The listed property/Real Estate Investment Trust (REITs) market has been tumultuous these past few years, with the onset of Covid-19 adding to the sector's challenges. For an extended time before that, listed property shares were the best performing asset class on the Johannesburg Stock Exchange (JSE), paying consistently high dividends and enjoying strong capital appreciation.
In the last ten years there has been a wide variance in investment returns across regions. The US and to a lesser extent other developed markets have delivered strong returns while emerging markets have lagged. Many African markets have fared even significantly worse than other emerging and frontier markets. While US equities rose more than 350% in ten years, the investment return for Ghanaian equities was even negative in USD terms.
There is a strong business case for venture capital (VC) investing in South Africa, not least because of the opportunity it presents for positive social and economic impact. This was discussed extensively by a number of key industry players at the Southern African Venture Capital and Private Equity Association (SAVCA) VC Conference 2021 held in Cape Town last week.
It is not a revelation that many African economies remain heavily reliant on commodities exports. But just how closely African frontier equities markets’ performance (in USD terms) generally correlates with the global level of commodities prices is somewhat surprising. That’s because the equity market indices of sub-Saharan African frontier markets are completely dominated by domestically focussed sectors, such as financials and telecoms.
Kingsley Williams, Chief Investment Officer of Satrix, looks into whether South Africa has been left behind in the global adoption of indexation
Several East African states have become the focus of attention for international investors. Economic growth in the region was around 6% in 2019 and is expected to be around 1-2% in the Corona year 2020. Real estate offers foreign investors good market access and enables them to increase yields and diversify risks
SAVCA’s 2020 private equity survey, which reports on data for the 2019 period, reveals that while there has been an increase in women and black investment professionals within the Private Equity (PE) space over the past few years, there is room for further growth and improvement. As at December 31, 2019, 28% of all investment professionals were female and 43% were black. When looking at fund manager ownership, the numbers start to shrink; only 9% of fund managers are female-owned whilst a growing number – currently 38% – are black-owned.
Tim Staermose, CEO of ST Funds Management, explores how you can be defensive with your investments at this uncertain time, yet still invest in fast-growing companies poised for significant stock price gains
Africa’s economic growth could rebound in 2021, provided that governments manage the COVID-19 infection rate well, according to updated forecasts from the African Development Bank (AfDB).
The total wealth held in Africa rose by a modest 14% over the past 10 years (2008-2018) with three of the largest economies on the continent, South Africa, Egypt and Nigeria performing poorly on most economic indicators according to the AfrAsia Africa Wealth Report 2019, released by Mauritius based AfrAsia Bank. The total wealth refers to private wealth held by all the individuals living in each country and includes all assets (property, cash, equities, business interests) less any liabilities.
After a strong growth in 2017 and early 2018, the global economy is losing momentum and expected to slow down from 3.6% in 2018 to 3.3% in 2019 before returning to 3.6% in 2020. This slowdown is attributable to a confluence of factors affecting major economies. The factors weighing down on growth prospects include, the elevated trade tensions between the United States and China, the natural disasters in Japan, the introduction of automobile fuel emissions standards in Germany, the tariff increases enacted in the United States and China earlier this year, the sovereign and financial risks in Italy, the weakening financial market sentiment as well as the deeper-than-envisaged contraction in Turkey.
The “Belt and Road Initiative” is a future-oriented initiative that will bring many benefits to global economic development and people. Chinese Ambassador to Kenya Wu Peng recently said that the cooperation between China and Kenya has deepened political trust, expanded economic and trade cooperation, and promoted the continuous development of the cooperative partnership.
RisCura has launched a delegated investment solution for smaller pension funds in South Africa. David Potgieter, Head of Delegated Investment at RisCura, says that the new Delegated Investment service is aimed at reducing the burden of cost and administration as well as time constraints faced by many trustees.