F&P Analytics
Company Overview
F&P Analytics is a capital markets service provider specializing in the development and management of indices across multiple asset classes, as well as the valuation of private and unlisted market instruments in Africa.
F&P Analytics management has been responsible for the management of the FABI (Fleming Aggregate Bond Index) series, a leading fixed income market barometer in Botswana which was established in 2003.
Mission
To enhance financial markets with reliable benchmarks and pricing solutions covering private and illiquid markets, enabling investors to achieve their financial objectives with confidence.
Our expertise lies in developing robust, transparent, and high-quality benchmark indices across various asset classes, including equities, fixed income, and alternative investments. These indices serve as essential tools for performance measurement and investment decision-making.
We provide timely, and independent pricing and valuation services for a wide array of private and illiquid financial instruments. Our services empower asset managers, institutional investors, and other market participants to make informed decisions.
Vision
With a commitment to transparency, integrity, and innovation, F&P Analytics aims to be a trusted partner in the evolving financial markets landscape in Africa, through Data, Insight, and Solutions.
Key features of FABI
Processes that ensure accurate, timely, and reliable data delivery supported by a dedicated team of experts
No local fund manager representatives are involved in the index calculations
the index methodology statement has been availed and accessible to index subscribers on the website
- The index methodology follows the South African bond pricing conventions (Bond Exchange of South Africa, BESA) to the extent that is applicable to Botswana
- The technique involves the derivation of a risk-free yield curve from the Bank of Botswana reported daily best bid and offer yields, incorporating all the Botswana government bonds and T-Bills in issuance
- Index reconstitution (rebalancing) is conducted within two months
- Corporate and parastatal bonds are priced by application of credit spreads at which the bonds were originally issued compared to risk-free yield curve
- This is in acknowledgment of the underdeveloped nature of the local bond market, lacking price discovery as a result of limited trading and illiquidity
- Credit spread adjustments are only considered when a bond trades at a materially different price on the exchange, which has been lacking in Botswana
the index and bond prices are calculated daily (overnight), as opposed to a one-day lag. This is in place to support the market participants’ needs to trade and report valuations on a more timely basis.
there have been no calculation errors in the past eight years