being registered domestically, the SEMTRI remained steady, growing by 4.5% during the month. Our local investments generated a net positive return during the period. In terms of portfolio changes, we topped up our position in The Bee Equity Partners Ltd and continued our selling programme in Lottotech.
Internationally, April proved to be a tough month for foreign equities, with the MSCI All Country World Index losing 8.0% in US dollars. Multiple factors are weighing on markets currently, including persistent inflation, the Russia-Ukraine war as well as the surge in COVID infections and subsequent lockdowns in China. Investors, in April, were particularly concerned by the prospect of even tighter monetary policy from the FED. Indeed, the latter implemented a 50bps rate hike at their latest meeting in May, with additional hikes on the table for the rest of the year. The Mauritian rupee’s gain versus the US dollar in April (following interventions by the Bank of Mauritius on the domestic foreign exchange market) further weakened returns from IGF’s foreign portfolio.
Market volatility is understandably unnerving but can provide interesting buying opportunities for long-term investors.