Barak posts near 8% for H1

The Barak Structured Trade Finance Fund added a strong 7.8% in the first half, following a net 14.9% gain in the first 11 months of 2009 (or an annualised 16.25%).

The fund, a market-neutral portfolio providing asset-backed debt in agricultural trade finance transactions across Africa, has an unbroken track record of positive returns, launching in February 2009.

Managed by Mauritius-based Barak Fund Management, the fund is advised by Jean Craven and Prieur Du Plessis at Applied Fund Managers in Johannesburg. Both accountants, they each have more than a decade’s experience trading soft commodities in Africa and were previously on the commodities trading and finance desk at Standard Bank.

There are currently 76 transactions on the book. South Africa, Uganda and Zimbabwe are the main areas of exposure by country, including lesser allocations to Mauritius and Botswana. By commodity, wheat and white maize are the main asset allocations, as well as rice and coffee.

The Cayman-domiciled fund is listed on the Irish Stock Exchange. Now at $12 million, it has initial capacity for $100 million.

Du Plessis says maize prices in the region remain under pressure, with demand for short-term trade finance ever increasing. With the successful completion of the World Cup, Barak feels positive that investors will look more favourably at investment opportunities in Africa. CopyrightHedgeNews Africa. July 2010.