Thames River Capital has launched a multi-manager offering designed to invest in asset classes across African and Middle East markets.
The Cayman-domiciled Thames River Africa Focus fund targets a net return of 15% per annum through exposure to multiple investment strategies and asset classes across the regions.
It seeks to exploit predominately hedged opportunities in South Africa and direction opportunities in markets elsewhere in Africa and the Middle East.
Fund manager Ken Kinsey-Quick will interpret a macro view of African markets to allocate assets.
Initial geographic weightings will be around 75% South Africa and 25% rest of Africa and the Middle East. He expects these to move significantly over time as the Africa markets ex SA open up further.
The fund will employ volatility controls and full transparency with respect to its underlying managers, while leverage will be moderate in absolute terms and at the level of underlying funds.
Quick describes Africa as offering an “unparalleled” universe of 53 countries and 23 stock exchanges from which to choose.
“There is huge potential. Africa remains fundamentally unaffected by global credit concerns and its growth is largely a result of structural, political and economic reform rather than an export-led strategy.”
He says the fund will tap into this potential and aim to participate in the upside of these maturing markets, while focusing on downside protection.
“We have an experienced team of investment professionals which, coupled with a local African presence, gives us an edge in properly understanding the dynamics at work within the continent and good access to the diverse opportunity set,” adds Quick.
Minimum investment is $100,000 or euros, or the sterling equivalent. The share class is US dollars, but the fund is hedged available in sterling and euros.
With a monthly-subscription, the fund has a notice period of 100 days and is priced monthly. It is Cayman-domiciled and listed on the Cayman Islands Stock Exchange. The management fee is 1.5%, while a performance fee of 10% with high watermark also applies.
