Africa Funds

planteria

i have received a letter today to tell me that the JM Finn Africa Fund is to be closed as "the sub-fund is currently uneconomic".

i had selected this fund for my SIPP on the basis that I think Africa has huge potential for the long-term, and also that this fund had significant exposure to Sub-Saharan Africa, including Nigeria, Ghana etc. aswell as the expected exposure to South Africa.

anyone else in the same boat? anyone any ideas about alternative funds for exposure to 'black Africa'?

dunstonh

Most of the African investments that had the same idea about good potential have gone on to close. So, its no surprise to see another fail. Perhaps Africa is "too" emerging markets in it's current state.

jimjames

Check out the Fidelity EEMEA fund and see if that would meet your requirements

Reaper

You could also look at Frontier funds which invest in Africa and other places. For example (not a recommendation) the AIM listed Advance Frontier Markets Fund is currently invested 38% in Africa, though from a quick glance it does seem to be a bit of a "fund of funds".

JoeCrystal

dunstonh wrote: »

Most of the African investments that had the same idea about good potential have gone on to close. So, its no surprise to see another fail. Perhaps Africa is "too" emerging markets in it's current state.

Is that so? I am starting to wonder if the Neptune Africa Fund might close as well? Should it closes, what happened? Does it pay out the assets or something? Bit clueless here.

Cheers,
Joe

bigadaj

There's huge potential in Africa but very difficult to access directly. I prefer the option of Investing in western companies that will benefit indirectly. Business I still very difficult in most countries, South Africa to me is a good way in.

vectistim

HL gives you essentially five options: (a quick scan indicates they seem to have quite heavy weightings towards South Africa and banks)
Charlemagne Magna Africa B (Accumulation)
JPM Africa Equity (GBP) (Income)
JPM Emerging Europe Middle East & Africa A USD (Income)
JPM Emerging Europe Middle East & Africa A USD (Accumulation)
Neptune Africa Fund (Accumulation)
Renaissance Pan African (Accumulation)

planteria

dunstonh wrote: »

Most of the African investments that had the same idea about good potential have gone on to close. So, its no surprise to see another fail. Perhaps Africa is "too" emerging markets in it's current state.

an interesting point dunston, and i understand. there are a lot of challenges, that is clear. but, long-term, i think an astute fund manager ought to be able to make some good money. best options?

planteria

Reaper wrote: »

You could also look at Frontier funds which invest in Africa and other places. For example (not a recommendation) the AIM listed Advance Frontier Markets Fund is currently invested 38% in Africa, though from a quick glance it does seem to be a bit of a "fund of funds".

yes, thanks Reaper. that isn't really what i am looking for, and i already have Asian, Latin American and Greater Russia exposure in my SIPP. appreciate the idea though.

planteria

JoeCrystal wrote: »

Is that so? I am starting to wonder if the Neptune Africa Fund might close as well? Should it closes, what happened? Does it pay out the assets or something? Bit clueless here.

Cheers,
Joe

yes. the fund is wound up in that situation, and a cash payment returned to investors. that is what is happening to the JM Finn fund.

planteria

bigadaj wrote: »

There's huge potential in Africa but very difficult to access directly. I prefer the option of Investing in western companies that will benefit indirectly. Business I still very difficult in most countries, South Africa to me is a good way in.

that is my frustration. lots of funds are very overweight South Africa (within their Africa exposure) as it is easy. Nigeria and Ghana, for examples, however, have massive growth, without the politics, unions and strikes.