OMGI launches Pan-African fund
Old Mutual Global Investors has announced the launch of the Old Mutual Pan African Fund.
The fund will be managed by Cavan Osborne, supported by Peter Linley, of Old Mutual Investment Group (Pty) Limited, a South African partner company of Old Mutual Global Investors.
Osborne and Linley are part of a 17 strong team based in Cape Town. This team includes 12 analysts, all of whom are either country or sector specialists. Osborne was named Best African Fund Manager by African Investor in September 2014 for his management of Old Mutual Investment Group’s existing African capabilities which are available for South African investors.
The existing Old Mutual Pan African Fund has $11.75m AUM (as at 30 September 2014) and has delivered annualised US$ net returns of 13.4% over the past three years.
The fund, which is suitable for clients looking to invest over a five to seven year period, aims for long-term capital growth by investing in companies that benefit from economic developments and growth across the African continent.
This includes those listed on regulated African stock markets and other global markets, where more than 50% of their revenue or profit comes from Africa. The Fund will invest in approximately 30 to 40 stocks and will be seeded with $50m.
Cavan Osborne, comments on the opportunities for investors in the new fund: “We believe that now is an excellent time for investors with a slightly higher appetite for risk to invest in Africa. The continent provides a diverse range of investment opportunities and is currently going through a massive growth period with economic forecasts suggesting there are good returns to be had over the next few years.
“At Old Mutual Investment Group our focus is to identify those companies that we believe will benefit from growth in Africa, building a diverse investment portfolio that will deliver long-term capital growth for investors.”
Julian Ide, CEO, Old Mutual Global Investors adds: “This is an exciting development for Old Mutual Global Investors as it is the first time that we have collaborated with our colleagues in South Africa to launch a fund for a global client base.
“We are committed to ensuring our fund range offers a variety of asset classes and approaches for clients. We believe that there are excellent investment opportunities to be found within Africa and our new Fund will offer clients access to the top talent in the industry.”