Fixed Income

We can offer a range of services in the fixed income area. We have listed below a few services we can offer and described it in details.

Executive Summary

Enko Africa Debt Fund (EADF), one of the first of its kind, will invest solely in fixed income securities of both listed and unlisted entities in Africa, including corporate, sovereign and supranational.
Founders Alain And Cyrille Nkontchou have over 50 years of combined experience investing and trading in Africa and developed markets, supported by an extensive regional network of strategic alliances.
Enko ADF is being formed by Enko Capital Management to provide investors with exposure to Africa’s relatively high fixed income yield, with a targeted fund size of US$ 500 Million and an expected return of 6-month LIBOR + 10%.

The Opportunity

A strong case for continuous economic growth over the medium term, with diversification away from natural resources and government.
Economic Growth: over the next 3 years, 7 out of the 10 fastest growing economies in the world will be in Africa (Sources: IMF, The Economist).
Expanding Consumer Market: By 2020, there will be 200 million Africans with discretionary spending power (GDP per capita > US$5k). (Source: McKinsey).
Resources Potential and Infrastructure Investments: Rapid urbanisation, increased resources discovery (Africa has 60% of world natural resources ), are leading to higher infrastructure investment.
New Green Revolution: Africa has 60% of the world’s arable land and competitive labour cost, yet has shown no significant improvement in agricultural yield for the past 60 years (Source: Syngenta Foundation).
Demographic dividend: Half of the continent’s 1 billion people of working age (15- 45 years old ) and there is ample room for increased productivity growth.
More Spending on Education: 20% of Government spending is invested on education with room for growth ( source Mckinsey ).
Conclusion: Stronger economic growth ahead will be supported by a deeper and larger debt market!

Investment Rationale:

To offer fixed income and credit as an alternative asset class within the African markets.
To capture broad, pan-African fixed income returns in US Dollars.
To deliver higher investment returns, versus historically low yields on developed market debts, which are likely to persist with subdued inflationary pressures.
To provide investment diversification as sovereign bonds in developed markets are offering negative real yield and any tightening of monetary policy in developed markets will be slow and gradual.
To leverage on a favourable structural macro economic background.
To offer an opportunity to diversify exposure away from traditional fixed income investment funds.

Products

Enko Africa Debt Fund will invest in high-yielding fixed income securities across African markets namely:

Local currency sovereign and corporate debt
US Dollar- and Euro-denominated fixed income securities
Short term, liquid debt, CDs, FX forwards and Repos
Structured debt
Collateralized short term debt/loans
Convertible debt
Floating-rate notes
Yield curve carry trade

Team

Alain Nkontchou

Alain is the Chief Executive Officer and Managing Director, located in the London office. His responsibilities include overseeing the firm, managing Enko’s client relationships, and investment decision-making. Alain was previously a Managing Director for Global Macro Trading within the Proprietary Trading Group of Credit-Suisse in London, a group he joined in 2005 from JP Morgan, where he had held the same position since 2002.

From 2001 until 2002, Alain was a Portfolio Manager at BlueCrest Capital Management, and prior to that, he spent twelve years with JP Morgan (Chemical Bank). Alain has traded fixed income, currencies, commodities and stock indices over his 20+ years of experience. Since 1999 he has been a board member of Laurent-Perrier, a leading champagne company listed on the Paris Stock Exchange. Alain holds an MSc in Electrical Engineering from Ecole Supérieure d’Electricité in Paris and an MSc from Ecole Supérieure de Commerce in Paris.

Edwin Mushambi

Edwin is the middle office manager of the fund. He is responsible for managing the business aspects of the fund including controlling daily operations, reporting of the fund’s performance and performing risk management tasks. He has extensive experience in trading, equity analysis and operations which he gathered from his prior experience with reputable institutions in the Stock broking and Investment Banking space. Prior to joining Enko, Edwin worked for Interfin Merchant Bank as a Treasury Dealer and Interfin Stockbroking as an Equity Analyst. He holds a B.Com Honours Degree in Finance from the National University of Science and Technology (NUST) and is a CFA Level II Candidate.

Tendai Sakaike

Tendai is an Equity Research Analyst working from the Johannesburg Office. He joined Enko as intern in 2010, and is responsible for investment recommendations, portfolio reporting and monitoring and he sits on the Investment Committee. Tendai holds a BA (Honours) Degree in Business and International Finance from Oxford Brookes University (UK), and is a 2015 Level II CFA candidate.