Pan-African Products

In what is often referred to as the emerging market century, Africa can truly be considered the last great emerging market.

Consider that the African continent, the second largest in the world covering 20 percent of landmass, is home to approximately 15 percent of the world's population, and that its GDP is higher than that of India and similar to both Russia and Brazil. By 2050 1 in 5 people in the world are expected to live in Africa, and by 2030 50 percent of Africa's inhabitants are expected to live in urban areas. Increasing rates of urbanisation, labour force growth and higher productivity are leading to improved economic fundamentals, with 2010 being the 16th consecutive year of GDP growth across the continent. Africa, in short, is a compelling emerging investment story with a sustainable growth trajectory.

African Alliance's pan-African products are designed to provide investors with direct access to the emerging Africa opportunity. Backed by an experienced on-the-ground pan-Africa investment team, these investment products represent a unique opportunity to capitalise on the growth of the emerging African consumer in a structured and risk focused manner.

 


 

Africa Pioneer Fund

The growth of African securities markets, and the informational inefficiency and frequent mispricing of such markets, offers substantial opportunities for global investors given that securities are often available at significant discounts to intrinsic value.

The African Alliance Africa Pioneer Fund is an actively managed valuation-based fund which targets opportunities amongst primary-listed securities on the African continent, ex South Africa. The portfolio management team practices research-intensive analysis and employs this discipline through various market cycles. For equities this is bottom-up, fundamental security selection, combined with macro-economic and political analysis, which is also used for fixed income and currency views. Portfolio construction is primarily opportunity based within a macro risk management framework, with no closet indexing. Frequent travel across the continent, meeting companies and management on-the-ground, is a core requirement given the emerging nature of these markets.

The investment objective of the Africa Pioneer Fund is to maximise risk-adjusted US dollar returns by investing in securities trading at a substantial discount to their intrinsic value. Since its inception in June 2007 the fund has substantially outperformed the closest independent measure of its investable universe, which is currently comprised of approximately 300 stocks representing US$ 200 billion in market capitalisation.

 

For more information on the African Alliance Africa Pioneer Fund or other pan-African products please contact:

Nicholas Piquito

Head of Africa Funds

+27 11 214 8303

pioneer@africanalliance.com