Investment Strategy

ESATF predominantly invests in trade finance, structured trade finance, export finance and project finance or related obligations of companies or other entities (including sovereign entities) located primarily in or having exposure to Eastern and Southern Africa.

The Fund principally enters into long positions in investments, although short positions may be entered into to hedge against a long position in the same, or a comparable, obligor or with respect to a sovereign exposure or for other purposes. Hedging may also be achieved through the use of insurance contracts or credit derivatives.

The Fund’s portfolio construction is designed to mitigate risk through diversification. The Fund’s investments are actively managed in terms of geographic, structure, sector, duration and liquidity risk.

The Fund has the following principal investment objectives:

  • To invest in short duration instruments (with weighted average portfolio life of less than two years)
  • To deliver returns which have very low correlation with returns on other major asset classes
  • To provide unique access to investment opportunities in some of the fastest-growing economies of the world
  • To seek to advance development and social objectives in addition to providing attractive investment returns