Investec Asset Management is to consolidate its Africa and Middle East range in a move that will see two funds merged and another wound down.
The firm is merging its offshore £11.6m Investec GSF Africa and Middle East fund and £11.6m Investec GSF Middle East and North Africa fund into the £50.2m Investec Africa opportunities fund on June 15. The UKdomiciled £14.4m Investec Africa Middle East fund will be wound down by July 2, with investors offered the opportunity to transfer into the Investec Africa opportunities fund.
Meanwhile, JP Morgan has reopened its Africa equity fund to new investors following its soft closure in 2010. It softclosed the Africa equity fund in
November 2010 to new investors after the assets rose from $277m in September to $463m. Current assets under management in the fund are £232m ($377m).
Client portfolio manager Claire Peck says: “We looked at a number of different metrics when we soft-closed it. These included percentage ownership of stocks and average trading volumes. In January, the team got to the point where we were comfortable with these to open the fund to new investors.”
Chelsea Financial Services managing director Darius McDermott says: “It is likely JP Morgan thinks liquidity has increased in Africa and it is in a position to take new money. However, investing in Africa is still niche.”