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Neptune bases new fund on South Africa

Neptune Investment Management has launched an Africa fund which will have at least half of its portfolio invested in South African equities.

The Africa fund is managed by Shelley Kuhn and aims to generate capital growth by investing in securities of companies which are either listed in Africa or are listed elsewhere but get a significant proportion of their business on the African continent.

Apart from South Africa, the fund also has weightings in Egypt, Nigeria and Kenya. It can invest across a wide range of African countries but will always have a minimum of 50 per cent invested in South African equities.

Neptune says the size and liquidity of the South African market offers investors less volatility than a fund focused on subSaharan and North Africa.

Deputy managing director Richard Green says the fund is likely to attract investors who want to diversify their portfolio overseas and invest in economies with significant growth potential.

Kuhn rejoined Neptune in April, having taken seven months off to travel through Africa. She is based in South Africa.

Skerritt Consultants head of investments Andrew Merricks says: “We would look at Africa as the likes of Investec and Fidelity have shown there is promise in investing in the market. Investors must tread carefully as there are concerns over liquidity.”

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