Star emerging markets fund manager Mark Mobius is launching a specialist Africa fund, offering UK investors exposure to the nation's economic growth, rising demand for natural resources, and growing consumer market.
Mr Mobius said: ?Africa is expected to grow more than 7pc annually in the next 20 years, due to an improving investment environment, better economic management and developed as well as emerging markets rising demand for the continent?s resources, all of which offers a compelling proposition to global investors."
?Liquidity is relatively weak in Africa, and we wait to see how Mr Mobius plans to address this, given that he has opted to use an open-ended vehicle ? which permits flows in and out ? rather than using an investment trust structure which doesn?t have the same problems.?
The JP Morgan Africa Equity fund has returned an impressive 88pc in the past three years, although the last 12 months have been less reliable, with investors losing 8pc since April 2011. Neptune Africa was launched in August 2010 and has returned 15.8pc in the last six months alone.
But it is a volatile market, and one that it is too specialist for most investors according to wealth manager Philippa Gee.
?For most investors this region is simply not relevant. Yes, people are naturally interested in potential return and diversification but actually the major concern for most, in the current economic environment, is risk.
"I do see the argument that this type of investment might represent protection in one way from the vagaries of Europe and in so doing represents a potentially lower risk, but the potential flaws cannot be ignored,? she said.
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