Neptune Investment Management today launched an Africa fund which will have at least half of its portfolio invested in South African equities.
Managed by Shelley Kuhn, the Neptune Africa fund aims to generate capital growth by investing in securities of companies which are either listed in Africa or are listed elsewhere but but get a significant proportion of their business on the African continent.
Apart from South Africa, the fund also has larger weightings in Egypt, Nigeria and Kenya. Although the fund can invest across a wide range of African countries, it will have a minimum of 50 per cent invested in South African equities at all time. According to Neptune, the size and liquidity of the South African market offers investors less volatility than a fund focused on sub-Saharan and North Africa.
Richard Green, the deputy managing director, says the new Africa fund is likely to attract investors that are want to diversify their portfolio overseas and invest in economies with significant growth potential.
Kuhn rejoined Neptune in April of this year, having taken seven months off to travel through Africa. She is based in South Africa.