FMG Africa Fund
Africa is the last sizeable and investable virgin territory available to investors. The continent is rich in natural resources and in addition, the continent comprises 20% of the world’s land mass. It also has a young, growing population of over one billion. The African stock markets are small but growing fast. Companies are under researched and markets show very little correlation but investors are showing increased appetite for this final frontier.
Africa at a glance
• An abundance of commodities;
• Excellent demographics;
• Declining political risk;
• Low level of sovereign debt;
• Major steps forward in education, health and technology;
• Superior GDP growth.
If you are interested to invest in this fund, either direct or through your Personal Portfolio Bond (PPB), then please Contact Me for further information.
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FMG Africa Update, May 2015
FMG Africa Fund +3.8% in March
When valuations were near multi year lows the FMG Africa Fund deployed the cash buffer back into the market and have since enjoyed rebound. One of our underlying managers commented during a recent call:
“We believe that the Nigerian banking sector is valued as if there is going to be a full blown banking crisis, which is highly unlikely in our view. The fund’s Nigerian banking portfolio offers roughly 100% upside to what we believe are fair values”. - FirstRand Group
The concluded presidential election in Nigeria was the most keenly contested since the return to democratic rule in 1999 and it was the first democratic transfer of power in Nigeria’s history. There was a resurgence of optimism after the election across local financial markets, with the Nigerian Stock Exchange clocking its highest ever one-day gain of +8.3%. We expect Nigerian equities to continue to strengthen on the back of the successful election as sentiment clearly is improving as risk is re-priced.
Source: FMG Africa Fund manager comments, FirstRand Group, Data: MSCI & Bloomberg
April 2015, Data source: FMG
The FMG Africa Fund is a multi-manager fund investing its assets across Africa with a focus on the Sub-Saharan region; an area we believe has the most potential for long term growth. The majority of the Fund’s exposure will be long biased. By combining the alpha generating skills of seasoned managers specializing within the region, the portfolio will be diversified utilizing complementary investment strategies across geographical areas and sectors. Proprietary risk management models, top down fundamental analysis and a disciplined portfolio management process will ensure risk is managed soundly.