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AGF Magazine - April 2019 issue

  • In a region where only a minority of the population has access to a bank account and SMEs struggle to get financial help from traditional banks, Albert Alsina, CEO and Founder of Mediterrania Capital Partners, explains how the PE industry is becoming a catalyst for the African Fintech ecosystem’s development, enabling large-scale banking and supporting entrepreneurs and SMEs in their expansion plans (pp. 10-12).
  • In this month’s issue of Africa Global Funds, we also caught up with Kenneth Kaniu, Britam Asset Managers CEO, to learn about their anchor investment in Tiserin Capital, and the needs and constraints of institutional investors in Kenya and East Africa (pp. 14-15).
  • On the infrastructure front, we hear from Moritz Breickmann, Investment Director at African Infrastructure Investment Managers (AIIM) who showcases some successful airport redevelopments in Africa. Read on to find why airport infrastructure projects on the continent can provide attractive long term returns to investors (p.17).
  • In this month’s issue we also learn that the FTIF Templeton Africa Fund was merged into the FTIF Templeton Frontier Markets Fund. We speak with Ahmed Awny and David Haglund about the Fund and its African investments (p.16).
  • Finally, Rob Childs, Head of International for Prescient Fund Services shares his views on the global distribution challenges facing African fund managers and why the firm decided to domicile their offshore fund range in Ireland (p. 22).
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News > Funds > Markets and Industry News

Azimut enters Egyptian asset management industry

Anna Lyudvig
Jan. 10, 2019, 8:49 p.m.
892

Word count: 443

Azimut Group, Italy’s independent asset manager, has agreed to acquire 100% of Rasmala Egypt Asset Management from Rasmala Group, an independent alternative asset management group. 

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Azimut Group, Italy’s independent asset manager, has agreed to acquire 100% of Rasmala Egypt Asset Management from Rasmala Group, an independent alternative asset management group. 

Following completion, Rasmala Egypt will be renamed Azimut Egypt Asset Management.

Rasmala Egypt, founded in 1997, specializes on conventional and Shariah compliant portfolio management in Egypt with AUM of EGP 8.46bn ($474m) as of November 2018, with a strong expertise in equity strategies (85% of total AUM). 

The Company has a high quality team of portfolio managers and analysts, headed by Ahmed Abou El Saad out of Cairo, with 10 investment professionals managing a range of strategies embedded in public funds and mandates for local Sovereign institutions, international Sovereign Wealth Funds, pension plans, public banks and HNWI. 

The team’s track record includes periods of extended instability and volatility for local markets with an overall 624% accumulated returns over the period 2005-June 2018 in local currency, well above 537% for EGX 30 and 324% on average for local funds.

Azimut believes Egypt will be a significant opportunity for global asset management companies due to: (i) fast growing demographics (60% of the population below 30 years old) and upside from a relatively low level of urbanization (45% of population living in cities); (ii) one of the highest GDP-PPP adjusted per capita in the EM complex excluding energy/commodity exporters countries ($13,000 with upside potential if compared with Brazil and Turkey); (iii) relatively low market capitalization of the economy (in 2017 equity market representing almost for 25% of GDP vs. 30% in Turkey, 48% in Brazil). 

High inflation – currently at 17.7% – remains a key challenge for the economy, but delivery of the economic reforms are expected to provide further support for declining interest rates and underpinning the macro outlook for growth in the local asset management industry. 

The mutual funds industry currently accounts for a mere 1% of total GDP with more than 90% of total AuM invested in money market / fixed income strategies.

Pietro Giuliani, Chairman of Azimut Holding, said: “The investment in Egypt confirms our commitment in expanding our MENA and Turkey regional footprint which will see Azimut as the first global asset manager with investment teams on the ground in Dubai, Cairo and Istanbul with an oversight on markets which we expect to attract significant interest from global investors.” 

“This investment will also enable Azimut to capitalize on its integrated financial advisory model in a sizeable retail market carrying exciting prospects in the medium term. It marks the first move of the Group in Africa, a vast region offering unique untapped opportunities for product management and distribution expansion,” he added.

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