iPRO Growth Fund is an investment fund combining a majority of Mauritian and foreign equities, and a minority of fixed-income investments aimed at reducing performance volatility.
IPRO Growth Fund Ltd. increased by 0.1% in September and has now returned 18.4% over the last twelve months. Performance between the local and foreign holdings diverged during the month. The local portfolio, which represents 46% of total assets, contributed positively to performance while the foreign holdings, which account for 54% of the fund, were negatively impacted by ongoing macro conditions.
Locally, we consolidated our position in LUX Island Resorts to benefit from the re-opening of borders. Our top local performer, MCB Group, declared a dividend of Rs. 9.50. The local equity market continued to recover from last year’s lows and is gradually going back to pre-COVID trading levels.
Internationally, September was one of the worst performing months since the onset of the pandemic. Inflation continues to remain high, with the US oil price hitting a 7-year high of USD 82 per barrel during the month. There are concerns that the FED might start to taper this year and also that they may raise interest rates sooner than previously anticipated, which is not favourable for equities. As usual, we continue to monitor these developments very closely.