JPM Africa Equity added to Länsförsäkringar platform in Sweden
Swedish insurer Länsörsäkringar has added the JPM Africa Equity fund to its platform of funds available to Swedish retail investors.
Investors in the fund are heavily exposed to mining and resources companies, as well as frontier markets in addition to emerging markets such as South Africa, Morocco and Egypt. The fund is benchmarked against the MSCI Emerging and Frontier Markets Africa Index.
Consequently Länsörsäkringar grades the fund as a ‘7′ for risk, the highest in its range of 1-7 used to illustrate risk to clients. The tracking error is published as 6.67%, with standard deviation of 14.71%. Morningstar Sweden has given the fund four stars.
The so-called Norman sum is calculated as SEK16,050. This is the forecast difference over 10 years between the return an investor could expect if no costs were taken out as against what they would get when costs such as a management fees are included. It is based on an assumption the investor would save SEK1,000 per month over the period, and is named after current Swedish Financial Markets minister Peter Norman, who first proposed the comparison for the domestic funds industry to improve transparency around the effects of management fees on returns.
The Länsörsäkringar platform allows direct fund investments, as well as those done via insurance products, and as part of the allocation to funds allowed under the Swedish PPM (Premium Pension) system.