Cordros US Dollar Fund Yields 6.22%
Cordros US dollar fund year-to-date return cleared at 6.22% in October 2023. The US dollar asset underperformed by 0.16% month on month, though ahead of the coupon benchmark of 6.13%.
The fact sheet released by Cordros Capital showed that the net asset value of the fund printed at $10.81 million as of October with a unit price of $113.37.
As part of the firm’s investment strategy, fund managers took particular interest in corporate Eurobond which accounted for 52.39% of the total fund allocation.
This was trailed by interest in sovereign Eurobond that attracted 39.44% of the fund assets. Interest in the money market and cash was minuscule for an investment philosophy that focuses on medium and long-term value creation and wealth protection for US dollar investors.
Cordros Capital fund manager said in the fact sheet that spillover risk-off sentiment that followed the US Fed ‘hike for longer’ speech from September and the impacts of Middle East tension in the global space spurred selloffs in October.
Fund managers however noted that the trend was upturned by contained risk in Israel-Hamas conflicts, most importantly, the US Fed hinted on end to a hawkish monetary policy regime that triggered rallies in Sun-Saharan African curves.
The fund managers said they will be looking to rebalance portfolios given the recent development in the markets while investing at attractive yields, and high-yielding instruments to maximise returns. Futureview US Dollar Fund Return Hits 7.42%