15th September 2022
Own Correspondent
MCB Investment Management Co. Ltd a Mauritius based public company has introduced ADBF, by way of a secondary listing, on the Exchange Traded Funds Board of the Botswana Stock Exchange(BSE).
ADBF is a foreign debt securities CIS structured as an Exchange Traded Fund (“ETF”),which aims to track in a cost-efficient manner by investing principally in the sovereign bonds of African countries. ADBF’s total return as at 29 July 2022 is 30.8% (in USD)
ADBF strategically does not invest in all the bonds but seeks to achieve its investment objective by employing a “stratified sampling” approach to match the Index’s characteristics and returns by investing in a well-diversified portfolio that represents the Index.
The Manager endeavors to invest only in the most liquid maturities in each market and adopts an enhanced strategy which allows it to deviate on its country weightings by up to 5% from the Index allocations to optimise on liquidity and ensure a smooth operation of the Fund.
ADBF is in receipt of authorisation in terms of Regulations 54 to 57 of the Collective Investment Undertaking Regulations CAP 56:09 of the Laws of Botswana to market its units in Botswana, from the Non-Bank Financial Institutions Regulatory Authority of Botswana (NBFIRA) dated 27 October 2021, and has received authorisation in terms of the requirements to market its units to the public in Botswana, by NBFIRA, the Regulatory Authority of Botswana, ADBF is not supervised or licensed in Botswana. ADBF is regulated by the Financial Services Commission of Mauritius.
The Participating Shares of ADBF (“Participating Shares”) are primary listed on the Official Market of the Stock Exchange of Mauritius (“SEM”) since 18 September 2018. The Participating Shares are traded in US Dollar on the SEM. ADBF has to date received approval for the listing of up to 10,000,000 Participating Shares on the SEM.
The Participating Shares are due to be admitted for a secondary listing on the Botswana Stock Exchange Limited (BSE) with effect from the commencement of trading on the 15th of September 2022. NBFIRA has granted the Participating Shares the designation of “local asset status” on 27 October 2021. The Participating Shares will be trading in Botswana Pula on the BSE.
