In today's world, funds and other financial institutions play a vital role in encouraging better corporate governance practices (CGPs) in companies. Funds recognise that good CGPs in their portfolio companies are not only important from a risk management perspective but can lead to greater investment returns in the long-run. Hence, investors are increasingly focussed on the adoption, implementation and ongoing effectiveness of CGPs in their portfolio companies. In this article, we explore exactly why good CGPs in portfolio companies (regardless of their size) are a growing priority for funds:
National Treasury released its second draft amendments to Regulation 28 of the Pension Funds Act on 2 November 2021. The purpose of the second draft is to respond to comments from the market, following the release of the first draft amendments in February 2021.
When most people think of investing, the first thing to come to mind is usually your traditional asset classes like stocks and bonds or even interest on cash savings. After all, these make up the bulk of virtually every investment portfolio domestically.
A South African private equity firm is using environmental, social and governance (ESG) factors as a critical deal filter, applying the ESG lens from the very start of the transaction through to ongoing management practices and eventual sale.
In July 2018, I published an article entitled, “Now might be the time to invest in African agtech”. It’s a good feeling to see my own optimism reflected in the market. At the time of writing, there was a surge in agtech (agriculture technology) ventures in Africa, which still tallied at a humble 82 start-ups. Funding in agtech had also increased 121% in the period between 2016 and 2017 (these figures were taken from a 2018 Disrupt Africa Report).
Innovation is a life force, catalyzing economies and accelerating humanity. However, the single most important challenge facing humanity today is how one understands and harnesses this disruptive innovation.
To avert catastrophic food insecurity and other major climate change impacts, the African continent must work towards reaching the United Nation's Sustainability Development Goals. However, this is currently a challenge for emerging markets. According to the United Nations Conference on Trade and Development (UNCTD), there is a $2.5trn funding gap across the developing world to reach the goals.
Agriculture is known to be a large contributor to the African economy, employing half of its population. That is why it is one of the key focus areas of the African Development Bank. Agriculture also ignites the imagination of financial institutions around the world. Very importantly, in this neo-SFDR world, farmers also have “green fingers”, and to twist this analogy, much of the industry falls into the remit of impact investing and/or green financing.
While many investors may associate multi-asset funds with the higher-risk balanced funds, which can hold up to 75% in equities, there are also multi-asset funds with more moderate risk profiles and a lower allocation to equities. These funds offer a dynamic solution to changing market conditions, while remaining aligned to the stated fund objective.
Africa has long been known for its youthful population, and while the continent will continue to have the largest youth cohort in the world, they’ll live longer than their forebearers, according to the latest Bright Africa pensions research from RisCura, a global investment firm.
Like many other industries around the world, the Coronavirus pandemic has had a significant impact on our asset management industry, accelerating some of the existing trends already in motion and introducing new challenges to business models and technological capabilities, as well as very interesting opportunities. Among these have been: the rapid implementation of advanced technologies; provision of enhanced communications and client services in a virtual environment; greater globalisation leading to more competition; and the increasing importance of environmental, social and governance (ESG) issues. Although many local managers like Prudential have navigated the crisis very successfully, it has shown us that going forward we will need to be more adaptable than ever. This, while also maintaining a stable company culture and operational base, and delivering consistently excellent client services and investment returns.
Well-known for its unique fauna and tropical climate, Madagascar is an enchanting travel destination for any visitor. Most would agree there is nowhere else on the planet with the sheer wealth of natural resources like one will find in Madagascar.
Over the last two decades, many companies have delisted from the JSE. In its 1988 peak, it had 754 companies listed, which was down to 274 at the end of 2020, with no slowdown in sight.
From 2000 to 2015, Africa saw $836bn leave its shores through transfers. This capital flight is a tragic outcome, particularly given the extraordinary need for capital investment across the continent, and I contend, the compelling investment opportunity that Africa in many ways represents. During this period, Africa went from the hopeless to the hopeful continent, and back again, hamstringing long-term investment commitments.