STEPHEN CRANSTON: Africa still a hard sell
Allan Gray accepts that there have been more false dawns in Nigeria than just about any other country
Africa represents the next frontier of untapped investment opportunity. That was a Coronation marketing blurb five years ago — a contrarian signal perhaps, as leading funds have struggled to make much money from the continent.
For example, the Allan Gray Africa ex-SA Equity Fund is down 6% a year over that time, with a decline of nearly 17% in just the past 12 months. The Rudiarius Africa Equity Fund, from a specialised Africa boutique, has contracted 1.3% a year over five years. Investec and Stanlib have scaled down their Africa teams significantly and even the African Alliance Africa Pioneer Fund, an early entry, has been closed.