Kgori Capital has officially launched its US Dollar money market fund after allowing it to operate quietly for two years to build a performance record.
The fund, launched at a time when the future of the US dollar as the world’s dominant reserve currency is being questioned more seriously than at any point in recent memory, has grown to $10.3 million in assets under management—equivalent to over P130 million.
Speaking during the launch, Managing Director Sharifa Noor said the firm deliberately withheld a public launch until the product could demonstrate results rather than projections.
“We chose not to launch this fund on day one because, as prudent investment managers, we believe we should celebrate what has been tested and proven, not merely what we aspire to achieve,” Noor said.
She said the fund is targeted at three main groups: private investors looking to hedge against currency risk; companies with US dollar cash balances seeking returns; and pension funds adjusting their portfolios in line with PFR2 requirements—a pension fund rule that governs how local pension funds invest their assets, manage risks, and diversify their portfolios to protect retirees’ savings.
Speaking on growing discussions around de-dollarisation, Kgori Capital’s investment analyst, Kitso Mokhurutshe, noted that he believes the chances of the US dollar losing its position as the world’s reserve currency are low, rating the possibility at three out of ten.
“De-dollarisation is happening,” he acknowledged, but added that losing reserve currency status is very different and would not happen quickly. “That is something that cannot happen overnight. It takes decades and decades to establish yourself as the global reserve currency.”
However, Mokhurutshe said a prolonged period of dollar weakness would likely benefit emerging markets, including Botswana’s neighbours. “A weaker dollar tends to support EM markets because it allows capital to flow towards EM markets,” he said, citing South Africa’s recent equity market performance and rising gold prices as examples of assets that stand to gain.
“Just as Kgori Capital itself has been tested and continues to stand firm, this fund too has proven itself through performance, consistency, and discipline,” Noor concluded.
