Nedbank Considering Fixed-Income Funds in Mauritius, East AfricaAndres R. Martinez
Nedbank Group Ltd. is considering starting fixed-income funds in Mauritius and East Africa similar to ones it runs with parent Old Mutual Plc in Namibia.
The funds would hold securities with a maturity of less than 2.5 years and may hold as much as $250 million to $300 million, Kevin Whitfield, head of African treasuries at Nedbank Capital, said today in an interview in Marrakech, Morocco. Nedbank will decide whether to open the fund in Mauritius by the end of the year and by early 2014 for East Africa, he said.
“We’re considering looking at East africa and Mauritius,” he said. “This is based on our experiences in Namibia, which is managed in partnership by Old Mutual and supported by Nedbank. We are looking to extend that model.”
The fund would aim to draw investors with dollars and euros that want higher returns for short-term investments than those offered by local banks. The goal would be returns of 1 percentage point to 1.5 percentage point above deposit rates in those markets, he said.